Document:

SALE
        AND SERVICING

      

      AGREEMENT

      

      

      between

      

      

      NICE
        CARS FUNDING LLC,

      as
        Purchaser,

      

      and

      

      NICE
        CARS ACCEPTANCE ACQUISITIONCO, INC.,

      as
        Seller,

      

      and

      

      MANCHESTER
        INC.,

      as
        Servicer

      

      and

      

      NICE
        CARS OPERATIONS AQUISITIONCO., INC.

      

      

       

      Dated
        as
        of

      

      September
        28, 2006

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
      TABLE
        OF CONTENTS

    

     

    
      	 	 	 	 	 	
              Page

            
	 	 	 
	
              ARTICLE
                I DEFINITIONS

            	 	
              1

            
	 	
              Section
                1.1.

            	 	
              Definitions

            	 	
              1

            
	 	
              Section
                1.2.

            	 	
              Other
                Definitional Provisions

            	 	
              2

            
	
              ARTICLE
                II CONVEYANCE OF RECEIVABLES

            	 	
              2

            
	 	
              Section
                2.1.

            	 	
              Conveyance
                of Receivables

            	 	
              2

            
	 	
              Section
                2.2.

            	 	
              Payment
                of Purchase Price

            	 	
              5

            
	 	
              Section
                2.3.

            	 	
              Transfers
                Intended as Sales

            	 	
              5

            
	 	
              Section
                2.4.

            	 	
              Further
                Encumbrance of Receivables and Other Conveyed Property

            	 	
              5

            
	 	
              Section
                2.5.

            	 	
              Conveyance
                of All Receivables

            	 	
              6

            
	
              ARTICLE
                III THE RECEIVABLES

            	 	
              6

            
	 	
              Section
                3.1.

            	 	
              Representations
                and Warranties of Seller

            	 	
              6

            
	 	
              Section
                3.2.

            	 	
              Repurchase
                upon Breach

            	 	
              7

            
	 	
              Section
                3.3.

            	 	
              Custody
                of Custodial Documents

            	 	
              8

            
	
              ARTICLE
                IV ADMINISTRATION AND SERVICING OF RECEIVABLES

            	 	
              8

            
	 	
              Section
                4.1.

            	 	
              Duties
                of Servicer

            	 	
              8

            
	 	
              Section
                4.2.

            	 	
              Collection
                of Receivable Payments; Modifications of Receivables; Blocked

              Account
                Agreement.

            	 	
              9

            
	 	
              Section
                4.3.

            	 	
              Realization
                Upon Receivables

            	 	
              9

            
	 	
              Section
                4.4.

            	 	
              Insurance

            	 	
              9

            
	 	
              Section
                4.5.

            	 	
              Maintenance
                of Security Interests in Vehicles

            	 	
              9

            
	 	
              Section
                4.6.

            	 	
              Additional
                Covenants of Servicer

            	 	
              10

            
	 	
              Section
                4.7.

            	 	
              Purchase
                of Receivables Upon Breach of Covenant

            	 	
              11

            
	 	
              Section
                4.8.

            	 	
              Servicing
                Fee

            	 	
              11

            
	 	
              Section
                4.9.

            	 	
              Reports

            	 	
              11

            
	 	
              Section
                4.10.

            	 	
              Annual
                Statement as to Compliance, Notice of Servicer Termination
                Event

            	 	
              12

            
	 	
              Section
                4.11.

            	 	
              Access
                to Certain Documentation and Information Regarding
                Receivables

            	 	
              12

            
	 	
              Section
                4.12.

            	 	
              Retention
                and Termination of Servicer

            	 	
              12

            
	
              ARTICLE
                V THE PURCHASER

            	 	
              12

            
	 	
              Section
                5.1.

            	 	
              Representations
                of Purchaser

            	 	
              12

            
	
              ARTICLE
                VI SELLER, SERVICER AND NCOC

            	 	
              13

            
	 	
              Section
                6.1.

            	 	
              Representations
                of Seller, Servicer and NCOC

            	 	
              13

            
	 	
              Section
                6.2.

            	 	
              Additional
                Covenants

            	 	
              17

            
	 	
              Section
                6.3.

            	 	
              Liability
                of Seller, Servicer and NCOC; Indemnities

            	 	
              18

            
	 	
              Section
                6.4.

            	 	
              Delegation
                of Duties

            	 	
              19

            
	
               

            	
              Section
                6.5.

            	 	
              Servicer
                Not to Resign

            	 	
              20

            

    

     

    
      
        
        

      

      
        -i-

        
          

        

      

      
        
        

      

    

     

    
      	
              ARTICLE
                VII SERVICER TERMINATION EVENTS

            	 	
              20

            
	 	
              Section
                7.1.

            	 	
              Servicer
                Termination Events

            	 	
              20

            
	 	
              Section
                7.2.

            	 	
              Consequences
                of a Servicer Termination Event

            	 	
              21

            
	 	
              Section
                7.3.

            	 	
              Appointment
                of Successor

            	 	
              22

            
	 	
              Section
                7.4.

            	 	
              Waiver
                of Past Defaults

            	 	
              23

            
	
              ARTICLE
                VIII MISCELLANEOUS

            	 	
              23

            
	 	
              Section
                8.1.

            	 	
              Notices

            	 	
              23

            
	 	
              Section
                8.2.

            	 	
              Notices

            	 	
              23

            
	 	
              Section
                8.3.

            	 	
              Prior
                Agreements Superseded

            	 	
              23

            
	 	
              Section
                8.4.

            	 	
              Parties
                Bound

            	 	
              23

            
	 	
              Section
                8.5.

            	 	
              Execution
                in Counterparts

            	 	
              23

            
	 	
              Section
                8.6.

            	 	
              Severability
                of Provisions

            	 	
              24

            
	 	
              Section
                8.7.

            	 	
              Further
                Instruments

            	 	
              24

            
	 	
              Section
                8.8.

            	 	
              Governing
                Law

            	 	
              24

            
	 	
              Section
                8.9.

            	 	
              Consent
                of Jurisdiction

            	 	
              24

            
	 	
              Section
                8.10.

            	 	
              Waiver
                of Jury Trial

            	 	
              25

            
	 	
              Section
                8.11.

            	 	
              Pledge
                by Purchaser

            	 	
              25

            
	 	
              Section
                8.12.

            	 	
              Time
                of Essence

            	 	
              25

            

    

     

    ANNEXES

     

    Annex
      A - Defined
      Terms

     

    SCHEDULES

     

    Schedule
      A - Schedule
      of Receivables

     

    EXHIBITS

     

    Exhibit
      A - Form
      of
      Transfer Instrument

     

    Exhibit
      B - Form
      of
      Addition Notice

     

    
      
        
        

      

      
        -ii-

        
          

        

      

      
        
        

      

    

     

    SALE
      AND
      SERVICING AGREEMENT (this “Agreement”)
      dated
      as of September 28, 2006, among Nice Cars Funding LLC, a Delaware limited
      liability company (the “Purchaser”),
      Nice
      Cars Acceptance AcquisitionCo, Inc. (“Seller”),
      Manchester Inc., a Nevada corporation (“Servicer”),
      and
      Nice Cars Operations AcquisitionCo, Inc. a Delaware corporation (“NCOC”).

     

    WHEREAS,
      the Purchaser desires to purchase from Seller, from time to time, receivables
      arising in connection with motor vehicle retail installment sale
      contracts;

     

    WHEREAS,
      the Purchaser intends to finance such purchases by entering into the Loan
      Agreement and issuing the Note, secured by, among other assets, the Receivables
      and the Other Conveyed Property;

     

    WHEREAS,
      Seller is willing to sell such Receivables and the Other Conveyed Property
      to
      the Purchaser from time to time; and

     

    WHEREAS
      Servicer is willing to service all such Receivables on the terms of this
      Agreement.

     

    NOW,
      THEREFORE, in consideration of the premises and the mutual covenants herein
      contained, the parties hereto agree as follows:

     

    ARTICLE
      I

     

    DEFINITIONS

     

    Section
      1.1.  Definitions.
      Capitalized
      terms used in this Agreement and not otherwise defined in this Agreement, shall
      have the meanings set forth in Annex A attached hereto.

     

    Section
      1.2.  Other
      Definitional Provisions.

     

    (a)  All
      terms
      defined in this Agreement shall have the defined meanings when used in any
      instrument governed hereby and in any certificate or other document made or
      delivered pursuant hereto unless otherwise defined therein.

     

    (b)  Accounting
      terms used but not defined or partly defined in this Agreement, in any
      instrument governed hereby or in any certificate or other document made or
      delivered pursuant hereto, to the extent not defined, shall have the respective
      meanings given to them under GAAP as in effect on the date of determination
      or
      any such instrument, certificate or other document, as applicable. To the extent
      that the definitions of accounting terms in this Agreement or in any such
      instrument, certificate or other document are inconsistent with the meanings
      of
      such terms under GAAP, the definitions contained in this Agreement or in any
      such instrument, certificate or other document shall control.

     

    (c)  The
      words
“hereof,”
      “herein,”
      “hereunder”
and
      words of similar import when used in this Agreement shall refer to this
      Agreement as a whole and not to any particular provision of this
      Agreement.

     

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

     

    (d)  Section,
      Schedule and Exhibit references contained in this Agreement are references
      to
      Sections, Schedules and Exhibits in or to this Agreement unless otherwise
      specified; and the term “including”
shall
      mean “including
      without limitation.”

     

    (e)  The
      definitions contained in this Agreement are applicable to the singular as well
      as the plural forms of such terms and to the masculine as well as to the
      feminine and neuter genders of such terms.

     

    Any
      agreement, instrument or statute defined or referred to herein or in any
      instrument or certificate delivered in connection herewith means such agreement,
      instrument or statute as the same may from time to time be amended, modified
      or
      supplemented in accordance with the terms thereof and includes (in the case
      of
      agreements or instruments) references to all attachments and instruments
      associated therewith; all references to a Person include its permitted
      successors and assigns.

     

    ARTICLE
      II

     

    CONVEYANCE
      OF RECEIVABLES

     

    Section
      2.1.  Conveyance
      of Receivables.

     

    (a)  In
      consideration of the Purchaser’s delivery to or upon the order of Seller on any
      Funding Date of the Purchase Price therefor, Seller does hereby sell, transfer,
      assign, set over and otherwise convey to the Purchaser, without recourse
      (subject to the obligations set forth herein) all right, title and interest
      of
      Seller, whether now existing or hereafter arising, in, to and
      under:

     

    (i)  the
      Receivables listed in Schedule A to each Transfer Instrument executed and
      delivered by Seller on such Funding Date;

     

    (ii)  all
      monies received under the Receivables on and after the related Cutoff Date
      and
      all Net Liquidation Proceeds received with respect to the Receivables on and
      after the related Cutoff Date;

     

    (iii)  the
      security interests in the Financed Vehicles and any accessions thereto granted
      by Obligors pursuant to the related Contracts and any other interest of Seller
      in such Financed Vehicles, including, without limitation, the Auto
      Title;

     

    (iv)  any
      proceeds from claims on any Receivables Insurance Policies or certificates
      relating to the Financed Vehicles securing the Receivables or the Obligors
      thereunder;

     

    (v)  the
      Custodial Documents related to each Receivable and all other documents that
      Seller keeps on file in accordance with its customary procedures relating to
      the
      Receivables for Obligors of the Financed Vehicles;

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    (vi)  all
      amounts and property from time to time held in or credited to the Lockbox,
      the
      Collection Account or the Blocked Account;

     

    (vii)  all
      property (including the right to receive future Net Liquidation Proceeds) that
      secures a Receivable that has been acquired by or on behalf of Seller or the
      Purchaser pursuant to a liquidation of such Receivable;

     

    (viii)  the
      proceeds from any Servicer’s errors and omissions policy or fidelity bond, to
      the extent such proceeds relate to any Receivable, Financed Vehicle or other
      Collateral; and

     

    (ix)  all
      present and future claims, demands, causes and choses in action in respect
      of
      any or all of the foregoing and all payments on or under and all proceeds of
      every kind and nature whatsoever in respect of any or all of the foregoing,
      including all proceeds of the conversion, voluntary or involuntary, into cash
      or
      other liquid property, all cash proceeds, accounts, accounts receivable, notes,
      drafts, acceptances, chattel paper, checks, deposit accounts, insurance
      proceeds, condemnation awards, rights to payment of any and every kind and
      other
      forms of obligations and receivables, instruments and other property which
      at
      any time constitute all or part of or are included in the proceeds of any of
      the
      foregoing.

     

    (b)  Seller
      shall transfer to the Purchaser the Receivables and the Other Conveyed Property
      described in paragraph
      (a)
      above
      only upon the satisfaction of each of the conditions set forth below on or
      prior
      to the related Funding Date.

     

    (i)  Seller
      shall have provided the Purchaser, Lender [and the Collateral Agent] with (A)
      an
      Addition Notice substantially in the form of Exhibit B
      hereto
      (which shall include a supplement to the Schedule of Receivables) and (B) a
      data
      tape or other electronic file containing information regarding the Related
      Receivables that Lender may request hereto to be transferred on such Funding
      Date (the “Data
      Tape Fields”)
      no
      later than 11:00 a.m. (New York City time) three Business Days prior to such
      Funding Date and shall have provided any information reasonably requested by
      any
      of the foregoing with respect to the Purchaser, Servicer and the Related
      Receivables;

     

    (ii)  Seller
      shall, to the extent required by Section
      4.2
      of this
      Agreement, have deposited in the Blocked Account all collections received on
      and
      after the Cutoff Date in respect of the Related Receivables to be purchased
      on
      such Funding Date;

     

    (iii)  as
      of
      each Funding Date, (A) Seller shall not be insolvent and shall not become
      insolvent as a result of the transfer of Related Receivables on such Funding
      Date, (B) Seller shall not intend to incur or believe that it shall incur debts
      that would be beyond its ability to pay as such debts mature, (C) such transfer
      shall not have been made with actual intent to hinder, delay or defraud any
      Person and (D) the assets of Seller shall not constitute unreasonably small
      capital to carry out its business as then conducted;

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    (iv)  the
      Facility Termination Date shall not have occurred;

     

    (v)  each
      of
      the representations and warranties made by Seller pursuant to Section
      3.1
      and the
      other Loan Documents with respect to the Related Receivables to be purchased
      on
      such Funding Date shall be true and correct as of the related Funding Date
      and
      Seller shall have performed all obligations to be performed by it hereunder
      or
      in any Transfer Instrument on or prior to such Funding Date;

     

    (vi)  Seller
      shall, at its own expense, on or prior to the Funding Date, indicate in its
      computer files that the Related Receivables to be purchased on such Funding
      Date
      have been sold to the Purchaser pursuant to this Agreement or a Transfer
      Instrument, as applicable, and have been pledged by the Purchaser to the
      Collateral Agent for the benefit of the Lender under the Loan
      Agreement;

     

    (vii)  Seller
      shall have taken all action required to maintain (i) the first priority
      perfected ownership interest of the Purchaser in the Related Receivables and
      Other Conveyed Property and (ii) the first priority perfected security interest
      of the Collateral Agent for the benefit of the Lender in the
      Collateral;

     

    (viii)  no
      selection procedures adverse to the interests of Lender shall have been utilized
      in selecting the Related Receivables to be sold on such Funding
      Date;

     

    (ix)  the
      addition of any such Related Receivables to be purchased on such Funding Date
      shall not result in a material adverse tax consequence to any Secured
      Party;

     

    (x)  Seller
      shall have delivered to the Collateral Agent and Lender an Officers’ Certificate
      confirming the satisfaction of each condition precedent specified in this
      paragraph (b);

     

    (xi)  no
      Servicer Termination Event, or any event that, with the giving of notice or
      the
      passage of time, would constitute a Servicer Termination Event, shall have
      occurred and be continuing;

     

    (xii)  Seller
      shall have delivered the related Custodial Documents to the Custodian, and
      the
      Custodian shall have confirmed receipt of the related Custodial Documents for
      each Related Receivable and shall have delivered a copy to Lender and the
      Collateral Agent of a Custodial Certification with respect to the Custodial
      Documents related to the Related Receivables to be purchased on such Funding
      Date;

     

    (xiii)  Seller
      shall have filed or caused to be filed all necessary UCC-l financing statements
      (or amendments thereto) necessary to maintain (in each case assuming for
      purposes of this clause (xiii) that such perfection may be achieved by making
      the appropriate filings), and taken any other steps necessary to maintain,
      (1)
      the first, priority, perfected ownership interest of Purchaser and (2) the
      first
      priority, perfected security interest of the Collateral Agent for the benefit
      of
      the Lender, with respect to the Related Receivables, the Other Conveyed Property
      and any other Collateral to be transferred on such Funding Date;

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    (xiv)  Seller
      shall have executed and delivered an Transfer Instrument in the form of
Exhibit
      A
      with
      respect to such Related Receivables and the Other Conveyed Property related
      thereto; and

     

    (xv)  the
      Funding Date shall not occur in the same calendar week as any prior Funding
      Date.

