Document:

Palm
      Beach Multi-Strategy Fund, L.P.

    

    Commitment
      Letter 

    

    September
      28, 2006

    

    Mr.
      James
      Worosz

    Senior
      Vice President - Finance

    Manchester,
      Inc.

    100
      Crescent Court –
7th
      floor

    Dallas,
      Texas 75201

     

    Dear
      Mr.
      James Worosz,

    

    Palm
      Beach Multi-Strategy Fund, L.P., a Delaware limited partnership (the
“Lender”),
      hereby offers Manchester, Inc., a Nevada corporation (the “Company”)
      a
      commitment (the
      “Commitment”)
      of up
      to $300,000,000 (the “Maximum
      Commitment Amount”)
      to
      provide senior secured revolving warehouse financings (“Financings”)
      for a
      roll up (the “Roll-Up”)
      strategy to acquire captive subprime
      buy-here, pay-here auto receivables origination and collection businesses
      nationwide (“Targets”),
      on
      the terms, and subject to the conditions, set out in this letter (this
“Letter
      Agreement”)
      and
      the attached Term Sheet (the “Term
      Sheet”). 

     

    The
      Company acknowledges that the Term Sheet is intended as an outline only and
      does
      not purport to summarize all of the conditions, covenants, representations,
      warranties and other provisions that will be contained in definitive legal
      documentation for any Financing. Each Financing will be subject to, among other
      things, approval by the Lender of the applicable transaction (which approval
      shall be given or withheld in the Lender’s sole discretion), due diligence and
      the negotiation and execution of definitive loan documents (the “Loan
      Documents”),
      in
      form and substance satisfactory to the Lender in its sole discretion. Lender’s
      requirements for the Loan Documents may be different for each
      Financing.

     

    Each
      borrower under a Financing will be Bankruptcy Remote Special Purpose Entity
      (SPE) set up to hold the collateral pledged under a Financing (each, a
“Borrower”).

     

    The
      Company agrees to reimburse the Lender and its affiliates, including Palm Beach
      Links Capital, L.P., a Delaware limited partnership (“PBLinks”),
      or
      pay or cause to be paid all costs and expenses of the Lender, PBLinks and their
      respective affiliates (including, without limitation, the allocated costs of
      in-house counsel at the Lender, PBLinks or their respective affiliates and
      the
      reasonable costs and expenses of outside legal counsel to PBLinks and the Lender
      and their respective affiliates) incurred or sustained: (i) in the negotiation
      or preparation of this Letter Agreement, the Term Sheet or any other term sheet
      or proposal and any loan documents (including, without limitation, the term
      sheets for the Financings and the Loan Documents) or any funding that might
      follow, regardless of whether or not the funding occurs (ii) in connection
      with
      the administration and enforcement of the Commitment and the Financings, and
      (iii) in connection with any and all due diligence. The Company shall also
      be
      responsible for its own expenses. The
      Company shall also indemnify and hold harmless the Lender, PBLinks and of the
      Lender, PBLinks and their respective affiliates and their respective
      shareholders, directors, officers, employees and agents (the “Indemnified
      Parties”)
      against any losses, claims, damages or liabilities (collectively, “Claims”)
      to
      which any Indemnified Party may incur or become subject to in any way arising
      out of or in connection with this Letter Agreement, the Commitment or the
      Financings, provided however, no Indemnified Party shall be indemnified against
      (i) such Claims which are finally judicially determined to have resulted
      primarily from bad faith, intentional misconduct or gross negligence of such
      Indemnified Party and (ii) losses resulting from any settlement entered into
      by
      an Indemnified Party without the written consent of the Company (such consent
      not to be unreasonably withheld). 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      Company recognizes that the Commitment is offered (subject to the terms and
      conditions of this Letter Agreement and the Term Sheet) only to the Company,
      and
      that this Letter Agreement is not deemed to be on behalf of and is not intended
      to confer rights upon any shareholder, owner or partner of the Company or any
      other person not a party hereto as against the Lender, PBLinks or any of the
      Lender’s or PBLinks’ respective affiliates, the respective directors, officers,
      agents and employees of the Lender, PBLinks or any of their respective
      affiliates or each other person, if any, controlling the Lender, PBLinks or
      any
      of their respective affiliates. No one other than the Company is authorized
      to
      rely upon this Engagement Letter.

     

    The
      Lender's willingness to provide any Financing pursuant to this Commitment is
      subject to the Lender’s satisfactory due diligence and credit review of the
      Company, each Financing and Target and the Lender’s continuing satisfaction with
      the results thereof.

     

    A
      Commitment Fee of $6,000,000 shall be payable by the Company. Such fee shall
      be
      paid pro-rata upon the initial advance under each Financing in an amount for
      each Financing equal to $6,000,000 multiplied
      by
      a
      fraction the numerator of which is the aggregate line of credit under the
      Financing (the “Financing
      Limit”)
      and
      the denominator of which is the Maximum Commitment Amount.

    

    On
      or
      within fifteen (15) days after the closing date of the initial Financing, the
      Company shall grant to the Lender ten (10) year warrants, entitling the holder
      to acquire up to 4,000,000 shares of the Company’s common stock. The warrants
      shall be issued at a strike price equal to the lesser of (i) $3.00 or (ii)
      75%
      of the closing stock price as of the closing date for the initial
      Financing.

     

    Terms
      and
      Conditions are to be determined in a Warrant Agreement between Lender and the
      Company. Customary language with respect to, but not limited to, registration
      rights, piggy-back rights and anti-dilution provisions (including conversion
      of
      preferred and other convertible securities) will be contained in the Warrant
      Agreement and shall allow for dilution resulting from shares issued for
      acquisitions.

     

    There
      is
      no limit to the number of Financings under the Commitment up to the Maximum
      Commitment Amount; provided that no Financing shall be in an amount in excess
      of
      $100,000,000, unless approved by the Lender.

     

    At
      the
      invitation of the Company, PBLinks has agreed to act as the exclusive arranger
      for any asset-backed securitization, sale or other disposition of any
      Receivables undertaken by the Company, a Target or a Borrower for an arrangement
      fee equal to three percent (3.0%) of the Receivables securitized, sold or
      disposed of.

     

    The
      Commitment shall terminate on September 28, 2009 or such earlier date specified
      by the Lender following a breach by the Company under this Letter Agreement
      or
      an Event of Default under any of the Financings (the “Termination
      Date”).
      The
      Company hereby agrees that the Lender (or, at the discretion of the Lender,
      any
      of its affiliates) shall have, for a period beginning on the date of this Letter
      Agreement and ending on the Termination Date or (if later) the date upon which
      all Financings have been irrevocable paid in full, the exclusive right (but
      not
      the obligation) to finance the Roll-Up (including without limitation, the right
      to provide Financings or other fundings in connection with the acquisition
      by
      the Company of Targets or assets thereof). Any such Financings shall be
      substantially on the terms set forth in the Term Sheet (including, without
      limitation, the provisions headed “Advance Rate” and “Interest Rate”), unless
      otherwise agreed by the parties hereto in writing; provided, however, the
      Advance Interest Rate, Asset Management Fee, Credit Structure, Liquidated
      Damages, Collateral and Eligible Receivables set forth in the Term Sheet will
      apply to each Financing unless otherwise agreed to in writing by the Lender,
      in
      its sole discretion. The Company agrees that monetary damages would not be
      sufficient in the event of a breach by Company of this exclusive provision
      and
      that in the event of such breach, the Lender and PBLinks will in addition be
      entitled to injunctive relief.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      Company agrees to promptly, but in no event later than 90 days following the
      date of this Letter Agreement, apply to list its Common Stock, on The
      NASDAQ Global Market or The NASDAQ Capital Market and shall use its best efforts
      to complete the application process and make such Common Stock eligible for
      trading on the applicable NASDAQ trading system as promptly as possible after
      such application but in no event later than 180 days; and at any time when
      such
      Common Stock is listed on The NASDAQ Capital Market, Manchester shall promptly
      seek to list its Common Stock on The NASDAQ Global Market if at any time it
      becomes eligible to do so.

    

    The
      contents of this Letter Agreement and the attached Term Sheet are confidential.
      The Company agrees that it will not show, circulate, or otherwise disclose
      this
      Letter Agreement, the Term Sheet or their contents to any other person (other
      than its officers, employees, directors, attorneys, affiliates and advisors,
      on
      a need-to-know basis). 

    

    In
      the
      event of any conflict between the terms of this Letter Agreement and any
      provision of the Term Sheet, the terms of this Letter Agreement shall
      prevail.

    

    If
      any
      one or more of the provisions or subjects contained in this Letter Agreement
      is
      for any reason held to be invalid, illegal, or unenforceable in any respect,
      such invalidity, illegality or unenforceability will not affect the validity
      and
      enforceability of any other provisions or subjects of this Letter Agreement,
      and
      it is the intention of the parties that there shall be substituted for such
      invalid, illegal or unenforceable provision a provision as similar to such
      provision as may be possible and yet be valid, legal and
      enforceable.

    

    The
      Company may not assign, transfer or otherwise dispose of any rights or
      privileges provided for herein or arising hereunder, without the written consent
      of Lender.

    

    This
      Letter, including the attached Term Sheet, supersedes all prior discussions,
      agreements, commitments, arrangements, negotiations or understandings, whether
      oral or written, of the parties with respect thereto.

     

    GOVERNING
      LAW.
      THIS
      LETTER AGREEMENT, INCLUDING THE ATTACHED TERM SHEET, 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 LETTER AGREEMENT, INCLUDING THE ATTACHED TERM SHEET, 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 THIS LETTER AGREEMENT, INCLUDING THE ATTACHED TERM SHEET, 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 LETTER AGREEMENT, INCLUDING THE ATTACHED TERM SHEET, AND
      SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED UPON ACTUAL RECEIPT THEREOF.
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    CONSENT
      OF JURISDICTION.
      AT THE
      OPTION OF LENDER, THIS LETTER AGREEMENT, INCLUDING THE ATTACHED TERM SHEET,
      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 RELATED PARTY COMMENCES ANY ACTION IN ANOTHER JURISDICTION
      OR
      VENUE UNDER ANY TORT OR CONTRACT THEORY ARISING DIRECTLY OR INDIRECTLY FROM
      THE
      RELATIONSHIP CREATED BY THIS LETTER AGREEMENT, INCLUDING THE ATTACHED TERM
      SHEET, OR ANY TRANSACTION CONTEMPLATED THEREBY, 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.

     

    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 (a) UNDER THIS LETTER AGREEMENT, INCLUDING THE
      ATTACHED TERM SHEET, OR (b) ARISING FROM ANY TRANSACTION CONTEMPLATED BY
      THIS LETTER AGREEMENT, INCLUDING THE ATTACHED TERM SHEET, AND AGREE THAT ANY
      SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A
      JURY.

    

    This
      Letter Agreement may be executed in multiple counterparts, each of which for
      all
      purposes is to be deemed an original, and all of which constitute, collectively,
      one agreement. 

    

    Should
      the terms and conditions of the proposal contained herein meet with your
      approval, please indicate your acceptance by signing and returning a copy of
      this Letter Agreement and the attached Term Sheet to the
      undersigned.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Very
      truly yours,

    

    Palm
      Beach Multi-Strategy Fund, L.P.

     

    
      	By: Palm Beach Links
              Capital,
              L.P., its general partner	 	 	 
	 	 	 	 
	By: PBL Holdings, LLC	 	 	 
	 	 	 	 
	
              By: 
                /s/ B. Scott Olson

            	 	 	 
	
              
                

              

            	 	 	
            
	
              Name:
                B. Scott Olson

              Title:
                Managing Director

            	 	 	 

    

     

    

    
      	
              By: 
                /s/ Thomas L. Gervais

            	 	 	 
	
              
                

              

            	 	
            	
            
	
              Name:
                Thomas L. Gervais

              Title:
                Managing Director

            	 	 	 

    

    

    
      
        	By:
                Palm Beach Links Capital, L.P.	 	 	 
	 	 	 	 
	By: PBL Holdings,
                LLC, its
                general partner	 	 	 

      

      
        

        
          	
                  By: 
                    /s/  Scott Olson

                	 	 	 
	
                  
                    

                  

                	 	
                	
                
	
                  Name:
                    Scott Olson

                            
                     Managing Director

                	 	 	 

        

        

        
          

          
            	
                    By: 
                      /s/  Thomas L. Gervais

                  	 	 	 
	
                    
                      

                    

                  	 	
                  	
                  
	
                    Name:
                      Thomas L. Gervais

                              
                       Managing Director

                  	 	 	 

          

           

           

          Agreed
            and Accepted on this

        

      

    

    29th
      Day of September, 2006:

    

    Manchester,
      Inc.

    (OTCBB:
      MNCS)

     

    
      
        	
                By: 
                  /s/  James Worosz

              	 	 	 
	
                
                  

                

              	 	
              	
              
	
                Name:
                  James Worosz

                Title:
                  Senior Vice President –
                  Finance

              	 	 	 

      

      

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

       

    

    Exhibit
      A

    

    OUTLINE
      OF PROPOSED TERMS AND CONDITIONS

     

    Agreed
      and Accepted on this

    29th 
      Day of September, 2006:

    

    Manchester,
      Inc.

    (OTCBB:
      MNCS)

     

    
      
        
          	
                  By: 
                    /s/ James Worosz

                	 	 	 
	
                  
                    

                  

                	 	
                	
                
	
                  Name:
                    James Worosz

                  Title:
                    Senior Vice President - Finance

                	 	 	 

        

         

      

    

    
      	
              Credit
                Structure:

            	 	
              Unless
                otherwise approved by the Lender in its sole discretion, all collateral
                of
                the Borrowers will be cross collateralized, cross pledged and cross
                defaulted for the benefit of the Lender.

            
	 	 	 
	
              Guaranty:

            	 	
              The
                Company and its affiliates will execute a Guaranty of the obligations
                of
                the Borrowers and the Targets and each Target will execute a Guarantor
                of
                the Obligations of the Borrowers, in each case in a form acceptable
                to the
                Lender in its sole discretion. Such Guaranty may include, among other
                things, a guaranty of the eligibility of the Receivables, proper
                collection of the Receivables and deposit into the Lockbox and
                Distribution Account (each defined below), losses on the Receivables,
                repayment of the advances and interest thereon and payment of fees
                and
                expenses. The Guaranties shall be secured by a first priority perfected
                security interest in and lien on all of the assets of the Company
                and the
                Targets, as applicable, including, but not limited to, all of its
                stock or
                other equity interests in the Borrowers, the Targets and its other
                direct
                and indirect subsidiaries.

            
	 	 	 
	
              Advance
                Rate:

            	 	
              The
                initial advance under each Financing will have an advance rate equal
                to
                the lesser of (i) the related Financing and (ii) eighty percent (80.0%)
                of
                the unpaid principal balance of Eligible Receivables (defined herein)
                pledged by the related Borrower to the Lender at the time of such
                initial
                advance. Subsequent advances under a Financing will have advance
                rates
                equal to the lesser of (i) the related Financing Limit and (ii) sixty
                percent (60.0%) of the unpaid principal balance of Eligible Receivables
                pledged by the related Borrower to the Lender at the time of such
                subsequent advance. The final advance rates for each Financing will
                be
                determined after due diligence.

            
	 	 	 
	
              Interest
                Rate:

            	 	
              All
                borrowings under the Financings will accrue interest at Wall Street
                Prime
                plus 8.0%, with a floor of 16.0%; provided, however, in the event
                a
                Financing is closed other than on the 1st
                business day of a calendar month, an initial interest payment will
                be due
                on the closing date equal to (a) the product of (i) the amount of
                the
                initial advance under such Financing and (ii) the initial interest
                rate,
                multiplied by (b) a fraction of the numerator of which is the number
                of
                days from and including the first day of the month in which the closing
                occurs to but excluding the date of the initial advance under such
                Financing, and the denominator of which is 360. Interest will be
                calculated on the basis of the actual number of days elapsed based
                on a
                360-day year. Upon the occurrence and during the continuance of an
                Event
                of Default under a Financing, the applicable interest rate will be
                increased by 5.0%.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              Asset
                Management Fee:

            	 	
              The
                Borrower under each Financing shall pay to the Lender an asset management
                fee equal to $25,000 payable in advance on the first day of each
                calendar
                quarter (or first business day of the quarter if not a business day).
                

            
	 	 	 
	
              Custodian
                Fee:

            	 	
              All
                original consumer retail sales contracts and auto titles and related
                files
                subject to a Financing shall be held by a third-party custodian acceptable
                to the Lender. All custodian fees and expenses shall be payable out
                of
                cash flows from the related Receivables. 

            
	 	 	 
	
              Servicer:

            	 	
              The
                Company and the Targets shall provide all servicing and collections
                activities on the Receivables for a servicing fee to be determined
                by the
                Lender payable weekly out of cash flows from the related
                Receivables.

            
	 	 	 
	
              Back
                Up / Master Servicer:

            	 	
              A
                back-up or master servicer may be selected to provide back up collection,
                reporting and other services as the Lender may decide in its sole
                descretion. Back-up / master servicer fees and expenses shall be
                payable
                out of cash flows from the related Receivables. 

            
	 	 	 
	
              Term:

            	 	
              The
                term of each Financing shall be for three (3) years from the Closing
                Date
                of such Financing, subject to any default or termination provisions
                to be
                included in the Loan Documents for the Financings. 

            
	 	 	 
	
              Liquidation
                Damages:

            	 	
              If
                a Financing is repaid or terminated prior to the end of its Term,
                the
                Company shall pay the Lender a Liquidated Damages Fee, calculated
                by
                multiplying the “minimum interest charge” under the Financing by the
                number of months remaining until the end of the Term of the Financing.
                The
                “minimum interest charge” will be calculated by using the average funds
                employed under the Financing during the previous 6 months of such
                Financing at the time of notice multiplied by 1.50%. The Company
                or the
                Borrower must provide 90 days prior written notice of a termination
                and
                payoff of a Financing.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              Borrowing,
                Collection, and Repayment Procedures:

            	 	
              Upon
                closing of a Financing, the related Borrower will be able to request
                advances thereunder subject to, among other things, the following:
                a)
                continued compliance with the Loan Documents; b) a maximum of one
                funding
                per week; and c) a minimum funding amount of $200,000. 

               

              The
                Lender will require a three (3) day notice from the Borrower to advance
                funds. The Borrower or the Company will prepare an advance request
                and
                borrowing base certificate which will include a reconciliation of
                the then
                current Collateral and loan balances with prior certificates, as
                well as a
                certification of the validity of the Collateral and a re-affirmation
                of
                the representations and warranties contained in the Loan Documents.
                Advances will be made by wire transfer to the Borrower’s account as to be
                agreed upon by the Lender and Borrower. 

               

              All
                Collections (defined below) on the Receivables in respect of a Financing
                will be deposited into a lockbox and lockbox account (collectively,
                the
                “Lockbox”) for such Financing controlled under the UCC by the Lender and
                then swept not less than weekly into a distribution account (the
                “Distribution Account”) for such Financing controlled under the UCC by the
                Lender. Amounts on deposit in the Distribution Account will be applied
                in
                respect of each Financing by the Lender, or the Servicer at the direction
                of the Lender, on a weekly or monthly basis according to the following
                priorities:

               

              1.    
                   To
                the Custodian, the Servicer and the Back-up Servicer, their fees
                and
                expenses subject to an expense cap acceptable to the
                Lender;

               

              2.       
                 To
                the Lender, any unpaid Fees and Expenses due; 

               

              3.      
                  To
                the Lender, any unpaid Interest due; 

               

              4.     
                  To
                the Lender, the amount necessary to ensure the sum of the outstanding
                advances does not exceed the eligible Advance Rate on the
                Financing;

               

              5.       
                To
                the Lender, the amount necessary to ensure the sum of the outstanding
                advances does not exceed the Financing Limit;

               

              6.      
                  Upon
                the occurrence of an Event of Default, to the Lender, to reduce the
                outstanding advances under the   Financing to zero;
                and

               

              7.      
                   Any
                remaining balance to the Borrower.

               

              To
                the extent amounts on deposit in the Distribution Account for a Financing
                are not sufficient to make the payments required under 1 through
                5 above,
                Collections on Receivables under other Financings and amounts on
                deposit
                in the related Distribution Accounts shall be used to pay such
                deficiency.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	 	 	
              All
                cash, from whatever source, will be deposited in the lockbox or the
                Distribution Account, as applicable, for application as described
                above.
                

            
	 	 	 
	 	 	
              Although
                the Lender will retain operating control of the Lockbox and Distribution
                Account, the Servicer will have viewing access to these accounts
                for
                accounting and analysis purposes.

            
	 	 	 
	
              The
                Company’s Operating Account:

            	 	
              The
                Lender will expect the Company to enter into a tri-party control
                agreement
                with the Company’s bank that provides assurances to the Lender that upon
                the occurrence of an Event of Default, the Lender will have control
                over
                the Company’s operating accounts. 

            
	 	 	 
	
              Collections:

            	 	
              Collections
                in respect of the Receivables shall consist of, but is not limited
                to, all
                down payments, principal and interest payments, late fees, recoveries,
                insurance proceeds and other fees.

            
	 	 	 
	
              Collateral:

            	 	
              The
                obligations owed to the Lender will be secured by a first priority
                perfected security interest in and lien on all assets of the Borrowers
                including, but not limited to, accounts receivable, inventory, real
                estate, bank accounts and all related assets held or owned by the
                Borrowers. 

            
	 	 	 
	
              Eligible
                Receivables:

            	 	
              Eligible
                Receivables shall be limited to those consumer sales finance contracts
                (“Receivables”) that meet the following guidelines: 

               

              ·  Was
                originated by the related Target in its ordinary course of
                business.

               

              ·  Is
                limited to Receivables that (i) are sixty (60) days or less contractually
                past due (ii) have not been extended and (iii) are not extended to
                account
                debtors who are either principals, employees, in bankruptcy, or engaged
                in
                litigation by the Company, the Targets or their affiliates.

               

              ·  The
                Receivable shall meet all of the Company’s and the Target’s other
                customary credit and underwriting guidelines.

               

              ·  The
                Receivable is secured by the automobile, with a clear title in the
                related
                Borrower’s name, originated in the state approved by Lender and is payable
                in U.S. dollars.

               

              ·  The
                obligor shall be personally liable on the Receivable and not in
                bankruptcy.

               

              ·  The
                obligor shall have no claim to any defense, set off, or counter
                claim.

               

              ·  The
                obligor is a resident of the U.S. 

               

              ·  No
                obligor under any Receivable shall be affiliated with or employed
                by the
                Company any Target or their
                affiliates.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	 	 	
              ·  The
                obligor’s loan application, the note and all other applicable instruments
                shall comply with state and federal consumer laws and be in form
                and
                content acceptable to the Lender;

               

              ·  The
                receivable shall carry a minimum interest rate to be mutually agreed
                upon
                by the Company and the Lender during the Lender’s due
                diligence.

               

              ·  The
                retail sales contract shall carry a minimum down payment to be mutually
                agreed upon by the Companyand the Lender during Lender’s due
                diligence.

               

              ·  The
                maximum original term of the Receivable shall not exceed a term to
                be
                mutually agreed upon by the Company and Lender during Lender’s due
                diligence.

