SUBORDINATED SECURITY AGREEMENT
JPE, INC, A MICHIGAN CORPORATION (THE "DEBTOR")
TAXPAYER I.D. NO.:
CHIEF EXECUTIVE OFFICE: 30400 TELEGRAPH ROAD, SUITE 401, BINGHAM FARMS,
GRANT OF SECURITY INTEREST. The Debtor grants to ASC, INC., A MICHIGAN CORPORATION,
the secured party referred to as "Lender", whose address is One Heritage Place, Suite 400, Southgate, Michigan
48195, a continuing security interest in the Collateral listed below, to secure the payment and performance of all
of the Debtor's debt to Lender.
Debt shall include each and every debt, liability and obligation of every type and description now owed or arising
at a later time, whether they are direct or indirect, joint, several, or joint and several and whether or not of the
same type or class as presently outstanding, which shall collectively be referred to as "Liabilities." Liabilities shall
also include all interest, costs, expenses and reasonable attorney's fees accruing to or incurred by Lender in
collecting the Liabilities or in the protection, maintenance or liquidation of the Collateral.
COLLATERAL: Accounts Receivable, Inventory, Equipment, Instruments and Specific.
DESCRIPTION OF COLLATERAL. The Collateral covered by this agreement is all of the Debtor's property
indicated above and as defined below, present and future, including but not limited to any items listed on any
schedule or list attached. Also included are all proceeds, including but not limited to stock rights, subscription
rights, dividends, stock dividends, stock splits, or liquidating dividends, and all cash, instruments, accounts,
chattel paper and general intangibles arising from the sale, rent, lease, casualty loss or other disposition of the
Collateral, and any Collateral returned to, repossessed by or stopped in transit by the Debtor. Also included are
the Debtor's books and records which relates to the Collateral. Where the Collateral is in the possession of
Lender, the Debtor agrees to deliver to Lender any prop