     

    Section
      2.2.  Payment
      of Purchase Price.
      In
      consideration for the sale of the Related Receivables and Other Conveyed
      Property described in Section
      2.1(a)
      or the
      related Transfer Instrument, the Purchaser shall, on each Funding Date on which
      Related Receivables are transferred hereunder, pay to or upon the order of
      Seller the applicable Purchase Price in the following manner: (i) cash in an
      amount equal to the amount of the Advance received by the Purchaser under the
      Loan Agreement on such Funding Date and (ii) to the extent the Purchase Price
      for the related Receivables and Other Conveyed Property exceeds the amount
      of
      cash described in (i), such excess shall be treated as a capital contribution
      by
      Seller to the Purchaser.

     

    Section
      2.3.  Transfers
      Intended as Sales. It
      is the
      intention of Seller and the Purchaser that each transfer and assignment
      contemplated by this Agreement and each Transfer Instrument shall constitute
      a
      sale of the Related Receivables and Other Conveyed Property from Seller to
      the
      Purchaser free and clear of all liens and rights of others and it is intended
      that the beneficial interest in and title to the Related Receivables and Other
      Conveyed Property shall not be part of Seller’s estate in the event of the
      filing of a bankruptcy petition by or against Seller under any bankruptcy law.
      In the event that, notwithstanding the intent of Seller and the Purchaser,
      the
      transfer and assignment contemplated hereby or by any Transfer Instrument is
      held not to be a sale, this Agreement and each Transfer Instrument shall
      constitute a security agreement under applicable law and Seller hereby grants
      to
      the Purchaser a security interest in the Receivables and Other Conveyed
      Property, which security interest has been assigned to the Collateral Agent
      for
      the benefit of the Lender.

     

    Section
      2.4.  Further
      Encumbrance of Receivables and Other Conveyed Property.

     

    (a)  Immediately
      upon the conveyance to the Purchaser by Seller of the Related Receivables and
      any item of the related Other Conveyed Property pursuant to Section
      2.1
      and the
      related Transfer Instrument, all right, title and interest of Seller in and
      to
      such Related Receivables and Other Conveyed Property shall terminate, and all
      such right, title and interest shall vest in the Purchaser.

     

    (b)  Immediately
      upon the vesting of any Related Receivables and the related Other Conveyed
      Property in the Purchaser, the Purchaser shall have the sole right to pledge
      or
      otherwise encumber such Related Receivables and the related Other Conveyed
      Property. Pursuant to the Loan Agreement, the Purchaser shall grant a security
      interest in the Collateral to secure the repayment of the Loan and the other
      Secured Obligations.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    Section
      2.5.  Conveyance
      of All Receivables.
      Seller
      covenants, represents and warrants that (i) on the date of the first sale
      hereunder it will sell to the Purchaser pursuant to this Agreement all
      Receivables (including all Receivables which are Eligible Receivables and all
      Receivables which are not Eligible Receivables) owned by it on such date and
      (ii) thereafter it will sell to the Purchaser pursuant to this Agreement all
      such Receivables that it purchases or originates within one week of such
      purchase or origination.

     

    ARTICLE
      III

     

    THE
      RECEIVABLES

     

    Section
      3.1.  Representations
      and Warranties of Seller.

     

    (a)  Seller
      makes the following representations and warranties as to the Receivables to
      the
      Purchaser, on which the Purchaser relies in acquiring the Receivables, and
      on
      which Lender will rely in making the Advances to the Purchaser pursuant to
      the
      Loan Agreement. Such representations and warranties speak as of the Closing
      Date
      and as of each Funding Date; provided
      that to
      the extent such representations and warranties relate to the Receivables
      conveyed on any Funding Date, such representations and warranties shall speak
      as
      of the related Funding Date, but shall survive the sale, transfer and assignment
      of the Receivables to the Purchaser and the pledge thereof by the Purchaser
      to
      the Collateral Agent for the benefit of the Lender pursuant to the Loan
      Agreement.

     

    (b)  Characteristics
      of Receivables.

     

    (i)  Each
      Receivable indicated in the Addition Notice to be an Eligible Receivable is
      an
      Eligible Receivable,

     

    (ii)  Each
      Receivable is genuine, is in all respects what it purports to be and the
      Contract evidencing such Receivable has only one original counterpart and,
      if
      evidenced by an instrument, includes only one original promissory note which
      constitutes an instrument under the UCC and no Person other than Lender or
      the
      Custodian is in actual or constructive possession of any such original Contract
      or Auto Title;

     

    (iii)  The
      Receivables represent undisputed, bona fide transactions completed in accordance
      with the terms and provisions contained in any documents related
      thereto;

     

    (iv)  The
      amounts of the face value shown on any schedule of Receivables provided to
      Borrower, Lender or Custodian, and/or all invoices or statements delivered
      to
      Borrower, Lender or Custodian with respect to any Receivables, are actually
      and
      absolutely owing to Seller and are not contingent for any reason;

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    (c)  No
      set-offs, counterclaims or disputes as to payments or liability thereon exist
      or
      have been asserted with respect thereto and neither Seller nor any Related
      Party
      has made any agreement with any Obligor thereunder for any deduction therefrom,
      except a discount or allowance allowed by Seller or Servicer in the ordinary
      course of business for prompt payment, all of which discounts or allowances
      are
      reflected in the calculation of the outstanding amount of such
      Receivable;

     

    (d)  No
      facts,
      events or occurrences exist that, in any way, impair the validity or enforcement
      thereof or tend to reduce the amount payable thereunder from the amount of
      the
      Receivable shown on any schedule, or on all contracts, invoices or statements
      delivered to Lender or the Custodian with respect thereto;

     

    (e)  All
      Obligors in connection with Receivables: (i) had the capacity to contract at
      the
      time any contract or other document giving rise to the Receivable was executed;
      and (ii) generally have the ability to pay their debts as they become
      due;

     

    (f)  To
      Seller’s knowledge, no proceedings or actions are threatened or pending against
      any Obligor that might result in any material adverse effect in the Obligor’s
      financial condition;

     

    (g)  The
      Receivables have not been assigned or pledged to any Person other than as
      permitted pursuant to the Loan Documents;

     

    (h)  The
      goods
      giving rise to the Receivables are not, and were not at the time of the sale,
      rental and/or lease thereof, subject to any Lien, except those of the Collateral
      Agent for the benefit of the Lender, or those removed or terminated prior to
      the
      date hereof;

     

    (i)  The
      Delinquency set forth in the Availability Report shall be delivered to Lender
      by
      Servicer on behalf of Borrower under the Loan Agreement as determined pursuant
      to the Aging Procedures and Eligibility Test.

     

    (j)  All
      Contracts represent the legal, valid and binding payment obligation of the
      applicable Obligors, enforceable in accordance with their terms, subject to
      bankruptcy, insolvency and other Laws (including, but not limited to principles
      of equity) affecting the rights of creditors.

     

    (k)  No
      instrument of release or waiver has been executed in connection with any
      Contract, and no Obligor has been released from its obligations thereunder,
      in
      whole or in part, and no action has been taken by Seller or any Related Party
      to
      release any collateral under any Contract.

     

    Section
      3.2.  Repurchase
      upon Breach.
      Seller
      or, Servicer, as the case may be, shall inform the other parties to this
      Agreement promptly, in writing, upon the discovery of any breach of Seller’s
      representations and warranties made pursuant to Section 3.1
      with
      respect to a Receivable (without regard to any limitations therein as to
      Seller’s knowledge). Unless the breach shall have been cured within thirty (30)
      days of the breach, Seller shall repurchase such Receivable. In consideration
      of
      the repurchase of any Receivable, Seller shall remit the Purchase Amount to
      the
      Collection Account on the date of such repurchase. Upon receipt of the Purchase
      Amount in respect of any Defective Receivables and written instructions from
      Servicer, the Custodian shall release to Seller or its designee the related
      Custodial Documents and the Purchaser shall execute and deliver all reasonable
      instruments of transfer or assignment, without recourse, as are prepared by
      Seller and delivered to the Purchaser and necessary to vest in Seller or such
      designee title to such Defective Receivables. The parties hereto hereby
      acknowledge that the Collateral Agent for the benefit of the Lender shall have
      the right to enforce directly against Seller Seller’s repurchase and indemnity
      obligations pursuant to this Section
      3.2.

     

    
      
        
        

      

      
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    Section
      3.3.  Custody
      of Custodial Documents.
      In
      connection with each sale, transfer and assignment of Receivables and related
      Other Conveyed Property to the Purchaser pursuant to this Agreement and each
      Transfer Instrument, and each pledge thereof by the Purchaser to Lender pursuant
      to the Loan Agreement, the Custodian shall act as custodian of the related
      Custodial Documents and any other documents or instruments delivered to the
      Custodian pursuant to the Custodian Agreement.

     

    ARTICLE
      IV

     

    ADMINISTRATION
      AND SERVICING OF RECEIVABLES

     

    Section
      4.1.  Duties
      of Servicer.
      Servicer,
      as agent for the Purchaser and the Lender, shall manage, service, administer
      and
      make collections on the Receivables with reasonable care, using that degree
      of
      skill and attention customary and usual for institutions which service motor
      vehicle retail installment sale contracts and other auto loans similar to the
      Receivables and, to the extent more exacting, that Servicer exercises with
      respect to all comparable automotive receivables that it or any of its
      Affiliates services for itself, theirselves or others. In performing such
      duties, Servicer shall comply with the Servicing Guidelines and the Credit
      and
      Collection Policy. Without limiting the generality of the foregoing, and subject
      to the servicing standards set forth in this Agreement including, without
      limitation, the restrictions set forth in Section
      4.6,
      Servicer is authorized and empowered by the Purchaser to execute and deliver,
      on
      behalf of itself, the Purchaser, the Lender, or the Collateral Agent for the
      benefit of the Lender, any and all instruments of satisfaction or cancellation,
      or partial or full release or discharge, and all other comparable instruments,
      with respect to such Receivables or to the Financed Vehicles securing such
      Receivables and/or the Auto Title. If Servicer shall commence a legal proceeding
      to enforce a Receivable, the Purchaser shall thereupon be deemed to have
      automatically assigned, solely for the purpose of collection, such Receivable
      to
      Servicer. If in any enforcement suit or legal proceeding it shall be held that
      Servicer may not enforce a Receivable on the ground that it shall not be a
      real
      party in interest or a holder entitled to enforce such Receivable, the Purchaser
      shall, at Servicer’s expense and direction, take steps to enforce such
      Receivable, including bringing suit in its name or the name of the Collateral
      Agent for the benefit of the Lender. Without limiting any of the Servicer’s
      duties and obligations hereunder, Servicer shall perform on behalf of Borrower
      the affirmation obligations of Borrower under Sections 3.3., 3.7, 3.8, 3.9
      and
      3.10 of the Loan Agreement, and shall perform the Auto Title Procedures on
      behalf of the Borrower.

     

    
      
        
        

      

      
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    Section
      4.2.  Collection
      of Receivable Payments; Modifications of Receivables; Blocked Account
      Agreement.

     

    (a)  Consistent
      with the standards, policies and procedures required by this Agreement, Servicer
      shall make reasonable efforts to collect all payments called for under the
      terms
      and provisions of the Receivables as and when the same shall become due and
      shall follow such collection procedures as it follows with respect to all
      comparable automotive receivables that it services for itself or others.
      Servicer, for so long as Manchester is Servicer, may in accordance with
      Servicer’s Servicing Guidelines grant extensions on a Receivable; provided,
      however,
      that
      Servicer may not grant more than one (1) extension per calendar year with
      respect to a Receivable or grant an extension with respect to a Receivable
      for
      more than one (1) calendar month or grant more than four (4) extensions in
      the
      aggregate with respect to a Receivable without the prior written consent of
      the
      Lender. If Servicer is not Manchester, Servicer may not make any extension
      on a
      Receivable without the prior written consent of the Lender. Notwithstanding
      anything to the contrary contained herein, Servicer shall not agree to any
      alteration of the interest rate on any Receivable or of the amount of any
      Scheduled Receivable Payment on Receivables, other than to the extent that
      such
      alteration is required by applicable law.

     

    (b)  Servicer
      shall remit all payments by or on behalf of the Obligors received by Servicer
      with respect to the Receivables (other than Purchased Receivables) and all
      Net
      Liquidation Proceeds into the Blocked Account or the Collection Account on
      the
      date of receipt thereof, or, if not a Business Day, on the next following
      Business Day. Servicer shall not commingle its assets and funds with those
      on
      deposit in the Blocked Account or the Collection Account.

     

    Section
      4.3.  Realization
      Upon Receivables.
      On
      behalf
      of the Purchaser and the Collateral Agent for the benefit of the Lender,
      Servicer shall use its best efforts, consistent with the servicing procedures
      set forth herein, to repossess or otherwise convert the ownership of the
      Financed Vehicle securing any Receivable as to which Servicer shall have
      determined eventual payment in full is unlikely.

     

    Section
      4.4.  Insurance.
      Servicer,
      in accordance with the servicing procedures and standards set forth herein,
      shall require that each Obligor shall have obtained any insurance required
      by
      the related Contract (each, a “Receivables
      Insurance Policy”).

     

    Section
      4.5.  Maintenance
      of Security Interests in Vehicles.

     

    (a)  Consistent
      with the policies and procedures required by this Agreement, Servicer shall
      take
      such steps on behalf of the Purchaser and the Collateral Agent for the benefit
      of the Lender as are necessary to maintain perfection of the security interest
      created by each Receivable in the related Financed Vehicle.

     

    (b)  Upon
      the
      occurrence and continuance of a Servicer Termination Event, the Collateral
      Agent
      for the benefit of the Lender and Servicer shall take or cause to be taken
      such
      action as may, in the opinion to the Lender or the Collateral Agent for the
      benefit of the Lender, be necessary to perfect or re-perfect the security
      interests in the Financed Vehicles securing the Receivables in the name of
      the
      Collateral Agent for the benefit of the Lender by amending the title documents
      of such Financed Vehicles or by such other reasonable means as may, in the
      opinion of the Lender or the Collateral Agent for the benefit of the Lender,
      be
      necessary or prudent.

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    (c)  Servicer
      hereby agrees to pay all expenses related to such perfection or re-perfection
      in
      accordance with clauses (a) and (b) above and to take all action necessary
      therefor. In addition, Lender may instruct Servicer to take or cause to be
      taken, and Servicer shall take or cause to be taken, such action as may, in
      the
      judgment of Lender be necessary to perfect or re-perfect the security interest
      in the Financed Vehicles underlying the Receivables in the name of the
      Collateral Agent for the benefit of the Lender including by amending the title
      documents of such Financed Vehicles or by such other reasonable means as may,
      in
      the judgment of the Lender, be necessary or prudent.

     

    Section
      4.6.  Additional
      Covenants of Servicer.

     

    (a)  Servicer
      shall not release the Financed Vehicle securing any Receivable from the security
      interest granted by such Receivable in whole or in part except in the event
      of
      payment in full by the Obligor thereunder or repossession or other liquidation
      of the Financed Vehicle, nor shall Servicer impair the rights of the Collateral
      Agent for the benefit of the Lender in such Receivables, nor shall Servicer
      amend or otherwise modify a Receivable, except as permitted in accordance with
      Section
      4.2.

     

    (b)  Servicer
      shall reimburse the Secured Parties for any and all fees or expenses that the
      Secured Parties pay to a bank arising out of a return of payments in respect
      of
      the Receivables.

     

    (c)  Servicer
      will not (i) create, incur or suffer to exist, or agree to create, incur or
      suffer to exist, or consent to cause or permit in the future (upon the happening
      of a contingency or otherwise) the creation, incurrence or existence of any
      lien, security interest, charge, pledge, equity, encumbrance or restriction
      on
      transferability of the Receivables and the Other Conveyed Property except (x)
      for the lien in favor of the Collateral Agent for the benefit of the Lender
      and
      the restrictions on transferability imposed by this Agreement or any other
      Loan
      Document or (y) with respect to any portion of the Receivables and the Other
      Conveyed Property released in a manner permitted by the Loan Documents from
      the
      lien in favor of the Collateral Agent for the benefit of the Lender, or (ii)
      sign or file under the UCC of any jurisdiction any financing statement which
      names Seller, Servicer or the Purchaser as a debtor, or sign any security
      agreement authorizing any secured party thereunder to file such financing
      statement, with respect to the Receivables and Other Conveyed Property, except
      in each case any such instrument solely securing the rights and preserving
      the
      lien of the Collateral Agent for the benefit of the Lender.

     

    (d)  Servicer
      shall maintain (i) a modern system of accounting in accordance with GAAP or
      other systems of accounting acceptable to Lender and (ii) standard operating
      procedures applicable to all of their locations with respect to the handling
      and
      disposition of cash receipts and other proceeds of Collateral on a daily basis,
      including the depositing thereof, aging of account receivables, record keeping
      and such other matters as Lender may reasonably request. For the purpose of
      determining compliance with the covenants and representations in the Loan
      Documents, Lender shall have the right to recast any financial statement or
      report presented to Lender by or on behalf of any Related Party to comply with
      GAAP.

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    (e)  Servicer
      agrees to furnish to Lender from time to time, promptly upon request, a list
      of
      all Obligors’ names and their most current addresses. Servicer agrees that
      Lender may from time to time, consistent with standard or generally accepted
      auditing practices, verify the validity, amount and any other matters relating
      to the Receivables by means of mail, telephone or otherwise, in the name of
      Servicer or Borrower and upon the occurrence of an Event of Default in the
      name
      of Lender or such other name as Lender may choose.