               

              ·  The
                maximum original gross balance of any individual note shall not exceed
                an
                amount to be mutually agreed upon by the Company and Lender during
                Lender’s due diligence

               

              ·  The
                maximum mileage on the underlying vehicle securing the sales finance
                contract shall not be greater than an amount to be mutually agreed
                upon by
                the Company and Lender during Lender’s due diligence.

               

              ·  Such
                other criteria as the Lender deems necessary in its sole
                discretion.

            
	 	 	 
	
              Insurance:

            	 	
              The
                Company, at its expense, will agree to maintain proper business insurance
                for the Company, the Targets and its other subsidiaries in form and
                amounts and with coverage satisfactory to the Lender in its sole
                discretion. Such insurance shall include, but is not limited to,
                satisfactory Director and Officer Insurance, Errors and Omission
                Insurance
                and Fraud Insurance.

            
	 	 	 
	
              Conditions
                Precedent:

            	 	
              The
                following are some, but not all, of the conditions precedent to any
                Financing by Lender:

               

              1.   
                 Each
                of the Company, the related Target and the related Borrower is duly
                organized and in good standing in the jurisdiction of its organization
                and
                qualified to do business in any other jurisdiction where it has collateral
                and/or originates Receivables, 

               

              2.   
                 The
                due execution and delivery of the Loan Documents on or prior to the
                Closing Date. 

               

              3.   
                 In
                addition to the Loan Documents, each of the Company, the related
                Target
                and the related Borrower will have executed and delivered, or caused
                to be
                executed and delivered, to Lender prior to the Closing Date, such
                financing statements, opinions of counsel, control agreements, security
                agreements, insurance certificates and endorsements, and other documents
                as Lender may reasonably require, 

               

              4.   
                 All
                costs incurred by the Lender including, but not limited to, due diligence
                expenses, attorneys fees, audit fees, search fees, title fees,
                documentation and filing fees, will be paid by the Company or the
                related
                Target or Borrower,

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	
              5.  
                  No
                material pending claim, investigation or litigation with respect
                to the
                Company or the related Target or Borrower by any state or federal
                governmental entity will exist except as disclosed prior to closing
                and
                acceptable to Lender, 

               

              6.   
                 The
                Lender shall have received and reviewed financial and other information
                as
                it may reasonably request, including annual / monthly financial
                projections of the Company, the related Target and the related
                Borrower,

               

              7.   
                 Lender
                shall be satisfied with the Company’s cash management system,

               

              8.  
                  No
                material adverse change in the business, operations, or in the condition
                of the Company, the Targets or the Borrowers shall have
                occurred,

               

              9.  
                  Completion
                of Lender’s business, legal and collateral due diligence, including a
                review of the Company’s and the Target’s historical performance the
                results of which are satisfactory to Lender,

               

              10. 
                 Lender
                shall be satisfied with its background investigations of key members
                of
                management team of the Company and the related Target and Borrower,
                

               

              11. 
                 Repayment
                in full of all outstanding indebtedness secured by any Receivables
                or
                other collateral.

               

              12. 
                 Others
                in the sole discretion of the Lender.

            
	 	 	
               

            
	
              Representations
                and Warranties:

            	 	
              The
                Loan Documents will contain customary representations and warranties
                to
                the satisfaction of the Lender in its sole discretion. The Loan Documents
                will also contain customary negative, affirmative and financial covenants
                to the satisfaction of the Lender in its sole discretion.
                

            
	 	 	 
	
              Financial
                Covenants:

            	 	
              Minimum
                Profit Ratio

              Interest
                Coverage Ratio

              Maximum
                Leverage Ratio

              Minimum
                Tangible Net Worth

              Minimum
                Delinquency Ratio

              Minimum
                Cumulative Loss Trigger Ratios 

              Others
                TBD by the Lender in its sole discretion

            
	 	 	 
	
              Financial
                Reporting Requirement:

            	 	
              Company,
                Target and Borrower level and consolidated with back up individual
                summary:

              Monthly
                Financial Statements

              Annual
                Audited Financial Statements

              Monthly
                Covenant Compliance Certificate

              Monthly
                Borrowing Base Certificate

              Weekly
                Borrowing Base Certificate 
                Weekly
                  to Monthly Aging Status Report

                SEC
                  quarter and annual reporting

                Others
                  TBD by the Lender in its sole
                  discretion

              

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              Event
                of Default:

            	 	
              The
                Loan Documents will contain customary Events of Defaults, including
                without limitation, cross defaults between the Financings and others
                TBD
                by the Lender in its sole discretion.

            
	 	 	 
	
              Assignment/

              Participation:

            	 	
              The
                Loan Documents will include provisions allowing the Lender to freely
                assign and participate the Financings.

            
	 	 	 
	
              Indemnification: 

            	 	
              Customary
                and appropriate provisions relating to indemnification and related
                matters
                in a form reasonably satisfactory to the Lender.

            
	 	 	 
	
              Governing
                Law and Jurisdiction:

            	 	
              The
                Borrower will submit to the non-exclusive jurisdiction and venue
                of the
                federal and state courts of the State of New York and shall waive
                any
                right to trial by jury. New York law shall govern all Loan
                Documents.

            

    

     

    Remainder
      of Page Left BlankLOAN
      AND
      SECURITY AGREEMENT

     

    

    NICE
      CARS
      FUNDING LLC

     

    as
      Borrower

     

    

    PALM
      BEACH MULTI-STRATEGY FUND, L.P.

    

    as
      Lender

    

    and

    

    THE
      BANK
      OF NEW YORK

    

    as
      Collateral Agent

    

    $75,000,000
      Loan

    

    September
      28, 2006

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF CONTENTS

     

    
      	 	 	 	 	
              Page

            
	 	 	 
	
              ARTICLE
                1 DEFINITIONS

            	 	
              1

            
	
              Section
                1.1.

            	 	
              DEFINITIONS

            	 	
              1

            
	
              Section
                1.2.

            	 	
              EXHIBITS
                AND SCHEDULES; ADDITIONAL

            	 	
               

            
	 	 	
              DEFINITIONS

            	 	
              12

            
	
              Section
                1.3.

            	 	
              AMENDMENT
                OF DEFINED DOCUMENTS

            	 	
              13

            
	
              Section
                1.4.

            	 	
              REFERENCES
                AND TITLES

            	 	
              13

            
	
              ARTICLE
                2 LOAN(S), INTEREST RATE AND OTHER CHARGES

            	 	
              13

            
	
              Section
                2.1.

            	 	
              AMOUNT
                OF LOAN

            	 	
              13

            
	
              Section
                2.2.

            	 	
              INTEREST
                RATE

            	 	
              14

            
	
              Section
                2.3.

            	 	
              PAYMENTS

            	 	
              14

            
	
              Section
                2.4.

            	 	
              PAYMENT
                DUE ON A NON-BUSINESS DAY

            	 	
              15

            
	
              Section
                2.5.

            	 	
              MANDATORY
                PAYMENTS

            	 	
              15

            
	
              Section
                2.6.

            	 	
              VOLUNTARY
                PREPAYMENTS

            	 	
              15

            
	
              Section
                2.7.

            	 	
              MAXIMUM
                INTEREST; CONTROLLING AGREEMENT

            	 	
              16

            
	
              Section
                2.8.

            	 	
              INTEREST
                AFTER DEFAULT

            	 	
              17

            
	
              Section
                2.9.

            	 	
              APPLICATION
                OF PAYMENTS

            	 	
              17

            
	
              Section
                2.10.

            	 	
              ASSET
                MANAGEMENT FEE

            	 	
              17

            
	
              Section
                2.11.

            	 	
              DISTRIBUTIONS
                FROM THE COLLECTION ACCOUNT

            	 	
              18

            
	
              Section
                2.12.

            	 	
              CAPITAL
                ADEQUACY

            	 	
              18

            
	
              Section
                2.13.

            	 	
              DETERMINATIONS
                CONCLUSIVE

            	 	
              19

            
	
              Section
                2.14.

            	 	
              COLLECTION
                ACCOUNT

            	 	
              19

            
	
              ARTICLE
                3 SECURITY

            	 	
              19

            
	
              Section
                3.1.

            	 	
              SECURITY
                INTEREST

            	 	
              19

            
	
              Section
                3.2.

            	 	
              FINANCING
                STATEMENTS AND FURTHER

            	 	 
	 	 	
              ASSURANCES

            	 	
              21

            
	
              Section
                3.3.

            	 	
              DELIVERY
                OF RECEIVABLES

            	 	
              21

            
	
              Section
                3.4.

            	 	
              FAILURE
                TO DELIVER

            	 	
              22

            
	
              Section
                3.5.

            	 	
              NOTICE
                OF COLLATERAL ASSIGNMENT

            	 	
              22

            
	
              Section
                3.6.

            	 	
              [RESERVED]

            	 	
              22

            
	
              Section
                3.7.

            	 	
              RECORDS
                AND INSPECTIONS

            	 	
              22

            
	
              Section
                3.8.

            	 	
              COLLECTION

            	 	
              22

            
	
              Section
                3.9.

            	 	
              BLOCKED
                ACCOUNTS

            	 	
              22

            
	
              Section
                3.10.

            	 	
              PROTECTION
                OF RECEIVABLE RECORDS

            	 	
              23

            
	
              Section
                3.11.

            	 	
              USE
                OF PROCEEDS

            	 	
              23

            
	
              Section
                3.12.

            	 	
              RETURN
                OF COLLATERAL

            	 	
              23

            
	
              Section
                3.13.

            	 	
              LENDER’S
                PAYMENT OF CLAIMS

            	 	
              24

            
	
              ARTICLE
                4 CONDITIONS OF CLOSING; SUBSEQUENT ADVANCES

            	 	
              24

            
	
              Section
                4.1.

            	 	
              INITIAL
                ADVANCE

            	 	
              24

            
	
              Section
                4.2.

            	 	
              ADVANCES

            	 	
              26

            
	
              Section
                4.3.

            	 	
              ALL
                ADVANCES TO CONSTITUTE ONE LOAN

            	 	
              27

            

    

    
      	
              Section
                4.4.

            	 	
              ADVANCES

            	 	
              27

            

    

     

    
      
        
        

      

      
        -i-

        
          

        

      

      
        
        

      

    

     

    
      	
              ARTICLE
                5 REPRESENTATIONS AND WARRANTIES OF BORROWERS

            	 	
              27

            
	
              Section
                5.1.

            	 	
              REPRESENTATIONS
                AND WARRANTIES

            	 	
              27

            
	
              Section
                5.2.

            	 	
              REPRESENTATIONS
                AND WARRANTIES AS TO

            	 	
               

            
	 	 	
              ELIGIBLE
                RECEIVABLES

            	 	
              31

            
	
              ARTICLE
                6 COVENANTS AND OTHER AGREEMENTS

            	 	
              33

            
	
              Section
                6.1.

            	 	
              AFFIRMATIVE
                COVENANTS

            	 	
              33

            
	
              Section
                6.2.

            	 	
              NEGATIVE
                COVENANTS

            	 	
              35

            
	
              Section
                6.3.

            	 	
              SEPARATENESS
                COVENANTS

            	 	
              36

            
	
              Section
                6.4.

            	 	
              FINANCIAL
                REPORTS

            	 	
              38

            
	
              ARTICLE
                7 EVENTS OF DEFAULT AND REMEDIES

            	 	
              38

            
	
              Section
                7.1.

            	 	
              EVENTS
                OF DEFAULT

            	 	
              38

            
	
              Section
                7.2.

            	 	
              ACCELERATION
                OF THE INDEBTEDNESS

            	 	
              41

            
	
              Section
                7.3.

            	 	
              REMEDIES

            	 	
              41

            
	
              Section
                7.4.

            	 	
              NO
                WAIVER

            	 	
              42

            
	
              Section
                7.5.

            	 	
              APPLICATION
                OF PROCEEDS

            	 	
              43

            
	
              Section
                7.6.

            	 	
              APPOINTMENT
                OF SECURED PARTIES AS ATTORNEY-

            	 	 
	 	 	
              IN-FACT

            	 	
              43

            
	
              ARTICLE
                8 EXPENSES AND INDEMNITIES

            	 	
              44

            
	
              Section
                8.1.

            	 	
              PAYMENT
                FOR EXPENSES

            	 	
              44

            
	
              Section
                8.2.

            	 	
              GENERAL
                INDEMNIFICATION

            	 	
              44

            
	
              ARTICLE
                9
                COLLATERAL AGENT

            	 	
              45

            
	
              Section
                9.1.

            	 	
              APPOINTMENT
                AND AUTHORITY

            	 	
              45

            
	
              Section
                9.2.

            	 	
              EXCULPATION,
                COLLATERAL AGENT’S RELIANCE, 

            	 	
               

            
	 	 	
              ETC

            	 	
              45

            
	
              Section
                9.3.

            	 	
              INDEMNIFICATION

            	 	
              46

            
	
              Section
                9.4.

            	 	
              BENEFIT
                OF
                ARTICLE 11

            	 	
              46

            
	
              Section
                9.5.

            	 	
              RESIGNATION
                AND REMOVAL OF COLLATERAL 

            	 	 
	 	 	
              AGENT

            	 	
              46

            
	
              Section
                9.6.

            	 	
              NOTICE
                OF DEFAULTS

            	 	
              47

            
	
              ARTICLE
                10 MISCELLANEOUS

            	 	
              47

            
	
              Section
                10.1.

            	 	
              NOTICES

            	 	
              47

            
	
              Section
                10.2.

            	 	
              ASSIGNMENTS
                AND PARTICIPATIONS

            	 	
              48

            
	
              Section
                10.3.

            	 	
              SURVIVAL
                OF AGREEMENTS

            	 	
              48

            
	
              Section
                10.4.

            	 	
              NO
                OBLIGATION BEYOND MATURITY

            	 	
              48

            
	
              Section
                10.5.

            	 	
              PRIOR
                AGREEMENTS SUPERSEDED

            	 	
              48

            
	
              Section
                10.6.

            	 	
              PARTIES
                BOUND

            	 	
              48

            
	
              Section
                10.7.

            	 	
              NO
                THIRD PARTY BENEFICIARY

            	 	
              48

            
	
              Section
                10.8.

            	 	
              EXECUTION
                IN COUNTERPARTS

            	 	
              49

            
	
              Section
                10.9.

            	 	
              SEVERABILITY
                OF PROVISIONS

            	 	
              49

            
	
              Section
                10.10.

            	 	
              FURTHER
                INSTRUMENTS

            	 	
              49

            

    

     

    
      
        
        

      

      
        -ii-

        
          

        

      

      
        
        

      

    

     

    
      	
              Section
                10.11.

            	 	
              COUNTERPARTS

            	 	
              49

            
	
              Section
                10.12.

            	 	
              GOVERNING
                LAW

            	 	
              49

            
	
              Section
                10.13.

            	 	
              CONSENT
                OT JURISDICTION

            	 	
              50

            
	
              Section
                10.14.

            	 	
              WAIVER
                OF JURY TRIAL

            	 	
              50

            
	
              Section
                10.15.

            	 	
              PLEDGE
                BY LENDER

            	 	
              50

            
	
              Section
                10.16.

            	 	
              TIME
                OF ESSENCE

            	 	
              50

            

    

     

    Schedules
      and Exhibits

    

    Schedule
      A

     

    Exhibit
      A
      - Request for Advance

    Exhibit
      B
      - Availability Report

    Exhibit
      C
      - Compliance Certificate

    Exhibit
      D
      - Form of Promissory Note

    

    
      
        
        

      

      
        -iii-

        
          

        

      

      
        
        

      

    

    LOAN
      AND SECURITY AGREEMENT

     

    THIS
      LOAN AND SECURITY AGREEMENT
      (this
“Agreement”)
      is
      made as of September __, 2006 between Palm Beach Multi-Strategy Fund, L.P.
      (“Lender”),
      whose
      corporate address is 2911 Turtle Creek Boulevard, Suite 1200, Dallas, Texas
      75219, Nice Cars Funding LLC, a Delaware limited liability company (the
“Borrower”),
      whose
      chief executive office is located at 100 Crescent Court, 7th
      Floor,
      Dallas, Texas 75201 (the “Borrower’s
      Address”)
      and
      The Bank of New York, as collateral agent for Lender (in such capacity, the
      “Collateral
      Agent”).

     

    ARTICLE
      1

    DEFINITIONS

     

    Section
      1.1.  DEFINITIONS.
      As used
      in this Agreement, each of the following terms has the meaning given to such
      term in this Section 1.1 or in the schedules, sections and subsections referred
      to below.

     

    ADDITIONAL
      SUMS.
      The
      term “Additional Sums” shall have the meaning given to such term in Section
      2.7(b) of this Agreement.

     

    ADVANCE
      RATE.
      The
      term “Advance Rate” shall have the meaning given to that term in the Fee
      Letter.

     

    AFFILIATE.
      The term
“Affiliate” shall mean, with respect to any Person, any other Person directly or
      indirectly Controlling or Controlled by or under direct or indirect common
      Control with such Person.

     

    AGING
      PROCEDURES.
      The
      term “Aging Procedures” shall have the meaning set forth in Section 1.1(a)(i) of
      Schedule A attached hereto.

     

    AGREEMENT.
      The
      term “Agreement” shall mean this Loan and Security Agreement and any amendment,
      supplement, restatement, modifications or extension hereof.

     

    AMOUNT
      OF CREDIT LINE.
      The
      term “Amount of Credit Line” shall have the meaning set forth in Section
      2.1(a)(ii) of Schedule A attached hereto.

     

    APPLICABLE
      MARGIN.
      The
      term “Applicable Margin” shall have the meaning given to that term in the Fee
      Letter.

     

    APPLICABLE
      USURY LAW.
      The
      term “Applicable Usury Law” shall mean all federal and state usury Laws
      applicable to the Loan, the Indebtedness, this Agreement and the other Loan
      Documents.

     

    APPROVED
      STATE.
      The
      term “Approved State” shall have the meaning set forth in Section 1.1(a)(ii) of
      Schedule A attached hereto.

     

    ASSET
      MANAGEMENT FEE.
      The
      term “Asset Management Fee” shall have the meaning given to that term in the Fee
      Letter.

     

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

     

    AUTO
      TITLE.
      The
      term “Auto Title” shall mean the certificate of title issued by the department
      of transportation or other corresponding instrumentality or agency of any state
      that relates to an automobile or other vehicle which is collateral for a
      Receivable.

     

    AUTO
      TITLE PROCEDURES.
      The
      term “Auto Title Procedures” shall mean compliance by Borrower (or by Servicer
      on its behalf) with the following requirements:

     

    (a)  at
      least
      three (3) Business Days prior to any new Loan being made, the delivery by
      Borrower (or by the Servicer on its behalf) to the Custodian of the application
      for Auto Title, related guaranty of title and all other information that was
      or
      is simultaneously being submitted to the appropriate county tax assessor
      collector’s office or other appropriate office (or, with respect to a Receivable
      as to which the related Auto Title has not been delivered to Borrower or
      Servicer by the third party seller and therefore such application cannot yet
      be
      submitted, a copy of the application for Auto Title and all other information
      that will be submitted, containing all information available to Borrower (or
      to
      Servicer) at such time; provided that fully completed copies of all such
      information and documentation shall be delivered to the Custodian no later
      than
      the earlier of (x) one (1) Business Day after Borrower’s (or Servicer’s)
      submission thereof to the appropriate county tax assessor collector’s office or
      other appropriate office and (y) thirty (30) days after such Receivable has
      been
      included in the Advance Rate for a Loan made under the Loan Agreement);

     

    (b)  no
      later
      than three (3) Business Days after receipt thereof from the appropriate county
      tax assessor collector’s office or other appropriate office, the delivery by
      Borrower (or by the Servicer on its behalf) to the Custodian of the original
      Auto Title reflecting Borrower as lienholder on each vehicle securing such
      Receivable; and

     

    (c)  with
      respect to the Initial Receivables, not more than 30 days after the date hereof,
      the delivery by Borrower (or by the Servicer on its behalf) to the Custodian
      of
      the applications for Auto Title necessary to transfer the registered title
      in
      all such Receivables into the name of the Borrower subject to the Lien of the
      Collateral Agent.

     

    AVAILABILITY
      ON ELIGIBLE RECEIVABLES.
      The
      term “Availability on Eligible Receivables” shall have the meaning given to that
      term in the Fee Letter.

     

    AVAILABILITY
      REPORT.
      The term
“Availability Report” shall mean a report executed by the Borrower in the form
      of Exhibit B to this Agreement.

     

    BAILEE
      LETTER.
      The
      term “Bailee Letter” shall mean the letter dated September 28, 2006, from
      the Lender to Systems & Servicers Technologies, Inc., countersigned by
      Leedom Financial Services, LLC and NCAC.

     

    BLOCKED
      ACCOUNT.
      The
      term “Blocked Account” shall mean account no. 6301014447 at Regions Bank, held
      in the name of NCAC, as subcontractor of Servicer, into which Servicer shall
      deposit all payments received from each Obligor pursuant to the Blocked Account
      Agreement. 

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    BLOCKED
      ACCOUNT AGREEMENT.
      The
      term “Blocked Account Agreement” shall mean that certain Deposit Account Control
      Agreement dated September 28, 2006, with respect to the Blocked Account
      between Lender, the Collateral Agent, the Servicer and Regions
      Bank.

     

    BORROWER
      LLC AGREEMENT.
      The
      term “Borrower LLC Agreement” shall mean the limited liability company agreement
      of the Borrower dated September 28, 2006, and executed by NCAC, as the sole
      member of the Borrower.

     

    BUSINESS
      DAY.
      The
      term “Business Day” shall mean a day, other than a Saturday or Sunday, on which
      commercial banks are open for business to the public in New York, New
      York.

     

    CODE.
      The
      term “Code” shall mean the Internal Revenue Code of 1986, as amended from time
      to time.

     

    COLLATERAL.
      The
      term “Collateral” shall have the meaning set forth in Section 3.1.
      hereof.

     

    COLLATERAL
      AGENT FEE LETTER
      The term
“Collateral Agent Fee Letter” shall mean that certain Administrative &
Collateral Agency Fee Schedule dated September 26, 2006 by and between
      Collateral Agent and Lender.

     

    COLLECTION
      ACCOUNT.
      The term
“Collection Account” shall mean account number 294267 at The Bank of New York
      held in the name of Lender, into which all amounts on deposit in the Blocked
      Account shall be wired in accordance with Section 3.9 and the Blocked Account
      Agreement.

     

    COMMONLY
      CONTROLLED ENTITY.
      The
      term “Commonly Controlled Entity” shall mean an entity, whether or not
      incorporated, which is under common control with any Related Party within the
      meaning of Section 414(b) or (c) of the Code.

     

    CONTRACT.
      The term
“Contract” shall have the meaning given to that term in the Sale and Servicing
      Agreement.

     

    CONTROL.
      The term
“Control” shall mean the possession, directly or indirectly, of the power to
      direct or cause the direction of the management or policies of a Person, whether
      through the ownership of voting securities or general partnership or managing
      member interests, by contract or otherwise. “Controlling” and “Controlled” shall
      have the correlative meanings. Without limiting the generality of the foregoing,
      a Person shall be deemed to Control any other Person in which it owns, directly
      or indirectly, 49% or more of the ownership interests.

