Document:

Unassociated Document

    

      
        	
                 

                 

                SECOND
                  AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT

                 

                Dated
                  as of February 21, 2008

                 

                Among

                 

                DEJ
                  98 FINANCE, LLC, as
                  Seller,

                 

                WOLVERINE
                  FINANCE, LLC, as
                  initial Servicer,

                 

                WOLVERINE
                  TUBE, INC., as
                  Performance Guarantor,

                 

                THE
                  CIT GROUP/BUSINESS CREDIT, INC., individually
                  and as
                  Co-Agent

                 

                 

                and

                 

                 

                WACHOVIA
                  BANK, NATIONAL ASSOCIATION, individually
                  and as
                  Agent

                 

                 

              

      

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    TABLE
      OF CONTENTS

     

    PAGE

    

    
      	
              ARTICLE
                I. PURCHASE ARRANGEMENTS 

            	
              2

            
	
              Section
                1.1

            	
              Purchase
                Facility

            	
              2

            
	
              Section
                1.2

            	
              Incremental
                Purchases

            	
              2

            
	
              Section
                1.3

            	
              Decreases
                

            	
              3

            
	
              Section
                1.4

            	
              Deemed
                Collections; Purchase Limit. 

            	
              3

            
	
              Section
                1.5

            	
              Payment
                Requirements; Ratable Payments; Computations

            	
              4

            
	
              ARTICLE
                II. PAYMENTS AND COLLECTIONS 

            	
              5

            
	
              Section
                2.1

            	
              Payments
                of Recourse Obligations 

            	
              5

            
	
              Section
                2.2

            	
              Collections
                Prior to the Facility Termination Date

            	
              5

            
	
              Section
                2.3

            	
              Collections
                on and after the Facility Termination Date

            	
              6

            
	
              Section
                2.4

            	
              Payment
                Rescission 

            	
              7

            
	
              Section
                2.5

            	
              Clean
                Up Call 

            	
              7

            
	
              ARTICLE
                III. [INTENTIONALLY DELETED] 

            	
              7

            
	
              ARTICLE
                IV. FUNDINGs by THE COMMITTED PURCHASERS 

            	
              8

            
	
              Section
                4.1

            	
              Fundings
                by all Purchasers 

            	
              8

            
	
              Section
                4.2

            	
              Yield
                Payments 

            	
              8

            
	
              Section
                4.3

            	
              Selection
                and Continuation of Interest Periods.

            	
              8

            
	
              Section
                4.4

            	
              Committed
                Purchaser Investment Yield Rates 

            	
              8

            
	
              Section
                4.5

            	
              Suspension
                of the LIBO Rate 

            	
              8

            
	
              Section
                4.6

            	
              Default
                Rate 

            	
              9

            
	
              ARTICLE
                V. REPRESENTATIONS AND WARRANTIES 

            	
              9

            
	
              Section
                5.1

            	
              Representations
                and Warranties of the Seller Parties 

            	
              9

            
	
              ARTICLE
                VI. CONDITIONS OF PURCHASES 

            	
              13

            
	
              Section
                6.1

            	
              Conditions
                Precedent to Effectiveness of this Agreement 

            	
              13

            
	
              Section
                6.2

            	
              Conditions
                Precedent to All Purchases and Reinvestments

            	
              13

            
	
              ARTICLE
                VII. COVENANTS 

            	
              14

            
	
              Section
                7.1

            	
              Affirmative
                Covenants of the Seller Parties 

            	
              14

            
	
              Section
                7.2

            	
              Negative
                Covenants of the Seller Parties

            	
              22

            
	
              ARTICLE
                VIII. ADMINISTRATION AND COLLECTION 

            	
              23

            
	
              Section
                8.1

            	
              Designation
                of Servicer. 

            	
              23

            
	
              Section
                8.2

            	
              Duties
                of Servicer. 

            	
              25

            
	
              Section
                8.3

            	
              Control
                of Lock-Box and Collection Accounts

            	
              26

            
	
              Section
                8.4

            	
              Responsibilities
                of Seller 

            	
              26

            
	
              Section
                8.5

            	
              Settlement
                and Weekly Reports 

            	
              26

            
	
              Section
                8.6

            	
              Servicing
                Fee 

            	
              26

            
	
              ARTICLE
                IX. AMORTIZATION EVENTS 

            	
              27

            
	
              Section
                9.1

            	
              Amortization
                Events

            	
              27

            
	
              Section
                9.2

            	
              Remedies
                

            	
              30

            
	
              ARTICLE
                X. INDEMNIFICATION 

            	
              30

            
	
              Section
                10.1

            	
              Indemnities.
                