     

    Section
      4.7.  Purchase
      of Receivables Upon Breach of Covenant.
      Upon
      discovery by any of Servicer, Seller, the Purchaser of a breach of any of the
      covenants of Servicer set forth in Section 4.2(a),
      4.4,
      4.5
      or
4.6,
      the
      party discovering such breach shall give prompt written notice to the others;
      provided,
      however,
      that
      the failure to give any such notice shall not affect any obligation of Servicer
      under this Section 4.7.
      Unless
      the breach shall have been cured within 30 days following such discovery,
      Servicer shall purchase any Receivable materially and adversely affected by
      such
      breach. In consideration of the purchase of such Receivable, Servicer shall
      remit the Purchase Amount for such Receivable to the Collection Account on
      the
      date of such purchase. Servicer shall indemnify the Secured Parties, and the
      Purchaser against all costs, expenses, losses, damages, claims and liabilities,
      including reasonable fees and expenses of counsel, which may be asserted against
      or incurred by any of them as a result of third party claims arising out of
      the
      events or facts giving rise to such breach.

     

    Section
      4.8.  Servicing
      Fee.
      The
      “Servicing
      Fee”
for
      each Settlement Date shall be equal to 4% of the average daily Net Pool Balance
      (as defined in the Fee Letter) of the Receivables per annum.

     

    Section
      4.9.  Reports.

     

    (a)  No
      later
      than 12:00 noon New York City time on each Determination Date and on each Monday
      (or, if not a Business Day, on the next following Business Day), Servicer shall
      deliver (in computer-readable format reasonably acceptable to each such Person
      to the Lender, the Collateral Agent and the Purchaser, a report containing
      the
      information specified in Exhibit B to the Loan Agreement. Within two business
      days of receipt, the Lender will notify the Servicer of any deficiencies in
      any
      report. If no notification is made, the report will be deemed accepted but,
      notwithstanding the foregoing, if deficiencies or errors are later discovered,
      the Servicer will work in good faith with the Lender to correct the
      report.

     

    (b)  No
      later
      than 12:00 noon New York City time on each Determination Date, Servicer shall
      deliver (in computer-readable format reasonably acceptable to Lender) a 13-week
      cash-flow report containing such information as Lender shall request from
      Servicer.

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    Section
      4.10.  Annual
      Statement as to Compliance, Notice of Servicer Termination Event.
      Servicer
      shall deliver to the Purchaser and to the Lender, on or before March 31 of
      each
      year beginning 2007, an Officer’s Certificate, dated as of December 31 of the
      preceding year, stating that (i) a review of the activities of Servicer during
      the preceding 12-month period (or, in the case of the first such certificate,
      the period from the initial Cutoff Date to December 31, 2006) and of its
      performance under this Agreement has been made under such officer’s supervision
      and (ii) to the best of such officer’s knowledge, based on such review, Servicer
      has fulfilled all its obligations under this Agreement throughout such year
      (or,
      in the case of the first such certificate, such shorter period), or, if there
      has been a default in the fulfillment of any such obligation, specifying each
      such default known to such officer and the nature and status
      thereof.

     

    Section
      4.11.  Access
      to Certain Documentation and Information Regarding Receivables.
      Servicer
      shall provide to representatives of the Secured Parties, full and unrestricted
      access to the documentation regarding the Receivables. Nothing in this Section
      shall derogate from the obligation of Servicer to observe any applicable law
      prohibiting disclosure of information regarding the Obligors, and the failure
      of
      Servicer to provide access as provided in this Section as a result of such
      obligation shall not constitute a breach of this Section.

     

    Section
      4.12.  Retention
      and Termination of Servicer.
      Servicer
      hereby covenants and agrees to act as such under this Agreement for an initial
      term commencing on the Closing Date and ending on the Maturity Date unless
      terminated in accordance with the Loan Documents.

     

    ARTICLE
      V

     

    THE
      PURCHASER

     

    Section
      5.1.  Representations
      of Purchaser.
      The
      Purchaser hereby continuously represents and warrants that, during the term
      of
      this Agreement and so long as the Loan remains outstanding:

     

    (a)  The
      Purchaser is a limited liability company duly formed, validly existing and
      in
      good standing under the laws of the State of Delaware, is duly qualified to
      do
      business and is in good standing as a foreign limited liability company in
      all
      states where such qualification is required, has all necessary limited liability
      company power and authority to enter into this Agreement and each of the other
      Loan Documents to which it is a party and to perform all of its obligations
      hereunder and thereunder.

     

    (b)  The
      Purchaser has all requisite right and power and is duly authorized and empowered
      to enter into, execute, deliver and perform this Agreement and each other Loan
      Document to which it is a party and this Agreement and each other Loan Document
      to which the Purchaser is a party are the legal, valid and binding obligations
      of the Purchaser and are enforceable against the Purchaser in accordance with
      their terms.

     

    (c)  The
      execution, delivery and performance by the Purchaser of this Agreement and
      each
      of the Loan Documents to which it is a party does not and shall not (i) violate
      any provision of any Law, order, writ, judgment, injunction, decree,
      determination or award presently in effect having applicability to the
      Purchaser; (ii) violate any provision of its charter documents, bylaws, limited
      liability company agreement, operating agreement or partnership agreement,
      as
      applicable; or (iii) result in a breach of or constitute a default under any
      indenture or loan or credit agreement or any other agreement, lease or
      instrument to which the Purchaser is a party or by which it or any of its assets
      or properties may be bound or affected; and the Purchaser is not in default
      of
      any such Law, order, writ, judgment, injunction, decree, determination or award
      or any such indenture, agreement, lease or instrument.

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

     

    (d)  No
      consent, approval, license, exemption of or filing or registration with, giving
      of notice to, or other authorization of or by, any court, administrative agency
      or other governmental authority is or shall be required in connection with
      the
      execution, delivery or performance by the Purchaser of this Agreement and each
      other Loan Document for the valid consummation of the transactions contemplated
      hereby or thereby.

     

    (e)  No
      event
      has occurred and is continuing which constitutes a Default or an Event of
      Default. There is no action, suit, proceeding or investigation pending or
      threatened against or affecting the Purchaser before or by any court,
      administrative agency or other governmental authority that brings into question
      the validity of the transactions contemplated hereby, or that might result
      in
      any Material Adverse Effect.

     

    (f)  The
      Purchaser is solvent, generally able to pay its obligations as they become
      due,
      has sufficient capital to carry on its business and transactions and all
      businesses and transactions in which it intends to engage, and the current
      value
      of the Purchaser’s assets, at fair saleable valuation, exceeds the sum of its
      liabilities. The Purchaser shall not be rendered insolvent by the execution
      and
      delivery of this Agreement and the other Loan Documents and the consummation
      of
      the transactions contemplated hereby and thereby and the capital remaining
      in
      the Purchaser is not now and shall not foreseeably become unreasonably small
      to
      permit the Purchaser to carry on its business and transactions and all
      businesses and transactions in which it is about to engage. The Purchaser does
      not intend to, nor does it reasonably believe it shall, incur debts beyond
      its
      ability to repay the same as they mature.

     

    ARTICLE
      VI

     

    SELLER,
      SERVICER AND NCOC

     

    Section
      6.1.  Representations
      of Seller, Servicer and NCOC.
      Each
      of
      Seller, Servicer and NCOC hereby jointly and severally and continuously
      represent and warrant that, during the term of this Agreement and so long as
      any
      Loan remains outstanding under the Loan Agreement:

     

    (a)  Each
      of
      Seller, Servicer and NCOC is a corporation duly formed, validly existing and
      in
      good standing under the laws of its state of incorporation, is duly qualified
      to
      do business and is in good standing as a foreign corporation in all states
      where
      such qualification is required, has all necessary corporate power and authority
      to enter into this Agreement and each other Loan Document to which it is a
      party
      and to perform all of its obligations hereunder and thereunder.

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

     

    (b)  Each
      of
      Seller, Servicer and NCOC operates its business only under the assumed names
      listed on Schedule 5.1(b) of Schedule A attached to the Loan
      Agreement.

     

    (c)  Each
      of
      Seller, Servicer and NCOC has all requisite right and power and is duly
      authorized and empowered to enter into, execute, deliver and perform this
      Agreement and each other Loan Document to which it is a party and this Agreement
      and each other Loan Document to which Seller, Servicer and NCOC is a party
      are
      the legal, valid and binding obligations of Seller, Servicer or NCOC, as
      applicable, and are enforceable against such Person in accordance with their
      terms.

     

    (d)  The
      execution, delivery and performance by each of Seller, Servicer and NCOC of
      this
      Agreement and each other Loan Document to which it is a party does not and
      shall
      not (i) violate any provision of any Law, order, writ, judgment, injunction,
      decree, determination or award presently in effect having applicability to
      such
      Person; (ii) violate any provision of its charter documents, bylaws, limited
      liability company agreement, operating agreement or partnership agreement,
      as
      applicable; or (iii) result in a breach of or constitute a default under any
      indenture or loan or credit agreement or any other agreement, lease or
      instrument to which such Person is a party or by which it or any of its assets
      or properties may be bound or affected; and none of Seller, Servicer or NCOC
      is
      in default of any such Law, order, writ, judgment, injunction, decree,
      determination or award or any such indenture, agreement, lease or
      instrument.

     

    (e)  No
      consent, approval, license, exemption of or filing or registration with, giving
      of notice to, or other authorization of or by, any court, administrative agency
      or other governmental authority is or shall be required in connection with
      the
      execution, delivery or performance by Seller, Servicer or NCOC, of this
      Agreement and each of the Loan Document to which it is a party for the valid
      consummation of the transactions contemplated hereby or thereby.

     

    (f)  No
      event
      has occurred and is continuing which constitutes a Default, Event of Default,
      a
      Seller Default or a Servicer Termination Event. There is no action, suit,
      proceeding or investigation pending or threatened against or affecting Seller,
      Servicer or NCOC, before or by any court, administrative agency or other
      governmental authority that brings into question the validity of the
      transactions contemplated hereby or by the other Loan Documents, or that might
      result in any Material Adverse Effect.

     

    (g)  None
      of
      Seller, Servicer or NCOC is in default in the payment of any taxes levied or
      assessed against it or any of its assets or properties, except for taxes being
      contested in good faith and by appropriate proceedings and for which adequate
      reserves have been established.

     

    (h)  Each
      of
      Seller, Servicer and NCOC has good and marketable title to its assets and
      properties as reflected in its financial statements furnished to Purchaser
      or
      Lender.

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

     

    (i)  Each
      of
      the financial statements furnished to Purchaser or Lender by Seller, Servicer
      or
      NCOC was prepared in accordance with GAAP and fairly and accurately reflects
      their financial condition as of the date thereof; and Seller, Servicer and
      NCOC
      hereby certify that there have been no Material Adverse Effects, since the
      date
      of such statements, and there are no known contingent liabilities not provided
      for or disclosed in such statements.

     

    (j)  Neither
      this Agreement, any Availability Report or any statement or document referred
      to
      herein or delivered to Lender, the Collateral Agent, the Custodian or the
      Purchaser by any of Seller, Servicer or NCOC contains any untrue statement
      of a
      material fact or omits to state a material fact necessary to make the statements
      made herein or therein not misleading.

     

    (k)  Seller
      has good, indefeasible and merchantable title to and ownership of the
      Collateral, free and clear of all Liens, except those of the Collateral Agent
      for the benefit of the Lender.

     

    (l)  All
      books, records and documents relating to the Collateral are and shall be genuine
      and in all respects what they purport to be; the original amount and the unpaid
      balance of each Receivable shown on the books and records of Seller or the
      Servicer and in the schedules represented as owing by each Obligor is and shall
      be the correct amount actually owing or to be owing by such Obligor at maturity;
      each Obligor liable upon the Receivables has and shall have capacity to
      contract; none of Seller, Servicer or NCOC has knowledge of any fact which
      would
      impair the validity or collectibility of any of the Receivables; and the
      payments shown to have been made by each Obligor on the books and records of
      Seller reflects the amounts of and dates on which said payments were actually
      made.

     

    (m)  Each
      place of business of each of Seller, Servicer or NCOC is only at the locations
      set forth in Section 5.1(n) of Schedule A of the Loan Agreement. None of Seller,
      Servicer or NCOC shall begin or do business (either directly or through
      subsidiaries) at other locations or cease to do business at any of the above
      locations or at Purchaser’s principal place of business without first notifying
      Lender.

     

    (n)  The
      present value of all benefits vested under all Plans of Seller, Servicer and
      NCOC or any Commonly Controlled Entity (based on the assumptions used to fund
      the Plans) did not, as of the last annual valuation date (which in case of
      any
      Plan was not earlier than December 31, 1982) exceed the value of the assets
      of
      the Plans applicable to such vested benefits.

     

    (o)  The
      liability to which any of Seller, Servicer, NCOC or any Commonly Controlled
      Entity would become subject under Sections 4063 or 4064 of ERISA if such Person
      or any Commonly Controlled Entity were to withdraw from all Multi-employer
      Plans
      or if such Multi- employer Plans were to be terminated as of the valuation
      date
      most closely preceding the date hereof, is not in excess of One Thousand Dollars
      ($1,000.00);

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

     

    (p)  None
      of
      Seller, Servicer or NCOC is engaged nor shall it engage, principally or as
      one
      of its important activities, in a business of extending credit for the purpose
      of “purchasing” or “carrying” any “margin stock” within the respective meanings
      of each of the quoted terms under Regulations G or X of the Board of Governors
      of the Federal Reserve System as now and from time to time hereafter in effect.
      No part of the proceeds of any advances hereunder shall be used for “purchasing”
or “carrying” “margin stock” as so defined or for any purpose which violates, or
      which would be inconsistent with, the provisions of the Regulations of such
      Board of Governors. If requested by Lender, Seller and Servicer shall furnish
      to
      Lender a statement in conformity with the requirement of Federal Reserve Form
      G-3 referred to in said Regulation G to the foregoing effect. All of the
      outstanding securities of each of Seller, Servicer and NCOC have been offered,
      issued, sold and delivered in compliance with, or are exempt from, all federal
      and state laws and rules and regulations of federal and state regulatory bodies
      governing the offering, issuance, sale and delivery of securities.

     

    (q)  None
      of
      Seller, Servicer or NCOC is an “investment company” or a company “controlled” by
      an “investment company,” within the meaning of the Investment Company Act of
      1940, as amended.

     

    (r)  To
      the
      best knowledge of each of Seller, Servicer and NCOC, the land and improvements
      owned or leased by each of Seller, Servicer and NCOC for use in their business
      operations (including the locations listed in Section 5.1(n) of Schedule (A)
      of
      the Loan Agreement are free of dangerous levels of contaminates, oils, asbestos,
      radon, PCB’s, hazardous substances or waste as defined by federal, state or
      local environmental laws, regulations or administrative orders or other
      materials, the removal of which is required or the maintenance of which is
      prohibited, regulated or penalized by any federal, state or local governmental
      authority.

     

    (s)  Each
      of
      Seller, Servicer and NCOC is solvent, generally able to pay its obligations
      as
      they become due, has sufficient capital to carry on its business and
      transactions and all businesses and transactions in which it intends to engage,
      and the current value of such Person’s assets, at fair saleable valuation,
      exceeds the sum of its liabilities. Each of Seller, Servicer and NCOC shall
      not
      be rendered insolvent by the execution and delivery of this Agreement and the
      other Loan Documents and the consummation of the transactions contemplated
      hereby and thereby and the capital remaining in such Person is not now and
      shall
      not foreseeably become unreasonably small to permit such Person to carry on
      its
      business and transactions and all businesses and transactions in which it is
      about to engage. Each of Seller, Servicer and NCOC does not intend to, nor
      does
      it reasonably believe it shall, incur debts beyond its ability to repay the
      same
      as they mature.

     

    (t)  There
      are
      no material actions, suits or proceedings pending, or threatened against or
      affecting the assets of any Seller, Servicer or NCOC, or the consummation of
      the
      transactions contemplated hereby or by the other Loan Documents, at law, or
      in
      equity, or before or by any governmental authority or instrumentality or before
      any arbitrator of any kind. None of Seller, Servicer or NCOC is subject to
      any
      judgment, order, writ, injunction or decree of any court or governmental agency.
      There is not a reasonable likelihood of an adverse determination of any pending
      proceeding which would, individually or in the aggregate, have a Material
      Adverse Effect.

     

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

     

    (u)  Section
      5.1(x) of Schedule A attached to the Loan Agreement correctly and completely
      sets forth for each of Seller, Servicer and NCOC, (i) its full legal name and
      state of organization, (ii) its Federal Tax Identification Number; (iii) its
      chief executive office, (iv) all prior names used in the last five (5) years
      (including, without limitation, Seller, Servicer’s or NCOC’s predecessors in
      interest as a result of a merger or consolidation) and (v) the charter or other
      similar number for such of Seller, Servicer or NCOC in its state of
      organization.

     

    (v)  None
      of
      Seller, Servicer or NCOC (i) is a person whose property or interest in property
      is blocked or subject to blocking pursuant to Section 1 of Executive Order
      13224
      of September 23, 2001 Blocking Property and Prohibiting Transactions With
      Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg.
      49079
      (2001)), (ii) engages in any dealings or transactions prohibited by Section
      2 of
      such executive order, or is otherwise associated with any such person in any
      manner violative of Section 2, or (iii) is a Person on the list of Specially
      Designated Nationals and Blocked Persons or subject to the limitations or
      prohibitions under any other U.S. Department of Treasury’s Office of Foreign
      Assets Control regulation or executive order.