     

    CREDIT
      AND COLLECTION POLICY.
      The
      term “Credit and Collection Policy” shall have the meaning given to that term in
      the Sale and Servicing Agreement.

     

    CUSTODIAL
      AGREEMENT.
      The
      term “Custodial Agreement” shall mean that certain Custodial Agreement dated as
      of the date hereof between Borrower, Lender, the Collateral Agent, the Servicer
      and the Custodian.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

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

     

    CUSTODIAL
      DOCUMENTS.
      The term
“Custodial Documents” shall have the meaning given to that term in the Custodial
      Agreement.

     

    CUSTODIAN.
      The
      term “Custodian” shall mean CAR Financial Services, Inc., a Georgia Corporation,
      its successors and permitted assigns.

     

    CUSTODIAN
      FEE.
      The term
“Custodian Fee” shall mean the fee payable to the Custodian in accordance with
      the Custodial Agreement.

     

    DEFAULT.
      The
      term “Default” shall mean an event which with the passage of time or notice or
      both would constitute an Event of Default.

     

    DETERMINATION
      DATE.
      The
      term “Determination Date” shall mean, with respect to any Settlement Date, the
      fourth Business Day preceding such Settlement Date.

     

    DEFAULT
      RATE.
      The
      term “Default Rate” shall have the meaning given to that term in the Fee
      Letter.

     

    DISTRIBUTION.
      The
      term “Distributions” shall mean, during any period of determination, (i) any
      dividends or other distribution of earnings to any Related Party’s shareholders,
      members or equity holders, (ii) the net increase in the outstanding balance
      of
      all obligations or indebtedness due from any Related Party’s shareholders,
      members or equity holders to such Related Party and (iii) the net decrease
      in
      the outstanding balance of all obligations or indebtedness due from any Related
      Party to such Related Party’s shareholders, members or equity
      holders.

     

    ELIGIBLE
      INVESTMENTS.
      The
      term “Eligible Investments” means any one or more of the following obligations
      or securities; (i) the direct obligations of, and obligations the timely
      payment of which are fully guaranteed by, the United States of America or any
      agency or instrumentality of the United States of America the obligations of
      which are backed by the full faith and credit of the United States of America;
      (ii) domestic and eurodollar certificates of deposit, time deposits and
      bankers’ acceptances (which shall each have a maturity of not more than 90 days
      and, in the case of bankers’ acceptances, shall in no event have an original
      maturity of more than 365 days or a remaining maturity of more than 30 days)
      issued by any depository institution or trust company incorporated under the
      laws of the United States of America or any state thereof (including the
      Collateral Agent or Lender acting in its commercial banking capacity) and
      subject to supervision and examination by federal and/or state banking
      authorities, or any foreign bank, which are rated A-1 (or better) by S&P or
      P-1 (or better) by Moody’s; (iii) commercial paper of United States and
      foreign banks which are rated A-1 (or better) by S&P or P-1 (or better) by
      Moody’s; (iv) any The Bank of New York money market fund that is rated at
      least “AAm” or “AAmg” by S&P and “Aa2” by Moody’s (provided that there is no
      r-highlighter affixing to such rating); and (v) such other liquid
      investments as agreed to by Lender in writing.

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    ELIGIBLE
      RECEIVABLES.
      The
      term “Eligible Receivables” shall mean those Receivables of Borrower that are
      acceptable to Lender, in its discretion, and, in each case, that meet, at a
      minimum, all of the following requirements: 

     

    (a)  are
      originated by Seller (or, solely with respect to the Initial Receivables, by
      NCOC) and arise from the extension of credit, the sale and delivery of goods
      or
      the rendering of services in the ordinary course of Seller’s business and have
      been validly assigned to Borrower by Seller pursuant to the Sale and Servicing
      Agreement and the related Transfer Instrument;

     

    (b)  represent
      a valid and binding obligation of the related Obligor enforceable in accordance
      with its terms for the amount outstanding thereof without offset, counterclaim
      or defense (whether actual or alleged);

     

    (c)  as
      to
      which the Obligor thereunder is personally liable pursuant to the applicable
      Contract; 

     

    (d)  comply
      in
      all respects with all applicable Laws, including, but not limited to, truth
      in
      lending and credit disclosure laws and regulations and all applicable state
      and
      federal usury laws; 

     

    (e)  as
      to
      which the related Contract in form and substance acceptable to Lender has been
      delivered to the Custodian pursuant to the terms of Section 3.3 and as to which
      all amounts and information appearing on such Contract or otherwise furnished
      to
      Lender or the Custodian in connection therewith are true and correct and
      undisputed by the Obligor thereon or any guarantor thereof;

     

    (f)  as
      to
      which the related Obligor, on the one hand, and the Borrower, the Seller or
      the
      Servicer, on the other hand, are not engaged in any litigation, including any
      action regarding nonpayment thereof; 

     

    (g)  none
      of
      the Receivables, the Obligor thereon or any guarantor thereof is subject to
      any
      receivership, insolvency or bankruptcy proceeding, nor is any Obligor thereon
      or
      any guarantor thereof insolvent or has failed to meet its debts as they mature;
      

     

    (h)  Borrower
      has good and sufficient right to pledge, assign and deliver the Receivables
      free
      and clear from all Liens whatsoever;

     

    (i)  neither
      the Obligor thereon nor any guarantor thereof is employed by, related to or
      affiliated with Borrower, the Seller, the Servicer, any Guarantor, or any of
      their respective Affiliates;

     

    (j)  no
      condition exists that materially or adversely affects the value of the
      Receivables or jeopardizes any security therefor; 

     

    (k)  if
      the
      Receivables arise from the sale of goods, such goods have been delivered and
      accepted by the Obligor and are still subject to the lawful possession and
      control of the Obligor and have not been otherwise returned to or repossessed
      by
      Borrower, the Seller, the Servicer or any Guarantor;

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    (l)  has
      not
      been renewed or extended; 

     

    (m)  the
      current principal amount thereof does not exceed the Maximum Amount of an
      Eligible Receivable and the original term thereof does not exceed the Maximum
      Term of an Eligible Receivable; 

     

    (n)  satisfies
      the Eligibility Test and has been reported to Lender in compliance with the
      Aging Procedures;

     

    (o)  is
      not
      evidenced by a judgment or has not been reduced to judgment;

     

    (p)  is
      not an
      open account or a revolving line of credit;

     

    (q)  is
      evidenced by a Contract and bearing interest or containing a time price
      differential, which have been executed by the Obligor;

     

    (r)  the
      Obligor thereunder is a legal resident of the United States; 

     

    (s)  payments
      under the Receivable are to be made in United States dollars; 

     

    (t)  the
      number of days between contractual payment dates of a Receivable does not exceed
      thirty-one (31) days; 

     

    (u)  complies
      with all Underwriting Guidelines; 

     

    (v)  has
      been
      originated in an Approved State; and

     

    (w)  payment
      thereof is secured by a first priority Lien in the related Obligor’s automobile
      or other vehicle, free and clear of any Liens of other Persons (including
      without limitation any mechanic’s lien or claim for work, labor or material
      affecting such vehicle) and as to which all Auto Title Procedures have been
      complied with in all respects.

     

    ELIGIBILITY
      TEST.
      The
      term “Eligibility Test” shall have the meaning set forth in Section 1.1(a)(iii)
      of Schedule A attached hereto.

     

    ERISA.
      The
      term “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as
      amended from time to time.

     

    EVENT
      OF DEFAULT.
      The
      term “Event of Default” shall have the meaning given to such term in Section
      7.1.

     

    FEE
      LETTER.
      The
      term “Fee Letter” shall mean the fee letter dated the date hereof between
      Lender, the Borrower, and Manchester, as amended from time to time in accordance
      with its terms.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    FINANCED
      VEHICLE.
      The
      term “Financed Vehicle” shall have the meaning given to that term in the Sale
      and Servicing Agreement.

     

    GAAP.
      The
      term “GAAP” shall mean generally accepted accounting principles and other
      standards as promulgated by the American Institute of Certified Public
      Accountants.

     

    GUARANTOR.
      The
      term “Guarantor” shall mean any Person or Persons who now or hereafter execute a
      guaranty agreement in favor of Lender with respect to all or any part of the
      Indebtedness, including, without limitation, the Persons listed in Section
      1.1(c) of Schedule A attached hereto.

     

    GUARANTOR
      ACCOUNT CONTROL AGREEMENTS.
      The
      term “Guarantor Account Control Agreements” shall have the meaning given to that
      term in the Guarantor Security Agreement.

     

    GUARANTOR
      DEFAULT.
      The
      term “Guarantor Default” shall have the meaning given to that term in the
      Guarantor Security Agreement.

     

    GUARANTOR
      SECURITY AGREEMENT.
      The
      term “Guarantor Security Agreement” shall mean the Security Agreement dated the
      date hereof executed by Manchester, NCAC, NCOC, Lender, and the Collateral
      Agent.

     

    GUARANTY.
      The
      term “Guaranty” shall mean the Guaranty dated the date hereof executed by
      Manchester, NCAC and NCOC in favor of Lender.

     

    INDEBTEDNESS.
      The
      term “Indebtedness” shall mean all amounts advanced hereunder by Lender to
      Borrower together with all other amounts owing or becoming owing to any Secured
      Party by Borrower or any other Related Party under or pursuant to the Loan
      Documents, whether direct or indirect, absolute or contingent, now or hereafter
      existing, whether pursuant to the terms of this Agreement or any document or
      instrument evidencing or securing the transaction contemplated
      hereby.

     

    INDEPENDENT
      MANAGER.
      The term
“Independent Manager” shall mean a natural person who is not at the time of
      initial appointment as a manager or at any time while serving as a manager
      of
      the Borrower and has not been at any time during the five (5) years preceding
      such initial appointment:

     

    (a) a
      stockholder, director, manager (with the exception of serving as an Independent
      Manager of the Borrower), officer, trustee, employee, partner, member, attorney
      or counsel of the Borrower, NCAC in its capacity as the member of the Borrower
      or any Affiliate of either of them;

     

    (b) a
      creditor, customer, supplier or other person who derives any of its purchases
      or
      revenues from its activities with the Borrower, NCAC in its capacity as the
      member of the Borrower, or any Affiliate or either of them;

     

    (c) a
      Person
      Controlling or under common Control with any Person excluded from serving as
      Independent Manager under (a) or (b); or

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    (d) a
      member
      of the immediate family by blood or marriage of any Person excluded from serving
      as Independent Manager under (a) or (b).

     

    A
      natural
      person who satisfies the foregoing definition other than subparagraphs (a)
      or (b) shall not be disqualified from serving as an Independent Manager of
      the
      Borrower if such individual is an Independent Manager provided by a
      nationally-recognized company that provides professional independent managers
      (a
“Professional Independent Manager”) and other corporate services in the ordinary
      course of its business. 

     

    For
      purposes of this paragraph, a “special purpose entity” is an entity, whose
      organizational documents contain restrictions on its activities and impose
      requirements intended to preserve such entity’s separateness that are
      substantially similar to the Special Purpose Provisions of this Agreement.
      

     

    INITIAL
      INTEREST AMOUNT.
      The
      term “Initial Interest Amount” shall have the meaning given to that term in the
      Fee Letter.

     

    INITIAL
      RECEIVABLES.
      The
      term “Initial Receivables” shall mean the Receivables conveyed to the Borrower
      by the Seller pursuant to a Transfer Instrument on the date of the first advance
      made by Lender hereunder.

     

    ITEMS.
      The
      term “Items” shall mean all cash payments, checks, drafts, or similar items of
      payment upon and/or proceeds of the Receivables.

     

    LAW.
      The
      term “Law” shall mean any statute, law, regulation, ordinance, rule, treaty,
      judgment, order, decree, permit, concession, franchise, license, agreement
      or
      other governmental restriction of the United States or any state or political
      subdivision thereof or of any foreign country or any department, state, province
      or other political subdivision thereof.

     

    LIABILITIES.
      The
      term “Liabilities” shall mean, as to any Person, all indebtedness, liabilities
      and obligations of such Person, whether matured or unmatured, liquidated or
      unliquidated, primary or secondary, direct or indirect, absolute, fixed or
      contingent, and whether or not required to be considered pursuant to
      GAAP.

     

    LIEN.
      The
      term “Lien” shall mean, with respect to any property or assets, any right or
      interest therein of a creditor to secure Liabilities owed to it or any other
      arrangement with such creditor which provides for the payment of such
      Liabilities out of such property or assets or which allows such creditor to
      have
      such Liabilities satisfied out of such property or assets prior to the general
      creditors of any owner thereof, including any lien, mortgage, security interest,
      pledge, deposit, rights of a vendor under any title retention or conditional
      sale agreement or lease substantially equivalent thereto, tax lien, mechanic’s
      or materialman’s lien, or any other charge or encumbrance for security purposes,
      whether arising by Law or agreement or otherwise, but excluding any right of
      offset which arises without agreement in the ordinary course of business. “Lien”
also includes any financing statement, any registration of a pledge (such as
      with an issuer of uncertificated securities), or any other arrangement or action
      which would serve to perfect a Lien described in the preceding sentence,
      regardless of whither such financing statement is filed, such registration
      is
      made, or such arrangement or action is undertaken before or after such Lien
      exists.

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    LIQUIDATED
      DAMAGES.
      The
      term “Liquidated Damages” shall have the meaning given to that term in the Fee
      Letter.

     

    LOAN.
      The
      term “Loan” shall have the meaning given to such term in Section
      2.1(a).

     

    LOAN
      DOCUMENTS.
      The
      term “Loan Documents” shall mean this Agreement, the Note, the Schedule, the
      Guaranty, the Guarantor Security Agreement, each Guarantor Account Control
      Agreement, the Fee Letter, the Sale and Servicing Agreement, each Transfer
      Instrument, the Borrower LLC Agreement, the Blocked Account Agreement, any
      Lockbox Agreement, the Custodial Agreement, the Collateral Agent Fee Letter,
      the
      Post Closing Agreement and all other documents, instruments, writings and other
      agreements executed in connection with this Agreement, together with any and
      all
      renewals, amendments, restatements or replacements thereof.

     

    LOCKBOX.
      The
      term “Lockbox” shall mean any lockbox account set up pursuant to Section 3.9,
      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.

     

    LOCKBOX
      AGREEMENT.
      The
      term “Lockbox Agreement” shall mean any agreement governing a Lockbox, in form
      and substance satisfactory to Lender in its sole discretion.

     

    MANCHESTER.
      The term
“Manchester” shall mean Manchester Inc., a Nevada Corporation, together with its
      successors and permitted assigns.

     

    MATERIAL
      ACTION.
      The term
“Material Action” means to file any insolvency, or reorganization case or
      proceeding, to institute proceedings to have the Borrower be adjudicated
      bankrupt or insolvent, to institute proceedings under any applicable insolvency
      law, to seek any relief under any law relating to relief from debts or the
      protection of debtors, to consent to the filing or institution of bankruptcy
      or
      insolvency proceedings against the Borrower, to file a petition seeking, or
      consent to, reorganization or relief with respect to the Borrower under any
      applicable federal or state law relating to bankruptcy or insolvency, to seek
      or
      consent to the appointment of a receiver, liquidator, assignee, trustee,
      sequestrator, custodian, or any similar official of or for the Borrower or
      a
      substantial part of its property, to make any assignment for the benefit of
      creditors of the Borrower, to admit in writing the Borrower’s inability to pay
      its debts generally as they become due, or to take action in furtherance of
      any
      of the foregoing.

     

    MATERIAL
      ADVERSE EFFECT.
      The
      term “Material Adverse Effect” means (i) a material and adverse effect on (a)
      Borrower’s, any Related Party’s, the Servicer’s or the Seller’s financial
      condition, consolidated or otherwise, (b) Borrower’s, any Related Party’s, the
      Servicer’s or the Seller’s consolidated business, assets, operations, properties
      or prospects, considered as a whole, or (c) Borrower’s ability to timely pay the
      Indebtedness or any Related Party’s, the Servicer’s or the Seller’s ability to
      timely pay its obligations as they come due (ii) a material and adverse effect
      on the validity or enforceability of any Loan Document against any Related
      Party, the Servicer or the Seller (to the extent a party thereto); or (iii)
      a
      material and adverse effect on the validity, perfection or priority of any
      Lien
      on a material portion of the Collateral or any other assets intended to be
      granted under or pursuant to any Loan Document to secure the
      Indebtedness.

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    MATURITY
      DATE.
      The
      term “Maturity Date” shall have the meaning set forth in Section 1.1(d) of
      Schedule A attached hereto.

     

    MAXIMUM
      AMOUNT OF AN ELIGIBLE RECEIVABLE.
      The
      term “Maximum Amount of an Eligible Receivable” shall have the meaning set forth
      in Section 1.1(a)(iv) of Schedule A attached hereto.

     

    MAXIMUM
      RATE.
      The
      term “Maximum Rate” shall mean the highest lawful and nonusurious rate of
      interest that at any time or from time to time may be contracted for, taken,
      reserved, charged, or received on the Note and the Indebtedness under Applicable
      Usury Law.

     

    MAXIMUM
      TERM OF AN ELIGIBLE RECEIVABLE.
      The
      term “Maximum Term of an Eligible Receivable” shall have the meaning set forth
      in Section 1.1(a)(v) of Schedule A attached hereto.

     

    NCAC.
      The term
“NCAC” shall mean Nice Cars Acceptance AcquisitionCo, Inc., a Delaware
      corporation, together with its successors and permitted assigns.

     

    NCOC.
      The term
“NCOC” shall mean Nice Cars Operations AcquisitionCo, Inc., a Delaware
      corporation, together with its successors and permitted assigns.

     

    NOTE.
      The
      term “Note” shall mean that certain promissory note of even date herewith in the
      aggregate principal amount of $75,000,000, executed by Borrower and payable
      to
      the order of Lender, and all renewals, extensions, restatements, amendments,
      supplements or modifications thereof.

     

    OBLIGOR.
      The
      term “Obligor” shall mean any Person or Persons that is or are an obligor
      (including without limitation any co-signor or guarantor) in respect of any
      Receivable.

     

    OTHER
      CONVEYED PROPERTY.
      The term
“Other Conveyed Property” shall have the meaning given to that term in the Sale
      and Servicing Agreement.

     

    PATRIOT
      ACT.
      The
      term “Patriot Act” shall mean the Uniting and Strengthening America by Providing
      Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001,
      P.L.
      107-56, as amended.

     

    PERSON.
      The
      term “Person” shall mean an individual, partnership, corporation, limited
      liability company, limited liability partnership, joint venture, joint stock
      company, association, trust, unincorporated organization or any other entity
      or
      organization, including without limitation a government or agency or political
      subdivision thereof.

     

    PLAN.
      The
      term “Plan” shall mean any pension plan that is covered by Title IV of ERISA and
      with respect to which Borrower or a Commonly Controlled Entity is an “Employer”
as defined in section 3(5) of ERISA.

     

    POST
      CLOSING AGREEMENT.
      The
      term “Post Closing Agreement” shall mean the Post Closing Agreement dated the
      date hereof among Manchester, NCAC, NCOC, the Borrower and Lender.

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    PRIME
      RATE.
      The
      term “Prime Rate” shall mean the “Prime” rate of interest published each
      business day in The Wall Street Journal as the “Prime Rate”. If more than one
“Prime Rate” is published in The Wall Street Journal for a day, the highest of
      such “Prime Rates” shall be used. In the event that The Wall Street Journal is
      no longer published or ceases to publish the “Prime Rate”, Lender may substitute
      another publication publishing the “Prime Rate”, reasonably acceptable to
      Lender. In the event that “Prime Rates” are no longer generally published or are
      limited, regulated or administered by a governmental or quasi-governmental
      body,
      Lender may substitute another rate approximating the “Prime Rate” (and which
      substitute rate may be reasonably adjusted by Lender to the effect that such
      substitute rate will provide for an interest rate equivalent to the Stated
      Interest Rate which would have been effective if the “Prime Rate” were
      published).

     

    RECEIVABLES.
      The
      term “Receivables” shall mean all retail installment sale contracts for Financed
      Vehicles originated by NCAC (or, only with respect to such contracts originated
      before the date hereof, originated by NCOC) and conveyed to the Borrower from
      time to time pursuant to the Sale and Servicing Agreement and any Transfer
      Instrument and all rights of the Borrower thereunder.

     

    RELATED
      PARTY.
      The
      term “Related Party” shall mean, collectively, the Borrower, each Guarantor,
      each other Person who may at any time pledge any of their assets as collateral
      for the Indebtedness pursuant to this Agreement or any other Loan Document,
      Seller, Servicer, Manchester, NCAC and NCOC.

     

    REQUEST
      FOR ADVANCE.
      The
      term “Request for Advance” shall mean a written request for an advance in the
      form of Exhibit
      A
      attached
      hereto and made a part hereof.

     

    REQUEST
      FOR RELEASE OF DOCUMENTS.
      The term
“Request for Release of Documents” shall have the meaning given to that term in
      the Custodial Agreement.

     

    SALE
      AND SERVICING AGREEMENT.
      The term
“Sale and Servicing Agreement” shall mean the Sale and Servicing Agreement dated
      the date hereof among the Borrower, the Seller and the Servicer.

     

    SCHEDULE
      A.
      The
      term “Schedule A” shall mean Schedule A of this Agreement of even date herewith
      executed by Borrower, as amended, supplemented or restated from time to time,
      upon written agreement of Lender and Borrower.

     

    SECURED
      OBLIGATIONS.
      The term
“Secured Obligations” shall have the meaning given to that term in Section
      3.1.

     

    SECURED
      PARTIES.
      The
      term “Secured Parties” shall mean Lender and the Collateral Agent.

     

    SELLER.
      The term
“Seller” shall mean NCAC, in its capacity as the Seller under the Sale and
      Servicing Agreement.

     

    SELLER
      DEFAULT.
      The term
“Seller Default” shall have the meaning given to that term in Annex A of the
      Sale and Servicing Agreement.

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    SERVICER.
      The
      term “Servicer” shall mean Manchester, in its capacity as Servicer under the
      Sale and Servicing Agreement, together with its successors and permitted assigns
      in such capacity.

     

    SERVICER
      TERMINATION EVENT.
      The term
“Servicer Termination Event” shall have the meaning given to that term in the
      Sale and Servicing Agreement.

     

    SERVICING
      FEE.
      The term
“Servicing Fee” shall have the meaning given to that term in the Sale and
      Servicing Agreement.

     

    SERVICING
      GUIDELINES.
      The
      term “Servicing Guidelines” shall have the meaning given to that term in the
      Sale and Servicing Agreement.

     

    SETTLEMENT
      DATE.
      The term
“Settlement Date” means, initially, October 16, 2006, and the 15th day of
      each calendar month thereafter (or, if such day is not a Business Day, the
      next
      following Business Day) thereafter. 

     

    STATED
      INTEREST RATE.
      The
      term “Stated Interest Rate” shall have the meaning given to that term in the Fee
      Letter.

     

    TERMINATION
      DATE.
      The
      term “Termination Date” shall have the meaning given to such term in Section 2.6
      of this Agreement.

     

    TERMINATION
      NOTICE.
      The
      term “Termination Notice” shall have the meaning given to such term in Section
      2.6 of this Agreement.