            	
              30

            
	
              Section
                10.2

            	
              Increased
                Cost and Reduced Return 

            	
              35

            
	
              Section
                10.3

            	
              Other
                Costs and Expenses

            	
              36

            
	
              ARTICLE
                XI. THE AGENT AND THE CO-AGENT 

            	
              36

            
	
              Section
                11.1

            	
              Authorization
                and Action

            	
              36

            
	
              Section
                11.2

            	
              Delegation
                of Duties 

            	
              37

            
	
              Section
                11.3

            	
              Exculpatory
                Provisions 

            	
              37

            
	
              Section
                11.4

            	
              Reliance
                by Agent 

            	
              37

            
	
              Section
                11.5

            	
              Non-Reliance
                on Agent and Other Purchasers 

            	
              38

            
	
              Section
                11.6

            	
              Reimbursement
                and Indemnification 

            	
              38

            
	
              Section
                11.7

            	
              Agent
                in its Individual Capacity 

            	
              38

            
	
              Section
                11.8

            	
              Successor
                Agent 

            	
              38

            
	 	 

    

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

    

    
      	
              ARTICLE
                XII. ASSIGNMENTS AND PARTICIPATIONS 

            	
              39

            
	
              Section
                12.1

            	
              Prohibition
                on Assignments by Seller Parties

            	
              39

            
	
              Section
                12.2

            	
              Assignments
                by Purchasers 

            	
              39

            
	
              Section
                12.3

            	
              Participations
                

            	
              39

            
	
              ARTICLE
                XIII. MISCELLANEOUS 

            	
              40

            
	
              Section
                13.1

            	
              Waivers
                and Amendments.

            	
              40

            
	
              Section
                13.2

            	
              Notices

            	
              40

            
	
              Section
                13.3

            	
              Protection
                of Agent’s Security Interest.

            	
              41

            
	
              Section
                13.4

            	
              Confidentiality.

            	
              42

            
	
              Section
                13.5

            	
              [Intentionally
                deleted] 

            	
              42

            
	
              Section
                13.6

            	
              Limitation
                of Recourse and Liability 

            	
              42

            
	
              Section
                13.7

            	
              CHOICE
                OF LAW 

            	
              43

            
	
              Section
                13.8

            	
              CONSENT
                TO JURISDICTION 

            	
              43

            
	
              Section
                13.9

            	
              WAIVER
                OF JURY TRIAL 

            	
              44

            
	
              Section
                13.10

            	
              Integration;
                Binding Effect; Survival of Terms.

            	
              44

            
	
              Section
                13.11

            	
              Counterparts;
                Severability; Section References

            	
              44

            
	
              Section
                13.12

            	
              Characterization.
                

            	
              45

            
	 	 	 

    

    

    

    

    

    

    Exhibits
      and Schedules

    

    
      	
              Exhibit
                I

            	
              Definitions

            

    

     

    
      	
              Exhibit
                II

            	
              Form
                of Purchase Notice

            

    

     

    
      	
              Exhibit
                III

            	
              Places
                of Business of the Seller; Locations of Records; Federal Employer
                and
                Organizational Identification
                Numbers

            

    

     

    
      	
              Exhibit
                IV

            	
              Names
                of Collection Banks; Collection
                Accounts

            

    

     

    
      	
              Exhibit
                V

            	
              Form
                of Compliance Certificate

            

    

     

    
      	
              Exhibit
                VI

            	
              Form
                of Collection Account Agreement

            

    

     

    
      	
              Exhibit
                VII

            	
              Credit
                and Collection Policy

            

    

     

    
      	
              Exhibit
                VIII

            	
              Form
                of Settlement Report

            

    

     

    
      	
              Exhibit
                IX

            	
              Form
                of Performance Undertaking

            

    

     

    
      	
              Exhibit
                X

            	
              Initial
                Form of Weekly Report

            

    

     

    
      	
              Schedule
                A

            	
              Commitments
                of the Committed Purchasers

            

    

     

    
      	
              Schedule
                B

            	
              Closing
                Documents

            

    

     

    
      
         

      

      
        ii

        
          

        

      

      
         

      

    

    SECOND
      AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT

    

    THIS
      SECOND AMENDED AND RESTATED RECEIVABLES PURCHASE
      AGREEMENT, dated
      as
      of February 21, 2008 is entered into by and among:

     

    (a)
      DEJ
      98 Finance, LLC, a Delaware limited liability company (“Seller”),

     