     

    (w)  Each
      of
      Seller, Servicer and NCOC is in compliance with the Patriot Act. No part of
      the
      proceeds received under any Loan Documents will be used, directly or indirectly,
      for any payments to any governmental official or employee, political party,
      official of a political party, candidate for political office, or anyone else
      acting in an official capacity, in order to obtain, retain or direct business
      or
      obtain any improper advantage, in violation of the United States Foreign Corrupt
      Practices Act of 1977, as amended.

     

    Section
      6.2.  Additional
      Covenants.

     

    (a)  Sale.
      Seller
      agrees to treat the conveyances hereunder as financings for tax and accounting
      purposes and as sales for all other purposes (including without limitation
      legal
      and bankruptcy purposes) on all relevant books, records, tax returns, financial
      statements and other applicable documents.

     

    (b)  Non-Petition.
      In the
      event of any breach of a representation and warranty made by the Purchaser
      hereunder, each of Seller, Servicer and NCOC covenants and agrees that it will
      not take any action to pursue any remedy that it may have hereunder, in law,
      in
      equity or otherwise, until a year and a day have passed since the date on which
      all Secured Obligations have been paid in full. The Purchaser, Seller, Servicer
      and NCOC agree that damages will not be an adequate remedy for breach of this
      covenant and that this covenant may be specifically enforced by the Purchaser,
      by the Collateral Agent or by the Lender.

     

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

     

    (c)  Cooperation.
      If an
      Event of Default shall have occurred and be continuing, Seller, Servicer and
      NCOC shall cooperate with and provide all information and access requested
      by
      Lender and the Collateral Agent, in connection with any actions taken in
      connection therewith pursuant to the Loan Agreement.

     

    (d)  Disposal
      of Interests.
      Servicer shall not sell, assign, pledge, or otherwise dispose of any of the
      limited liability company interests in the Purchaser or the equity interests
      in
      NCAC or NCOC without the prior written consent of the Lender.

     

    Section
      6.3.  Liability
      of Seller, Servicer and NCOC; Indemnities.

     

    (a)  Seller,
      Servicer and NCOC shall defend, indemnify and hold harmless the Purchaser,
      the
      Lender and each other Secured Party and their respective officers, directors,
      agents and employees for:

     

    (i)  any
      liability as a result of the failure of a Receivable to be originated in
      compliance with all requirements of law and for any breach of any of its
      representations, warranties, covenants or other agreements contained herein,
      including:

     

    (ii)  from
      and
      against any and all costs, expenses, losses, damages, claims, and liabilities,
      arising out of or resulting from the use, ownership, or operation by Seller,
      Servicer, NCOC, any Affiliate thereof or any of their respective agents or
      subcontractors, of a Financed Vehicle;

     

    (iii)  from
      and
      against any taxes that may at any time be asserted against any such Person
      with
      respect to the transactions contemplated in this Agreement and any of the Loan
      Documents (except any income taxes arising out of fees paid to the Lender and
      except any taxes to which the Lender may otherwise be subject), including
      without limitation any sales, gross receipts, general corporation, tangible
      personal property, privilege or license taxes (but, in the case of the
      Purchaser, not including any taxes asserted with respect to federal or other
      income taxes arising out of payments on the Loan) and costs and expenses in
      defending against the same;

     

    (iv)  from
      and
      against any loss, liability or expense incurred by reason of Seller’s,
      Servicer’s or NCOC’s willful misfeasance, bad faith or negligence in the
      performance of its duties under this Agreement, or by reason of reckless
      disregard of its obligations and duties under this Agreement;

     

    (v)  from
      and
      against any and all costs, expenses, losses, claims, damages and liabilities
      arising out of, or incurred in connection with the acceptance or performance
      of
      the trusts and duties set forth herein and in the Loan Documents, except to
      the
      extent that such cost, expense, loss, claim, damage or liability shall be due
      to
      the willful misfeasance, bad faith or negligence (except for errors in judgment)
      of such indemnified Party;

     

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

     

    (vi)  from
      and
      against any and all costs, expenses, losses, claims, damages and liabilities
      arising out of or relating to any of Seller’s, Servicer’s or NCOC’s
      representations and warranties, covenants or other agreements contained herein
      or in any other Loan Document to which Seller, Servicer or NCOC is a party;
      or

     

    (vii)  from
      and
      against any and all costs, expenses, losses, claims, damages and liabilities
      arising out of or relating to the failure of a Receivable to be serviced in
      compliance with all requirements of law, including without limitation all
      Consumer Laws, and for any breach of any of Servicer’s representations and
      warranties, covenants or other agreements contained herein or in any other
      Loan
      Document to which Servicer is a party.

     

    (b)  Indemnification
      under this Section shall survive the resignation or removal of Servicer or
      the
      Collateral Agent and the termination of this Agreement and the other Loan
      Documents and shall include reasonable fees and expenses of counsel and other
      expenses of litigation. These indemnity obligations shall be in addition to
      any
      obligation that Seller, Servicer or NCOC may otherwise have under applicable
      law, hereunder or under any other Loan Document.

     

    Notwithstanding
      any provision of this Section
      6.3
      or any
      other provision of this Agreement, nothing in this Agreement shall be construed
      as to require Seller, Servicer or NCOC to provide any indemnification hereunder
      or under any other Loan Document for any costs, expenses, losses, claims,
      damages or liabilities arising out of, or incurred in connection with, credit
      losses with respect to the Receivables.

     

    Section
      6.4.  Delegation
      of Duties.
      Servicer
      may not delegate duties under this Agreement, except in accordance with this
      Section 6.4. 

     

    (a)  The
      Servicer may, at its own expense, enter into subservicing agreements with one
      or
      more subservicers (each a "Subservicer")
      for
      the servicing and administration of a portion of the Receivables with the
      prior written consent of  Lender (which shall be deemed given with respect
      to the appointment of NCAC in (c), below).   References in this
      Agreement to actions taken or to be taken by the Servicer in servicing and
      managing the Receivables shall be deemed to include actions taken or to be
      taken
      by a Subservicer on behalf of the Servicer.  To the extent required by
      applicable Law, each Subservicer shall be authorized to transact business in
      the
      state or states in which any Receivables that it services or manages are
      situated.  The terms and conditions of each subservicing agreement between
      the Servicer and its Subservicers shall not be inconsistent with this
      Agreement.  For purposes of this Agreement, the Servicer shall be deemed to
      have received any payment when a Subservicer receives such payment.  The
      Servicer shall notify the Lender in writing promptly upon the appointment of
      any
      Subservicer. 

     

    (b)  As
      part
      of its duties hereunder, the Servicer, for the benefit of the Secured Parties,
      shall enforce the obligations of each Subservicer under the related subservicing
      agreement.  Such enforcement, including, without limitation, the
      prosecution of all legal claims, termination of subservicing agreements and
      pursuit of other appropriate remedies, shall be in accordance with the Credit
      and Collection Policy and the Servicing Guidelines.  The Servicer shall pay
      the costs of such enforcement at its own expense and shall be reimbursed
      therefor solely from (i) a general recovery resulting from such enforcement,
      but
      only to the extent, if any, that such recovery exceeds all amounts due in
      respect of the related Receivables, or (ii) from a specific recovery of costs,
      expenses and/or attorneys' fees from the party against whom such enforcement
      is
      directed.

     

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

    

     

    (c)  The
      Servicer and NCAC hereby agree that NCAC is appointed as the Servicer’s
      Subservicer with respect to all of the Receivables on the terms of this Section
      6.4, for a fee payable by the Servicer to NCAC in such amount as may be agreed
      by such parties from time to time.

     

    (d)  Notwithstanding
      any subservicing agreement or arrangement between the Servicer and a
      Subservicer, the Servicer shall remain obligated and liable to the Secured
      Parties for the servicing, management, collection and administration of the
      Receivables in accordance with the provisions of this Agreement, as if the
      Servicer alone were servicing, managing, collecting and administering such
      Receivables.

     

    Section
      6.5.  Servicer
      Not to Resign.
      Subject
      to the provisions of Section
      7.3,
      Servicer shall not resign from the obligations and duties imposed on it by
      this
      Agreement as Servicer except upon a determination that by reason of a change
      in
      legal requirements the performance of its duties under this Agreement would
      cause it to be in violation of such legal requirements in a manner which would
      have a material adverse effect on Servicer and Lender does not elect to waive
      the obligations of Servicer to perform the duties which render it legally unable
      to act or to delegate those duties to another Person. Any such determination
      permitting the resignation of Servicer pursuant to the immediately preceding
      sentence shall be evidenced by an Opinion of Counsel to such effect delivered
      and acceptable to the Lender. No resignation of Servicer shall become effective
      until an entity acceptable to Lender shall have assumed the responsibilities
      and
      obligations of Servicer.

     

    ARTICLE
      VII

     

    SERVICER
      TERMINATION EVENTS

     

    Section
      7.1.  Servicer
      Termination Events.
      For
      purposes of this Agreement, each of the following shall constitute a
“Servicer
      Termination Event”:

     

    (a)  Any
      failure by Servicer to deliver or cause to be delivered any proceeds or payment
      required to be so delivered under this Agreement or any other Loan Document
      within one (1) Business Day of the date when the same becomes due;

     

    (b)  Failure
      by Servicer to deliver, or cause to be delivered, to Lender and the Collateral
      Agent any Availability Report by the Determination Date prior to the related
      Settlement Date, which failure continues unremedied for a period of one (1)
      Business Day;

     

    (c)  Failure
      by Servicer to perform or observe in any material respect any term, covenant,
      or
      agreement under this Agreement or any other Loan Document (other than any term,
      covenant or agreement referred to in another subparagraph of this Section
      7.1),
      which
      failure is not cured within 10 calendar days after written notice is received
      by
      Servicer from Lender or the Collateral Agent or after discovery of such failure
      by a Responsible Officer of Servicer;

     

    
      
        
        

      

      
        -20-

        
          

        

      

      
        
        

      

    

     

    (d)  Any
      representation, warranty or statement of Servicer made in this Agreement or
      any
      other Loan Document to which it is a party or any certificate, report or other
      writing delivered pursuant hereto or thereto shall prove to be incorrect in
      any
      material respect as of the time when the same shall have been made, and such
      incorrectness is not cured within 10 calendar days after written notice is
      received by Servicer from any Secured Party or after discovery of such failure
      by a Responsible Officer of Servicer;

     

    (e)  An
      application is made by Servicer for the appointment of a receiver, trustee
      or
      custodian for the Collateral or any other material assets of Purchaser or
      Servicer; a petition under any section or chapter of the Bankruptcy Code or
      federal or State law or regulation shall be filed by Servicer, or Servicer
      shall
      make an assignment for the benefit of its creditors, or any case or proceeding
      shall be filed by Servicer for its dissolution, liquidation, or termination;
      or
      Servicer ceases to conduct its business;

     

    (f)  Servicer
      is enjoined, restrained or prevented by court order from conducting all or
      any
      material part of its business affairs, or a petition under any section or
      chapter of the Bankruptcy Code or any similar federal or State law or regulation
      is filed against Servicer, or any case or proceeding is filed against Servicer,
      for its dissolution or liquidation, and such injunction, restraint, petition,
      case or proceeding is not dismissed within sixty (60) days after the entry
      of
      filing thereof; and

     

    (g)  An
      Event
      of Default or a Default shall have occurred (so long as Manchester is
      Servicer).

     

    In
      the
      event that Servicer or Purchaser gains knowledge of the occurrence of a Servicer
      Termination Event, Servicer or Purchaser, as applicable, shall promptly notify
      Lender and the Collateral Agent in writing of such occurrence.

     

    Section
      7.2.  Consequences
      of a Servicer Termination Event.
      If
      a
      Servicer Termination Event shall occur and be continuing, the Lender by notice
      given in writing to Servicer may terminate all of the rights and obligations
      of
      Servicer under this Agreement. On or after the receipt by Servicer of such
      written notice, all authority, power, obligations and responsibilities of
      Servicer under this Agreement, whether with respect to the Receivables and
      Other
      Conveyed Property or otherwise, automatically shall pass to, be vested in and
      become obligations and responsibilities of the successor Servicer appointed
      by
      Lender under Section
      7.3;
      provided, however, that the successor Servicer shall have no liability with
      respect to any obligation which was required to be performed by the outgoing
      Servicer prior to the date that the successor Servicer becomes Servicer or
      any
      claim of a third party based on any alleged action or inaction of the outgoing
      Servicer. The successor Servicer is authorized and empowered by this Agreement
      to execute and deliver, on behalf of the outgoing Servicer, as attorney-in-fact
      or otherwise, any and all documents and other instruments and to do or
      accomplish all other acts or things necessary or appropriate to effect the
      purposes of such notice of termination, whether to complete the transfer and
      endorsement of the Receivables and the Other Conveyed Property and related
      documents to show the Purchaser as lienholder or secured party on the related
      Auto Title, or otherwise. The outgoing Servicer agrees to cooperate with the
      successor Servicer in effecting the termination of the responsibilities and
      rights of the outgoing Servicer under this Agreement, including, without
      limitation, the transfer to the successor Servicer for administration by it
      of
      all cash amounts that shall at the time be held by the outgoing Servicer for
      deposit, or have been deposited by the outgoing Servicer, in the Deposit Account
      or thereafter received with respect to the Receivables and the delivery to
      the
      successor Servicer of all Custodial Documents that shall at the time be held
      by
      the outgoing Servicer and a computer tape in readable form as of the most recent
      Business Day containing all information necessary to enable the successor
      Servicer to service the Receivables and the Other Conveyed Property. All
      reasonable costs and expenses (including reasonable attorneys’ fees) incurred in
      connection with transferring any Custodial Documents to the successor Servicer
      and amending this Agreement to reflect such succession as Servicer pursuant
      to
      this Section
      7.2
      shall be
      paid by the predecessor Servicer upon presentation of reasonable documentation
      of such costs and expenses. In addition, any successor Servicer shall be
      entitled to payment from the immediate predecessor Servicer for reasonable
      transition expenses incurred in connection with acting as successor Servicer,
      and to the extent not so paid. The outgoing Servicer shall grant the successor
      Servicer, Lender and the Collateral Agent reasonable access to the outgoing
      Servicer’s premises at the outgoing Servicer’s expense.

     

    
      
        
        

      

      
        -21-

        
          

        

      

      
        
        

      

    

     

    Section
      7.3.  Appointment
      of Successor.
      

    (a)  On
      and
      after the time Servicer receives a notice of termination pursuant to
Section
      7.2,
      the
      outgoing Servicer shall continue to perform its functions as Servicer under
      this
      Agreement, in the case of termination, only until the date specified in such
      termination notice or, if no such date is specified in a notice of termination,
      until receipt of such notice and, in the case of expiration and non-renewal
      of
      the term of Servicer upon the expiration of such term, and, in the case of
      resignation, until (i) the later of (x) the date 45 days from the delivery
      to
      Lender of written notice of such resignation (or written confirmation of such
      notice) in accordance with the terms of this Agreement and (y) the date upon
      which the predecessor Servicer shall become unable to act as Servicer, as
      specified in the notice of resignation and accompanying Opinion of Counsel
      or
      (ii) such time as a successor Servicer shall assume all of the rights and
      obligations of the predecessor Servicer hereunder and under any other Loan
      Document; provided,
      however,
      that
      the outgoing Servicer shall not be relieved of its duties, obligations and
      liabilities as Servicer until a successor Servicer has assumed such duties,
      obligations and liabilities. Notwithstanding the preceding sentence, if a
      successor Servicer shall not have assumed the duties, obligations and
      liabilities of Servicer within 45 days of the termination or resignation
      described in this Section
      7.3,
      the
      outgoing Servicer may petition a court of competent jurisdiction to appoint
      a
      successor to the outgoing Servicer.

     

    (b)  Any
      successor Servicer shall be entitled to such compensation as the outgoing
      Servicer would have been entitled to under this Agreement if the outgoing
      Servicer had not resigned or been terminated hereunder or had been renewed
      for
      an additional servicing term hereunder, as may be modified with the consent
      of
      the Lender.

     

    
      
        
        

      

      
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    Section
      7.4.  Waiver
      of Past Defaults.
      Lender
      may waive in writing any default by Servicer in the performance of its
      obligations under this Agreement and the consequences thereof. Upon any such
      waiver of a past default, such default shall cease to exist, and any Servicer
      Termination Event arising therefrom shall be deemed to have been remedied for
      every purpose of this Agreement. No such waiver shall extend to any subsequent
      or other default or impair any right consequent thereto.

     

    ARTICLE
      VIII

     

    MISCELLANEOUS

     

    Section
      8.1.  Notices.
      Except
      when telephonic notice is expressly authorized by this Agreement, any notice
      or
      other communication to any party in connection with this Agreement shall be
      in
      writing and shall be sent by manual delivery, telegram, facsimile transmission,
      overnight courier or United States mail (postage prepaid) addressed to such
      party at the address specified on Schedule
      A
      to the
      Loan Agreement, or at such other address as such party shall have specified
      to
      the other party hereto in writing. All periods of notice shall be measured
      from
      the date of delivery thereof if manually delivered, from the date of sending
      thereof if sent by telegram, or facsimile transmission, from the first Business
      Day after the date of sending if sent by overnight courier, or from four days
      after the date of mailing if mailed.