     

    TRANSFER
      INSTRUMENT.
      The term
“Transfer Instrument” shall have the meaning given to that term in the Sale and
      Servicing Agreement. 

     

    UCC.
      The
      term “UCC” shall mean the Uniform Commercial Code as in effect in the State of
      New York.

     

    UNDERWRITING
      GUIDELINES.
      The
      term “Underwriting Guidelines” shall mean the Seller’s customary credit and
      underwriting guidelines as of the date hereof, a copy of which has been
      delivered to Lender, as such guidelines are amended from time to time;
provided that
      such
      amendments have been approved by Lender in writing.

     

    VOLUNTARY
      TERMINATION.
      The
      term “Voluntary Termination” shall have the meaning given to such term in
      Section 2.6 of this Agreement.

     

    Section
      1.2.  EXHIBITS
      AND SCHEDULES; ADDITIONAL DEFINITIONS.
      All
      Exhibits and Schedules attached to this Agreement are a part hereof for all
      purposes. Reference is hereby made to Schedule A for the meaning of certain
      terms defined therein and used but not defined herein, which definitions are
      incorporated herein by reference. All terms defined in the UCC and not otherwise
      defined herein (including, without limitation, chattel paper, commercial tort
      claims, deposit accounts, documents, equipment, fixtures, general intangibles,
      goods, instruments, inventory, investment property, letter-of-credit rights,
      supporting obligations, and proceeds) shall have the meanings assigned to them
      in the UCC. All accounting terms not specifically defined herein shall be
      construed in accordance with GAAP.

     

    
      
        
        

      

      
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    Section
      1.3.  AMENDMENT
      OF DEFINED DOCUMENTS.
      Unless
      the context otherwise requires or unless otherwise provided herein the terms
      defined in this Agreement which refer to a particular agreement, instrument
      or
      document also refer to and include all renewals, extensions, modifications,
      amendments and restatements of such agreement, instrument or documents provided
      that nothing contained in this Section shall be construed to authorize any
      such
      renewal, extension, modification, amendment or restatement.

     

    Section
      1.4.  REFERENCES
      AND TITLES.
      All
      references in this Agreement to Exhibits, Schedules, articles, sections,
      subsections and other subdivisions refer to the Exhibits, Schedules, articles,
      sections, subsections and other subdivisions of this Agreement unless expressly
      provided otherwise. Exhibits and Schedules to any Loan Document shall be deemed
      incorporated by reference in such Loan Document. References to any document,
      instrument, or agreement (a) shall include all exhibits, schedules and other
      attachments thereto and (b) shall include all documents, instruments or
      agreements issued or executed in replacement thereof. Titles appearing at the
      beginning of any subdivisions are for convenience only and do not constitute
      any
      part of such subdivisions and shall be disregarded in construing the language
      contained in such subdivisions. The words “this Agreement”, “herein”, “hereof”,
“hereby”, “hereunder” and words of similar import refer to this Agreement 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 sections or subsections hereof in which such phrases occur. The word “or” is
      not exclusive, and the word “including” (in its various forms) means “including
      without limitation”. References to “days” shall mean calendar days unless the
      term Business Day is used. Unless otherwise specified, references herein to
      any
      particular Person also refer to its successors and permitted
      assigns.

     

    ARTICLE
      2

    LOAN(S),
      INTEREST RATE AND OTHER CHARGES

     

    Section
      2.1.  AMOUNT
      OF LOAN.
      

     

    (a)  Subject
      to the terms, covenants and conditions hereinafter set forth (including, without
      limitation, the terms set forth in Schedule A attached hereto), Lender agrees
      upon the Borrower’s request from time to time (but in no event more often than
      once per week), until the Maturity Date, to make advances to Borrower
      (collectively, the “Loan”),
      in an
      aggregate amount not to exceed at any time outstanding the lesser of the
      following: (a) the Amount of Credit Line or (b) the Availability on Eligible
      Receivables. The minimum amount of any advance made hereunder shall not be
      less
      than the amount set forth in Section 2.1(a)(i) of Schedule A hereto. Within
      the
      limits of this Section 2.1, Borrower may borrow, repay and reborrow the
      advances. 

     

    (b)  The
      obligation of Borrower to repay to Lender the aggregate amount of the Loan
      made
      by Lender, together with interest accruing in connection therewith, shall be
      evidenced by the Note. The amount of principal owing on the Note at any given
      time shall be the aggregate amount of the Loan theretofore made by Lender minus
      all payments of principal theretofore received by Lender on the Note. Interest
      on the Note shall accrue and be due and payable as provided herein and therein.
      The Note shall be due and payable as provided herein and therein and shall
      be
      due and payable in full on the Maturity Date and Borrower unconditionally
      promises to pay the Note in full on the Maturity Date. 

     

    
      
        
        

      

      
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    Section
      2.2.  INTEREST
      RATE.
      

     

    (a)  Unless
      the Default Rate shall apply, the outstanding principal balance of the Loan
      shall bear interest at the Stated Interest Rate on each day outstanding. If
      Lender is ever prevented from charging or collecting interest at the Stated
      Interest Rate because interest at such rate would exceed the Maximum Rate,
      then
      the Stated Interest Rate shall be the Maximum Rate until Lender has charged
      and
      collected the full amount of interest chargeable and collectable had the Stated
      Interest Rate always been lawfully chargeable and collectible. 

     

    (b)  Interest
      on the Loan for the period from the date of this Agreement to September 30,
      2006, inclusive, shall be an amount equal to the Initial Interest Amount and
      shall be payable in advance on the date hereof. The parties hereto acknowledge
      that the Initial Interest Amount is paid in advance in consideration, among
      other things, of Lender setting aside funds for the Loan during the whole month
      of September and that payment of the Initial Interest Amount in advance is
      an
      essential term of the transactions effected hereby. Thereafter, interest due
      on
      the principal balance of the Loan outstanding shall be payable monthly in
      arrears and shall be computed for the actual number of days elapsed during
      the
      month in question on the basis of a year consisting of three hundred sixty
      (360)
      days and shall be calculated by determining the average daily principal balance
      outstanding for each day of the month in question. The daily rate shall be
      equal
      to 1/360th times the Stated Interest Rate (but shall not exceed the Maximum
      Rate).

     

    Section
      2.3.  PAYMENTS.
      Borrower will make each payment which it owes under the Loan Documents to Lender
      in lawful money of the United States of America, without set-off, deduction
      or
      counterclaim, and in immediately available funds. The Borrower’s obligations to
      make payments to Lender hereunder may be satisfied either by payment being
      made
      to Lender by the Collateral Agreement from the Collection Account pursuant
      to
      Section 2.11 or by payment being made by the Borrower directly to Lender. Each
      such payment must be received by Lender not later than noon, New York, New
      York
      time, on the date such payment becomes due and payable. Any payment received
      by
      Lender after such time will be deemed to have been made on the following
      Business Day Each payment under a Loan Document shall be due and payable at
      the
      place provided therein and, if no specific place of payment is provided, shall
      be due and payable at the place of payment of the Note. The Indebtedness shall
      be due and payable as follows:

     

    (a)  Accrued
      but unpaid interest for each calendar month during the term hereof shall be
      due
      and payable, in arrears, on or before the Settlement Date in the immediately
      succeeding calendar month, except as provided in Section 2.2(b) with respect
      to
      the Initial Interest Amount.

     

    
      
        
        

      

      
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    (b)  Costs,
      fees and expenses payable pursuant to this Agreement shall be due and payable
      by
      Borrower to Lender or to such other person(s) designated by Lender in writing
      on
      demand; and

     

    (c)  The
      entire outstanding balance of the Indebtedness shall be due and payable, if
      not
      prepaid, on the earliest to occur of the Maturity Date, the Termination Date
      or
      the date on which the Indebtedness is accelerated pursuant to Section
      7.2.

     

    Section
      2.4.  PAYMENT
      DUE ON A NON-BUSINESS DAY.
      If any
      payment of the Indebtedness falls due on a day other than a Business Day, then
      such due date shall be extended to the next succeeding Business Day and, in
      the
      case of a payment of principal or past due interest, interest shall accrue
      and
      be payable thereon for the period of such extension as provided in the Loan
      Document under which such payment is due.

     

    Section
      2.5.  MANDATORY
      PAYMENTS.
      Provided that Borrower is not otherwise in Default hereunder, if at any time
      the
      amount advanced by Lender to Borrower exceeds the maximum amount of the Loan
      allowed pursuant to Section 2.1, Borrower shall immediately and without notice,
      repay to Lender an amount sufficient to eliminate such excess, or, at Lender’s
      option, assign and deliver additional Eligible Receivables sufficient for such
      purpose. In the event Borrower sells, transfers, assigns or otherwise disposes
      of all or any portion of its Receivables, other than in the ordinary course
      of
      business (subject at all times to the restrictions set forth in Section 6.2(c)
      of this Agreement), Borrower shall apply all proceeds of any such sale,
      transfer, assignment or other disposition to reduce the outstanding balance
      of
      the Indebtedness. 

     

    Section
      2.6.  VOLUNTARY
      PREPAYMENTS.
      Borrower may, at any time, terminate financing under this Agreement and prepay
      the Indebtedness in full (a “Voluntary Termination”) by providing Lender with
      written notice (the “Termination Notice”) at least ninety (90) calendar days
      prior to the specific date upon which Borrower intends to cease financing
      hereunder and prepay the Indebtedness in full (the “Termination Date”). After
      receipt of the Termination Notice, Lender shall cease making advances under
      this
      Agreement and all Indebtedness shall be immediately due and payable upon the
      earlier of the Maturity Date or the Termination Date, as applicable. In
      connection with a Voluntary Termination, the Indebtedness owing and to be paid
      by Borrower to Lender on the Termination Date shall include as liquidated
      damages, not as a penalty, the Liquidated Damages. Notwithstanding any other
      provision of any Loan Document, no termination of financing under this Agreement
      shall affect Lender’s rights or any of the Indebtedness existing as of the
      Termination Date, and the provisions of the Loan Documents shall continue to
      be
      fully operative until the Indebtedness (other than indemnity obligations under
      the Loan Documents that are not then due and payable or for which any events
      or
      claims that would give rise thereto are not then pending) have been fully
      performed and indefeasibly paid in cash in full. The Liens granted to the
      Collateral Agent for the benefit of Lender under the Loan Documents and the
      financing statements filed pursuant thereto and the rights and powers of Secured
      Parties thereunder shall continue in full force and effect until (a) all of
      the
      Indebtedness (other than indemnity obligations under the Loan Documents that
      are
      not then due and payable or for which any events or claims that would give
      rise
      thereto are not then pending) has been fully performed and indefeasibly paid
      in
      full in cash, and (b) financing under this Agreement has been terminated, as
      provided herein. Lender hereby agrees to give Borrower written confirmation
      of
      the amount of the Indebtedness in a timely fashion following receipt of a
      Termination Notice.

     

    
      
        
        

      

      
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    Section
      2.7.  MAXIMUM
      INTEREST; CONTROLLING AGREEMENT.
      

     

    (a)  The
      contracted rate of interest on the Loan without limitation, shall consist of
      the
      following: (i) the Stated Interest Rate, calculated and applied to the principal
      balance of the Note in accordance with the provisions of the Note and this
      Agreement (or, only with respect to the period from the date of this Agreement
      to September 30, 2006, inclusive, the Initial Interest Amount); (ii)
      additional interest charged when the Default Rate is charged pursuant to the
      terms hereof, calculated and applied to the amounts due under the Note in
      accordance with the provisions of the Note and this Agreement; and (iii) all
      Additional Sums, if any. Borrower agrees to pay an effective contracted for
      rate
      of interest which is the sum of the above-referenced elements.

     

    (b)  All
      fees,
      charges, float, goods, things in action or any other sums or things of value
      (other than amounts described in the immediately previous paragraph), paid
      or
      payable by Borrower (collectively, the “Additional
      Sums”),
      whether pursuant to the Note, this Agreement or any other documents or
      instruments in any way pertaining to this lending transaction, or otherwise
      with
      respect to this lending transaction, that under any applicable Law may be deemed
      to be interest with respect to this lending transaction, for the purpose of
      any
      applicable Law that may limit the maximum amount of interest to be charged
      with
      respect to this lending transaction, shall be payable by Borrower as, and shall
      be deemed to be, additional interest and for such purposes only, the agreed
      upon
      and “contracted for rate of interest” of this lending transaction shall be
      deemed to be increased by the rate of interest resulting from the inclusion
      of
      the Additional Sums.

     

    (c)  It
      is the
      intent of the parties to comply with Applicable Usury Law. Accordingly, it
      is
      agreed that notwithstanding any provisions to the contrary in the Loan
      Documents, or in any of the documents securing payment hereof or otherwise
      relating hereto, in no event shall the Loan Documents or such other documents
      require the payment or permit the collection of interest in excess of the
      Maximum Rate permitted by Applicable Usury Law. In the event (i) any such excess
      of interest otherwise would be contracted for, charged or received from Borrower
      or otherwise in connection with the Loan or other Indebtedness, or (ii) the
      Maturity Date is accelerated in whole or in part, or (iii) all or part of the
      principal or interest of the Loan shall be prepaid, so that under any of such
      circumstances the amount of interest contracted for, charged or received in
      connection with the Loan, would exceed the Maximum Rate permitted by Applicable
      Usury Law, then in any such event (1) the provisions of this paragraph shall
      govern and control, (2) neither Borrower, any Guarantor nor any other Person
      now
      or hereafter liable for the payment of any Indebtedness will be obligated to
      pay
      the amount of such interest to the extent that it is in excess of the Maximum
      Rate, (3) any such excess which may have been collected shall be either applied
      as a credit against the then unpaid principal amount of the Indebtedness or
      refunded to Borrower, at Lender’s option, and (4) the effective rate of interest
      will be automatically reduced to the Maximum Rate. It is further agreed, without
      limiting the generality of the foregoing, that to the extent permitted by
      Applicable Usury Law, (i) all calculations of interest which are made for the
      purpose of determining whether such rate would exceed the Maximum Rate shall
      be
      made by amortizing, prorating, allocating and spreading during the period of
      the
      full stated term of the Loan, all interest at any time contracted for, charged
      or received from Borrower or otherwise in connection with the Loan; and (ii)
      in
      the event that the effective rate of interest on the Loan should at any time
      exceed the Maximum Rate, such excess interest that would otherwise have been
      collected had there been no ceiling imposed by Applicable Usury Law shall be
      paid to Lender from time to time, if and when the effective interest rate on
      the
      Loan otherwise falls below the Maximum Rate, to the extent that interest paid
      to
      the date of calculation does not exceed the Maximum Rate, until the entire
      amount of interest which would have otherwise been collected had there been
      no
      ceiling imposed by Applicable Usury Law has been paid in full. Borrower further
      agrees that should the Maximum Rate be increased at any time hereafter because
      of a change in the Law, then to the extent not prohibited by Applicable Usury
      Law, such increases shall apply to all Indebtedness evidenced hereby regardless
      of when incurred; but, again to the extent not prohibited by Applicable Usury
      Law, should the Maximum Rate be decreased because of a change in the Law, such
      decreases shall not apply to the Indebtedness evidenced hereby regardless of
      when incurred.

     

    
      
        
        

      

      
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    Section
      2.8.  INTEREST
      AFTER DEFAULT.
      Upon
      the occurrence and during the continuation of an Event of Default, Borrower
      shall pay Lender interest on the daily outstanding balance of the Loan at the
      Default Rate; provided, however, the Default Rate shall never exceed the Maximum
      Rate.

     

    Section
      2.9.  APPLICATION
      OF PAYMENTS.
      The
      amount of all payments or amounts received by Lender with respect to the
      Indebtedness shall be applied to the extent applicable under this Agreement
      and
      subject to Section 2.11: (a) first, to any late fees, overdue risk
      assessments, examination fees and expenses, collection fees and expenses, legal
      fees and expenses and any other fees and expenses (including, without
      limitation, the Asset Management Fee) due to Lender hereunder; (b) then, to
      accrued and unpaid interest through the date of such payment, including any
      interest calculated at the Default Rate in accordance with Section 2.8 hereof;
      and (c) last, the remaining balance, if any, to the unpaid principal balance
      of
      the Indebtedness; provided, however, while a Default exists under the Loan
      Documents, each payment hereunder shall be applied to amounts owed to Lender
      by
      Borrower as Lender in its sole discretion may determine. In calculating interest
      and applying payments as set forth above; (a) interest shall be calculated
      and
      collected through the date a payment is actually applied by Lender under the
      terms of this Agreement; (b) interest on the outstanding balance shall be
      charged during any grace period permitted hereunder; (c) at the end of each
      month, all accrued and unpaid interest and other charges provided for hereunder
      shall be added to the principal balance of the Loan; and (d) to the extent
      that
      Borrower makes a payment or Lender receives any payment or proceeds of the
      Collateral for Borrower’s benefit that is subsequently invalidated, set aside or
      required to be repaid to any other Person, then, to such extent, the obligations
      intended to be satisfied shall be revived and continue as if such payment or
      proceeds had not been received by Lender and Lender may adjust the outstanding
      balance of the Indebtedness as Lender, in its sole discretion, deems appropriate
      under the circumstances.

     

    Section
      2.10.  ASSET
      MANAGEMENT FEE.
      The
      Borrower shall pay to Lender the Asset Management Fee, as provided in the Fee
      Letter and in accordance with Section 2.11.

     

    
      
        
        

      

      
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    Section
      2.11.  DISTRIBUTIONS
      FROM THE COLLECTION ACCOUNT.
      In
      accordance with the Availability Report delivered to Lender and the Collateral
      Agent by the Servicer on the Determination Date and approved by Lender (as
      set
      forth in Section 4.9 of the Sale and Servicing Agreement), all funds on deposit
      in the Collection Account shall be distributed on each Settlement Date by the
      Collateral Agent as follows:

     

    First,
      pari
      passu to the Custodian and the Collateral Agent, the Custodian Fee (including
      all expenses of the Custodian, if any, in an amount not to exceed $25,000 per
      annum) and the Collateral Agent Fee (including all expenses of the Collateral
      Agreement, if any, in an amount not to exceed $50,000 per annum) payable on
      such
      Settlement Date;

     

    Second,
      to
      Lender, all fees and expenses then due and owing to Lender pursuant to this
      Agreement or any other Loan Document, including the Asset Management
      Fee;

     

    Third,
      to the
      Servicer, the Servicing Fee with respect to such Settlement Date;

     

    Fourth,
      to
      Lender, unpaid interest on the Loan, accrued in accordance with this
      Agreement;

     

    Fifth,
      to
      Lender, a repayment of principal in an amount necessary to cause the amount
      of
      the Loan to be no greater than the lesser of the Amount of Credit Line and
      the
      Availability on Eligible Receivables.

     

    Sixth,
      to
      Lender, on each Settlement Date following the occurrence of an Event of Default,
      a repayment of principal in an amount necessary to reduce the amount of the
      Loan
      to zero;

     

    Seventh,
      to
      Lender, the Collateral Agent, the Custodian and any other indemnified party
      (other than Borrower, the Servicer or the Seller) pursuant to the terms of
      this
      Agreement or any other Loan Document, sequentially in that order, an amount
      equal to all fees, costs, expenses, indemnities, reimbursements and other
      payments then due and owing to such person pursuant to this Agreement or any
      other Loan Document; and

     

    Eighth,
      to the
      Borrower, or to such other person as the Borrower shall direct the Collateral
      Agent in writing, all remaining funds.

     

    Notwithstanding
      anything herein or in any other Loan Document to the contrary, no distributions
      shall be made pursuant to clause eighth
      of this
      Section 2.11 at any time following the occurrence and during the continuance
      of
      an Event of Default or a Default.

     

    Section
      2.12.  CAPITAL
      ADEQUACY. 

     

    (a)  If
      either
      (i) the introduction or change in the implementation after the date hereof
      of or
      the compliance with or any change after the date hereof in or in the
      interpretation of any Law regarding the lending contemplated hereby, or (ii)
      the
      introduction or change in the implementation after the date hereof or the
      compliance with any request, directive or guideline issued after the date hereof
      from any central bank or other governmental authority (whether or not having
      the
      force of Law) regarding the lending contemplated hereby has or would have the
      effect of reducing the rate of return on Lender’s capital, or on the capital of
      any Person controlling Lender, as a consequence of the Loans made by Lender,
      to
      a level below that which Lender or such Person could have achieved but for
      such
      change (taking into consideration Lender’s policies and the policies of any such
      Person with respect to capital adequacy), then from time to time Borrower will
      pay to Lender, within 3 Business Days of demand therefore by Lender, such
      additional amount or amounts as will compensate Lender or such Person for such
      reduction.

     

    
      
        
        

      

      
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    (b)  A
      certificate of Lender setting forth such amount or amounts as shall be necessary
      to compensate Lender with respect to the preceding subsection (a) when delivered
      to Borrower shall be conclusive absent manifest error.

     

    Section
      2.13.  DETERMINATIONS
      CONCLUSIVE.
      All
      determinations made by Lender of any amounts payable by the Borrower hereunder
      (whether of principal, interest, fees, expenses or otherwise) shall be
      conclusive absent manifest error.

     

    Section
      2.14.  COLLECTION
      ACCOUNT.
      The
      amount at any time credited to the Collection Account shall be invested in
      the
      name of the Collateral Agent in such Eligible Investments as instructed by
      Lender in writing, or if not so instructed, as described in clause (iv) of
      the definition thereof. All Eligible Investments shall mature or be subject
      to
      redemption or withdrawal on or before, and shall be held until, the Business
      Day
      preceding the related Settlement Date. All investment earnings from Eligible
      Investments in the Collection Account from time to time shall be credited to
      the
      Collection Account and included as Collections on the next succeeding Settlement
      Date, provided that Lender shall be entitled to a four (4) day float on all
      Collections which float shall be paid to Lender as additional interest on the
      Loans pursuant to clause Fourth
      of
      Section 2.11. If there is any loss on any Eligible Investment, the Borrower
      shall promptly remit the amount of the loss to the Collateral Agent, for deposit
      into the Collection Account, no later than the Business Day preceding the next
      following Settlement Date. All funds deposited in the Collection Account
      (including any interest and earnings thereon) from time to time shall constitute
      the property and assets of the Borrower and Borrower shall be solely liable
      for
      any taxes payable with respect to the Collection Account.