    (b)
      Wolverine Finance, LLC, a Tennessee limited liability company (“Wolverine
      Finance”),
      as
      initial Servicer,

     

    (c)
      Wolverine Tube, Inc., a Delaware corporation, as Performance
      Guarantor,

     

    (d)
      The
      CIT Group/Business Credit, Inc., a New York corporation, in its individual
      capacity (“CIT/BC”)
      and as
      co-agent (together with its successors and assigns in such latter capacity,
      the “Co-Agent”), 

     

    (e)
      Wachovia Bank, National Association, a national banking association, in its
      individual capacity (“Wachovia”),
      and as
      agent for the Purchasers under the Transaction Documents (together with its
      successors and assigns in such latter capacity, the“Agent”).

     

    Unless
      defined elsewhere herein, capitalized terms used in this Agreement shall have
      the meanings assigned to such terms in Exhibit I hereto (or, if not defined
      in
      Exhibit I hereto, the meanings assigned to such terms in Exhibit I to the U.S.
      Receivables Sale Agreement or the Canadian Receivables Sale Agreement, as
      applicable).

     

    PRELIMINARY
      STATEMENTS

     

    The
      parties hereto entered into that certain Amended and Restated Receivables
      Purchase Agreement dated as of April 4, 2006, as amended from time to time
      prior
      to the date hereof (the “Existing
      Agreement”).
      Subject to the conditions hereinafter set forth, the parties wish to amend
      and
      restate the Existing Agreement from and after the date hereof as set forth
      in
      this Agreement.

     

    Seller
      desires to transfer and assign Receivable Interests to the Agent, on behalf
      of
      Purchasers from time to time. 

     

    Wachovia
      shall purchase its Funding Percentage of such Receivable Interests from Seller
      from time to time, and CIT/BC shall purchase its Funding Percentage of such
      Receivable Interests from Seller from time to time.

     

    The
      CIT
      Group/Business Credit, Inc. has been requested and is willing to act as Co-Agent
      on behalf of CIT/BC and its permitted assigns in accordance with the terms
      hereof.

     

    Wachovia
      Bank, National Association has been requested and is willing to act as Agent
      on
      behalf of the Purchasers in accordance with the terms hereof.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

     

    ARTICLE
      I.

     

    PURCHASE
      ARRANGEMENTS

     

    Section
      1.1 Purchase
      Facility.

     

    (a)
      Upon
      the terms and subject to the conditions of this Agreement (including, without
      limitation, Article VI):

     

    (i) on
      the
      date hereof, Seller shall (and does hereby) sell and assign to the Agent on
      behalf of the Purchasers (in accordance with their respective Receivable
      Interests), (A) the universality of all present and future Quebec Receivables,
      including each Quebec Receivable as to which the Seller hereafter otherwise
      acquires any interest or becomes entitled, (B) all Related Security with respect
      to such Quebec Receivables, and (C) all Collections with respect to, and other
      proceeds of, such Quebec Receivables and Related Security (collectively, the
      “Quebec
      Assets”);
      and

     

    (ii) from
      time
      to time prior to the Facility Termination Date, Seller may also sell and assign
      Receivable Interests to the Agent, on behalf of the Purchasers; provided
      that
      Seller
      may not sell or assign any Receivable Interest to the Agent if, after giving
      effect thereto, the outstanding Aggregate Invested Amount would exceed the
      least
      of (A) the Purchase Limit, (B) the Net Pool Balance minus
      Required
      Reserves and (C) the product of 85% times
      the
      aggregate Outstanding Balance of Eligible Receivables.

     

    (b)
      Seller may, upon at least 10 Business Days’ notice to the Agent and the
      Co-Agent, terminate in whole or reduce in part the unused portion of the
      Purchase Limit (and the Committed Purchasers’ Commitments shall correspondingly
      be terminated or ratably reduced); provided
      that
      each
      partial reduction of the Purchase Limit shall be in an amount equal to
      US$5,000,000 (or a larger integral multiple of US$1,000,000 if in excess
      thereof).

     

    Section
      1.2 Incremental
      Purchases.

     

    (a) Except
      for the initial Incremental Purchase on or after the date of this Agreement,
      Seller shall provide the Agent and the Co-Agent with at least two (2) Business
      Days’ prior written notice in a form set forth as Exhibit II hereto of each
      Incremental Purchase (each, a “Purchase
      Notice”).
      Each
      Purchase Notice shall be subject to Section 6.2 hereof and, except as set forth
      below, shall be irrevocable and shall specify the requested Purchase Price
      (which shall not be less than US$2,000,000 or a larger integral multiple of
      US$500,000), the amounts corresponding to Wachovia’s and CIT/BC’s respective
      Funding Percentages of such Purchase Price and the Purchase Date. 