     

    Section
      8.2.  Notices.
      Except
      when telephonic notice is expressly authorized by this Agreement, any notice
      or
      other communication to any party in connection with this Agreement shall be
      in
      writing and shall be sent by manual delivery, telegram, facsimile transmission,
      overnight courier or United States mail (postage prepaid) addressed to such
      party at the address specified on Schedule
      A
      of the
      Loan Agreement, or at such other address as such party shall have specified
      to
      the other party hereto in writing. All periods of notice shall be measured
      from
      the date of delivery thereof if manually delivered, from the date of sending
      thereof if sent by telegram, or facsimile transmission, from the first Business
      Day after the date of sending if sent by overnight courier, or from four days
      after the date of mailing if mailed.

     

    Section
      8.3.  Prior
      Agreements Superseded.
      This
      Agreement, together with the other Loan Documents, constitute the sole and
      only
      agreement of the parties hereto and supersede any prior understandings or
      written or oral agreements between the parties respecting the subject matter
      of
      this Agreement and the other Loan Documents. No provision of this Agreement
      or
      other Loan Document may be modified, waived or terminated except by instrument
      in writing executed by Lender and the party against whom a modification, waiver
      or termination is sought to be enforced.

     

    Section
      8.4.  Parties
      Bound.
      This
      Agreement shall be binding upon the parties hereto and their respective
      successors and assigns, and shall inure to the benefit of such parties hereto
      and their respective successors and permitted assigns. No party hereto shall
      assign its rights or duties hereunder without the consent of
      Lender.

     

    Section
      8.5.  Execution
      in Counterparts.
      This
      Agreement may be executed in any number of counterparts and by the parties
      hereto in separate counterparts, each of which when so executed and delivered
      shall be deemed to be an original, and all of which taken together shall
      constitute but one and the same instrument.

     

    
      
        
        

      

      
        -23-

        
          

        

      

      
        
        

      

    

     

    Section
      8.6.  Severability
      of Provisions.
      Any
      provision which is determined to be unconscionable, against public policy or
      any
      provision of this Agreement which is prohibited or unenforceable in any
      jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
      such prohibition or unenforceability without invalidating the remaining
      provisions hereof or affecting the validity or enforceability of such provision
      in any other jurisdiction.

     

    Section
      8.7.  Further
      Instruments.
      Each
      party hereto shall from time to time execute and deliver, and shall cause each
      of its subsidiaries to execute and deliver, all such amendments, supplements
      and
      other modifications hereto and to the other Loan Documents and all such
      financing statements or continuation statements, instruments of further
      assurance and any other instruments, and shall take such other actions, as
      Lender reasonably requests and deems necessary or advisable in furtherance
      of
      the agreements contained herein.

     

    Section
      8.8.  Governing
      Law.
      THIS
      AGREEMENT SHALL BE DEEMED A CONTRACT AND INSTRUMENT MADE UNDER THE LAWS OF
      THE
      STATE OF NEW YORK AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND
      GOVERNED BY THE LAWS OF THE STATE OF NEW YORK AND THE LAWS OF THE UNITED STATES
      OF AMERICA. EACH PARTY HERETO HEREBY AGREES THAT ANY LEGAL ACTION OR PROCEEDING
      AGAINST IT WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN THE COURTS OF THE
      STATE OF NEW YORK OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT
      OF NEW YORK AS LENDER MAY ELECT, AND, BY EXECUTION AND DELIVERY HEREOF, EACH
      PARTY HERETO ACCEPTS AND CONSENTS FOR ITSELF AND IN RESPECT TO ITS PROPERTY,
      GENERALLY AND UNCONDITIONALLY, THE NONEXCLUSIVE JURISDICTION OF THE AFORESAID
      COURTS. EACH PARTY HERETO AGREES THAT SECTIONS 5-1401 AND 5.1402 OF THE GENERAL
      OBLIGATIONS LAW OF THE STATE OF NEW YORK SHALL APPLY TO THE LOAN DOCUMENTS
      AND
      WAIVES ANY RIGHT TO STAY OR TO DISMISS ANY ACTION OR PROCEEDING BROUGHT BEFORE
      SAID COURTS ON THE BASIS OF FORUM NON CONVENIENS. EACH PARTY HERETO HEREBY
      WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS UPON IT, AND AGREES THAT ALL
      SUCH
      SERVICE OF PROCESS MAY BE MADE BY REGISTERED MAIL DIRECTED TO IT AT THE ADDRESS
      SET FORTH IN THIS AGREEMENT AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED
      UPON ACTUAL RECEIPT THEREOF.

     

    Section
      8.9.  Consent
      of Jurisdiction.
      AT
      THE
      OPTION OF LENDER, THIS AGREEMENT, AND THE OTHER LOAN DOCUMENTS MAY BE ENFORCED
      IN ANY FEDERAL COURT OR NEW YORK STATE COURT SITTING IN NEW YORK, NEW YORK;
      AND
      EACH PARTY HERETO CONSENTS TO THE JURISDICTION AND VENUE OF ANY SUCH COURT
      AND
      WAIVES ANY ARGUMENT THAT VENUE IN SUCH FORUMS IS NOT CONVENIENT. IN THE EVENT
      ANY PARTY HERETO COMMENCES ANY ACTION IN ANOTHER JURISDICTION OR VENUE UNDER
      ANY
      TORT OR CONTRACT THEORY ARISING DIRECTLY OR INDIRECTLY FROM THE RELATIONSHIP
      CREATED BY THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS, LENDER AT ITS
      OPTION SHALL BE ENTITLED TO HAVE THE CASE TRANSFERRED TO ONE OF THE
      JURISDICTIONS AND VENUES ABOVE-DESCRIBED, OR IF SUCH TRANSFER CANNOT BE
      ACCOMPLISHED UNDER APPLICABLE LAW, TO HAVE SUCH CASE DISMISSED WITHOUT
      PREJUDICE.

     

    
      
        
        

      

      
        -24-

        
          

        

      

      
        
        

      

    

     

    Section
      8.10.  Waiver
      of Jury Trial.
      EACH
      PARTY HERETO WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING
      TO
      ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT OR UNDER ANY OF THE OTHER
      LOAN
      DOCUMENTS, AND AGREE THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE
      A
      COURT AND NOT BEFORE A JURY.

     

    Section
      8.11.  Pledge
      by Purchaser.
      Seller
      and Servicer acknowledge that Purchaser has pledged all of its rights, title
      and
      interest in and to this Agreement to the Collateral Agent for the benefit of
      the
      Lender, and that the Collateral Agent and the Lender may enforce this Agreement
      as if they were parties hereto. Each of the Collateral Agent and the Lender
      are
      intended third party beneficiaries of this Agreement.

     

    Section
      8.12.  Time
      of Essence.
      Time
      is
      of the essence for the performance of the obligations set forth in this
      Agreement and the Loan Documents.

    
 

     

    [remainder
      of page intentionally left blank]

     

    
      
        
        

      

      
        -25-

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
      executed and delivered by their respective duly authorized officers as of the
      day and the year first above written.

     

    
      	 	 	 
	 	
              NICE
                CARS FUNDING LLC,
as Purchaser

            
	 	 	 
	 	By:  	
              Nice Cars Acceptance AcquisitionCo, Inc., 

              its
                Member

            
	 
 	 
 	 
 
	 	 	By:
              /s/
              Richard Gaines
	 	
              
                

              
Name: Richard Gaines
	 	
              
                

              

              Title: 
                 President

            
	 	
              
                

              

            

    

     

    
      	 	 	 
	 	
              NICE
                CARS ACCEPTANCE ACQUISITIONCO, 

              INC.,
                as Seller

            
	 	 
	 
 	
              By:  

            	/s/
              Richard
              Gaines
	 	
              
                

              
Name: Richard Gaines
	 	
              
                

              

              Title:   President

            
	 	
              
                

              

            

    

     

    
      	 	 	 
	 	
              MANCHESTER
                INC.,

              as Servicer

            
	 
 	 
 	 
 
	 	By:  	/s/
              Richard Gaines
	 	
              
                

              

              Name:
                Richard Gaines

            
	 	
              
                

              
Title:   Secretary
	 	
              
                

              

            

    
      	 	 	 
	 	
              NICE
                CARS OPERATIONS ACQUISITIONCO, 

              INC.,
                as Servicer

            
	 
 	 
 	 
 
	 	By:  	/s/
              Richard Gaines
	 	
              
                

              

              Name:
                Richard Gaines

            
	 	
              
                

              
Title:   President
	 	
              
                

              

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      A

     

    SCHEDULE
      OF RECEIVABLES

     

    [Available
      upon request from Servicer]

     

    
      
        
        

      

      
        Schedule
          A — Page
          1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

     

    FORM
      OF
      TRANSFER INSTRUMENT

     

    
      
        
        

      

      
        Exhibit A —
          Page
          1

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      B

     

    FORM
      OF
      ADDITION NOTICE

     

    Nice
      Cars
      Funding LLC

    100
      Crescent Court, 7th
      Floor

    Dallas,
      TX 75201

    Attn:
      Richard D. Gaines, Corporate Secretary

    

    Palm
      Beach Multi-Strategy Fund, LP

    c/o
      Links
      Business Capital, LP

    P.
      O. Box
      833519

    Richardson,
      TX 75083

    

    Car
      Financial Services, Inc.

    600
      Westport Drive

    Peachtree
      City, GA 30269

    

    The
      Bank
      of New York, as Collateral Agent

    The
      Bank
      of New York

    600
      East
      Las Colinas Blvd.

    Suite
      1300

    Irving,
      TX 75039

    Attn:
      Director of Agent Services, Steve Jerard

     

    Gentlemen
      and Ladies:

     

    This
      Addition Notice is delivered to you pursuant to Section 2.1(b) of Sale and
      Servicing Agreement dated as of September 28, 2006 among Nice Cars Funding
      LLC, as Purchaser (in such capacity, the “Purchaser”) and Nice Cars Acceptance
      AcquisitionCo, Inc., as Seller (in such capacity, the “Seller”) and Servicer.
      Capitalized terms used but not otherwise defined herein have the meanings
      assigned thereto in Annex A to the Sale and Servicing Agreement.

     

    Seller
      hereby intends to transfer to the Purchaser $________ aggregate outstanding
      principal amount of Receivables on _____________, 200_ (the “Funding
      Date”).
      The
      Purchaser hereby represents and warrants to each Secured Party that all of
      the
      statements contained in Section 2.1(b) of the Sale and Servicing Agreement
      and
      Section 4 of the Loan Agreement pertaining to the transfer of the Receivables
      shall be true and correct on and as of the proposed Funding Date and all of
      the
      conditions precedent to the funding of an Advance shall then be
      satisfied.

     

    Attached
      as Schedule
      A
      is a
      supplement to the Schedule of Receivables reflecting all Receivables Seller
      intends to transfer to the Purchaser on the Funding Date. The Purchaser
      represents and warrants that the information on Schedule A is true and correct
      as of the date hereof.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Purchaser and Seller have caused this notice of addition
      to
      be executed and delivered by its duly authorized officer this ___ day of
      ___________, 200_.

     

    
      	 	 	 
	 	NICE
              CARS FUNDING,
              LLC
	 
 	 
 	 
 
	 	By:  	 
	 	
              
                

              
Name:
	 	
              
                

              
Title:
	 	
              
                

              

            

    

     

    
      	 	 	 
	 	NICE
              CARS
              ACCEPTANCE ACQUISITIONCO, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              
                

              

              Name:

            
	 	
              
                

              
Title:
	 	
              
                

              

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      ANNEX
        A -
        DEFINED TERMS

       

      “Account
        Control Agreement”
shall
        have the meaning given to that term in the Loan Agreement.

       

      “Addition
        Notice”
means,
        with respect to any transfer of Receivables to the Purchaser pursuant to
        Section
        2.1
        of the
        Sale and Servicing Agreement, notice of the Seller’s election to transfer
        Receivables to the Purchaser, such notice to designate the related Funding
        Date
        and the aggregate principal amount of Receivables to be transferred on such
        Funding Date, substantially in the form of Exhibit B
        to the
        Sale and Servicing Agreement.

       

      “Advance”
means
        an advance made by Lender to Borrower under the Loan Agreement.

       

      “Affiliate”
shall
        have the meaning given to that term in the Loan Agreement.

       

      “Ageing
        Procedures”
shall
        have the meaning given to that term in the Loan Agreement.

       

      “Amount
        Financed”
means,
        with respect to a Receivable, the aggregate amount advanced under such
        Receivable toward the purchase price of the Financed Vehicle and any related
        costs, including amounts advanced in respect of accessories, insurance premiums,
        service and warranty contracts, other items customarily financed as part
        of
        retail automobile installment sale contracts and related costs.

       

      “Annual
        Percentage Rate”
or
        “APR”
of
        a
        Receivable means the annual percentage rate of finance charges or service
        charges, as stated in the related Contract.

       

      “Auto
        Title Procedures”
shall
        have the meaning given to that term in the Loan Agreement.

       

      “Availability
        on Eligible Receivables”
shall
        have the meaning given to that term in the Loan Agreement.

       

      “Availability
        Report”
shall
        have the meaning given to that term in the Loan Agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Bankruptcy
        Code”
means
        the Bankruptcy Reform Act of 1978, as amended from time to time, and as codified
        as 11 U.S.C. Section 101 et seq.

       

      “Blocked
        Account”
shall
        have the meaning given to that term in the Loan Agreement.

       

      “Business
        Day”
shall
        have the meaning given to that term in the Loan Agreement.

       

      “Closing
        Date”
means
        September 28, 2006.

       

      “Code”
means
        the Internal Revenue Code of 1986, as amended from time to time, and Treasury
        Regulations promulgated thereunder.

       

      “Collateral”
shall
        have the meaning given to that term in the Loan Agreement.

       

      “Collection
        Account”
shall
        have the meaning given to that term in the Loan Agreement.

       

      “Collection
        Period”
means
        each calendar month.

       

      “Commonly
        Controlled Entity”
shall
        have the meaning given to that term in the Loan Agreement.

       

      “Consumer
        Laws”
means
        federal and State usury laws, the Federal Truth-in-Lending Act, the Equal
        Credit
        Opportunity Act, the Fair Credit Reporting Act, the Fair Debt Collection
        Practices Act, the Federal Trade Commission Act, the Magnuson-Moss Warranty
        Act,
        the Federal Reserve Board’s Regulations B and Z, the Servicemembers Civil Relief
        Act, the California Military Reservist Relief Act, the Texas Consumer Credit
        Code, the California Automobile Sales Finance Act, State adaptations of the
        National Consumer Act and of the Uniform Consumer Credit Code and all other
        federal, State and local consumer credit laws and equal credit opportunity
        and
        disclosure laws and regulations thereunder.

       

      “Contract”
means
        a
        motor vehicle retail installment sale contract or security agreement relating
        to
        the sale of used automobiles, light trucks, vans or minivans, and other writings
        related thereto from time to time.

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

      “Cram
        Down Loss”
means,
        with respect to a Receivable, if a court of appropriate jurisdiction in an
        insolvency proceeding shall have issued an order reducing the amount owed
        on a
        Receivable or otherwise modifying or restructuring Scheduled Receivable Payments
        to be made on a Receivable, an amount equal to such reduction in the Principal
        Balance of such Receivable or the reduction in the net present value (using
        as
        the discount rate the lower of the contract rate or the rate of interest
        specified by the court in such order) of the Scheduled Receivable Payments
        as so
        modified or restructured. A “Cram
        Down Loss”
shall
        be deemed to have occurred on the date such order is entered.

       

      “Credit
        and Collection Policy”
shall
        mean the Credit and Collection Policy of the Servicer, a copy of which has
        been
        provided to Lender, as amended from time to time with the prior written consent
        of the Lender.

       

      “Custodial
        Agreement”
shall
        have the meaning given to that term in the Loan Agreement, a copy of which
        has
        been provided to Lender.

       

      “Custodial
        Certification”
shall
        have the meaning given to that term in the Custodial Agreement.

       

      “Custodial
        Documents”
means
        the documents specified in Section
        2.2(a)
        of the
        Custodial Agreement.

       

      “Custodian”
shall
        have the meaning given to that term in the Custodial Agreement.

       

      “Cutoff
        Date”
means,
        with respect to a Receivable or Receivables, the date specified as such for
        such
        Receivable or Receivables in the Schedule of Receivables attached to the
        Sale
        and Servicing Agreement or to the applicable Transfer Instrument.

       

      “Data
        Tape Fields”
has
        the
        meaning given such term in Section 2.1(b)(i) of the Sale and Servicing
        Agreement.

       

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

      “Default”
shall
        have the meaning given to that term in the Loan Agreement.

       

      “Defective
        Receivable”
means
        a
        Receivable that is subject to repurchase pursuant to Section
        3.2
        or
Section
        4.7
        of the
        Sale and Servicing Agreement.

       

      “Delinquency”
shall
        have the meaning given to that term in the Loan Agreement.

       

      “Determination
        Date”
means,
        with respect to any Settlement Date, the fourth Business Day preceding such
        Settlement Date.

       

      “Dollar”
means
        lawful money of the United States.

       

      “Eligible
        Receivables”
shall
        have the meaning given to that term in the Loan Agreement.

       

      “ERISA”
means
        the Employee Retirement Income Security Act of 1974, as amended.