     

    ARTICLE
      3

    SECURITY

     

    Section
      3.1.  SECURITY
      INTEREST.
      To
      secure the prompt payment to Lender of the Indebtedness and any and all other
      obligations owed by Borrower to Lender, whether now existing or hereinafter
      arising (the “Secured Obligations”), Borrower hereby irrevocably grants to the
      Collateral Agent for the benefit of Lender a first and continuing security
      interest in all of the Borrower’s right, title and interest in and to the
      Receivables and the Other Conveyed Property and all of the other property and
      assets of Borrower, whether now owned or existing or hereafter acquired (the
      “Collateral”): including, without limitation, all accounts, general intangibles,
      deposit accounts and other bank accounts wherever maintained and established
      (and all moneys and funds at any time paid, deposited, credited or held in
      such
      accounts), deposits, downpayments, chattel paper, instruments, equipment,
      inventory, goods, fixtures, letter-of-credit rights, software, documents,
      investment property, payment intangibles, supporting obligations, contract
      rights and all books and records related to the foregoing, and all proceeds
      (including, without limitation, “proceeds” as defined in Article 9 of the UCC)
      of any of the foregoing, including without limitation interest, dividends,
      cash,
      instruments and other property from time to time received, receivable or
      otherwise distributed in respect of or in exchange for or on account of the
      sale
      or other disposition of any or all of the foregoing, and all additions and
      accessions to any of the foregoing. Without limiting the foregoing, the
      Collateral shall also include, without limitation, the following:

     

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

    

     

    (a)  All
      right, title and interest of the Borrower in and to the Contracts with respect
      to the Receivables, the Transfer Instruments and the other Loan
      Documents;

     

    (b)  All
      right, title and interest of the Borrower in and to all other property whether
      now or hereafter owned, acquired or held by the Borrower which secure (or
      constitute collateral for) any of the Receivables and the Contracts (including
      the Auto Titles) or other instruments or agreements which evidence any of the
      Receivables, including without limitation, all right, title and interest in
      and
      to all financing statements perfecting such security interests in any of the
      foregoing;

     

    (c)  All
      right, title and interest of the Borrower in and to all guaranties and other
      instruments by which any Person guarantees the payment or performance of the
      Receivables;

     

    (d)  All
      right, title and interest of the Borrower in and to all insurance policies
      pertaining to or obtained by any Obligor or the Borrower in connection with,
      or
      arising out of, any Contract;

     

    (e)  All
      right, title and interest of the Borrower in and to all commitments and other
      agreements to purchase any Receivables;

     

    (f)  All
      right, title and interest of the Borrower in and to all collections on, and
      proceeds of or from, any and all of the foregoing;

     

    (g)  All
      files, surveys, certificates, correspondence, appraisals, computer programs,
      software, tapes, discs, cards, accounting records, and other records,
      information, and data of the Borrower relating to the Receivables (including
      all
      information, data, programs, tapes, discs and cards necessary to administer
      and
      service such Receivables);

     

    (h)  All
      contract rights, accounts, rights to payment of money, and general intangibles,
      relating to such documents and contracts described in (a) through (g) above
      and
      as to all such Collateral described in (a) through this subparagraph (h) whether
      now existing or hereafter at any time acquired or arising;

     

    (i)  All
      now
      existing or hereafter arising rights to service, administer and/or collect
      on
      the Receivables and all rights to the payment of money on account of such
      servicing, administration and/or collection activities;

     

    
      
        
        

      

      
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    (j)  All
      monies, securities and property, now or hereafter held, received by, or
      entrusted to, in the possession or under the control of any Secured Party or
      a
      bailee of Lender and all investment property now or hereafter owned by the
      Borrower;

     

    (k)  All
      accessions to, substitutions for and all replacements, products and proceeds
      of
      the foregoing, including, without limitation, proceeds of insurance policies
      (including but not limited to claims paid and premium refunds); and

     

    (l)  All
      books
      and records (including, without limitation, customer lists, credit files, tapes,
      ledger cards, computer software and hardware, electronic data processing
      software, computer printouts and other computer materials and records) of the
      Borrower evidencing or containing information regarding any of the
      foregoing.

     

    Section
      3.2.  FINANCING
      STATEMENTS AND FURTHER ASSURANCES.
      

     

    (a)  Borrower
      hereby authorizes Secured Parties to file UCC-1 Financing Statements with
      respect to the Collateral, and any amendments or continuations relating thereto.
      Borrower hereby agrees to execute any other instruments or documents reasonably
      necessary to evidence, preserve or protect the security interest of the
      Collateral Agent for the benefit of Lender in the Collateral. Borrower shall
      not
      allow any financing statement or notice of assignment of any Receivables, other
      than those filed in favor of the Collateral Agent for the benefit of Lender,
      to
      be on file in any public office covering any Collateral, proceeds thereof or
      other matters subject to the security interest granted to the Collateral Agent
      for the benefit of Lender.

     

    (b)  Borrower
      hereby agrees to deliver to Lender, at such places as Lender may reasonably
      designate, schedules executed by Borrower, listing the Receivables and fully
      and
      correctly specifying in adequate detail the aggregate unmatured unpaid face
      amount of each Receivable and the amount of the deferred installments thereof
      falling due each month. These schedules shall be in form and tenor satisfactory
      to or supplied by Lender. Borrower further warrants and agrees that in each
      case
      where the terms of any Receivable require the Borrower or the related Obligor
      to
      place or carry fire insurance or other insurance in respect of the merchandise
      or property to which such Receivable relates, the Borrower shall or shall cause
      such Obligor to maintain such insurance until the full amount of such Receivable
      is collected and if not, Lender, at its option, may place and maintain such
      insurance, charging the cost thereof to Borrower.

     

    Section
      3.3.  DELIVERY
      OF RECEIVABLES.
      Borrower hereby agrees to deliver to the Custodian (i) the original Contract
      evidencing each Eligible Receivable, together with all related credit
      applications, truth-in-lending disclosures, credit reports and similar
      information provided by or related to each Obligor for such Eligible Receivable,
      and (ii) all applications for Auto Title, guaranties of title, the original
      Auto
      Title documentation relating to each Auto Title and all other related
      information, each as required by and in accordance with the Auto Title
      Procedures. All Receivables shall, regardless of their location, be deemed
      to be
      under the dominion and control of the Collateral Agent for the benefit of Lender
      (with files so labeled) and deemed to be in the possession of the Collateral
      Agent for the benefit of Lender.

     

    
      
        
        

      

      
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    Section
      3.4.  FAILURE
      TO DELIVER.
      Failure
      to deliver physical possession of any instruments, documents or writings in
      respect of any Receivable to the Custodian or the Collateral Agent for the
      benefit of Lender shall not invalidate the security interest of the Collateral
      Agent for the benefit of Lender therein. To the extent that possession of any
      such instruments, documents or writings may be required by applicable law for
      the perfection of the security interest of the Collateral Agent for the benefit
      of Lender, the original chattel paper and instruments representing the
      Receivables shall be deemed to be held by the Collateral Agent for the benefit
      of Lender, although kept by the Borrower or the Servicer or any other Related
      Party as the custodial agent of the Collateral Agent for the benefit of
      Lender.

     

    Section
      3.5.  NOTICE
      OF COLLATERAL ASSIGNMENT.
      Within
      30 days after the date of this Agreement, and at all times thereafter, all
      contracts, documents or instruments representing or evidencing a Receivable
      and
      the Borrower’s master data processing records shall contain (by way of stamp or
      other method satisfactory to Lender) the following language: “THIS
      DOCUMENT HAS BEEN ASSIGNED TO NICE CARS FUNDING LLC AND IS SUBJECT TO A SECURITY
      INTEREST IN FAVOR OF, AND PLEDGED AS COLLATERAL TO THE BANK OF NEW YORK AS
      COLLATERAL AGENT FOR, LENDER UNDER AND AS DEFINED IN THE LOAN AND SECURITY
      AGREEMENT DATED SEPTEMBER 28, 2006, BETWEEN NICE CARS FUNDING LLC, AS
      BORROWER, LENDER AND COLLATERAL AGENT”.

     

    Section
      3.6.  [RESERVED].

     

    Section
      3.7.  RECORDS
      AND INSPECTIONS.
      Borrower (or Servicer on its behalf) shall at all times keep complete and
      accurate records pertaining to the Collateral, which records shall be current
      on
      a daily basis and located only at the locations set forth in Section 3.7 of
      Schedule A attached hereto. Any Secured Party, by or through any of its
      officers, agents, employees, attorneys or accountants, shall have the right
      to
      enter any such locations, at any reasonable time or times during regular
      business hours, for so long as such Secured Party may desire, to inspect the
      Collateral and to inspect, audit and make extractions or copies from the books,
      records, journals, orders, receipts, correspondence or other data relating
      to
      the Collateral or this Agreement.

     

    Section
      3.8.  COLLECTION.
      Subject
      to Section 3.9, Borrower agrees at its own expense to promptly and diligently
      collect (or cause the Servicer on its behalf to diligently collect) each
      installment of all Receivables in trust for the exclusive account of the
      Collateral Agent for the benefit of Lender, to hold each Secured Party harmless
      from any and all loss, damage, penalty, liability, fine or expense arising
      from
      such collection by Borrower or its agents and to faithfully account therefor
      to
      Lender and the Collateral Agent. Upon the occurrence of a Default or an Event
      of
      Default, Lender expressly retains the unqualified right at any time it so elects
      to take over, or cause a successor Servicer to take over, the collection of
      the
      Receivables.

     

    Section
      3.9.  BLOCKED
      ACCOUNTS.
      Borrower (or Servicer on its behalf) shall ensure that all collections of
      Receivables and the proceeds of all other Collateral are deposited into the
      Blocked Account on the day of receipt thereof or, if not a Business Day, on
      the
      next following Business Day. The Blocked Account Agreement shall provide that
      the depository bank has no Lien upon, or right of set off against, the Blocked
      Account or in any Items from time to time on deposit therein, and that
      automatically, on each Business Day the depository bank maintaining the Blocked
      Account will wire, or otherwise transfer, in immediately available funds, all
      funds received or deposited into the Blocked Account to the Collection Account.
      Borrower hereby confirms and agrees that all amounts deposited in the Blocked
      Account and any other funds received and collected by any Secured Party, whether
      as proceeds of Collateral or otherwise, shall constitute Collateral. Any
      Receivables collections or other proceeds of Collateral shall be held in trust
      by Borrower, Servicer or any Related Party until deposited into the Blocked
      Account. If a credit balance exists with respect to the Blocked Account as
      the
      result of collections of Receivables or proceeds of other Collateral pursuant
      to
      the terms and conditions of this Section 3.9, such credit balance shall not
      accrue interest in favor of the Borrower. Any interest accrued on the Blocked
      Account shall be transferred to the Collection Account, as provided above.
      All
      items deposited in the Blocked Account shall be subject to final payment. If
      any
      such item is returned uncollected, the Borrower will immediately pay the amount
      of that item, or such bank at its discretion may charge any uncollected item
      to
      the Servicer’s commercial account or other account. The Servicer shall be liable
      as an endorser on all items deposited in the Blocked Account, whether or not
      in
      fact endorsed by the Servicer. Upon Lender’s request any time hereafter,
      Borrower agrees to establish and maintain a Lockbox with a bank acceptable
      to
      Lender and to execute with such bank a Lockbox Agreement acceptable to Lender
      in
      its sole discretion. Thereafter, Borrower shall ensure that all collections
      of
      Receivables with the proceeds of other Collateral are paid directly by the
      Obligors to the Lockbox. To the extent that any Receivables collections or
      other
      proceeds of Collateral are not sent directly to the Lockbox but are received
      by
      Borrower or any Related Party, Borrower shall cause such collections and
      proceeds to be held in trust for the Collateral Agent for the benefit of Lender
      and to be deposited within one (1) Business Day of receipt thereof, in the
      form
      received, to the Lockbox or Blocked Account.

     

    
      
        
        

      

      
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    Section
      3.10.  PROTECTION
      OF RECEIVABLE RECORDS.
      Borrower hereby agrees to take the following protective actions to prevent
      destruction of Borrower’s Collateral and records pertaining to such Collateral:
      (i) if Borrower maintains its Collateral records on a manual system such records
      shall be kept in a fire proof cabinet or on no less than a monthly basis, a
      record of all payments on Receivables and all other matters relating to the
      Collateral shall be placed in an off site safety deposit box (and each Secured
      Party shall have access to such safety deposit box); or (ii) Borrower agrees
      to
      create (or cause the Servicer on its behalf to create) a tape or diskette
“back-up” of the computerized information and shall provide Lender with a tape
      or diskette copy of such “back-up” information each date on which it delivers an
      Availability Report 

     

    Section
      3.11.  USE
      OF PROCEEDS.
      Borrower shall use the proceeds of the Loan (a) to purchase Eligible Receivables
      from the Seller pursuant to the Sale and Servicing Agreement, or (b) for
      payments to Lender hereunder or payment of closing costs incurred with respect
      to the Transaction Documents.

     

    Section
      3.12.  RETURN
      OF COLLATERAL.
      Upon
      the payment in full of any Receivable to which the written documents evidencing
      such Receivable are held by any Secured Party or Custodian, Borrower shall
      submit all requests for the return of such documents pursuant to a Request
      For
      Release of Documents, and the Collateral Agent shall return (or cause Custodian
      to return) such documents within five (5) Business Days after receipt of such
      request.

     

    
      
        
        

      

      
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    Section
      3.13.  LENDER’S
      PAYMENT OF CLAIMS.
      Any
      Secured Party may, in its sole discretion, discharge or obtain the release
      of
      any Lien asserted by any Person against the Collateral. All sums paid by any
      Secured Party in respect thereof shall be payable, on demand, by Borrower to
      Lender and shall be a part of the Indebtedness.

     

    ARTICLE
      4

    CONDITIONS
      OF CLOSING; SUBSEQUENT ADVANCES

     

    Section
      4.1.  INITIAL
      ADVANCE.
      The
      obligation of Lender to make the initial advance hereunder is subject to the
      fulfillment, to the satisfaction of Lender and its counsel, in their sole
      discretion, of each of the following conditions prior to the initial advance
      hereunder:

     

    (a)  Loan
      Documents.
      Lender
      shall have received each of the following Loan Documents: (i) this Agreement,
      and each other Loan Document executed by the respective parties and (ii) such
      other documents, certificates, instruments and agreements in connection herewith
      as Lender shall require, executed, certified and/or acknowledged by such parties
      as Lender shall designate;

     

    (b)  Payoff
      Letter from Existing Lender.
      The
      Lender shall have received the duly executed Bailee Letter, in form and
      substance acceptable to Lender;

     

    (c)  Charter
      Documents.
      Lender
      shall have received (i) copies of the charter documents of the Borrower, the
      Seller and the Servicer, as certified by the appropriate officials of the
      applicable States of organization and the bylaws of the Borrower, the Seller
      and
      the Servicer, each as amended, modified, or supplemented to the Closing Date
      and
      each certified by the Secretary of Borrower, the Seller or the Servicer, as
      applicable and (ii) documents similar to those specified in (c)(i) above with
      respect to each Guarantor not an individual;

     

    (d)  Good
      Standing.
      Lender
      shall have received a good standing certificate with respect to Borrower ,
      the
      Seller, the Servicer and each Guarantor not an individual or partnership, dated
      within thirty (30) days of the Closing Date, by the appropriate official of
      such
      Person’s state of organization, which certificate shall indicate that Borrower,
      the Seller, the Servicer and such Guarantor (as applicable) are in good standing
      in such state;

     

    (e)  Foreign
      Qualification.
      Lender
      shall have received certificates with respect to Borrower, the Seller, the
      Servicer and each Guarantor not an individual relating to such Person’s
      qualification to do business in each state in which such Person’s failure to be
      duly qualified or licensed would have a Material Adverse Effect, each dated
      within thirty (30) days of the Closing Date, issued by the appropriate official
      of each state and indicating that such party is in qualified to do business
      in
      such state and in good standing;

     

    (f)  Authorizing
      Resolutions and Incumbency.
      Lender
      shall have received a certificate from the Secretary of Borrower, the Seller,
      the Servicer and each Guarantor not an individual attesting to (i) the
      authorization of the applicable transactions under the Loan Documents and
      execution and delivery of this Agreement and the other Loan Documents to which
      Borrower, the Seller, the Servicer and such Guarantor are a party, and the
      authorization of the specific officers of Borrower, the Seller, the Servicer
      and
      such Guarantor to execute same, and (ii) the authenticity of original specimen
      signatures of such officers;

     

    
      
        
        

      

      
        -24-

        
          

        

      

      
        
        

      

    

     

    (g)  Initial
      Availability Report.
      Lender
      shall have received an initial Availability Report from Borrower (or Servicer
      on
      behalf of Borrower) executed by an authorized representative of Borrower or
      Servicer and all supporting documentation as Lender may request;

     

    (h)  Property
      Insurance.
      If
      applicable, Lender shall have received the insurance certificates and certified
      copies of policies required herein, along with a loss payable endorsement naming
      Lender as sole loss payee and additional insured, all in form and substance
      satisfactory to Lender and its counsel;

     

    (i)  Searches;
      Certificates of Title.
      Lender
      shall have received evidence reflecting the filing of its financing statements
      and other filings in such jurisdictions as it shall determine, and shall have
      received certificates of title with respect to the Collateral which shall have
      been duly executed in a manner sufficient to perfect all of the security
      interests granted to Lender and shall have received other background reports
      and
      information with respect to Borrower, the Seller, the Servicer and Guarantors,
      which is satisfactory to Lender;

     

    (j)  Landlord
      and Mortgagee Waivers.
      If
      applicable, Lender shall have received landlord and mortgagee waivers from
      the
      lessors and mortgagees of all locations where any Collateral is
      located;

     

    (k)  Fees.
      Borrower shall have paid all fees payable by it on the Closing Date pursuant
      to
      this Agreement, including without limitation, fees and expenses of Lender’s
      counsel;

     

    (l)  Opinions
      of Counsel.
      Lender
      shall have received opinions of Borrower’s, the Seller’s, the Servicer’s and
      each Guarantor’s counsel covering such matters as Lender shall determine in its
      sole discretion;

     

    (m)  Solvency
      Certificate.
      A
      signed certificate of the Seller concerning the solvency and financial condition
      of Seller, in form and substance acceptable to Lender;

     

    (n)  Accounts.
      The
      Blocked Account and the Collection Account shall have been established to the
      satisfaction of Lender in its sole discretion;

     

    (o)  Custodian
      Deliverables.
      Except
      to the extent contemplated in the Bailee Letter in respect of the initial
      advance hereunder, the Custodian shall have received all Contracts and all
      other
      documents, instruments and writings required to be delivered to the Custodian
      hereunder and under the Custodial Agreement (including, without limitation,
      all
      applications for Auto Titles, guaranties of title and other information required
      by the Auto Title Procedures and all other Custodial Documents) and Lender shall
      have received the Custodial Certification from the Custodian relating thereto;
      

     

    
      
        
        

      

      
        -25-

        
          

        

      

      
        
        

      

    

     

    (p)  No
      Material Adverse Effect.
      No
      event or condition has occurred since the date hereof, or is existing which
      has
      had or could reasonably be expected to have a Material Adverse
      Effect;

     

    (q)  Due
      Diligence.
      Lender
      shall have completed all business, legal and collateral due diligence
      (including, without limitation, completion by Lender or its agents of an
      examination and inspection of the Collateral, Borrowers’, Related Parties’, the
      Seller’s and the Servicer’s financial information, including monthly
      projections, and Borrowers’ history performance), and the results of such due
      diligence are satisfactory to Lender, in its sole discretion;

     

    (r)  Share
      Transaction.
      An
      executed set of documents relating to the acquisition (the “Acquisition”) of
      Nice Cars, Inc., a Georgia corporation, and Nice Cars Capital Acceptance
      Corporation, a Georgia corporation, by NCOC and NCAC, respectively, in form
      and
      substance acceptable to Lender in its sole discretion, and evidence satisfactory
      to Lender in its sole discretion that such transactions have been
      consummated.

     

    (s)  Closing
      Certificate.
      A
      certificate from all selling shareholders certifying that all conditions to
      the
      Acquisition have been satisfied, executed by Ray Lyles and Victoria Lyles,
      in
      form and substance acceptable to Lender in its sole discretion.

     

    (t)  Guidelines
      Lender shall have received copies of the Underwriting Guidelines, the Credit
      and
      Collection Policy and the Servicing Guidelines, each in form and substance
      satisfactory to Lender.

     

    (u)  Other
      Matters.
      All
      other documents and legal matters in connection with the transactions
      contemplated by this Agreement shall have been delivered, executed and recorded
      and shall be in form and substance satisfactory to Lender and its
      counsel.

     

    Section
      4.2.  ADVANCES.
      The
      obligation of Lender to make any advance hereunder (including the initial
      advance) shall be subject to the further conditions precedent that, on and
      as of
      the date of such advance: 

     

    (a)  the
      representations and warranties of Borrower, the Seller, the Servicer and each
      Guarantor set forth in this Agreement and the other Loan Documents shall be
      accurate, before and after giving effect to such advance or issuance and to
      the
      application of any proceeds thereof; 

     

    (b)  no
      Default or Event of Default has occurred and is continuing, or would result
      from
      such advance or issuance or from the application of any proceeds thereof;

     

    (c)  no
      Material Adverse Effect has occurred; 

     

    (d)  the
      Custodian shall have issued a Custodian Certification with respect to the
      Eligible Receivables being financed by such advance; 

     

    
      
        
        

      

      
        -26-

        
          

        

      

      
        
        

      

    

     

    (e)  Lender
      shall have received a copy of the applicable Transfer Instrument, duly executed
      by the parties thereto and such other approvals, certificates, opinions or
      documents as Lender shall reasonably request; 

     

    (f)  Borrower
      shall have submitted to Lender a completed Request for Advance in the form
      and
      substance of Exhibit
      A
      attached
      hereto at least three (3) Business Days prior to the date such advance is
      requested and all filings, (including, without limitation, UCC filings) required
      to be made by any Person and all actions required to be taken or performed
      by
      any Person in any jurisdiction to give the Collateral Agent for the benefit
      of
      Lender a first priority perfected security interest in such Collateral and
      the
      proceeds thereof shall have been made, taken or performed; and 

     

    (g)  each
      of
      the conditions set out in Section 2.1(b) of the Sale and Servicing Agreement
      shall have been satisfied with respect to the sale of such Collateral by the
      Seller to the Purchaser.

     

    Section
      4.3.  ALL
      ADVANCES TO CONSTITUTE ONE LOAN.
      All
      evidences of credit, loans and advances made by Lender to Borrower under this
      Agreement and any other documents or instruments executed in connection herewith
      shall constitute one loan, and all indebtedness and obligations of Borrower
      to
      Lender under this Agreement and all other such documents and instruments shall
      constitute one general obligation secured by the security interest of the
      Collateral Agent for the benefit of Lender in all of the Collateral and by
      all
      other security interests, liens, claims and encumbrances heretofore, now, or
      at
      any time or times hereafter granted by Borrower to Lender or the Collateral
      Agent. Borrower agrees that all of the rights of any Secured Party set forth
      in
      this Agreement shall apply to any modification of or supplement to this
      Agreement and any other such documents and instruments.

     

    Section
      4.4.  ADVANCES.
      Lender
      shall have the right in Lender’s discretion, subject to availability hereunder
      on behalf of and without notice to Borrower, to make and use advances to pay
      Lender for any amounts due to Lender pursuant to this Agreement or otherwise,
      or
      to cure any default hereunder, notwithstanding the expiration of any applicable
      cure period.

     

    ARTICLE
      5

    REPRESENTATIONS
      AND WARRANTIES OF BORROWERS

     

    Section
      5.1.  REPRESENTATIONS
      AND WARRANTIES.
      To
      confirm Lender’s understanding concerning the Borrower and its business,
      properties and obligations and to induce Lender to enter into this Agreement
      and
      to extend credit hereunder, the Borrower hereby continuously represents and
      warrants to Lender and the Secured Parties that, during the term of this
      Agreement from the date of the initial Loan and so long as any Indebtedness
      remains outstanding:

     

    (a)  The
      Borrower 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.