     

    (b) [Intentionally
      deleted].

     

    (c) On
      each
      Purchase Date, upon satisfaction of the applicable conditions precedent set
      forth in Article VI, (i) Wachovia shall deposit to the Facility Account, in
      immediately available funds, no later than 2:00 p.m. (New York time), an amount
      equal to its Funding Percentage of the aggregate Purchase Price of the offered
      Receivable Interests, and (ii) CIT/BC shall transfer to the Facility Account,
      in
      immediately available funds, no later than 2:00 p.m. (New York time), an amount
      equal to CIT/BC’s Funding Percentage of the aggregate Purchase Price of the
      offered Receivable Interests. Notwithstanding the foregoing, on the Closing
      Date, CIT/BC shall fund such percentage of the initial Purchase so that, after
      giving effect thereto and to the application of the proceeds thereof, CIT/BC’s
      Invested Amount, on the one hand, and Wachovia’s Invested Amount, on the other
      hand, will equal their respective Funding Percentages of the Aggregate Invested
      Amount.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

     

    (d) The
      Commitments of each of the Committed Purchasers shall be several and not
      joint.

     

    Section
      1.3 Decreases.
      Seller
      shall provide the Agent and the Co-Agent with prior written irrevocable notice
      in conformity with the Required Notice Period (a “Reduction
      Notice”)
      of any
      proposed reduction of Aggregate Invested Amount, each of which reductions shall
      be made only from Collections. Such Reduction Notice shall designate (i) the
      date (the “Proposed
      Reduction Date”)
      upon
      which any such reduction of Aggregate Invested Amount shall occur (which date
      shall give effect to the applicable Required Notice Period), (ii) the amount
      of
      Aggregate Invested Amount to be reduced (the “Aggregate
      Reduction”),
      and
      (iii) the amounts corresponding to CIT/BC’s Funding Percentage and Wachovia’s
      Funding Percentage of such Aggregate Reduction. Only one (1) Reduction Notice
      shall be outstanding at any time.

     

    Section
      1.4 Deemed
      Collections; Purchase Limit.

     

    (a) If
      on any
      day:

     

    (i) the
      Outstanding Balance of any Receivable is reduced or cancelled as a result of
      any
      defective or rejected goods or services, any cash discount or any other
      adjustment by any Originator or any Affiliate thereof, or as a result of any
      governmental or regulatory action, or

     

    (ii) the
      Outstanding Balance of any Receivable is reduced or canceled as a result of
      a
      setoff in respect of any claim by the Obligor thereof (whether such claim arises
      out of the same or a related or an unrelated transaction), or

     

    (iii) the
      Outstanding Balance of any Receivable is reduced on account of the obligation
      of
      any Originator or any Affiliate thereof to pay to the related Obligor any rebate
      or refund, or

     

    (iv) the
      Outstanding Balance of any Receivable is less than the amount included with
      respect to such Receivable in calculating the Net Pool Balance for purposes
      of
      any Settlement Report (for any reason other than (A) receipt of Collections,
      (B)
      fluctuations in the spot rate of exchange for U.S. dollars or Canadian dollars
      since the date of such Settlement Report, or (C) such Receivable becoming a
      Defaulted Receivable), or

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

     

    (v) any
      of
      the representations or warranties of Seller set forth in Section 5.1(g), (i),
      (j), (r), (s), (t) or (u) were not true when made with respect to any
      Receivable,then, on such day, Seller shall be deemed to have received a
      Collection of such Receivable (A) in the case of clauses (i)-(iv) above, in
      the
      amount of such reduction or cancellation or the difference between the actual
      Outstanding Balance and the amount included with respect to such Receivable
      in
      calculating such Net Pool Balance, as applicable; and (B) in the case of clause
      (v) above, in the amount of the Outstanding Balance of such Receivable and,
      not
      later than one (1) Business Day thereafter shall pay to the Agent’s Account, for
      the benefit of the Purchasers, the amount of any such Collection deemed to
      have
      been received in the same manner as actual cash Collections are distributed
      under the terms of this Agreement.

     

    (b) Seller
      shall ensure that the Aggregate Invested Amount at no time exceeds the Purchase
      Limit. If at any time the Aggregate Invested Amount exceeds the Purchase Limit,
      Seller shall pay to the Agent immediately an amount to be applied to reduce
      the
      Aggregate Invested Amount in accordance with Section 1.5(b) such that, after
      giving effect to such payment, the Aggregate Invested Amount does not exceed
      the
      Purchase Limit.