       

      “Event
        of Default”
shall
        have the meaning given to that term in the Loan Agreement.

       

      “Facility
        Termination Date”
means
        the earliest of (a) the Maturity Date (b) the Termination Date and (c) the
        acceleration of the obligations of the Purchaser pursuant to Section 7.2
        of the
        Loan Agreement.

       

      “FDIC”
means
        the Federal Deposit Insurance Corporation.

       

      “Fee
        Letter”
shall
        have the meaning given to that term in the Loan Agreement.

       

      “Financed
        Vehicle”
means
        a
        new or used automobile, light truck, van or minivan, together with all
        accessions thereto, securing an Obligor’s indebtedness under a
        Receivable.

       

      “Funding
        Date”
means
        each Business Day on which an Advance occurs.

       

      “GAAP”
means
        U.S. generally accepted accounting principles occasioned by the promulgation
        of
        rules, regulations, pronouncements or opinions by the Financial Accounting
        Standards Board, the American Institute of Certified Public Accountants or
        the
        Securities and Exchange Commission (or successors thereto or agencies with
        similar functions) from time to time.

       

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

      “Governmental
        Authority”
means
        the United States of America, any state, local or other political subdivision
        thereof and any entity exercising executive, legislative, judicial, regulatory,
        or administrative functions thereof pertaining thereto.

       

      “Guaranty
        Agreements”
shall
        have the meaning given to that term in the Loan Agreement.

       

      “Guaranty
        Security Agreements”
shall
        have the meaning given to that term in the Loan Agreement.

       

      “Law”
shall
        have the meaning given to that term in the Loan Agreement.

       

      “Lender”
shall
        have the meaning given to that term in the Loan Agreement.

       

      “Lien”
shall
        have the meaning given to that term in the Loan Agreement.

       

      “Liquidated
        Receivable”
means
        any Receivable (i) which has been liquidated by the Servicer through the
        sale of the Financed Vehicle or (ii) for which the related Financed Vehicle
        has been repossessed and 90 days have elapsed since the date of such
        repossession or (iii) as to which an Obligor has failed to make more than
        90% of a Scheduled Receivable Payment of more than ten dollars for 120 (or,
        if
        the related Financed Vehicle has been repossessed, 210) or more days as of
        the
        end of a Collection Period or (iv) with respect to which proceeds have been
        received which, in the Servicer’s judgment, constitute the final amounts
        recoverable in respect of such Receivable. For purposes of this definition,
        a
        Receivable shall be deemed a “Liquidated Receivable” upon the first to occur of
        the events specified in items (i) through (iv) of the previous
        sentence.

       

      “LLC
        Agreement”
means
        the Limited Liability Company Agreement of the Purchaser dated as of
        September 28, 2006, entered into by NCAC, as such agreement may be amended,
        supplemented or otherwise modified from time to time in accordance with the
        terms thereof. 

       

      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

      “Loan”
shall
        have the meaning given to that term in the Loan Agreement.

       

      “Loan
        Agreement”
means
        the Loan and Security Agreement dated the date hereof between the Lender,
        the
        Purchaser and the Collateral Agent.

       

      “Loan
        Documents”
shall
        have the meaning given to that term in the Loan Agreement.

       

      “Lockbox”
means
        any lockbox account set up pursuant to Section 3.9 of the Loan Agreement
        into
        which all Obligors are directed to mail all payments in connection with all
        Receivables, and from which all cash receipts shall be deposited into the
        Blocked Account.

       

      “Manchester”
means
        Manchester Inc., a Nevada corporation, and its successors and permitted
        assigns.

       

      “Material
        Adverse Effect”
shall
        have the meaning given to that term in the Loan Agreement.

       

      “Maturity
        Date”
shall
        have the meaning given
        to that
        term in the Loan Agreement.

       

      “Multiemployer
        Plan”
means
        a
        Plan which is a multiemployer plan as defined in Section 4001(a)(3) of
        ERISA.

       

      “NCAC”
shall
        have the meaning given to that term in the Loan Agreement.

       

      “Net
        Liquidation Proceeds”
means,
        with respect to a Liquidated Receivable, all amounts realized with respect
        to
        such Receivable net of (i) reasonable expenses incurred by the Servicer in
        connection with the collection of such Receivable and the repossession and
        disposition of the Financed Vehicle and the reasonable cost of legal counsel
        with the enforcement of a Liquidated Receivable and (ii) amounts that are
        required to be refunded to the Obligor on such Receivable; provided,
        however,
        that
        the Net Liquidation Proceeds with respect to any Receivable shall in no event
        be
        less than zero.

       

      “Note”
shall
        have the meaning given to that term in the Loan Agreement.

       

      
        
          
          

        

        
          -6-

          
            

          

        

        
          
          

        

      

      “Obligor”
means
        any Person or Persons that are an obligor (including without limitation any
        co-signor) in respect of any Receivable.

       

      “Officer’s
        Certificate”
means
        a
        certificate signed by the chairman of the board, the president, any vice
        chairman of the board, any vice president, the treasurer, the controller
        or
        assistant treasurer or any assistant controller, secretary or assistant
        secretary of the Seller, the Purchaser or the Servicer, as
        appropriate.

       

      “Opinion
        of Counsel”
means
        a
        written opinion of counsel who may be but need not be counsel to the Purchaser,
        the Seller or the Servicer, which counsel shall be reasonably acceptable
        to the
        Lender and which opinion shall be acceptable in form and substance to the
        Lender.

       

      “Other
        Conveyed Property”
means
        all property conveyed by the Seller to the Purchaser pursuant to Sections
        2.1 (a)(ii)
        through
(xi)
        of the
        Sale and Servicing Agreement and Section 2 of each Transfer
        Instrument.

       

      “Person”
shall
        have the meaning given to that term in the Loan Agreement.

       

      “Plan”
means
        any Person that is (i) an “employee benefit plan” (as defined in Section 3(3) of
        ERISA) that is subject to the provisions of Title I of ERISA, (ii) a “plan” (as
        defined in Section 4975(e)(1) of the Code) that is subject to Section 4975
        of
        the Code or (ii) any entity whose underlying assets include assets of a plan
        described in (i) or (ii) above by reason of such plan’s investment in the
        entity.

       

      “Principal
        Balance”
of
        a
        Receivable means the Amount Financed minus the sum of the following amounts
        without duplication: (i) that portion of all Scheduled Receivable Payments
        actually received on or prior to such day allocable to principal using the
        Simple Interest Method; (ii) any Cram Down Loss in respect of such Receivable;
        and (iii) any prepayment in full or any partial prepayment applied to reduce
        the
        principal balance of the Receivable, all measured as of the close of business
        on
        such day.

       

      
        
          
          

        

        
          -7-

          
            

          

        

        
          
          

        

      

      “Proceeding”
means
        any suit in equity, action at law or other judicial or administrative
        proceeding.

       

      “Purchase
        Amount”
means,
        on any date with respect to a Defective Receivable, the sum of (a) the Principal
        Balance of such Receivable as of the date of purchase of such Receivable,
        and
        (b) all accrued and unpaid interest on the Receivable.

       

      “Purchase
        Price”
means,
        with respect to each Receivable and related Other Conveyed Property transferred
        to the Purchaser on any Funding Date, an amount equal to the Principal Balance
        of such Receivable as of such Funding Date.

       

      “Purchased
        Receivable”
means
        a
        Receivable purchased by the Servicer pursuant to Section
        4.7
        of the
        Sale and Servicing Agreement or repurchased by the Seller pursuant to
Section
        3.2
        of the
        Sale and Servicing Agreement.

       

      “Purchaser”
means
        Nice Cars Funding LLC, a Delaware limited liability company.

       

      “Receivables”
means
        all retail installment sale contracts for Financed Vehicles made the subject
        of
        a Transfer Instrument, except for receivables that shall have become Purchased
        Receivables, and, for the avoidance of doubt, shall include all Related
        Receivables (other than Related Receivables that shall have become Purchased
        Receivables).

       

      “Receivables
        Insurance Policy”
shall
        have the meaning given to that term in Section 4.4 of the Sale and Servicing
        Agreement.

       

      “Related
        Party”
shall
        have the meaning given to that term in the Loan Agreement.

       

      
        
          
          

        

        
          -8-

          
            

          

        

        
          
          

        

      

      “Related
        Receivables”
means,
        with respect to a Funding Date, the Receivables listed on Schedule A
        to the
        applicable Transfer Instrument executed and delivered by the Seller with
        respect
        to such Funding Date.

       

      “Responsible
        Officer”
means,
        with respect to any Person, the chairman or vice-chairman of the board of
        directors, the chairman or vice-chairman of the executive committee of the
        board
        of directors, the president, vice-president, assistant vice-president or
        managing director, the secretary, and assistant secretary or any other officer
        of such Person customarily performing functions similar to those performed
        by
        any of the above designated officers and also means, with respect to a
        particular matter, any other officer to whom such matter is referred because
        of
        such officer’s knowledge of and familiarity with the particular
        subject.

       

      “Sale
        and Servicing Agreement”
means
        the Sale and Servicing Agreement dated as of September 28, 2006, among Nice
        Cars Funding LLC, as Purchaser, NCAC, as Seller, and Manchester Inc., as
        Servicer, as the same may be amended or supplemented from time to time in
        accordance with the terms thereof.

       

      “Scheduled
        Receivable Payment”
means,
        with respect to any Collection Period for any Receivable, the amount set
        forth
        in such Receivable as required to be paid by the Obligor in such Collection
        Period. If after the Closing Date, the Obligor’s obligation under a Receivable
        with respect to an Collection Period has been modified so as to differ from
        the
        amount specified in such Receivable (i) as a result of the order of a court
        in
        an insolvency proceeding involving the Obligor, (ii) pursuant to the
        Servicemembers Civil Relief Act, or (iii) as a result of modifications or
        extensions of the Receivable permitted by Section 4.2 of the Sale and Servicing
        Agreement, the Scheduled Receivable Payment with respect to such Collection
        Period shall refer to the Obligor’s payment obligation with respect to such
        Collection Period as so modified.

       

      
        
          
          

        

        
          -9-

          
            

          

        

        
          
          

        

      

      “Schedule
        of Receivables”
means
        the schedule of all Receivables purchased by the Purchaser pursuant to the
        Sale
        and Servicing Agreement and each Transfer Instrument, which is attached as
        Schedule A to the Sale and Servicing Agreement, as amended or supplemented
        from
        time to time upon each Transfer Instrument of Receivables or in accordance
        with
        the terms of the Sale and Servicing Agreement.

       

      “Secured
        Obligations”
shall
        have the meaning given to that term in the Loan Agreement.

       

      “Secured
        Parties”
means
        Lender and the Collateral Agent.

       

      “Securities
        Act”
means
        the Securities Act of 1933, as amended.

       

      “Seller”
means
        Manchester and its successors in interest to the extent permitted
        hereunder.

       

      “Seller
        Default”
means
        (i)
        any
        failure by the Seller to deliver or cause to be delivered any payment required
        to be so delivered under any Basic Document within one (1) Business Day of
        the
        date when the same becomes due;
        (ii) failure
        by the Seller to perform or observe in any material respect any other term,
        covenant, or agreement under any Basic Document which is not cured within
        10
        calendar days after written notice is received by the Seller from the Lender
        or
        the Collateral Agent or after discovery of such failure by a Responsible
        Officer
        of the Seller;
        (iii)
        any
        representation, warranty or statement of the Seller made in any Basic Document
        to which it is a party or any certificate, report or other writing delivered
        pursuant hereto or thereto shall prove to be incorrect in any material respect
        as of the time when the same shall have been made, and such incorrectness
        is not
        cured within 10 calendar days after written notice is received by the Seller
        from any Lender Party or after discovery of such failure by a Responsible
        Officer of the Seller;
        (iv)
        an
        application is made by the Seller for the appointment of a receiver, trustee
        or
        custodian for any of its assets; a petition under any section or chapter
        of the
        Bankruptcy Code or federal or State law or regulation shall be filed by the
        Seller, or the Seller shall make an assignment for the benefit of its creditors,
        or any case or proceeding shall be filed by the Seller for its dissolution,
        liquidation, or termination; or the Seller ceases to conduct its
        business;
        (v)
        the
        Seller is enjoined, restrained or prevented by court order from conducting
        all
        or any material part of its business affairs, or a petition under any section
        or
        chapter of the Bankruptcy Code or any similar federal or State law or regulation
        is filed against the Seller, or any case or proceeding is filed against the
        Seller, for its dissolution or liquidation, and such injunction, restraint,
        petition, case or proceeding is not dismissed within sixty (60) days after
        the
        entry of filing thereof;
        or (vi)
        the occurrence of any event which, with the passage of time or the giving
        of
        notice, or both, would result in any of the matters referred to in (i) through
        (v) above.

       

      
        
          
          

        

        
          -10-

          
            

          

        

        
          
          

        

      

      “Servicer”
means,
        initially, Manchester, as the servicer of the Receivables, and each successor
        Servicer pursuant to Section
        10.3
        of the
        Sale and Servicing Agreement.

       

      “Servicer
        Termination Event”
means
        an event specified in Section
        7.1
        the Sale
        and Servicing Agreement.

       

      “Servicing
        Fee”
has
        the
        meaning specified in Section
        4.8
        of the
        Sale and Servicing Agreement.

       

      “Servicing
        Guidelines”
means
        the servicing guidelines of the Servicer, a copy of which has been given
        to the
        Lender, as amended from time to time with the prior written consent of the
        Lender.

       

      “Settlement
        Date”
shall
        have the meaning given to that term in the Loan Agreement.

       

      “Simple
        Interest Method”
means
        the method of allocating a fixed level payment between principal and interest,
        pursuant to which the portion of such payment that is allocated to interest
        is
        equal to the product of the APR multiplied by the unpaid balance multiplied
        by
        the period of time (expressed as a fraction of a year, based on the actual
        number of days in the calendar month and the actual number of days in the
        calendar year) elapsed since the preceding payment of interest was made and
        the
        remainder of such payment is allocable to principal.

       

      
        
          
          

        

        
          -11-

          
            

          

        

        
          
          

        

      

      “Termination
        Date”
shall
        have the meaning given to that term in the Loan Agreement.

       

      “Transfer
        Instrument”
means
        a
        Transfer Instrument from the Seller to the Purchaser with respect to the
        Receivables and Other Conveyed Property to be conveyed by the Seller to the
        Purchaser on any Funding Date, in substantially the form of Exhibit A
        to the
        Sale and Servicing Agreement.

       

      “UCC”
means
        the Uniform Commercial Code as in effect in the relevant jurisdiction, as
        amended from time to time.

       

      “Underwriting
        Guidelines”
shall
        mean the underwriting guidelines of the Seller, a copy of which has been
        provided to the Lender, as amended from time to time with the prior written
        consent of the Lender.

       

      
        
          
          

        

        -12-GUARANTY

     

    THIS
      GUARANTY
      (this
“Guaranty”)
      is
      made effective as of September 28, 2006, by Manchester Inc., a Nevada
      corporation (“Manchester”),
      Nice
      Cars Acceptance AcquisitionCo, Inc., a Delaware corporation (“NCAC”)
      and
      Nice Cars Operations AcquisitionCo, Inc., a Delaware corporation (“NCOC”
and,
      together with Manchester and NCAC, “Guarantors”
and
      each, a “Guarantor”),
      to
      and for the benefit of Palm Beach Multi-Strategy Fund, L.P., a Delaware limited
      partnership (“Lender”).

     

    WHEREAS,
      Nice
      Cars Funding LLC, a Delaware limited liability company (“Borrower”),
      and
      Lender have entered into that certain Loan and Security Agreement of even date
      herewith (as amended, supplemented or modified from time to time, the
“Loan
      Agreement”),
      pursuant to which Borrower has agreed to borrow from Lender, and Lender has
      agreed to lend to Borrower, certain amounts, all in accordance with and subject
      to the terms and conditions set forth in the Loan Agreement;

     

    WHEREAS,
      Borrower, NCAC, Manchester, NCOC and Borrower have entered into that certain
      Sale and Servicing Agreement of even date herewith (as amended, supplemented
      or
      modified from time to time, the “Sale
      and Servicing Agreement”),
      pursuant to which Borrower has agreed to purchase certain receivables
      (“Receivables”)
      from
      NCAC and Manchester has agreed to service such Receivables for the benefit
      of
      Borrower.

     

    WHEREAS,
      as
      security for its obligations under the Loan Agreement, the Borrower has pledged
      to Lender, among other things, all of its right, title and interest in and
      to
      the Receivables and the Sale and Servicing Agreement.