     

    
      
        
        

      

      
        -27-

        
          

        

      

      
        
        

      

    

     

    (b)  The
      Borrower operates its business only under the assumed names listed on Schedule
      5.1(b) of Schedule A attached hereto.

     

    (c)  Each
      Related Party 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 Loan
      Document to which a Related Party is a party are the legal, valid and binding
      obligations of such Related Party and are enforceable against the such Related
      Party in accordance with their terms.

     

    (d)  The
      execution, delivery and performance by each Related Party of this Agreement
      and
      the other 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 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 no Related Party 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 any Related Party of this Agreement or
      any
      other Loan Document for the valid consummation of the transactions contemplated
      hereby or thereby.

     

    (f)  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 any Related Party, the Seller or the Servicer
      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. 

     

    (g)  No
      Related Party 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.

     

    (h)  Each
      Related Party has good and marketable title to its assets and properties as
      reflected in its financial statements furnished to Lender.

     

    (i)  Each
      of
      the financial statements furnished to Lender by Related Parties was prepared
      in
      accordance with GAAP and fairly and accurately reflects their financial
      condition as of the date thereof; and the Borrower hereby certifies 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.

     

    
      
        
        

      

      
        -28-

        
          

        

      

      
        
        

      

    

     

    (j)  Neither
      this Agreement, any Availability Report or any statement or document referred
      to
      herein or delivered to any of Lender, the Collateral Agent or the Custodian
      by
      any Related Party 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)  Borrower
      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 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 Borrower 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; Borrower has no 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 Borrower or the Servicer shall
      reflect the amounts of and dates on which said payments were actually
      made.

     

    (m)  Each
      place of business of each Related Party is only at the locations set forth
      in
      Section 5.1(n) of Schedule A attached hereto. No Related Party 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 Borrower’s principal place of
      business without first notifying Lender.

     

    (n)  The
      present value of all benefits vested under all Plans of the Related Parties
      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 Related Party or any Commonly Controlled Entity would
      become subject under Sections 4063 or 4064 of ERISA if such Related Party 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);

     

    (p)  No
      Related Party 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, Borrower 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 Related Party 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. 

     

    
      
        
        

      

      
        -29-

        
          

        

      

      
        
        

      

    

     

    (q)  No
      Related Party 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)  Each
      of
      the Exhibits and Schedules to this Agreement contain true, complete and correct
      information.

     

    (s)  To
      the
      best of Borrower’s knowledge, the land and improvements owned or leased by each
      Related Party for use in its business operations (including the locations listed
      in Section 5.1(n) of Schedule A) 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.

     

    (t)  Each
      Related Party 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 Related Party’s assets, at fair saleable valuation, exceeds the sum of
      its liabilities. No Related Party shall 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
      each Related Party is not now and shall not foreseeably become unreasonably
      small to permit such Related Party to carry on its business and transactions
      and
      all businesses and transactions in which it is about to engage. No Related
      Party
      intends to, nor does it reasonably believe it shall, incur debts beyond its
      ability to repay the same as they mature.

     

    (u)  The
      Collateral Agent for the benefit of Lender has a perfected first priority
      security interest in favor of the Collateral Agent for the benefit of Lender
      in
      all of Borrower’s right, title and interest in the Collateral, prior and
      superior to any other Lien, except any statutory or constitutional lien for
      taxes not yet due and payable.

     

    (v)  There
      are
      no material actions, suits or proceedings pending, or threatened against or
      affecting the assets of any Related Party or the consummation of the
      transactions contemplated hereby, at law, or in equity, or before or by any
      governmental authority or instrumentality or before any arbitrator of any kind.
      No Related Party 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.

     

    
      
        
        

      

      
        -30-

        
          

        

      

      
        
        

      

    

     

    (w)  Section
      5.1(x) of Schedule A attached hereto correctly and completely sets forth for
      each Related Party (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,
      such
      Related Party’s predecessors in interest as a result of a merger or
      consolidation) and (v) the charter or other similar number for such Related
      Party in its state of organization.

     

    (x)  No
      Related Party (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.

     

    (y)  Each
      Related Party is in compliance with the Patriot Act. No part of the proceeds
      of
      any of the Loans 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
      5.2.  REPRESENTATIONS
      AND WARRANTIES AS TO ELIGIBLE RECEIVABLES.
      With
      respect to the Eligible Receivables, the Borrower hereby continuously represents
      and warrants to Lender that during the term of this Agreement and so long as
      any
      of the Indebtedness remains unpaid: (i) in determining which Receivables are
      “Eligible Receivables,” Lender may rely upon all statements or representations
      made by Borrower, the Seller or the Servicer or any other Related Party; and
      (ii) those Receivables designated as Eligible Receivables meet the following
      requirements at all times:

     

    (a)  Each
      Eligible Receivable is genuine, is in all respects what it purports to be and
      the Contract evidencing such Eligible 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;

     

    
      
        
        

      

      
        -31-

        
          

        

      

      
        
        

      

    

     

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

     

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

     

    (d)  No
      set-offs, counterclaims or disputes as to payments or liability thereon exist
      or
      have been asserted with respect thereto and neither Borrower nor any Related
      Party has made any agreement with any Obligor thereunder for any deduction
      therefrom, except a discount or allowance allowed by Borrower 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
      Eligible Receivable;

     

    (e)  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;

     

    (f)  All
      Obligors in connection with Eligible 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;

     

    (g)  To
      Borrower’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; 

     

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

     

    (i)  The
      goods
      giving rise to the Eligible 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 Lender, or those removed or terminated
      prior
      to the date hereof;

     

    (j)  The
      Delinquency set forth in the Availability Report shall be delivered to Lender
      by
      Borrower hereunder as determined pursuant to the Aging Procedures and
      Eligibility Test;

     

    (k)  All
      Receivables included in all calculations of Availability on Eligible Receivables
      hereunder are Eligible Receivables;

     

    (l)  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;

     

    
      
        
        

      

      
        -32-

        
          

        

      

      
        
        

      

    

     

    (m)  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 the Borrower or any Related
      Party to release any collateral under any Contract; and

     

    (n)  Except
      as
      disclosed in writing to Lender, no Contract has been amended after the date
      on
      which such Contract is pledged to the Collateral Agent for the benefit of Lender
      hereunder in any material respect or such that the amount of any monthly payment
      or the total number of the monthly payments is increased or such that the amount
      of any monthly payment or the total number of monthly payments is
      decreased.

     

    ARTICLE
      6

    COVENANTS
      AND OTHER AGREEMENTS

     

    Section
      6.1.  AFFIRMATIVE
      COVENANTS.
      During
      the term of this Agreement and so long as any of the Indebtedness remains unpaid
      and until Lender’s obligations to make advances under this Agreement have
      terminated, the Borrower agrees and covenants, that it shall: 

     

    (a)  Pay
      or
      cause to be paid currently all of its expenses, including all payments on its
      obligations whenever due, as well as all payments of any and all taxes of
      whatever nature when due. This provision shall not apply to taxes or expenses
      which are due, but which are challenged in good faith and for which adequate
      reserves have been established.

     

    (b)  Maintain,
      preserve, and protect the Collateral, including, but not limited to, keeping
      all
      Contracts and other written records otherwise evidencing the Collateral (to
      the
      extent not held by the Custodian) in a fire proof cabinet. 

     

    (c)  Furnish
      to Secured Parties prompt written notice as to the occurrence of any Default
      or
      Event of Default hereunder.

     

    (d)  Carry
      on
      and conduct its business in the same manner and in the same fields of enterprise
      as it is presently engaged, and shall preserve its existence, licenses or
      qualifications as a domestic, limited liability company in the State of Delaware
      and as a foreign organization in every jurisdiction in which the character
      of
      its assets or properties or the nature of the business transacted by it at
      any
      time makes qualification as a foreign organization necessary, and to maintain
      all other material organizational rights and franchises. 

     

    (e)  Comply,
      and cause each Related Party to comply, with all statutes, governmental rules
      and regulations applicable to them and their business (including, without
      limitation, applicable usury and consumer Laws). 

     

    (f)  Permit
      and authorize Secured Parties and allow Secured Parties to access, without
      notifying any Related Party, (i) to make such inquiries or investigation through
      business credit, other credit reporting services or other sources concerning
      any
      Related Party as any Secured Party, in its sole discretion, shall deem
      appropriate and (ii) to inspect, audit and examine the Collateral at the
      premises of Related Parties.

     

    
      
        
        

      

      
        -33-

        
          

        

      

      
        
        

      

    

     

    (g)  Provide
      Lender sixty (60) days prior written notice of Borrower initiating any
      activities in any state other than the then-Approved States. Lender shall not
      provide financing for any Receivable generated in a state other than the
      Approved States until Lender’s counsel has reviewed applicable lending laws in
      such new state and Lender has approved activities in such new state by adding
      such new state to the Approved State list.

     

    (h)  In
      accordance with Section 5.2(a) hereof, cause each Contract to have only one
      original counterpart.

     

    (i)  Purchase
      Receivables evidenced by Contracts which are solely on forms that are in
      compliance with applicable state and federal Laws.

     

    (j)  Deliver
      to the Custodian the original Contract and all other documentation required
      by
      Section 3.3 hereof to be governed by the terms of the Custodial
      Agreement.

     

    (k)  Provide
      Lender with evidence of Related Parties’ insurance (including, without
      limitation, property damage and liability insurance) issued by a reputable
      carrier, as required by Lender (which insurance shall be in such amounts and
      cover such risks as is satisfactory to Lender and shall include without
      limitation, Director and Officer insurance, Errors and Omissions insurance
      and
      Fidelity insurance). This insurance shall reflect the Collateral Agent for
      the
      benefit of Lender as the loss payee or additional insured, as required by
      Lender, and contain a provision that the Collateral Agent for the benefit of
      Lender shall be notified by the carrier thirty (30) days prior to the
      termination or cancellation of any such insurance.

     

    (l)  promptly
      notify Lender and the Collateral Agent in writing of:

     

    (i)  the
      occurrence of any Material Adverse Effect;

     

    (ii)  the
      acceleration of the maturity of any indebtedness owed by any Related Party,
      or
      any default by any Related Party under any indenture, mortgage, agreement,
      contract or other instrument to which any of them is a party or by which any
      of
      them or any of their properties is bound;

     

    (iii)  the
      filing of any suit or proceeding against any Related Party.

     

    Upon
      the
      occurrence of any of the foregoing the Related Parties will take all necessary
      or appropriate steps to remedy promptly any such Material Adverse Effect,
      acceleration, default, to protect against any such adverse claim, to defend
      any
      such suit or proceeding, and to resolve all controversies on account of any
      of
      the foregoing. 

     

    (m)  Perform
      its obligations and undertakings under and pursuant to the Sale and Servicing
      Agreement, purchase Receivables thereunder in strict compliance with the terms
      thereof, take all actions to perfect and enforce its rights and interests (and
      the rights and interests of Lender and the Collateral Agent for the benefit
      of
      Lender as collateral assignee of the Borrower) under the Sale and Servicing
      Agreement as any Secured Party may from time to time request, and diligently
      enforce the rights and remedies accorded to the Borrower with respect to the
      Seller and the Servicer pursuant to the Sale and Servicing Agreement and the
      other Loan Documents.

     

    
      
        
        

      

      
        -34-

        
          

        

      

      
        
        

      

    

     

    (n) Comply
      at
      all times with the Post Closing Agreement.

     

    Section
      6.2.  NEGATIVE
      COVENANTS.
      During
      the term of this Agreement and until the Indebtedness secured hereby has been
      paid in full and all of Lender’s obligations to make advances under this
      Agreement have terminated, the Borrower covenants and agrees that it shall
      not,
      without Lender’s prior written consent, do any of the following:

     

    (a)  (i)
      Incur
      or permit to exist any Lien with respect to the Collateral now owned or
      hereafter acquired by Borrower, except Liens in favor of the Collateral Agent
      for the benefit of Lender or (ii) enter into or become subject to any agreement
      (other than this Agreement or any Loan Document) that prohibits or otherwise
      restricts the right of Borrower to create, assume or suffer to exist any Lien
      in
      favor of the Collateral Agent for the benefit of Lender on such Person’s
      assets.

     

    (b)  Delegate,
      transfer or assign any of its obligations or liabilities under this Agreement
      or
      any other Loan Document, or any part thereof, to any other Person.

     

    (c)  Be
      a
      party to or participate in: (i) any merger or consolidation; (ii) any purchase
      or other acquisition of all or substantially all of the assets or properties
      or
      shares of any class of, or any partnership or joint venture interest in, any
      other Person; (iii) any sale, transfer, conveyance or lease of all or
      substantially all of the Borrower’s assets or properties; or (iv) any sale or
      assignment with or without recourse of any Receivables. 

     

    (d)  Incur,
      assume or suffer to exist any Liabilities (including any contingent liabilities)
      or otherwise become liable upon the obligations of any Person by assumption,
      endorsement or guaranty thereof or otherwise other than (i) the Indebtedness,
      (ii) accounts payable incurred in the ordinary course of business, or (iii)
      other Liabilities consented to in writing by Lender.

     

    (e)  Directly
      or indirectly make loans to, invest in, extend credit to, or guaranty the debt
      of any Person, other than in the ordinary course of Borrower’s
      business.

     

    (f)  Amend,
      modify, or otherwise change in any respect any material agreement, instrument,
      or arrangement (written or oral) by which Borrower, or any of its assets, are
      bound.

     

    (g)  Change
      its name, convert from one type of entity to another type, change its principal
      place of business, change the state in which it is organized under, or make
      any
      material changes in the nature of its business as carried on as of the date
      hereof.

     

    (h)  Make
      any
      expenditure or commitment or incur any obligation or enter into or engage in
      any
      transaction except as expressly authorized pursuant to the Loan Documents,
      (ii)
      engage directly or indirectly in any business or conduct any operations except
      as expressly authorized pursuant to the Loan Documents, or (iii) make any
      acquisitions of or capital contributions to or other investments in any Person
      except pursuant to the Sale and Servicing Agreement.

     

    
      
        
        

      

      
        -35-

        
          

        

      

      
        
        

      

    

     

    (i)  Make
      any
      Distribution except from amounts paid to the Borrower under sub-section
“Eighth”
of
      Section 2.11, or as expressly authorized in the use of proceeds letter
      referenced to in Section 4.1(t).

     

    Section
      6.3.  SEPARATENESS
      COVENANTS.
      

     

    (a)  Borrower
      shall:

     

    (i)  maintain
      books and records and bank accounts separate from those of any other
      Person;

     

    (ii)  maintain
      its assets in such a manner that it is not costly or difficult to segregate,
      identify or ascertain such assets;

     

    (iii)  comply
      with all organizational formalities necessary to maintain its separate
      existence;

     

    (iv)  hold
      itself out to creditors and the public as a legal entity separate and distinct
      from any other entity;

     

    (v)  maintain
      separate financial statements, showing its assets and liabilities separate
      and
      apart from those of any other Person and not have its assets listed on any
      financial statement of any other Person; except that the Borrower’s assets may
      be included in a consolidated financial statement of its Affiliate so long
      as
      appropriate notation is made on such consolidated financial statements to
      indicate the separateness of the Borrower from such Affiliate and to indicate
      that the Borrower’s assets and credit are not available to satisfy the debts and
      other obligations of such Affiliate or any other Person;

     

    (vi)  prepare
      and file its own tax returns separate from those of any Person to the extent
      required by applicable law, and pay any taxes required to be paid by applicable
      law;

     

    (vii)  allocate
      and charge fairly and reasonably any common employee or overhead shared with
      Affiliates;

     

    (viii)  not
      enter
      into any transaction with Affiliates except on an arm’s-length basis and
      pursuant to written, enforceable agreements;

     

    (ix)  conduct
      business in its own name, and use separate stationery, invoices and
      checks;

     

    (x)  not
      commingle its assets or funds with those of any other Person; 

     

    
      
        
        

      

      
        -36-

        
          

        

      

      
        
        

      

    

     

    (xi)  not
      assume, guarantee or pay the debts or obligations of any other
      Person;

     

    (xii)  correct
      any known misunderstanding as to its separate identity;

     

    (xiii)  not
      permit any Affiliate to guarantee or pay its obligations except the Guarantors
      pursuant to the Guaranties;

     

    (xiv)  not
      make
      loans or advances to any other person; 

     

    (xv)  pay
      its
      liabilities and expenses out of its own funds; 

     

    (xvi)  maintain
      a sufficient number of employees in light of its contemplated business purpose
      and pay the salaries of its own employees, if any, only from its own
      funds;

     

    (xvii)  maintain
      adequate capital in light of its contemplated business purpose, transactions
      and
      liabilities;

     

    (xviii)  at
      all
      times have at least one Independent Manager; and

     

    (xix)  comply
      in
      all respects with the assumptions contained in the bankruptcy opinion of
      Greenberg Traurig LLP dated the date hereof.

     

    (b)  Borrower
      shall not:

     

    (i)  guarantee
      any obligation of any Person, including any Affiliate or become obligated for
      the debts of any other Person or hold out its credit as being available to
      pay
      the obligations of any other Person;

     

    (ii)  engage,
      directly or indirectly, in any business other than as required or permitted
      to
      be performed under the Loan Documents;

     

    (iii)  incur,
      create or assume any indebtedness or liabilities other than as expressly
      permitted under the Loan Documents;

     

    (iv)  make
      or
      permit to remain outstanding any loan or advance to, or own or acquire any
      stock
      or securities of, any Person other than as permitted under the Loan
      Documents;

     

    (v)  to
      the
      fullest extent permitted by law, engage in any dissolution, liquidation,
      consolidation, merger, sale or other transfer of any of its assets outside
      the
      ordinary course of the Borrower’s business;

     

    (vi)  buy
      or
      hold evidence of indebtedness issued by any other Person (other than cash or
      investment-grade securities); or

     

    
      
        
        

      

      
        -37-

        
          

        

      

      
        
        

      

    

     

    (vii)  form,
      acquire or hold any subsidiary (whether corporate, partnership, limited
      liability company or other) or own any equity interest in any other
      entity.

     

    Section
      6.4.  FINANCIAL
      REPORTS.
      Borrower (or the Servicer on Borrower’s behalf) shall furnish to Lender and its
      duly authorized representatives such information respecting the business and
      financial condition of the Borrower as Lender may reasonably request, and
      without any request, the following financial statements and reports, in a form
      satisfactory to Lender:

     

    (a)  As
      soon
      as available and in any event no later than 12:00 noon New York time on each
      Determination Date and on each Monday (or if not a Business Day, on the next
      following Business Day): (i) the Availability Report in the form and substance
      of Exhibit
      B
      attached
      hereto; (ii) the Statement of Accounts Receivable showing the detailed aging
      of
      each Receivable, in a form acceptable to Lender in its sole discretion; and
      (iii) the Compliance Certificate in form and substance of Exhibit
      C attached
      hereto. 

     

    (b)  Promptly
      after receipt thereof, any written reports, management letters or other detailed
      information contained in writing concerning significant aspects of any Related
      Party’s or any of their subsidiary’s operations or concerning significant
      aspects of any Related Party’s or any of their subsidiary’s financial affairs,
      given to it by its independent public accountants;

     

    (c)  Promptly
      after receipt thereof and in no event more than five (5) Business Days
      thereafter, a copy of each audit or other report made by any state or federal
      agency of the books and records or assets of any Related Party of their
      compliance or non-compliance with applicable laws relating to the underwriting,
      origination, servicing and/or collection of loans;

     

    (d)  Promptly
      (but never more than five (5) Business Days) after knowledge thereof shall
      have
      come to the attention of Borrower, written notice of (i) any threatened or
      pending litigation or governmental proceeding or labor controversy against
      the
      Borrower or any Related Party or (ii) the occurrence of any Default or Event
      of
      Default hereunder or a default under any other Loan Document;

     

    (e)  As
      soon
      as available, a copy of all federal and state tax returns filed by each Related
      Party during the current fiscal year and each fiscal year
      hereafter;

     

    (f)  Within
      ten (10) calendar days of a request therefor from Lender, such other information
      (whether financial or otherwise) regarding the Borrower or any Related Party
      as
      Lender shall reasonably require; and

     

    ARTICLE
      7

    EVENTS
      OF DEFAULT AND REMEDIES

     

    Section
      7.1.  EVENTS
      OF DEFAULT.
      The
      occurrence of any one or more of the following events shall constitute an “Event
      of Default”:

     

    
      
        
        

      

      
        -38-

        
          

        

      

      
        
        

      

    

     

    (a)  The
      Borrower fails to pay the principal component of the Loan or any interest
      thereon when due and payable, whether at a date for the payment of a fixed
      installment or as a contingent or other payment becomes due and payable or
      as a
      result of acceleration or otherwise;

     

    (b)  The
      Borrower fails to pay any Indebtedness (other than the Indebtedness in
      subsection (a) above) when due and payable, whether at a date for the payment
      of
      a fixed installment or as a contingent or other payment becomes due and payable
      or as a result of acceleration or otherwise, within five (5) calendar days
      after
      the same becomes due and payable.

     

    (c)  Any
      “default” or “event of default” (other than those set forth in Subsections (a)
      and (b) above) occurs under any Loan Document, and the same is not remedied
      within the applicable period of grace (if any) provided in such Loan
      Document.

     

    (d)  The
      Borrower fails to duly observe, perform or comply with any covenant, agreement
      or provision of Section 6.1(a), (c), (g), (j), or (m), Section 6.2 or Section
      6.3;

     

    (e)  Any
      Related Party fails (other than as referred to in subsections (a), (b), (c)
      or
      (d) above or (q) below) to duly observe, perform or comply with any covenant,
      agreement, condition or provision of any Loan Document to which it is a party,
      and such failure remains unremedied for a period of ten (10) days after notice
      of such failure is given by any Secured Party to Borrower;

     

    (f)  Any
      representation or warranty previously, presently or hereafter made in writing
      by
      or on behalf of any Related Party in connection with any Loan Document shall
      prove to have been false or incorrect in any material respect as of the date
      upon which the same was made, or any Loan Document at any time ceases to be
      valid, binding and enforceable for any reason;

     

    (g)  If
      the
      validity or enforceability of any Lien granted to the Collateral Agent for
      the
      benefit of Lender to secure the Indebtedness shall be impaired in any respect
      or
      to any degree, for any reason, or if any other Lien shall be created or imposed
      upon the Collateral.

     

    (h)  If
      any
      judgment or judgments in the aggregate against Borrower or any other Related
      Party (net of any insurance for which the insurance company has admitted
      liability) in an amount in excess of Twenty-Five Thousand Dollars ($25,000.00),
      or any attachment or other levy against the properties or assets of any Related
      Party with respect to a claim for any amount in excess of Twenty-Five Thousand
      Dollars ($25,000.00), remains unpaid, unstayed on appeal, undischarged, unbonded
      or undismissed for a period of thirty (30) days.

     

    (i)  Default
      in the payment of any sum due under any instrument of indebtedness for borrowed
      money owed by any Related Party to any Person, or any other default under such
      instrument of indebtedness for borrowed money that permits such indebtedness
      for
      borrowed money to become due prior to its stated maturity. 

