David J. Lychuk and Mary K. Lychuk, et al. - Page 6




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          Budzynowski analyzed credit applications and supervised credit              
          investigations.  Hope McGee analyzed credit reports and verified            
          all information provided by credit applicants, e.g., by directly            
          contacting employers, banks, and creditors.                                 
               ACC pays each of its key management personnel a base salary.           
          Each of these individuals is also entitled to receive an annual             
          bonus at the sole discretion of ACC’s board of directors.  The              
          bonuses are paid from a “bonus pool” established by ACC and in              
          which ACC places funds in an amount up to 16.25 percent of its              
          pretax net profits.  Except in the case of James Blasius, no                
          restrictions exist as to the amount of compensation that ACC may            
          pay to its officers or key employees.  James Blasius’ bonus is              
          limited to 55 percent of the pool.                                          
               Under the terms of each installment contract, an individual            
          buys an automobile from a dealer at a set price to be paid (with            
          interest) in monthly installments.  The average rate of interest            
          charged to the buyers is approximately 22 percent.  The length of           
          repayment ranges from 12 to 36 months.                                      
               ACC and the dealers have an independent agreement under                
          which the dealers sell some of the installment contracts (and the           
          right to the corresponding payments of principal and interest) to           
          ACC at a price equal to 65 percent of each contract’s principal             
          amount (i.e., at a 35-percent discount).  As of April 30, 1993,             
          ACC acquired the installment contracts from 13 dealers, 3 of                






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