     

    WHEREAS,
      it is a
      condition precedent to Lender’s obligation to make the Loan and advances
      pursuant to the Loan Agreement, that Guarantor, among other things, shall
      execute and deliver this Guaranty;

     

    WHEREAS,
      Manchester and NCAC own, directly or indirectly, 100% of the equity of Borrower
      and Manchester owns 100% of the equity of NCAC and NCOC, and therefore each
      Guarantor will benefit from the Loan to Borrower from Lender and each Guarantor
      further acknowledges and agrees that (a) the Loan constitutes valuable
      consideration to such Guarantor, (b) this Guaranty is intended to be an
      inducement to Lender to execute, deliver and perform the Loan Agreement and
      the
      other Loan Documents and to extend credit and the Loan to Borrower, and (c)
      Lender is relying upon this Guaranty in making and advancing the Loan to
      Borrower;

     

    NOW,
      THEREFORE,
      in
      consideration of the foregoing and of the covenants and agreements hereinafter
      set forth, the receipt and sufficiency of which are hereby acknowledged, and
      as
      an inducement for Lender to enter into the Loan Agreement and the other Loan
      Documents, Guarantors, intending to be legally bound hereby, agrees as
      follows:

     

    1.  DEFINED
      TERMS.

     

    (a)  All
      capitalized terms used in this Guaranty and not defined herein shall have the
      meanings given to such terms in the Loan Agreement. Whenever the context so
      requires, each reference to gender includes the masculine and feminine, the
      singular number includes the plural and vice versa. References to section,
      article, annex, schedule, exhibit and like references are references to this
      Guaranty unless otherwise specified. A Default or Event of Default shall
“continue” or be “continuing” until such Default or Event of Default has been
      cured or waived by Lender in accordance with the Loan Agreement. References
      in
      this Guaranty to any Person shall include such Person and its successors and
      permitted assigns.

    
      
        
        

      

      
        
        

        
          

        

      

       

    

     

    (b)  For
      purposes herein, the following terms shall have the following
      meanings:

     

    “Guaranteed
      Obligations”
means,
      subject to Section 2(f) below, collectively all of the indebtedness,
      obligations, and undertakings that are guaranteed by the Guarantors and
      described in subsections (a) and (b) of Section 2 of this Guaranty.

     

    “Loan
      Obligor”
means
      any of Borrower, the Guarantors and any other endorsers, guarantors or obligors,
      primary or secondary, of any or all of the Indebtedness.

     

    “Security”
means
      any rights, properties, or interests of the Secured Parties under the Loan
      Documents, the Security Agreement or otherwise, which provide recourse or other
      benefits to Lender in connection with the Guaranteed Obligations or the non
      payment or non performance thereof, including collateral (whether real or
      personal, tangible or intangible) in which the Secured Parties have rights
      under
      or pursuant to any Loan Documents, guaranties of the payment or performance
      of
      any Guaranteed Obligation, bonds, surety agreements, keep well agreements,
      letters of credit, rights of subrogation, rights of offset, and rights pursuant
      to which other claims are subordinated to the Guaranteed
      Obligations.

     

    2.  THE
      GUARANTEED DEBT.

     

    (a)  Subject
      to Section 2(f) below, the Guarantors hereby jointly and severally, irrevocably,
      absolutely, and unconditionally guarantee to Lender the prompt, complete, and
      full payment when due, and no matter how the same shall become due, of: (i)
      the
      Loan, including the Note and any other note that may be issued from time to
      time
      to evidence the Loan and all principal thereof, all interest thereon and all
      other sums payable thereunder; (ii) all obligations or liabilities of any Loan
      Obligor; (iii) all other sums payable under the Loan Documents, whether for
      principal, interest, fees or otherwise; and (iv) any and all other indebtedness,
      obligations or liabilities which may at any time be owed to Lender, whether
      incurred heretofore or hereafter or concurrently herewith, under or pursuant
      to
      any of the Loan Documents. Without limiting the generality of the foregoing,
      the
      Guarantors’ liability hereunder shall extend to and include all post-petition
      interest, expenses, and other duties and liabilities of Borrower described
      above
      in this subsection (a), or below in the following subsection (b), which would
      be
      owed by Borrower but for the fact that they are unenforceable or not allowable
      due to the existence of a bankruptcy, reorganization, or similar proceeding
      involving Borrower.

    
      
        
        

      

      
        -2-

        
          

        

      

       

    

     

    (b)  (i)      
      Subject
      to Section 2(f) below, the Guarantors hereby jointly and severally irrevocably,
      absolutely, and unconditionally guarantee to Lender the prompt, complete and
      full performance, when due, and no matter how the same shall become due, of
      all
      obligations and undertakings of Borrower to Lender under, by reason of, or
      pursuant to any of the Loan Documents.

     

    (ii)  Manchester
      and NCOC hereby irrevocably, absolutely and unconditionally guarantee to Lender
      the prompt, complete and full performance, when due, and no matter how the
      same
      shall become due, of all obligations and undertakings of NCAC to Borrower and
      Lender in its capacity as Seller under the Sale and Servicing
      Agreement.

     

    (iii)  NCAC
      and
      NCOC hereby irrevocably, absolutely, and unconditionally guarantee to Lender
      the
      prompt, complete and full performance, when due, and no matter how the same
      shall become due, of all obligations and undertakings of Manchester to Borrower
      and Lender in its capacity as Servicer under the Sale and Servicing
      Agreement.

     

    (c)  If
      the
      party liable therefor shall for any reason fail to pay any Guaranteed
      Obligation, as and when such Guaranteed Obligation shall become due and payable,
      whether at its stated maturity, as a result of the exercise of any power to
      accelerate, or otherwise, the Guarantors will forthwith, upon demand by Lender,
      pay such Guaranteed Obligation in full to Lender. If the party responsible
      therefor shall for any reason fail to perform promptly any Guaranteed
      Obligation, the Guarantors will forthwith, upon demand by Lender, cause such
      Guaranteed Obligation to be performed or, if specified by Lender, provide
      sufficient funds, in such amount and manner as Lender shall in good faith
      determine, for the prompt, full and faithful performance of such Guaranteed
      Obligation by Lender or such other Person as Lender shall
      designate.

     

    (d)  If
      either
      the party responsible therefor or the Guarantors fail to pay or perform any
      Guaranteed Obligation as described in the immediately preceding subsections
      (a),
      (b), or (c), the Guarantors will incur the additional obligation to pay to
      Lender, and the Guarantors will forthwith upon demand by Lender pay to Lender,
      the amount of any and all expenses, including reasonable fees and disbursements
      of Lender’s counsel and of any experts or agents retained by Lender, which
      Lender may incur as a result of such failure.

     

    (e)  As
      between each Guarantor and Lender, this Guaranty shall be considered a primary
      and liquidated liability of such Guarantor.

     

    (f)  Notwithstanding
      any other provision of this Guaranty, the aggregate liability of the Guarantors
      to Lender hereunder with respect to any Guaranteed Obligations of the Borrower
      to Lender under the Loan Documents shall not exceed ten percent (10%) of the
      amount of the Indebtedness from time to time. For the avoidance of doubt, the
      limitation in the previous sentence shall not limit the liability of the
      Guarantors hereunder with respect to the Guaranteed Obligations of NCAC as
      Seller to Borrower or Lender under the Sale and Servicing Agreement or the
      Guaranteed Obligations of Manchester as Servicer to Borrower or Lender under
      the
      Sale and Servicing Agreement, as provided in Section 2(b)(ii) and (iii),
      above.

    
      
        
        

      

      
        -3-

        
          

        

      

       

    

     

    (g)  The
      liability of the Guarantors hereunder shall be limited to the maximum amount
      of
      liability that can be incurred without rendering this Guaranty, as it relates
      to
      the Guarantors, voidable under applicable law relating to fraudulent conveyance
      or fraudulent transfer, and not for any greater amount.

     

    3.  DURATION.
      This
      Guaranty shall be irrevocable until all of the Guaranteed Obligations have
      been
      completely and finally paid and performed and Lender has no obligation to make
      any loans or other advances to Borrower, and all obligations and undertakings
      of
      Borrower and NCAC under, by reason of, or pursuant to the Loan Documents have
      been completely performed, and this Guaranty is thereafter subject to
      reinstatement as provided in Section 4(d). All extensions of credit and
      financial accommodations heretofore or hereafter made by Lender to Borrower
      pursuant to the Loan Agreement shall be conclusively presumed to have been
      made
      in acceptance hereof and in reliance hereon. This Guaranty shall be binding
      upon
      the undersigned Guarantors and their respective successors and assigns, jointly
      and severally, and shall inure to the benefit of Lender and its successors
      and
      assigns.

     

    4.  UNCONDITIONAL
      GUARANTY.

     

    (a)  This
      is
      an unconditional Guaranty; it is unlimited as to time, until termination. Each
      Guarantor warrants that there are no conditions, oral or otherwise, on the
      effectiveness of this Guaranty. This is a continuing guaranty and shall apply
      to
      and cover all Guaranteed Obligations and renewals and extensions thereof and
      substitutions therefor from time to time. No action which Lender may take or
      omit to take in connection with any of the Loan Documents, any of the Guaranteed
      Obligations (or any other indebtedness owing by Borrower to Lender), or any
      Security, and no course of dealing of any Secured Party with any Loan Obligor
      or
      any other Person, shall release or diminish the Guarantors’ obligations,
      liabilities, agreements or duties hereunder, affect this Guaranty in any way,
      or
      afford the Guarantors any recourse against any Secured Party, regardless of
      whether any such action or inaction may increase any risks to or liabilities
      of
      any Secured Party or any Loan Obligor or increase any risk to or diminish any
      safeguard of any Security. Without limiting the foregoing, the Guarantors hereby
      expressly agree that Lender, directly or through the Collateral Agent, may,
      from
      time to time, without notice to or the consent of the Guarantors, do any or
      all
      of the following: (i) amend, change or modify, in whole or in part, any one
      or
      more of the other Loan Documents and give or refuse to give any waivers or
      other
      indulgences with respect thereto; (ii) neglect, delay, fail, or refuse to take
      or prosecute any action for the collection or enforcement of any of the
      Guaranteed Obligations, to foreclose or take or prosecute any action in
      connection with any Security or Loan Document, to bring suit against any Loan
      Obligor or any other Person, or to take any other action concerning the
      Guaranteed Obligations or the Loan Documents; (iii) accelerate, change,
      rearrange, extend, or renew the time, rate, terms, or manner for payment or
      performance of any one or more of the Guaranteed Obligations (whether for
      principal, interest, fees, expenses, indemnifications, affirmative or negative
      covenants, or otherwise); (iv) compromise or settle any unpaid or unperformed
      Guaranteed Obligation or any other obligation or amount due or owing, or claimed
      to be due or owing, under any one or more of the Loan Documents; (v) take,
      exchange, amend, eliminate, surrender, release, or subordinate any or all
      Security for any or all of the Guaranteed Obligations, accept additional or
      substituted Security therefor, and perfect or fail to perfect Lender’s rights in
      any or all Security; (vi) discharge, release, substitute or add Loan Obligors;
      (vii) apply all monies received from Loan Obligors or others, or from any
      Security for any of the Guaranteed Obligations, as Lender may determine to
      be in
      its best interest, without in any way being required to marshall Security or
      assets or to apply all or any part of such monies upon any particular Guaranteed
      Obligations;

    
      
        
        

      

      
        -4-

        
          

        

      

       

    

     

    (b)  No
      action
      or inaction of any Loan Obligor or any other Person, and no change of law or
      circumstances, shall release or diminish the Guarantors’ obligations,
      liabilities, agreements, or duties hereunder, affect this Guaranty in any way,
      or afford any Guarantor any recourse against Lender. Without limiting the
      foregoing, the obligations, liabilities, agreements, and duties of the
      Guarantors under this Guaranty shall not be released, diminished, impaired,
      reduced, or affected by the occurrence of any or all of the following from
      time
      to time, even if occurring without notice to or without the consent of the
      Guarantors: (i) any voluntary or involuntary liquidation, dissolution, sale
      of
      all or substantially all assets, marshalling of assets or liabilities,
      receivership, conservatorship, assignment for the benefit of creditors,
      insolvency, bankruptcy, reorganization, arrangement, or composition of any
      other
      Loan Obligor or any other proceedings involving any other Loan Obligor or any
      of
      the assets of any other Loan Obligor under laws for the protection of debtors,
      or any discharge, impairment, modification, release, or limitation of the
      liability of, or stay of actions or lien enforcement proceedings against, any
      other Loan Obligor, any properties of any other Loan Obligor, or the estate
      in
      bankruptcy of any other Loan Obligor in the course of or resulting from any
      such
      proceedings; (ii) the failure by Lender to file or enforce a claim in any
      proceeding described in the immediately preceding subsection (i) or to take
      any
      other action in any proceeding to which any other Loan Obligor is a party;
      (iii)
      the release by operation of law of any other Loan Obligor from any of the
      Guaranteed Obligations or any other obligations to Lender; (iv) the invalidity,
      deficiency, illegality, or unenforceability of any of the Guaranteed Obligations
      of any other Loan Obligor or any other Loan Document, in whole or in part,
      any
      bar by any statute of limitations or other law of recovery on any of the
      Guaranteed Obligations of any other Loan Obligor, or any defense or excuse
      of
      any other Loan Obligor for failure to perform on account of force majeure,
      act
      of God, casualty, impossibility, impracticability, or other defense or excuse
      whatsoever; (v) the failure of any other Loan Obligor or any other Person to
      sign any guaranty or other instrument or agreement within the contemplation
      of
      any other Loan Obligor or Lender; (vi) the fact that the Guarantors may have
      incurred directly part of the Guaranteed Obligations or is otherwise primarily
      liable therefor; (vii) without limiting any of the foregoing, any fact or event
      (whether or not similar to any of the foregoing) which in the absence of this
      provision would or might constitute or afford a legal or equitable discharge
      or
      release of or defense to a guarantor or surety other than the actual payment
      and
      performance by the Guarantors under this Guaranty.

     

    (c)  Lender
      may invoke the benefits of this Guaranty before pursuing any remedies against
      any Loan Obligor or any other Person and before proceeding against any Security
      now or hereafter existing for the payment or performance of any of the
      Guaranteed Obligations. Lender may maintain an action against the Guarantors
      on
      this Guaranty without joining any other Loan Obligor therein and without
      bringing a separate action against any other Loan Obligor.

     

    
      
        
        

      

      
        -5-

        
          

        

      

       

    

     

    (d)  If
      any
      payment to Lender by any Loan Obligor is held to constitute a preference or
      a
      voidable transfer under applicable state or federal laws, or if for any other
      reason Lender is required to refund such payment to the payor thereof or to
      pay
      the amount thereof to any other Person, such payment to Lender shall not
      constitute a release of any Guarantor from any liability hereunder, and the
      Guarantors agree to pay such amount to Lender on demand and agree and
      acknowledge that this Guaranty shall continue to be effective or shall be
      reinstated, as the case may be, to the extent of any such payment or payments.
      Any transfer by subrogation which is made as contemplated in Section 8 prior
      to
      any such payment or payments shall (regardless of the terms of such transfer)
      be
      automatically voided upon the making of any such payment or payments, and all
      rights so transferred shall thereupon revert to and be vested in
      Lender.

     

    5.  DISCLOSURE
      OF CONDITION OF LOAN OBLIGORS.
      Each
      Guarantor warrants and represents to Lender that: (a) this Guaranty is executed
      at the Borrower’s request; (b) such Guarantor has established adequate means of
      obtaining from the Loan Obligors on a continuing basis financial and other
      information pertaining to the Loan Obligors’ affairs or business; and (c) such
      Guarantor is now and will be familiar with the affairs, business, operation
      and
      condition of the Loan Obligors and their assets. Each Guarantor hereby waives
      any duty on the part of Lender to disclose to the Guarantors any matter relating
      to the affairs, business, operation or condition of any Loan Obligor and its
      assets now known or hereafter known to Lender. With respect to any debt of
      a
      Loan Obligor to Lender, Lender need not inquire into the powers of the Borrower
      or the officers, directors or agents acting or purporting to act on its behalf,
      and any debt created in reliance upon the professed exercise of such powers
      shall be guaranteed hereunder.

     

    6.  WAIVERS
      REGARDING THE GUARANTEED DEBT.
      Each
      Guarantor hereby waives, with respect to the Guaranteed Obligations, this
      Guaranty, and the other Loan Documents:

     

    (a)  notice
      of
      the incurrence of any Guaranteed Obligation by any Loan Obligor, and notice
      of
      any kind concerning the assets, liabilities, financial condition,
      creditworthiness, businesses, prospects, or other affairs of any Loan Obligor
      (it being understood and agreed that: (i) each Guarantor shall take full
      responsibility for informing itself of such matters, (ii) Lender shall have
      no
      responsibility of any kind to inform the Guarantors of such matters, and (iii)
      Lender is hereby authorized to assume that each Guarantor, by virtue of its
      relationships with the Loan Obligors which are independent of this Guaranty,
      has
      full and complete knowledge of such matters whenever Lender extends credit
      to
      Borrower or takes any other action which may change or increase such Guarantor’s
      liabilities or losses hereunder);

     

    
      
        
        

      

      
        -6-

        
          

        

      

       

    

     

    (b)  notice
      that Lender, any Loan Obligor, or any other Person has taken or omitted to
      take
      any action under any Loan Document or any other agreement or instrument relating
      thereto or relating to any Guaranteed Obligation;

     

    (c)  notice
      of
      acceptance of this Guaranty and all rights of any Guarantor under any statute
      or
      law discharging such Guarantor from liability hereunder for failure to sue
      on
      this Guaranty;

     

    (d)  default,
      demand, presentment for payment, and notice of default, demand, dishonor,
      nonpayment, or nonperformance;

     

    (e)  notice
      of
      intention to accelerate, notice of acceleration, protest, notice of protest,
      notice of any exercise of remedies (as described in this Guaranty or otherwise),
      and all other notices of any kind whatsoever;

     

    The
      Guarantors hereby consent and agree that renewals and extensions of time of
      payment (including interest rate adjustments), surrender, release, exchange,
      substitution, dealing with or taking of additional collateral, modifying any
      obligations of, taking or releasing any other Loan Obligors, abstaining from
      taking advantage of or realizing upon any Security and any and all other
      forbearances or indulgences granted by Lender to the Borrower or any other
      Loan
      Obligor or other Person may be made, granted or effected by Lender without
      notice to the Guarantors and without affecting in any manner Guarantors’
liability hereunder. Each Guarantor hereby expressly consents to any impairment
      of Security including, but not limited to, failure to perfect a security
      interest and release of Security.