     

    
      
        
        

      

      
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    (j)  If
      a
      court or governmental authority of competent jurisdiction shall enter an order,
      judgment or decree appointing, with or without any Related Party’s consent or
      acquiescence, a receiver, custodian, liquidator, trustee or other officer with
      similar powers of any Related Party or of the whole or any substantial part
      of
      its properties or assets, or approving a petition filed against any Related
      Party seeking reorganization, arrangement, composition, readjustment,
      liquidation, dissolution or similar relief under the federal bankruptcy laws
      or
      any other applicable law, and such order, judgment or decree shall remain
      unvacated, unstayed or not set aside for an aggregate of thirty (30) days
      (whether or not consecutive) from the date of the entry thereof or if any
      petition seeking such relief shall be filed against any Related Party and such
      petition shall not be dismissed within thirty (30) days.

     

    (k)  The
      occurrence of a Material Adverse Effect.

     

    (l)  If
      any
      Related Party shall: (i) be generally not paying its debts as they become due;
      (ii) file a petition in bankruptcy or a petition to take advantage of any
      insolvency act or other act for the relief or aid of debtors; (iii) make an
      assignment for the benefit of its creditors; (iv) consent to or acquiesce in
      the
      appointment of a receiver, custodian, liquidator, trustee or other officer
      with
      similar powers of either its properties or assets; (v) file a petition or answer
      seeking reorganization, arrangement, composition, readjustment, liquidation,
      dissolution or similar relief under the federal bankruptcy laws or any other
      applicable law; (vi) be adjudicated insolvent or be liquidated; (vii) admit
      in
      writing its inability to pay debts as they become due; (viii) voluntarily
      suspend transaction of usual business; or (ix) take any action, corporate or
      otherwise, for the purpose of any of the foregoing.

     

    (m)  Any
      of
      the following shall occur: (i) entry of a court order that enjoins, restrains
      or
      in any way prevents any Related Party from conducting all or any material part
      of its business affairs in the ordinary course of business or (ii) withdrawal
      or
      suspension of any license or authority required for the conduct of any material
      part of any Related Party’s business.

     

    (n)  Any
      Person seeks to challenge the enforceability of any Loan Document.

     

    (o)  Any
      of
      the following cease to be officers and employees of Manchester Seller or
      Servicer (as applicable), or the terms of their engagement by, or the scope
      of
      their involvement in the business or operations of, Manchester, NCAC or NCOC
      (as
      applicable) changes in any material respect, unless such cessation or change
      is
      expressly approved by Lender in writing: (i) with respect to Manchester: James
      Wororz, Norm Thoennes, Leroy Taylor and Debbie Bennett; and (ii) with respect
      to
      NCAC and NCOC: Ray Lyle, Sr.

     

    (p)  The
      occurrence of any Servicer Termination Event, Seller Default or Guarantor
      Default.

     

    (q)  Any
      breach by Manchester, NCAC, NCOC or the Borrower of their covenants and
      agreements under the Post-Closing Agreement.

     

    
      
        
        

      

      
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    Section
      7.2.  ACCELERATION
      OF THE INDEBTEDNESS.
      Upon
      the occurrence of an Event of Default described in Sections 7.1(j) and (l)
      above, all of the Indebtedness shall thereupon be immediately due and payable,
      without demand, presentment, notice of demand or dishonor and nonpayment,
      protest, notice of protest, notice of intention to accelerate, declaration
      or
      notice of acceleration, or any other notice or declaration of any kind, all
      of
      which are hereby expressly waived by each Related Party. Upon any such
      acceleration, any obligation of Lender to make any additional advances on the
      Loan shall be permanently terminated. During the continuance of any other Event
      of Default, the outstanding principal balance together with all accrued but
      unpaid interest on the Indebtedness and all other sums due and payable by
      Borrower to Lender may, at the option of Lender and without demand, presentment,
      notice of demand or dishonor and nonpayment, protest, notice of protest, notice
      of intention to accelerate, declaration or notice of acceleration, or any other
      notice or declaration of any kind, all of which are hereby expressly waived
      by
      each Related Party, be declared, and immediately shall become due and
      payable.

     

    Section
      7.3.  REMEDIES.
      If any
      Default shall occur and be continuing, Lender may protect and enforce its rights
      under the Loan Documents by any appropriate proceedings, including proceedings
      for specific performance of any covenant or agreement contained in any Loan
      Document and the following rights and remedies:

     

    (a)  All
      of
      the rights and remedies of a secured party under the UCC, as amended, or other
      applicable Law.

     

    (b)  The
      right, to the fullest extent permissible by law, to: (i) enter upon the premises
      of any Related Party, or any other place or places where the Collateral is
      located and kept, without any obligation to pay rent to any Related Party,
      through self-help and without judicial process, without first obtaining a final
      judgment or giving any Related Party notice and opportunity for a hearing on
      the
      validity of Lender’s claim, and remove the Collateral therefrom to the premises
      of any Secured Party or any agent of any Secured Party, for such time as Lender
      may desire, in order to effectively collect and liquidate the Collateral; and/or
      (ii) require any Related Party to assemble the Collateral and make it available
      to such Secured Party at a place to be designated by Lender, in Lender’s
      reasonable discretion.

     

    (c)  The
      right
      to sell or otherwise dispose of any or all Collateral in its then condition
      at
      public or private sale or sales, in lots or in bulk, for cash or on credit,
      all
      as Lender, in its discretion, may deem advisable; provided that such sales
      may
      be adjourned from time to time with or without notice. The requirement of
      reasonable notice to Related Parties of the time and place of any public sale
      of
      the Collateral or of the time after which any private sale either by Lender
      or
      at its option, a broker, or any other intended disposition thereof is to be
      made, shall be met if such notice is mailed, postage prepaid, to Related Parties
      at the address of Related Parties designated herein at least ten (10) Business
      Days before the date of any public sale or at least ten (10) Business Days
      before the time after which any private sale or other disposition is to be
      made
      unless applicable law requires otherwise.

     

    
      
        
        

      

      
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    (d)  Each
      Secured Party shall have the right to conduct such sales on Related Parties’
premises or elsewhere and shall have the right to use Related Parties’ premises
      without charge for such sales for such time or times as Lender may see fit.
      Each
      Secured Party is hereby granted a license or other right to use, without charge,
      Related Parties’ labels, copyrights, rights of use of any name, trade secrets,
      trade names, trademarks and advertising matter, or any property of a similar
      nature, as it pertains to the Collateral, in advertising for sale and selling
      any Collateral and Related Parties’ rights under all licenses and all franchise
      agreements shall inure to the benefit of the Collateral Agent for the benefit
      of
      Lender. 

     

    (e)  Each
      Secured Party shall have the right to sell, lease or otherwise dispose of the
      Collateral, or any part thereof, for cash, credit or any combination thereof,
      and such Secured Party may purchase all or part of the Collateral at public
      or,
      if permitted by law, private sale and, in lieu of actual payment of such
      purchase price, may set off the amount of such price against the Indebtedness
      owing by Borrower to Lender, all in the discretion of Lender. The proceeds
      realized from the sale of any Collateral shall be applied first to reasonable
      costs and expenses, attorney’s fees, expert witness fees incurred by any Secured
      Party for collection and for acquisition, completion, protection, removal,
      storage, sale and delivery of the Collateral; second to any unpaid expenses
      or
      fees payable hereunder to any Secured Party or the Custodian; third to all
      payments, other than principal and interest, due under this Agreement; fourth
      to
      interest due upon any of the Indebtedness; fifth to the principal balance owing
      on the Indebtedness; and sixth the remainder, if any, to Borrower, its
      successors or assigns, or to whomsoever may be lawfully entitled to receive
      the
      same. If any deficiency shall arise, Borrower shall remain liable to Lender
      therefor.

     

    (f)  The
      right
      to appoint or seek appointment of a receiver, custodian or trustee of Borrower
      or any of its properties or assets pursuant to court order.

     

    (g)  The
      right
      to cease all advances hereunder.

     

    (h)  All
      other
      rights and remedies that any Secured Party may have at law or in
      equity.

     

    Additionally,
      if any Default shall occur and be continuing, each Secured Party may enforce
      the
      payment of any Indebtedness due it or enforce any other legal or equitable
      right
      which it may have. All rights, remedies and powers conferred upon Secured
      Parties under the Loan Documents shall be deemed cumulative and not exclusive
      of
      any other rights, remedies or powers available under the Loan Documents or
      at
      Law or in equity.

     

    Section
      7.4.  NO
      WAIVER.
      No
      delay, failure or omission of Lender or the Collateral Agent to exercise any
      right upon the occurrence of any Default or Event of Default shall impair any
      such right or shall be construed to be a waiver of any such Default or Event
      of
      Default or an acquiescence therein. Lender may, from time to time, in a writing
      waive compliance by the other parties with any of the terms of this Agreement
      and its rights and remedies upon any Default or Event of Default, and, Borrower
      agrees that no waiver by Lender shall ever be legally effective unless such
      waiver shall be acknowledged and agreed to in writing by Lender. No waiver
      of
      any Default or Event of Default by Lender shall impair any right or remedy
      of
      Lender not specifically waived. No single, partial or full exercise of any
      right
      of Lender shall preclude any other or further exercise thereof. No modification
      or amendment of or supplement to this Agreement or any other written agreement
      between the parties hereto shall be valid or effective (or serve as a basis
      of
      reliance by way of estoppel) unless the same is in writing and signed by the
      party against whom it is sought to be enforced. The acceptance by Lender at
      any
      time and from time to time of a partial payment or partial performance of any
      of
      Borrower’s obligations set forth herein shall not be deemed a waiver, reduction,
      modification or release from any Default or Event of Default then existing.
      No
      waiver by Lender of any Default or Event of Default shall be deemed to be a
      waiver of any other existing or any subsequent Default or Event of
      Default.

     

    
      
        
        

      

      
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    Section
      7.5.  APPLICATION
      OF PROCEEDS.
      After
      an Event of Default shall have occurred and is continuing, all amounts received
      by any Secured Party on account of any Indebtedness and realized by any Secured
      Party with respect to the Collateral, including any sums which may be held
      by
      any Secured Party, or the proceeds of any thereof, shall be applied in the
      same
      manner as proceeds of Collateral as set forth in Section 7.3(e)
      hereof.

     

    Section
      7.6.  APPOINTMENT
      OF SECURED PARTIES AS ATTORNEY-IN-FACT.
      Borrower irrevocably designates, makes, constitutes and appoints each Secured
      Party (and all persons reasonably designated by any Secured Party), with full
      power of substitution, as Borrower’s true and lawful attorney-in-fact (and not
      agent-in-fact) and each Secured Party, or such Secured Party’s agent, may,
      without notice to Borrower, and at such time or times thereafter as such Secured
      Party or said agent, in its discretion, may determine, in Borrower’s or such
      Secured Party’s name, at no duty or obligation on such Secured Party, do the
      following:

     

    (a)  All
      acts
      and things necessary to fulfill Borrower’s administrative duties pursuant to
      this Agreement and the other Loan Documents;

     

    (b)  Upon
      the
      occurrence of any Default or Event of Default, all acts and things necessary
      to
      fulfill Borrower’s obligations under this Agreement and the Loan Documents,
      except as otherwise set forth herein, at the cost and expense of
      Borrower.

     

    (c)  In
      addition to, but not in limitation of the foregoing, at any time or times upon
      the occurrence of an Event of Default, each Secured Party shall have the right:
      (i) to enter upon Borrower’s premises and to receive and open all mail directed
      to Borrower and remove all payments to Borrower on the Receivables; (ii) in
      the
      name of Borrower, to notify the Post Office authorities to change the address
      for the delivery of mail addressed to Borrower to such address as such Secured
      Party may designate; (iii) demand, collect, receive for and give renewals,
      extensions, discharges and releases of any Receivable; (iv) institute and
      prosecute legal and equitable proceedings to realize upon the Receivables;
      (v)
      settle, compromise, compound or adjust claims in respect of any Receivable
      or
      any legal proceedings brought in respect thereof; (vi) generally, sell in whole
      or in part for cash, credit or property to others or to itself at any public
      or
      private sale, assign, make any agreement with respect to or otherwise deal
      with
      any of the Receivables as fully and completely as though such Secured Party
      were
      the absolute owner thereof for all purposes, except to the extent limited by
      any
      applicable Laws and subject to any requirements of notice to Borrower or other
      persons under applicable Laws; (vii) take possession and control in any manner
      and in any place of any cash or non-cash items of payment or proceeds of
      Receivables; (viii) endorse the name of Borrower upon any notes, acceptances,
      checks, drafts, money orders, chattel paper or other evidences of payment of
      Receivables that may come into the possession of such Secured Party; and (ix)
      sign Borrower’s name on any instruments or documents relating to any of the
      Collateral, or on drafts against Obligors. The appointment of each Secured
      Party
      as attorney-in-fact for Borrower is coupled with an interest and is irrevocable.
      

     

    
      
        
        

      

      
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    ARTICLE
      8

    EXPENSES
      AND INDEMNITIES

     

    Section
      8.1.  PAYMENT
      FOR EXPENSES.
      Borrower shall pay (on the date of the initial funding of the Loan, and
      thereafter, within thirty (30) days after any invoice or other statement or
      notice) all costs and expenses incurred by any Secured Party or any of their
      affiliates, including, without limitation, (a) all documentation and diligence
      fees and expenses, (b) all search, appraisal, recording, professional and filing
      fees and expenses and all other out-of-pocket charges and expenses (including,
      without limitation, UCC and judgment and tax lien searches and UCC filings
      and
      fees for post-closing UCC, judgment and tax lien searches and wire transfer
      fees), (c) all audit fees and expenses, and (d) all of Secured Parties’
attorneys’ fees and expenses in connection with (i) any effort to enforce,
      protect or collect payment of any Indebtedness or to enforce this Agreement,
      any
      other Loan Document or any related agreement, document or instrument, or effect
      collection hereunder or thereunder, (ii) instituting, maintaining, preserving,
      enforcing and foreclosing on the Liens of the Collateral Agent for the benefit
      of the Lender in any of the Collateral, whether through judicial proceedings
      or
      otherwise, (v) defending or prosecuting any actions, claims or proceedings
      arising out of or relating to the Secured Parties’ transactions with the
      Borrower or the Related Parties unless there is a final, non-appealable
      judgement by a court which finds the applicable Secured Party to have acted
      in
      gross negligence or willful misconduct in connection therewith, or (vi) any
      modification, restatement, supplement, amendment, waiver or extension of this
      Agreement, any other Loan Document or any related agreement, document or
      instrument and all of the same may and shall be part of the Indebtedness.
      Borrower hereby further agrees to pay all of the Custodian’s fees and expenses
      owing under the Custodial Agreement and all of the Collateral Agent’s fees and
      expenses pursuant to the Collateral Agent Fee Letter.

     

    Section
      8.2.  GENERAL
      INDEMNIFICATION.
      Borrower hereby agrees to indemnify and hold each Secured Party harmless, on
      demand, from and against any and all claims, liabilities, obligations, losses,
      damages, penalties, fines, actions, judgments, suits, costs, expenses or
      disbursements (collectively “Claim” or “Claims”) of any kind or nature
      whatsoever, which may be imposed on, incurred by or asserted against any Secured
      Party, or any of their officers, directors, employees or agents (including
      accountants, attorneys or other professionals hired by any Secured Party) in
      any
      way relating to or arising out of the Loan Documents or any action taken or
      omitted by any Secured Party, or any of their officers, directors, employees
      or
      agents (including accountants, attorneys or other professionals) under the
      Loan
      Documents, except to the extent such indemnified matters are finally found
      by a
      court to be caused by the applicable Secured Party’s gross negligence or willful
      misconduct.

     

    
      
        
        

      

      
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    ARTICLE
      9

    COLLATERAL
      AGENT

     

    Section
      9.1.  APPOINTMENT
      AND AUTHORITY.
      Lender
      hereby irrevocably authorizes Collateral Agent, and Collateral Agent hereby
      undertakes, to hold and maintain the Collection Account and receive deposits
      therein, and make distributions therefrom in accordance with Section 2.11 and
      to
      take all other actions and to exercise such powers under the Loan Documents
      as
      are specifically delegated to the Collateral Agent by the terms hereof or
      thereof, together with all other powers reasonably incidental thereto.
      The
      relationship of Collateral Agent to Lender is only that of one a bank acting
      as
      Collateral Agent for Lender, and nothing in the Loan Documents shall be
      construed to constitute Collateral Agent a trustee or other fiduciary for Lender
      or any holder of any participation in the Loan nor to impose on Collateral
      Agent
      duties and obligations other than those expressly provided for in the Loan
      Documents. With respect to any matters not expressly provided for in the Loan
      Documents and any matters which the Loan Documents place within the discretion
      of Collateral Agent, Collateral Agent shall not be required to exercise any
      discretion or take any action, and it may request instructions from Lender
      with
      respect to any such matter, in which case it shall be required to act or to
      refrain from acting (and shall be fully protected and free from liability to
      Lender, all Related Parties or any other Person, pending receipt of instructions
      or in so acting or refraining from acting) upon the instructions of Lender,
      provided, however, that Collateral Agent shall not be required to take any
      action which exposes it to a risk of personal liability that it considers
      unreasonable or which is contrary to the Loan Documents or to applicable
      Law.

     

    Section
      9.2.  EXCULPATION,
      COLLATERAL AGENT’S RELIANCE, ETC. 

     

    Neither
      Collateral Agent nor any of its directors, officers, agents, attorneys, or
      employees shall be liable to Lender, any Related Party or any other Person
      for
      any action taken or omitted to be taken by any of them under or in connection
      with the Loan Documents, including their negligence of any kind, except that
      each shall be liable for its own gross negligence or willful misconduct, as
      determined by a final non-appealable judgment of a court of competent
      jurisdiction. Without limiting the generality of the foregoing, Collateral
      Agent
      (a) may consult with legal counsel (including counsel for Borrower), independent
      public accountants and other experts selected by it and shall not be liable
      for
      any action taken or omitted to be taken in good faith by it in accordance with
      the advice of such counsel, accountants or experts; (b) makes no warranty or
      representation to Lender and shall not be responsible to Lender for any
      statements, warranties or representations made in or in connection with the
      Loan
      Documents; (c) shall not have any duty to ascertain or to inquire as to the
      performance or observance of any of the terms, covenants or conditions of the
      Loan Documents on the part of any Related Party or to inspect the property
      (including the books and records) of any Related Party; (d) shall not be
      responsible to Lender for the due execution, legality, validity, enforceability,
      genuineness, sufficiency or value of any Loan Document or any instrument or
      document furnished in connection therewith; (e) may rely upon the
      representations and warranties of each Related Party or Secured Party in
      exercising its powers hereunder; and (f) shall incur no liability to Lender
      under or in respect of the Loan Documents by acting upon any notice, consent,
      certificate or other instrument or writing (including any facsimile, telegram,
      cable or telex) believed by it to be genuine and signed or sent by the proper
      Person or Persons. The Collateral Agent shall be fully justified in failing
      or
      refusing to take any action under this Agreement or any other Loan Document
      unless it shall first receive such advice or concurrence of Lender as it deems
      appropriate. Collateral Agent shall not be liable to Lender, any Related Party
      or any other Person for special, exemplary, punitive or consequential
      damages.

     

    
      
        
        

      

      
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    Section
      9.3.  INDEMNIFICATION.
      Lender
      agrees to indemnify Collateral Agent (to the extent not reimbursed by Borrower
      within ten (10) days after demand) from and against any and all liabilities,
      obligations, claims, losses, damages, penalties, fines, actions, judgments,
      suits, settlements, costs, expenses or disbursements (including reasonable
      fees
      of attorneys, accountants, experts and advisors) of any kind or nature
      whatsoever (in this section collectively called “liabilities and costs”) which
      to any extent (in whole or in part) may be imposed on, incurred by, or asserted
      against Collateral Agent arising out of, resulting from or in any other way
      associated with any of the Collateral, the Loan Documents and the transactions
      and events (including the enforcement thereof) at any time associated therewith
      or contemplated therein (whether arising in contract or in tort and
      otherwise).

    
      
        

          THE
            FOREGOING INDEMNIFICATION SHALL APPLY WHETHER OR NOT SUCH LIABILITIES
            AND COSTS
            ARE IN ANY WAY OR TO ANY EXTENT OWED, IN WHOLE OR IN PART, UNDER ANY
            CLAIM OR
            THEORY OF STRICT LIABILITY, OR ARE CAUSED, IN WHOLE OR IN PART, BY ANY
            NEGLIGENT
            ACT OR OMISSION OF ANY KIND BY COLLATERAL
            AGENT,

        

      

    

     

    provided
      only that Lender shall not be obligated under this section to indemnify
      Collateral Agent for that portion, if any, of any liabilities and costs which
      is
      proximately caused by Collateral Agent’s own individual gross negligence or
      willful misconduct, as determined in a final non-appealable judgment. Cumulative
      of the foregoing, Lender agrees to reimburse Collateral Agent promptly upon
      demand any costs and expenses to be paid to Collateral Agent by Borrower under
      Section 8.1 to the extent that Collateral Agent is not timely reimbursed for
      such expenses by Borrower as provided in such section. As used in this section
      the term “Collateral Agent” shall refer not only to the Person designated as
      such in this Agreement but also to each director, officer, attorney, employee,
      representative and Affiliate of such Person.

     

    Section
      9.4.  BENEFIT
      OF ARTICLE 11.
      The
      provisions of this Article are intended solely for
      the
      benefit of Lender, and no Related Party shall be entitled to rely on any such
      provision or assert any such provision in a claim or defense against Lender.
      Lender and the Collateral Agent may waive or amend such provisions as they
      desire without any notice to or consent of Borrower or any other Related
      Party.

     

    Section
      9.5.  RESIGNATION
      AND REMOVAL OF COLLATERAL AGENT.
      The
      Collateral Agent may be removed at any time with or without cause by Lender.
      The
      Collateral Agent may resign at any time by giving written notice thereof to
      Lender and Borrower. Each such notice shall set forth the date of such
      resignation. Upon any such removal or resignation, Lender shall have the right
      to appoint a successor Collateral Agent, or may act as the Collateral Agent
      itself. A successor must be appointed for any removed or retiring Collateral
      Agent, and such Collateral Agent’s resignation or removal shall become effective
      only when such successor accepts such appointment. If, within sixty days after
      the date of the retiring or removed Collateral Agent’s resignation or removal,
      as applicable, no successor Collateral Agent has been appointed and has accepted
      such appointment, then the retiring or removed Collateral Agent’s resignation or
      removal, as applicable, shall nonetheless be effective as of such date. Upon
      the
      earlier of the acceptance of any appointment as Collateral Agent hereunder
      by a
      successor Collateral Agent or the effective date of the retiring or removed
      Collateral Agent’s resignation or removal, the retiring or removed Collateral
      Agent, as applicable, shall be discharged from its duties and obligations under
      this Agreement and the other Loan Documents. After any retiring or removed
      Collateral Agent’s resignation or removal hereunder, as applicable, the
      provisions of this Article 9 shall continue to inure to its benefit as to any
      actions taken or omitted to be taken by it while it was Collateral Agent under
      the Loan Documents. Upon the removal or resignation of the Collateral Agent,
      the
      Collateral Agent hereby agrees, at Borrower’s expense, to cooperate with Lender
      in transferring to the successor Collateral Agent the Collection Account and
      all
      amounts therein, all Documents, Instruments, Chattel Paper and other items
      in
      its possession, and all UCC-1 financing statements naming it as secured party
      thereunder and hereby further agrees to cause to be promptly and duly taken,
      executed, acknowledged and delivered all such further acts, documents and
      assurances as may from time to time be necessary or as Lender may from time
      to
      time reasonably request in order to so transfer to any successor Collateral
      Agent any duties and Documents, Instruments or Chattel Paper.