     

    (c) Seller
      shall also ensure that the Receivable Interests shall at no time exceed in
      the
      aggregate 100%. If the aggregate of the Receivable Interests exceeds 100%,
      Seller shall pay to the Agent on or before the next succeeding Settlement Date
      or Weekly Adjustment Date (or, if such excess is discovered on a Settlement
      Date
      or Weekly Adjustment Date, on such Settlement Date or Weekly Adjustment Date,
      as
      the case may be) an amount to be applied to reduce the Aggregate Invested Amount
      in accordance with Section 1.5(b) such that, after giving effect to such
      payment, the aggregate of the Receivable Interests equals or is less than
      100%.

     

    Section
      1.5 Payment
      Requirements; Ratable Payments; Computations.

     

    (a) All
      amounts to be paid or deposited by any Seller Party pursuant to any provision
      of
      this Agreement shall be paid or deposited in accordance with the terms hereof
      no
      later than 12:00 noon (New York time) on the day when due in immediately
      available funds, and if not received before 12:00 noon (New York time) shall
      be
      deemed to be received on the next succeeding Business Day. If such amounts
      are
      payable to the Agent for the account of any Purchaser, they shall be paid to
      the
      Agent’s Account, for the account of such Purchaser, until otherwise notified by
      the Agent, and the Agent shall promptly remit each Purchaser’s share of any
      amounts so received in like funds.

     

    (b) Each
      reduction of Aggregate Invested Amount shall be allocated ratably between
      Wachovia, on the one hand, and CIT/BC, on the other, in accordance with their
      respective Funding Percentages.

     

    (c) All
      computations of Yield, per
      annum
      fees
      hereunder and per
      annum
      fees
      under the Fee Letters shall be made on the basis of a year of 360 days for
      the
      actual number of days elapsed. If any amount hereunder shall be payable on
      a day
      which is not a Business Day, such amount shall be payable on the next succeeding
      Business Day.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

     

    ARTICLE
      II.

     

    PAYMENTS
      AND COLLECTIONS

     

    Section
      2.1 Payments
      of Recourse Obligations.
      Without
      limiting Seller’s other obligations under this Agreement, Seller hereby promises
      to pay the following (collectively, the “Recourse
      Obligations”):

     

    (a) all
      amounts due and owing under Section 1.4 on the dates specified
      therein;

     

    (b) the
      fees
      set forth in the Fee Letters on the dates specified therein;

     

    (c) all
      accrued and unpaid Yield on the Receivable Interests accruing Yield at the
      Alternate Base Rate or the Default Rate on each Settlement Date;

     

    (d) all
      accrued and unpaid Yield on the Receivable Interests accruing Yield at the
      LIBO
      Rate on each Settlement Date; and

     

    (e) all
      Broken Funding Costs, upon demand, and all Indemnified Amounts, within ten
      (10)
      days of demand.

     

    Section
      2.2 Collections
      Prior to the Facility Termination Date. 

     

    (a) Prior
      to
      the Facility Termination Date, any Deemed Collections received by Servicer
      and
      the Purchasers’ portion of any Collections received by Servicer shall be set
      aside by Servicer for the payment of any accrued and unpaid Aggregate Unpaids
      or
      for a Reinvestment as provided in this Section 2.2. If at any time any
      Collections are received by Servicer prior to the Facility Termination Date,
      except to the extent a Reduction Notice is pending, Seller hereby requests
      that
      the applicable Purchasers make, and the applicable Purchasers shall make,
      simultaneously with such receipt, a reinvestment (each, a “Reinvestment”)
      with
      each applicable Purchasers’ portion of the balance of each and every Collection
      received by such Servicer such that after giving effect to such Reinvestment,
      the Invested Amount of such Receivable Interest immediately after such receipt
      and corresponding Reinvestment shall be equal to the amount of Invested Amount
      immediately prior to such receipt.

