Summary of TECUMSEH PRODUCTS CO

Item 1.01 Entry into a Material Definitive Agreement
On March 18, 2009, we signed an amendment to our North American credit agreement and its related security agreement. The principal terms of the amendments are:
Х The lender's commitment under the agreement was reduced from $50 million to $30 million.

Х The applicable rate, a component of our floating interest rate, was increased by 0.50%.

Х A mark to market exposure concept, to determine the lender's exposure, if any, under outstanding swap agreements were they to be cancelled, was added to our credit agreement and the security agreement along with repayment application and cash collateralization provisions for the same.

Х The $7.5 million cap on the amount of cash collateral that could be counted in the borrowing base was removed.

Х The property, plant and equipment (PP&E) component of our borrowing base calculation was revised to reduce one of the three possible caps as well as revise the step down provisions for that component.

Х Our fixed charge coverage ratio covenant, the applicability of which was previously tied to availability of $20 million or less, was revised to delete the single trigger and replace it with (i) a lower availability threshold of $10 million if borrowings are outstanding or (ii) liquidity thresholds of $40 million and $50 million respectively depending on whether the threshold is being tested before or after July 31, 2009.

For more detailed information about the terms of the amendments, please see the copy filed as Exhibit 4.1 to this report. Item 9.01 Financial Statements and Exhibits. The following exhibits are filed with this report:

Exhibit No.    Description

4.1            Third Amendment to Credit Agreement and Amendment to Pledge and Security
               Agreement