     

    Any
      adjustment or compromise may be made by Lender with the Borrower or any other
      party to the Indebtedness, and a lesser sum than the face amount thereof may
      be
      accepted in full payment and discharge. Any of the Security granted by the
      Borrower or any other Loan Obligor or other Person which Lender may hold or
      which may come to it or its possession may be released or otherwise dealt with
      by Lender in all respects as if this Guaranty were not in existence and the
      obligation of the Guarantors shall in no way be affected thereby. Each Guarantor
      hereby waives and foregoes any right in respect of any such action by
      Lender.

     

    7.  EXERCISE
      OF REMEDIES.
      Lender
      shall have the right to enforce, from time to time, in any order and at Lender’s
      sole discretion, any rights, powers and remedies which Lender may have under
      the
      Loan Documents or otherwise, including judicial foreclosure, the exercise of
      rights of power of sale, the taking of a deed or assignment in lieu of
      foreclosure, the appointment of a receiver to collect rents, issues and profits,
      the exercise of remedies against personal property, or the enforcement of any
      assignment of leases, rentals, or other properties or rights, whether real
      or
      personal, tangible or intangible; and each Guarantor shall be liable to Lender
      hereunder for any deficiency resulting from the exercise by Lender of any such
      right or remedy even though any rights that such Guarantor may have against
      Borrower or others may be destroyed or diminished by exercise of any such right
      or remedy. No failure on the part of Lender to exercise, and no delay in
      exercising, any right hereunder or under any other Loan Document shall operate
      as a waiver thereof; nor shall any single or partial exercise of any right
      preclude any other or further exercise thereof or the exercise of any other
      right. The rights, powers and remedies of Lender provided herein and in the
      other Loan Documents are cumulative and are in addition to, and not exclusive
      of, any other rights, powers or remedies provided by law or in equity. The
      rights of Lender hereunder are not conditional or contingent on any attempt
      by
      Lender to exercise any of its rights under any other Loan Document against
      any
      Loan Obligor or any other Person.

     

    
      
        
        

      

      
        -7-

        
          

        

      

       

    

     

    8.  LIMITED
      SUBROGATION.

     

    (a)  Until
      all
      of the Guaranteed Obligations have been paid and performed in full, Guarantors
      shall have no right to exercise any right of subrogation, reimbursement,
      indemnity, exoneration, contribution or any other claim which they may now
      or
      hereafter have against or to any Loan Obligor or any Security in connection
      with
      this Guaranty (including any right of subrogation under any Law, as amended),
      and each Guarantor hereby waives any rights to enforce any remedy which such
      Guarantor may have against Borrower and any right to participate in any Security
      until such time. If any amount shall be paid to any Guarantor on account of
      any
      such subrogation or other rights, any such other remedy, or any Security at
      any
      time when all of the Guaranteed Obligations and all other expenses guaranteed
      pursuant hereto shall not have been paid in full, such amount shall be held
      in
      trust for the benefit of Lender, shall be segregated from the other funds of
      the
      Guarantors and shall forthwith be paid over to Lender to be held by Lender
      as
      collateral for, or then or at any time thereafter applied in whole or in part
      by
      Lender against, all or any portion of the Guaranteed Obligations, whether
      matured or unmatured, in such order as Lender shall elect.

     

    (b)  If
      any
      Guarantor shall make payment to Lender of all or any portion of the Guaranteed
      Obligations and if all of the Guaranteed Obligations shall be finally paid
      in
      full, Lender will, at such Guarantor’s request and expense, execute and deliver
      to such Guarantor (without recourse, representation or warranty) appropriate
      documents necessary to evidence the transfer by subrogation to such Guarantor
      of
      an interest in the Guaranteed Obligations resulting from such payment by such
      Guarantor; provided that such transfer shall be subject to Section 4(d) above
      and that without the consent of Lender (which Lender may withhold in its
      discretion) such Guarantor shall have the right to be subrogated to any claim
      or
      right against any Loan Obligor if: (i) such Loan Obligor has become owned by
      Lender, (ii) the ownership of such Loan Obligor has otherwise changed in the
      course of enforcement of the Loan Documents, or (iii) Lender has otherwise
      released or wishes to release such Loan Obligor from its Guaranteed
      Obligations.

     

    9.  SUCCESSORS
      AND ASSIGNS.
      None of
      the Guarantors’ rights or obligations hereunder may be assigned or delegated,
      but this Guaranty and such obligations shall pass to and be fully binding upon
      the successors of each Guarantor and its assigns, jointly and severally, as
      well
      as the Guarantors. This Guaranty shall apply to and inure to the benefit of
      Lender and its successors or assigns. Without limiting the generality of the
      immediately preceding sentence, Lender may, to the extent and in the manner
      provided for in the Loan Agreement, assign, grant a participation in, or
      otherwise transfer any Guaranteed Obligation held by it or any portion thereof,
      and Lender may, to the extent and in the manner provided for in the Loan
      Agreement, assign or otherwise transfer its rights or any portion thereof under
      any Loan Document, to any other Person, and such other Person shall thereupon
      become entitled to all of the benefits in respect thereof granted to Lender
      hereunder unless otherwise expressly provided by Lender in connection with
      such
      assignment or transfer.

    
      
        
        

      

      
        -8-

        
          

        

      

       

    

     

    10.  SUBORDINATION
      AND OFFSET.
      Each
      Guarantor hereby subordinates and makes inferior to the Guaranteed Obligations
      any and all indebtedness now or at any time hereafter owed by a Loan Obligor
      to
      such Guarantor. Each Guarantor agrees that upon the occurrence and during the
      continuation of any Event of Default it will neither permit any Loan Obligor
      to
      repay such indebtedness or any part thereof nor accept payment from any Loan
      Obligor of such indebtedness or any part thereof without the prior written
      consent of Lender. If any Guarantor receives any such payment without the prior
      written consent of Lender, the amount so paid shall be held in trust for the
      benefit of Lender, shall be segregated from the other funds of such Guarantor,
      and shall forthwith be paid over to Lender to be held by Lender as collateral
      for, or then or at any time thereafter applied in whole or in part by Lender
      against, all or any portions of the Guaranteed Obligations, whether matured
      or
      unmatured, in such order as Lender shall elect. Each Guarantor hereby grants
      to
      Lender a right of offset to secure the payment of the Guaranteed Obligations
      and
      such Guarantor’s obligations and liabilities hereunder, which right of offset
      shall be upon any and all monies, securities and other property (and the
      proceeds therefrom) of such Guarantor now or hereafter held or received by
      or in
      transit to Lender from or for the account of such Guarantor, whether for
      safekeeping, custody, pledge, transmission, collection or otherwise, and also
      upon any and all deposits (general or special), credits and claims of such
      Guarantor at any time existing against Lender. Upon the occurrence and during
      the continuation of any Default or Event of Default, Lender is hereby authorized
      at any time and from time to time, without notice to any Guarantor, to offset,
      appropriate and apply any and all items hereinabove referred to against the
      Guaranteed Obligations and the Guarantors’ obligations and liabilities hereunder
      irrespective of whether or not Lender shall have made any demand under this
      Guaranty and although such obligations and liabilities may be contingent or
      unmatured, Lender agrees promptly to notify the Guarantors after any such offset
      and application made by Lender, provided that the failure to give such notice
      shall not affect the validity of such offset and application. The rights of
      Lender under this section are in addition to, and shall not be limited by,
      any
      other rights and remedies (including other rights of offset) which Lender may
      have.

     

    11.  REPRESENTATIONS
      AND WARRANTIES.
      The
      Guarantors hereby jointly and severally represent and warrant to Lender as
      follows:

     

    (a)  The
      Recitals at the beginning of this Guaranty are true and correct in all
      respects.

     

    (b)  The
      execution, delivery and performance by each Guarantor of this Guaranty does
      not
      and will not contravene any law or governmental regulation or any contractual
      restriction binding on or affecting each Guarantor or any of its properties,
      and
      does not and will not result in or require the creation of any Lien upon or
      with
      respect to any of its properties.

     

    (c)  No
      authorization or approval or other action by, and no notice to or filing with,
      any governmental authority or other regulatory body or third party is required
      for the due execution, delivery and performance by each Guarantor of this
      Guaranty.

     

    
      
        
        

      

      
        -9-

        
          

        

      

       

    

     

    (d)  This
      Guaranty is a legal, valid and binding obligation of each Guarantor, enforceable
      against such Guarantor in accordance with its terms except as limited by
      bankruptcy, insolvency or similar laws of general application relating to the
      enforcement of creditors’ rights.

     

    (e)  There
      is
      no action, suit or proceeding pending or, to the knowledge of the Guarantors,
      threatened against or otherwise affecting any Guarantor before any court,
      arbitrator or governmental department, commission, board, bureau, agency or
      instrumentality which may materially and adversely affect the Guarantor’s
      financial condition or its ability to perform its obligations
      hereunder.

     

    12.  COVENANTS.
      Each
      Guarantor hereby agrees to observe and comply with each of the covenants and
      agreements made in the Loan Agreement, insofar as they refer to such Guarantor,
      or the assets, obligations, conditions, agreements, business, or actions of
      such
      Guarantor, or to the Loan Documents to which the Guarantors are
      party.

     

    13.  NO
      ORAL CHANGE; AMENDMENTS.
      No
      amendment of any provision of this Guaranty shall be effective unless it is
      in
      writing and signed by each Guarantor and Lender, and no waiver of any provision
      of this Guaranty, and no consent to any departure by any Guarantor therefrom,
      shall be effective unless it is in writing and signed by Lender, and then such
      waiver or consent shall be effective only in the specific instance and for
      the
      specific purpose for which given.

     

    14.  INVALIDITY
      OF PARTICULAR PROVISIONS.
      If any
      term or provision of this Guaranty shall be determined to be illegal or
      unenforceable all other terms and provisions hereof shall nevertheless remain
      effective and shall be enforced to the fullest extent permitted by applicable
      law.

     

    15.  HEADINGS
      AND REFERENCES.
      The
      headings used herein are for purposes of convenience only and shall not be
      used
      in construing the provisions hereof. The words “this Guaranty,” “this
      instrument,” “herein,” “hereof,” “hereby” and words of similar import refer to
      this Guaranty as a whole and not to any particular subdivision unless expressly
      so limited. The phrases “this section” and “this subsection” and similar phrases
      refer only to the subdivisions hereof in which such phrases occur. The word
“or”
is not exclusive, and the word “including” (in its various forms) means
“including without limitation.” Pronouns in masculine, feminine and neuter
      genders shall be construed to include any other gender, and words in the
      singular form shall be construed to include the plural and vice versa, unless
      the context otherwise requires.

     

    16.  NOTICES.
      Any
      notice or communication required or permitted hereunder shall be given in the
      manner as provided in the Loan Agreement or in the case of any party to such
      other address or to the attention of such other individual as hereafter shall
      be
      designated in writing by such party in sent in accordance herewith.

     

    17.  LIMITATION
      ON INTEREST.
      Lender
      and the Guarantors intend to contract in strict compliance with applicable
      usury
      law from time to time in effect, and the provisions of the Loan Agreement
      limiting the interest for which the Guarantors are obligated are expressly
      incorporated herein by reference.

     

    
      
        
        

      

      
        -10-

        
          

        

      

       

    

     

    18.  LOAN
      DOCUMENT.
      This
      Guaranty is a Loan Document, as defined in the Loan Agreement, and is subject
      to
      the provisions of the Loan Agreement governing Loan Documents.

     

    19.  COUNTERPARTS;
      FAX.
      This
      Guaranty may be executed in any number of counterparts, each of which when
      so
      executed shall be deemed to constitute one and the same Guaranty. This Guaranty
      may be validly executed and delivered by facsimile or other electronic
      transmission.

     

    20.  GOVERNING
      LAW; SUBMISSION TO PROCESS.
      THIS
      GUARANTY SHALL BE DEEMED A CONTRACT AND INSTRUMENT MADE UNDER THE LAWS OF THE
      STATE OF NEW YORK AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND
      GOVERNED BY THE LAWS OF THE STATE OF NEW YORK AND THE LAWS OF THE UNITED STATES
      OF AMERICA, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. EACH GUARANTOR
      HEREBY AGREES THAT ANY LEGAL ACTION OR PROCEEDING AGAINST SUCH GUARANTOR WITH
      RESPECT TO THIS GUARANTY MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK
      OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK AS
      LENDER MAY ELECT, AND, BY EXECUTION AND DELIVERY HEREOF, EACH GUARANTOR ACCEPTS
      AND CONSENTS FOR ITSELF AND IN RESPECT TO ITS PROPERTY, GENERALLY AND
      UNCONDITIONALLY, THE NON EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS. EACH
      GUARANTOR AGREES THAT SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS
      LAW
      OF THE STATE OF NEW YORK SHALL APPLY TO THE LOAN DOCUMENTS AND WAIVES ANY RIGHT
      TO STAY OR TO DISMISS ANY ACTION OR PROCEEDING BROUGHT BEFORE SAID COURTS ON
      THE
      BASIS OF FORUM NON CONVENIENS. EACH GUARANTOR HEREBY WAIVES PERSONAL SERVICE
      OF
      ANY AND ALL PROCESS UPON IT, AND AGREES THAT ALL SUCH SERVICE OF PROCESS MAY
      BE
      MADE BY REGISTERED MAIL DIRECTED TO IT AT THE ADDRESS SET FORTH IN SECTION
      9.1
      OF SCHEDULE A TO THE LOAN AGREEMENT AND SERVICE SO MADE SHALL BE DEEMED TO
      BE
      COMPLETED UPON ACTUAL RECEIPT THEREOF.

     

    21.  WAIVER
      OF JURY TRIAL.
      EACH
      GUARANTOR HEREBY COVENANTS AND AGREES THAT IN ANY SUIT, ACTION OR PROCEEDING
      IN
      RESPECT OF ANY MATTER ARISING OUT OF THIS GUARANTY, THE DOCUMENTS EXECUTED
      IN
      CONNECTION HEREWITH, ANY WRITTEN AGREEMENT BETWEEN THE PARTIES HERETO, WHETHER
      NOW EXISTING OR HEREAFTER ARISING OR IN ANY WAY RELATED TO, CONNECTED WITH
      OR
      INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR TRANSACTIONS CONTEMPLATED
      HEREBY OR BY THE LOAN AGREEMENT OR OTHER LOAN DOCUMENTS, WHETHER SOUNDING IN
      CONTRACT OR TORT OR OTHERWISE, TRIAL SHALL BE TO A COURT OF COMPETENT
      JURISDICTION AND NOT TO A JURY; EACH GUARANTOR HEREBY EXPRESSLY WAIVES ANY
      RIGHT
      IT MAY HAVE TO A TRIAL BY JURY. ANY PARTY MAY FILE AN ORIGINAL COUNTERPART
      OR A
      COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF
      THE
      PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

     

    
      
        
        

      

      
        -11-

        
          

        

      

       

    

     

    22.  ADVICE
      OF COUNSEL.
      Each
      Guarantor acknowledges that it has been advised by counsel with respect to
      this
      Guaranty and the transactions governed hereby.

     

    23.  FINAL
      AGREEMENT.
      THIS
      WRITTEN AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT
      BETWEEN THE PARTIES HERETO AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR
      OR
      CONTEMPORANEOUS ORAL AGREEMENTS OF THE PARTIES HERETO. THERE ARE NO UNWRITTEN
      ORAL AGREEMENTS BETWEEN THE PARTIES HERETO.

     

    [THE
      REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT
      BLANK]

    
      
        
        

      

      
        -12-

        
          

        

      

       

    

    IN
      WITNESS WHEREOF, each Guarantor has executed and delivered this Guaranty as
      of
      the date first written above.

     

    
      	 	 	 
	 	
              Manchester
                Inc.,

              
                a
                  Nevada corporation

              

            
	 
 	 
 	 
 
	 	By:  	/s/
              Richard Gaines
	 	Name: 	
              
 Richard
              Gaines
	 	Title:  	
              
 Secretary
	 	 	
              
  

    

     

    
      	 	 	 
	 	
              
                Nice
                  Cars Acceptance AcquisitionCo, Inc.,

                
                  a
                    Delaware corporation

                

              

            
	 
 	 
 	 
 
	 	By:  	/s/
              Richard Gaines
	 	Name: 	
              
                
 Richard
                Gaines

            
	 	Title:  	
              
 President
	 	 	
              
  

    

     

    
      	 	 	 
	 	
              
                
                  Nice
                    Cars Operations AcquisitionCo, Inc.,

                  
                    a
                      Delaware corporation

                  

                

              

            
	 
 	 
 	 
 
	 	By:  	 Richard
              Gaines
	 	Name: 	
              
 Richard
              Gaines
	 	Title:  	
              
 President

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