     

    (b) On
      each
      Settlement Date prior to the Facility Termination Date, the Agent shall
      distribute the amounts set aside during the preceding Settlement Period that
      have not been subject to a Reinvestment (if not previously paid in accordance
      with Section 2.1) in the following order:

     

    first,
      to
      the
      Servicer (if the Servicer at such time is not Wolverine Finance or one of its
      Affiliates), in payment of the accrued and unpaid Servicing Fee for the
      preceding Settlement Period,

     

    second,
      to the
      Agent’s Account, ratably for the payment of all accrued and unpaid Yield and
      Broken Funding Costs (if any) that are then due and owing,

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

     

    third,
      to the
      Agent’s Account, ratably for the payment of all accrued and unpaid fees under
      the Fee Letters; provided,
      however, that
      to
      the extent that the fees payable to CIT/BC are accruing at a higher rate than
      those being charged by Wachovia, the amount payable for the benefit of CIT/BC
      under this clause third
      shall
      not
      exceed the amount that would have been payable at Wachovia’s rates,

     

    fourth,
      to the
      Agent’s Account, if required under Section 1.3 or 1.4, to the reduction of
      Aggregate Invested Amount in accordance with Section 1.5(b),

     

    fifth,
      to the
      Agent’s Account, for the ratable payment of all other unpaid Recourse
      Obligations, if any, that are then due and owing and which are not covered
      by
      clause sixth
      below,
      

     

    sixth,
      to
      CIT/BC, in payment of any accrued and unpaid fees not paid pursuant to
      clause
      third above,
      

     

    seventh,
      to the
      Servicer (if the Servicer at such time is Wolverine Finance or one of its
      Affiliates), the amount of the accrued and unpaid Servicing Fee for the
      preceding Settlement Period, and

     

    eighth,
      the
      balance, if any, to Seller or otherwise in accordance with Seller’s
      instructions.

     

    (c) On
      each
      Weekly Adjustment Date prior to the Facility Termination Date, the Agent shall
      distribute the Collections then held by it in the following order:

     

    first,
      to the
      Agent’s Account, if required under Section 1.3 or 1.4, to the reduction of
      Aggregate Invested Amount in accordance with Section 1.5(b), and

     

    second,
      the
      balance, if any, to Seller or otherwise in accordance with Seller’s
      instructions.

    

    If
      the
      Collections held by the Agent on such Weekly Adjustment Date are insufficient
      to
      make any payment under the preceding clause first,
      on the
      next Business Day (and on each Business Day thereafter until such insufficiency
      is eliminated), the Agent will continue to distribute Collections that come
      into
      its possession in accordance with the foregoing.

     

    Section
      2.3 Collections
      on and after the Facility Termination Date.
      On the
      Facility Termination Date and on each day thereafter, the Agent shall set aside
      for the Secured Parties all Collections received on each such day. On and after
      the Facility Termination Date, the Servicer shall, on each Settlement Date
      and
      on each other Business Day specified by the Agent distribute in the following
      manner the amounts set aside pursuant to the preceding sentence:

     

    first,
      to the
      Servicer (if the Servicer at such time is not Wolverine Finance or one of its
      Affiliates), in payment of the accrued and unpaid Servicing Fee as of such
      date,

     

    second,
      to the
      Agent’s Account, for the reimbursement of the Agent’s costs of collection and
      enforcement of this Agreement,

     

    
      
         

      

      
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    third,
      to the
      Agent’s Account, ratably for the payment of all accrued and unpaid Yield and
      Broken Funding Costs,

     

    fourth,
      to the
      Agent’s Account, ratably for the payment of all accrued and unpaid fees under
      the Fee Letters; provided,
      however, that
      to
      the extent that the fees payable to CIT/BC are accruing at a higher rate than
      those being charged by Wachovia, the amount payable for the benefit of CIT/BC
      under this clause fourth
      shall
      not exceed the amount that would have been payable at Wachovia’s
      rates.

     

    fifth,
      to the
      Agent’s Account, for the reduction of Aggregate Invested Amount in accordance
      with Section 1.5(b),

     

    sixth,
      to the
      Agent’s Account, for the ratable payment of all other Aggregate Unpaids that are
      not covered by clause seventh
      below,
      

     

    seventh,
      to
      CIT/BC, in payment of any accrued and unpaid fees not paid pursuant to clause
      fourth
      above,
      

     

    eighth,
      to the
      Servicer (if the Servicer at such time is Wolverine Finance or one of its
      Affiliates), in payment of the accrued and unpaid Servicing Fee as of such
      date,
      and

     

    ninth,
      after
      the Final Payout Date, to Seller the balance, if any.

     

    Section
      2.4 Payment
      Rescission.
      No
      payment of any of the Aggregate Unpaids shall be considered paid or applied
      hereunder to the extent that, at any time, all or any portion of such payment
      or
      application is rescinded by application of law or judicial authority, or must
      otherwise be returned or refunded for any reason. Seller shall remain obligated
      for the amount of any payment or application so rescinded, returned or refunded,
      and shall promptly pay to the Agent (for application to the Person or Persons
      who suffered such rescission, return or refund) the full amount thereof,
plus
      interest
      thereon at the Default Rate from the date of any such rescission, return or
      refunding.