     

    
      
        
        

      

      
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    Section
      9.6.  NOTICE
      OF DEFAULTS.
      Collateral Agent shall not be deemed to have knowledge or notice of the
      occurrence of any Default, except with respect to defaults in the payment of
      amounts required to be paid to Collateral Agent for the account of Lender or
      otherwise, unless Collateral Agent shall have received written notice from
      a
      Lender or Borrower referring to this Agreement, describing such Default and
      stating that such notice is a “notice of default.” Collateral Agent will notify
      Lender of its receipt of any such notice. Collateral Agent shall take such
      action with respect to such Default as may be directed by Lender; provided,
      however, that unless and until Collateral Agent has received any such direction,
      Collateral Agent may (but shall not be obligated to) take such action, or
      refrain from taking such action, with respect to such Default as it shall deem
      advisable or in the best interest of Lender.

     

    ARTICLE
      10

    MISCELLANEOUS

     

    Section
      10.1.  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 hereto, 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; provided, that any notice to a Secured Party under Section 2.1
      hereof shall be deemed to have been given only when received by such Secured
      Party. The Borrower hereby authorizes Secured Parties to rely upon the telephone
      or written instructions of any person identifying himself or herself as an
      authorized officer of the Borrower and upon any signature which such Secured
      Party believes to be genuine, and the Borrower shall be bound thereby in the
      same manner as if the Borrower were authorized or such signature were
      genuine.

     

    
      
        
        

      

      
        -47-

        
          

        

      

      
        
        

      

    

     

    Section
      10.2.  ASSIGNMENTS
      AND PARTICIPATIONS.
      Lender
      may at any time sell, assign, grant participations in, delegate or otherwise
      transfer to any other Person (an “Assignee”) all or part of the rights and
      duties of Lender under this Agreement and the other Loan Documents pursuant
      to a
      written instrument a copy of which has been delivered to Collateral Agent.
      To
      the extent indicated in any document, instrument or agreement so selling,
      assigning, granting participations in, or otherwise transferring to an Assignee
      such rights and/or duties, (i) the Assignee shall acquire all of Lender’s rights
      under the Agreement and the other Loan documents and (ii) the Assignee shall
      be
      deemed to be the “Lender” under this Agreement and the other Loan Documents with
      the authority to exercise such rights in the capacity of Lender; provided,
      however, all such Assignees shall be bound by the terms of Article 9, and
      similar provisions in the other Loan Documents. Related Parties hereby authorize
      Lender to disseminate any information it has pertaining to the Indebtedness,
      including without limitation, complete and current credit information on Related
      Parties and any of their principals to any Assignee or prospective
      Assignee.

     

    Section
      10.3.  SURVIVAL
      OF AGREEMENTS.
      All of
      the various representations, warranties, covenants and agreements of Related
      Parties (including without limitation, any agreements to pay costs and expenses
      and to indemnify Secured Parties) in the Loan Documents shall survive the
      execution and delivery of the Loan Documents and the performance under such
      Loan
      Documents, and the Collateral Agent for the benefit of Lender shall retain
      its
      Liens in the Collateral and all of its rights and remedies under the Loan
      Documents notwithstanding any termination of financing under this Agreement
      until all Indebtedness is fully performed and paid in full in cash. All
      indemnity obligations and all other obligations to pay costs and expenses of
      the
      Related Parties hereunder and under the other Loan Documents shall survive
      payment of the Indebtedness in full.

     

    Section
      10.4.  NO
      OBLIGATION BEYOND MATURITY.
      Each
      Related Party agrees and acknowledges that upon the Maturity Date, Lender shall
      have no obligation to renew, extend, modify or rearrange the Loan or make
      further advances and shall have the right to require all amounts due and owing
      under the Loan to be paid in full upon such date.

     

    Section
      10.5.  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
      10.6.  PARTIES
      BOUND.
      This
      Agreement shall be binding upon the Borrower, the Collateral Agent, Lender
      and
      their respective successors and assigns, and shall inure to the benefit of
      the
      Borrower, the Collateral Agent, Lender and the successors and permitted assigns
      of Borrower, the Collateral Agent and Lender. Borrower shall not assign its
      rights or duties hereunder without the written consent of Lender.

     

    Section
      10.7.  NO
      THIRD PARTY BENEFICIARY.
      This
      Agreement is for the sole benefit of Lender, the Collateral Agent and Borrower
      and is not for the benefit of any third party.

     

    
      
        
        

      

      
        -48-

        
          

        

      

      
        
        

      

    

     

    Section
      10.8.  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.

     

    Section
      10.9.  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
      10.10.  FURTHER
      INSTRUMENTS.
      Borrower 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 or the Collateral Agent reasonably requests and deems necessary or
      advisable in furtherance of the agreements contained herein.

     

    Section
      10.11.  COUNTERPARTS.
      This
      Agreement may be executed in any number of counterparts, all of which taken
      together shall constitute one and the same instrument, and either of the parties
      hereto may execute this Agreement by signing any such counterpart. Any such
      counterpart which is delivered to Lender by email, facsimile or other similar
      electronic transmission shall be deemed the equivalent of an originally executed
      counterpart and shall be fully admissible in any enforcement proceedings
      regarding this Agreement.

     

    Section
      10.12.  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.

     

    
      
        
        

      

      
        -49-

        
          

        

      

      
        
        

      

    

     

    Section
      10.13.  CONSENT
      OT JURISDICTION.
      AT THE
      OPTION OF LENDER, THIS AGREEMENT, THE NOTE 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 RELATED PARTY 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.

     

    Section
      10.14.  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 (a) UNDER THIS AGREEMENT OR UNDER ANY OF THE
      OTHER LOAN DOCUMENTS, OR (b) ARISING FROM ANY LENDING RELATIONSHIP EXISTING
      AMONG THE COLLATERAL AGENT AND LENDER, ON THE ONE HAND, AND THE RELATED PARTIES,
      ON THE OTHER HAND, IN CONNECTION WITH THIS AGREEMENT, AND AGREE THAT ANY SUCH
      ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A
      JURY.

     

    Section
      10.15.  PLEDGE
      BY LENDER.
      For the
      avoidance of doubt, it is agreed that Lender may at any time pledge the
      Indebtedness owed to it or create a security interest in all or any portion
      of
      its rights under this Agreement or the other Loan Documents in favor of any
      Person; provided, however, that (i) no such pledge or grant of security
      interest to any Person shall release Lender from its obligations hereunder
      or
      under any other Loan Document and (ii) the acquisition of title to Lender’s
      Indebtedness pursuant to any foreclosure or other exercise of remedies by such
      Person shall be subject to the provisions of this Agreement and the other Loan
      Documents in all respects.

     

    Section
      10.16.  TIME
      OF ESSENCE.
      Time is
      of the essence for the performance of the obligations set forth in this
      Agreement and the Loan Documents.

     

    [The
      remainder of this page intentionally left blank]

     

    
      
        
        

      

      
        -50-

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties have executed this Agreement on the day and year
      first set forth above.

     

    
      	 	 	 
	 	BORROWER:
	 	 
	 	
              NICE
                CARS FUNDING LLC, 

              a
                Delaware limited liability company

            
	 
 	 
 	 
 
	 	By:  	NICE
              CARS ACCEPTANCE ACQUISITIONCO, 
              INC.,

              its
                Member

            
	 	
            
	 	By: /s/ Richard Gaines
	 	
              
                

              
Name: Richard Gaines
	 	Title:  
President

    

     

    
      
        	 	 	 
	 	LENDER:
	 	 
	 	
                PALM
                  BEACH MULTI-STRATEGY FUND, L.P.

              
	 
 	 
 	 
 
	 	By:  	
                PALM
                  BEACH LINKS CAPITAL, L.P., 
                  its
                    general partner

                

              
	 	
              
	 	
                By:  PBL
                  HOLDINGS, LLC,

                its
                  general partner

              
	 	 
	 	 
	 	
                By:
                  B. Scott Olson

              
	 	
                
                  
Managing
                  Director

              
	 	 
	 	
                By:
                  Thomas L. Gervais

              
	 	
                
                  
 Managing
                  Director

              

      

       

    

    
      
        	 	 	 
	 	
                BANK
                  OF NEW YORK

                as
                  Collateral Agent

              
	 
 	 
 	 
 
	 	By:  	/s/
                Stephen C. Jerard
	 	
                
Name:
                Stephen C. Jerard
	 	
                
                  Title:  
                    Vice President

                

              

      

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

     

    REQUEST
      FOR ADVANCE

     

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B

     

    AVAILABILITY
      REPORT

     

    
      
        
        

      

      
        B-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      C

     

    COMPLIANCE
      CERTIFICATE

     

    
      
        	
                To:

              	
                Palm
                  Beach Multi-Strategy Fund, L.P.

              
	 	
                c/o
                  Links Business Capital, LP

              
	 	
                P.O.
                  Box 833519

              
	 	
                Richardson,
                  TX 75083

              

      

    

    
    

    

    
      	 	
              Re:

            	
              Loan
                and Security Agreement (as amended from time to time, the “Loan
                Agreement”),
                dated as of September 28, 2006, by and among Nice Cars Funding LLC
                (“Borrower”),
                Palm Beach Multi-Strategy Fund, L.P., as Lender, and The Bank of
                New York,
                as Collateral Agent

            

    

     

    Reference
      is hereby made to the Loan Agreement. Terms used and not otherwise defined
      herein shall have the meaning given to them in the Loan Agreement. This
      Compliance Certificate (this “Certificate”)
      is
      being delivered to you pursuant to Section 6.4(a)(iii) of the Loan Agreement.
      Borrower hereby represents, warrants, acknowledges and agrees to and with Lender
      that:

     

    (a) The
      representations and warranties of Borrower made in the Loan Agreement and the
      other Loan Documents are true and correct in all material respects on and as
      of
      the date hereof, with the same effect as though such representations and
      warranties had been made on and as of the date hereof;

     

    (b) There
      does not exist on the date hereof any condition or event which constitutes
      a
      Default or Event of Default;

     

    (c) The
      officer of Borrower signing this Certificate is the duly elected, qualified
      and
      acting officer of Borrower as indicated below such officer’s signature
      hereto.

     

    
      
        
        

      

      
        C-1

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, this Certificate is executed as of ____________,
      20__.

    
      	 	 	 
	 	NICE
              CARS FUNDING
              LLC
	 	 
	 	
              By:
                 NICE
                CARS ACCEPTANCE ACQUISITIONCO, 

              INC.,
                

              its
                Member

            
	 
 	 
 	 
 
	 	By:  	 
	 	
            	
              

            
	 	Name:  	 
	 	Title:	
              
 
	 	 	
              

            

    

     

    
      
        
        

      

      
        C-2

        
          

        

      

      
        
        

      

    

    
       

    

    EXHIBIT
      D

     

    FORM
      OF
      PROMISSORY NOTE

    

      
        	
                $75,000,000.00

              	
                New
                  York, New York

              	
                September
                  28, 2006

              

      

    

     

    FOR
      VALUE
      RECEIVED, the undersigned, Nice Cars Funding LLC, a Delaware limited liability
      company (“Borrower”),
      hereby promises to pay to the order of Palm Beach Multi-Strategy Fund, L.P.,
      a
      Delaware limited partnership (“Lender”),
      the
      principal sum of Seventy-Five Million and No/100 Dollars ($75,000,000.00),
      or,
      if greater or less, the aggregate unpaid principal amount of the Loan
      outstanding under the Loan and Security Agreement (as hereinafter defined),
      together with interest on the unpaid principal balance thereof as set forth
      in
      the Loan and Security Agreement, both principal and interest payable as herein
      provided in lawful money of the United States of America at the offices of
      the
      Collateral Agent, The Bank of New York, 101 Barclay Street, 8th
      Floor
      West, New York, New York 10286, or at such other place within New York, New
      York, as from time to time may be designated by Lender or the Collateral Agent,
      on behalf of Lender.

     

    This
      Note
      (a) is issued and delivered under that certain Loan and Security Agreement
      dated
      as of [Date] herewith among Borrower, Lender and The Bank of New York, as
      Collateral Agent (as from time to time supplemented, amended or restated, the
      “Loan
      and Security Agreement”),
      and
      is a “Note” as defined therein, (b) is subject to the terms and provisions of
      the Loan and Security Agreement, which contains provisions for payments and
      prepayments hereunder and acceleration of the maturity hereof upon the happening
      of certain stated events, and (c) is secured by and entitled to the benefits
      of
      the Loan and Security Agreement and certain other Loan Documents (as identified
      and defined in the Loan and Security Agreement). Payments on this Note shall
      be
      made and applied as provided in the Loan and Security Agreement. Reference
      is
      hereby made to the Loan and Security Agreement for a description of certain
      rights, limitations of rights, obligations and duties of the parties hereto
      and
      for the meanings assigned to terms used and not defined herein and to the Loan
      Documents for a description of the nature and extent of the security thereby
      provided and the rights of the parties thereto.

     

    The
      principal amount of this Note, together with all interest accrued hereon, shall
      be due and payable as set forth in the Loan and Security Agreement and, if
      not
      due earlier in accordance with the Loan and Security Agreement, is due and
      payable in full on the Maturity Date.

     

    Notwithstanding
      the foregoing paragraph and all other provisions of this Note, in no event
      shall
      the interest payable hereon, whether before or after maturity, exceed the
      maximum interest which, under applicable Law, may be contracted for, charged,
      or
      received on this Note, and this Note is expressly made subject to the provisions
      of the Loan and Security Agreement which more fully set out the limitations
      on
      how interest accrues hereon.

     

    If
      this
      Note is placed in the hands of an attorney for collection after default, or
      if
      all or any part of the indebtedness represented hereby is proved, established
      or
      collected in any court or in any bankruptcy, receivership, debtor relief,
      probate or other court proceedings, Borrower and all endorsers, sureties and
      guarantors of this Note jointly and severally agree to pay reasonable attorneys’
fees and collection costs to the holder hereof in addition to the principal
      and
      interest payable hereunder.

     

    
      
        
        

      

      
        D-1

        
          

        

      

      
        
        

      

    

     

    Borrower
      and all endorsers, sureties and guarantors of this Note hereby severally waive
      demand, presentment, notice of demand and of dishonor and nonpayment of this
      Note, protest, notice of protest, notice of intention to accelerate the maturity
      of this Note, declaration or notice of acceleration of the maturity of this
      Note, diligence in collecting, the bringing of any suit against any party and
      any notice of or defense on account of any extensions, renewals, partial
      payments or changes in any manner of or in this Note or in any of its terms,
      provisions and covenants, or any releases or substitutions of any security,
      or
      any delay, indulgence or other act of any trustee or any holder hereof, whether
      before or after maturity.

     

    Lender
      may assign this Note to any Person as provided in Section 10.2 of the Loan
      Agreement.

     

    This
      Note
      and the rights and duties of the parties hereto shall be governed by the Laws
      of
      the State of New York.

    
      	 	 	 
	 	NICE
              CARS FUND
              LLC
	 	 
	 	
              By: NICE
                CARS ACCEPTANCE ACQUISITIONCO,

              INC.,
                its Member

            
	 
 	 
 	 
 
	 	By:  	 
	 	
            	
              

            
	 	Name:  	 
	 	Title:	
              
 
	 	
            	
              
 

    

     

    
      
        
        

      

      
        D-2

        
          

        

      

      
        
        

      

    

     

    
      SCHEDULE
        A TO

       

      LOAN
        AND
        SECURITY AGREEMENT

       

      This
        Schedule A to the Loan and Security Agreement is executed in conjunction
        with that certain Loan and Security Agreement (“Loan
        Agreement”),
        dated
        September 28, 2006, by and between Nice Cars Funding LLC, as Borrower, Palm
        Beach Multi-Strategy Fund, L.P. as Lender and The Bank of New York, as
        Collateral Agent.

       

      
        	     

      

       

      ELIGIBLE
        RECEIVABLES TESTS

       

      SECTION
        1.1(a)(i)  AGING
        PROCEDURES

       

      The
        term
“Aging Procedures” shall mean, with respect to a Receivable, such Receivable has
        been reported to the Lender in compliance with the following aging
        procedures:

       

      
        	 	No
                payment missed or due	= 	Current
	 	1
                to 30 days past due	= 	“30
                day Account”
	 	31
                to 60 days past due	= 	“60
                day Account”
	 	61
                or more days past due	= 	“60+
                day Account”

      

       

      SECTION
        1.1(a)(ii)  APPROVED
        STATES

       

      The
        term
“Approved States” shall mean Georgia and Tennessee.

       

      SECTION
        1.1(a)(iii)  ELIGIBILITY
        TEST

       

      The
        term
“Eligibility Test” shall mean satisfaction of the following additional tests to
        determine the eligibility of a Receivable for purposes of being an Eligible
        Receivable:

       

      
        	 	
                1.

              	
                Such
                  Receivable is not sixty one (61) days or more contractually past
                  the due
                  date set forth in the underlying Contract unless the applicable
                  Obligor is
                  protected under the Servicemembers Civil Relief Act of
                  2003.

              

      

       

      
        	 	
                2.

              	
                The
                  minimum interest rate on the Consumer Loan Documents underlying
                  such
                  Receivable is at least twenty-five percent (25.00%) per annum payable
                  no
                  less frequently than monthly.

              

      

       

      
        	 	
                3.

              	
                The
                  Contribution of the Receivable will not cause the weighted average
                  age (by
                  unpaid principal balance, based on model year) of all Eligible
                  Receivables
                  to exceed eight (8) years.

              

      

       

      
        	 	
                4.

              	
                The
                  contribution of the Receivable will not cause the weighted average
                  mileage
                  (by unpaid principal balance, at the time of sale) of all Eligible
                  Receivables to exceed 95,000.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	 	
                5.

              	
                In
                  accordance with the Credit and Collection Policy, the Receivable
                  is
                  categorized as Lot #1 Regular House Accounts, Lot #23 Accounts
                  assigned
                  for repo with outside firm or Lot #41 Pledged Accounts (or any
                  future
                  equivalent of such categories).

              

      

       

      
        	 	
                6.

              	
                The
                  contribution of the Receivable will not cause the weighted average
                  downpayment (including deferred downpayments payable within 4 weeks
                  of the
                  date of sale of Financed Vehicles) with respect to all Eligible
                  Receivables (by unpaid principal balance) to be less than 5% of
                  the
                  initial price of the related Financed
                  Vehicles.

              

      

       

      SECTION
        1.1(a)(iv)  MAXIMUM
        AMOUNT OF AN ELIGIBLE RECEIVABLE

       

      The
        maximum principal balance of an Eligible Receivable (the “Maximum
        Amount of an Eligible Receivable”),
        for
        any date of determination, shall not exceed $15,000, as of such determination
        date.

       

      SECTION
        1.1(a)(v)  MAXIMUM
        TERM OF AN ELIGIBLE RECEIVABLE 

       

      The
        maximum term of an Eligible Receivable (the “Maximum
        Term of an Eligible Receivable”),
        for
        any date of determination, shall not have more than 63 months remaining until
        the due date of such Eligible Receivable, as of such determination
        date.

      
        	     

      

       

      SECTION
        1.1(c)  GUARANTORS

       

      
        	
              	1.	
                Manchester,
                  Inc., a Nevada corporation.

              

      

      
        	
              	2.	
                Nice
                  Cars Acceptance AcquisitionCo, Inc., a Delaware
                  corporation.

              

      

      
        	
              	3.	
                Nice
                  Cars Operations AcquisitionCo, Inc., a Delaware
                  corporation.

              

      

      
        
          	      

        

         

      

      SECTION
        1.1(d)  MATURITY
        DATE

       

      The
        term
“Maturity Date” shall mean September 28, 2009.

       

      SECTION
        2.1(a)(i)  MINIMUM
        AMOUNT FUNDED UNDER A LOAN

       

      The
        minimum amount of any advance funded under the Loan shall not be less than
        $200,000.

      
        
          	      

        

         

      

      SECTION
        2.1(a)(ii)  AMOUNT
        OF CREDIT LINE

       

      Seventy-five
        million dollars ($75,000,000).

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

      
         

        
          	                
                  

        

         

      

      SECTION
        5.1(b)  ASSUMED
        NAMES

       

      
        
          	 	(i) 	Borrower: 	None 	 
	 	 	 	 	 
	 	(ii) 	Guarantors: 	[__________] 	 

        
   

      
        	            
                

      

       

      SECTION
        5.1(n)  BUSINESS
        LOCATIONS

       

      All
        locations are as follows:

       

      [__________]

       

      [__________]

       

      SECTION
        5.1(x)  RELATED
        PARTY
        INFORMATION

       

      
        	
                Exact
                  Name of
Related Party

              	 	
                State
                  of
Organization

              	 	
                Federal
                  Tax
I.D. No.

              	 	
                Chief
                  Executive
Office

              	 	
                Prior
Names

              	 	
                Charter
No.

              
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

      

       

      
        
          	 

        

         

      

      SECTION
        9.1.    NOTICES

       

      
        	 	Lender: 	 	Palm Beach Multi-Strategy Fund, L.P.
c/o
                Links Business Capital, LP
P.O.
                Box 833519
Richardson,
                Texas 75083
Tel:
                [to be notified]
Fax:
                [to be notified] 
	 	 	 	 
	 	With a copy to: 	 	Bank of New York
The
                Bank of New York
600
                East Las Colinas Blvd., Suite 1300
Irving,
                Texas 75039
Attn:
                Steve Jerard, Director of Agent Services,
Telephone:
                (972) 401-8600
Fax:
                (972) 401-8556 
	 	 	 	 
	 	Borrower: 	 	Nice Cars Funding LLC
100
                Crescent Court, 7th
                Floor
Dallas,
                Texas 75201
Facsimile:
                (214) 459-8035
Attn:
                Richard D. Gaines, Corporate
                Secretary 

      

       

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

       

      
        	 	Manchester: 	 	Manchester Inc.
100
                Crescent Court, 7th
                Floor
Dallas,
                Texas 75201
Facsimile:
                (214) 459-8035
Attn: Richard D. Gaines, Corporate
                Secretary
	 	 	 	 
	 	NCAC: 	 	
                Nice
                  Cars Acceptance AcquisitionCo, Inc.
100
                  Crescent Court, 7th
                  Floor
Dallas,
                  Texas 75201
Facsimile:
                  (214) 459-8035
Attn:
                  Richard D. Gaines, Corporate Secretary 

              
	 	 	 	 
	 	NCOC: 	 	Nice Cars Operations AcquisitionCo,
                Inc.
100
                Crescent Court, 7th
                Floor
Dallas,
                Texas 75201
Facsimile:
                (214) 459-8035
Attn:
                Richard D. Gaines, Corporate
                Secretary 

      

       

      
        
          
          

        

        -4-

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