     

    Section
      2.5 Clean
      Up
      Call.
      In
      addition to Seller’s rights pursuant to Section 1.3, Servicer shall have the
      right (after providing written notice to the Agent in accordance with the
      Required Notice Period), at any time following the reduction of the Aggregate
      Invested Amount to a level that is less than 10.0% of the original Purchase
      Limit, to purchase all, but not less than all, of the then outstanding
      Receivable Interests. The purchase price in respect thereof shall be an amount
      equal to the Aggregate Unpaids through the date of such repurchase, payable
      in
      immediately available funds to the Agent’s Account. Such repurchase shall be
      without representation, warranty or recourse of any kind by, on the part of,
      or
      against any Purchaser or the Agent.

     

    ARTICLE
      III.

     

    [INTENTIONALLY
      DELETED]

     

    
      
         

      

      
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    ARTICLE
      IV.

     

    FUNDINGS
      BY THE COMMITTED PURCHASERS

     

    Section
      4.1 Fundings
      by all Purchasers.
      Prior to
      the occurrence of an Amortization Event, the outstanding Invested Amount of
      each
      Committed Purchaser Investment shall accrue Yield for each day during its
      Interest Period at either the LIBO Rate or the Alternate Base Rate in accordance
      with the terms and conditions hereof. Until Seller gives the required notice
      to
      the Agent and the Co-Agent of another Yield Rate in accordance with Section
      4.4,
      the initial Yield Rate for each Committed Purchaser Investment shall be the
      Alternate Base Rate (unless the Default Rate is then applicable). 

     

    Section
      4.2 Yield
      Payments.
      On each
      Settlement Date, regardless of whether an Interest Period ends on that
      Settlement Date or a subsequent Settlement Date, Seller shall pay to the Agent,
      for the benefit of the applicable Committed Purchaser(s), an aggregate amount
      equal to the accrued and unpaid Yield on such Committed Purchaser’s Investment
      in accordance with Article II.

     

    Section
      4.3 Selection
      and Continuation of Interest Periods. 

     

    (a) With
      consultation from (and, in the case of periods of longer than one month,
      approval by) the applicable Committed Purchaser, Seller shall from time to
      time
      request Interest Periods for Committed Purchaser Investments, provided
      that
      each
      Interest Period shall end on a Settlement Date.

     

    (b) Seller,
      on the one hand, or the Agent or the Co-Agent, as applicable, on the other,
      upon
      notice to and consent by the other received at least three (3) Business Days
      prior to the end of an Interest Period (the “Terminating
      Tranche”)
      for any
      Committed Purchaser Investment, may, effective on the last day of the
      Terminating Tranche: (i) divide any such Committed Purchaser Investment into
      multiple Committed Purchaser Investments, (ii) combine any such Committed
      Purchaser Investment with one or more other Committed Purchaser Investments
      of
      the same Committed Purchaser that have a Terminating Tranche ending on the
      same
      day as such Terminating Tranche or (iii) combine any such Committed Purchaser
      Investment with a new Committed Purchaser Investment to be made by the same
      Committed Purchaser(s) on the day such Terminating Tranche ends.

     

    Section
      4.4 Committed
      Purchaser Investment Yield Rates.
      Seller
      may select the LIBO Rate (subject to Section 4.5 below) or the Alternate Base
      Rate for each Committed Purchaser Investment. Seller shall by 12:00 noon (New
      York time): (i) at least three (3) Business Days prior to the expiration of
      any
      Terminating Tranche with respect to which the LIBO Rate is being requested
      as a
      new Yield Rate and (ii) at least one (1) Business Day prior to the expiration
      of
      any Terminating Tranche with respect to which the Alternate Base Rate is being
      requested as a new Yield Rate, give the Agent and the Co-Agent irrevocable
      notice of the new Yield Rate for the Committed Purchaser Investment associated
      with such Terminating Tranche. 

     

    Section
      4.5 Suspension
      of the LIBO Rate.
      If any
      Committed Purchaser notifies the Agent that it has determined that funding
      any
      Committed Purchaser Investment at a LIBO Rate would violate any applicable
      law,
      rule, regulation, or directive of any governmental or regulatory authority,
      whether or not having the force of law, or that (i) deposits of a type and
      maturity appropriate to match-fund its investment at such LIBO Rate are not
      available or (ii) such LIBO Rate does not accurately reflect the cost of
      acquiring or maintaining its Committed Purchaser Investment at such LIBO Rate,
      then the Agent shall suspend the availability of such LIBO Rate as to such
      Committed Purchaser and require Seller to select the Alternate Base Rate for
      any
      Committed Purchaser Investment of such Committed Purchaser accruing Yield at
      such LIBO Rate.

     

    
      
         

      

      
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    Section
      4.6 Default
      Rate.
      From and
      after the occurrence of an Amortization Event, all Committed Purchaser
      Investments shall accrue Yield at the Default Rate.

     

    ARTICLE
      V.

     

    REPRESENTATIONS
      AND WARRANTIES

     

    Section
      5.1 Representations
      and Warranties of the Seller Parties.
      Each
      Seller Party hereby represents and warrants to the Agent and the Purchasers,
      as
      to itself, as of the date hereof and as of the date of each Incremental Purchase
      and the date of each Reinvestment that:

     

    (a) Existence
      and Power.
      Such
      Seller Party’s jurisdiction of organization is correctly set forth in the
      preamble to this Agreement. Such Seller Party is duly organized under the laws
      of that jurisdiction and no other state or jurisdiction. Such Seller Party
      is
      validly existing and in good standing under the laws of its state of
      organization. Such Seller Party is duly qualified to do business and is in
      good
      standing as a foreign entity, and has and holds all organizational power and
      all
      governmental licenses, authorizations, consents and approvals required to carry
      on its business in each jurisdiction in which its business is conducted except
      where the failure to so qualify or so hold could not reasonably be expected
      to
      have a Material Adverse Effect.

     

    (b) Power
      and
      Authority; Due Authorization, Execution and Delivery.
      The
      execution and delivery by such Seller Party of this Agreement and each other
      Transaction Document to which it is a party, and the performance of its
      obligations hereunder and thereunder and, in the case of Seller, Seller’s use of
      the proceeds of Purchases made hereunder, are within its corporate powers and
      authority and have been duly authorized by all necessary corporate action on
      its
      part. This Agreement and each other Transaction Document to which such Seller
      Party is a party has been duly executed and delivered by such Seller
      Party.

     

    (c) No
      Conflict.
      The
      execution and delivery by such Seller Party of this Agreement and each other
      Transaction Document to which it is a party, and the performance of its
      obligations hereunder and thereunder do not contravene or violate (i) its
      certificate or articles of incorporation or by-laws, (ii) any law, rule or
      regulation applicable to it, (iii) any restrictions under any agreement,
      contract or instrument to which it is a party or by which it or any of its
      property is bound, or (iv) any order, writ, judgment, award, injunction or
      decree binding on or affecting it or its property, and do not result in the
      creation or imposition of any Adverse Claim on assets of such Seller Party
      or
      its Subsidiaries (except as created hereunder) except, in any case, where such
      contravention or violation could not reasonably be expected to have a Material
      Adverse Effect; and no transaction contemplated hereby requires compliance
      with
      any bulk sales act or similar law.

     

    
      
         

      

      
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    (d) Governmental
      Authorization.
      Other
      than the filing of the financing statements required hereunder, no authorization
      or approval or other action by, and no notice to or filing with, any
      governmental authority or regulatory body is required for the due execution
      and
      delivery by such Seller Party of this Agreement and each other Transaction
      Document to which it is a party and the performance of its obligations hereunder
      and thereunder.

     

    (e) Actions,
      Suits.
      There
      are no actions, suits or proceedings pending, or to the best of such Seller
      Party’s knowledge, threatened, against or affecting such Seller Party, or any of
      its properties, in or before any court, arbitrator or other body, that could
      reasonably be expected to have a Material Adverse Effect. Such Seller Party
      is
      not in default with respect to any order of any court, arbitrator or
      governmental body that could reasonably be expected to have a Material Adverse
      Effect.

     

    (f) Binding
      Effect.
      This
      Agreement and each other Transaction Document to which such Seller Party is
      a
      party constitute the legal, valid and binding obligations of such Seller Party
      enforceable against such Seller Party in accordance with their respective terms,
      except as such enforcement may be limited by applicable bankruptcy, insolvency,
      reorganization or other similar laws relating to or limiting creditors’ rights
      generally and by general principles of equity (regardless of whether enforcement
      is sought in a proceeding in equity or at law).

     

    (g) Accuracy
      of Information.
      All
      information heretofore furnished by such Seller Party or any of its Affiliates
      to the Agent or any Purchasers for purposes of or in connection with this
      Agreement, any of the other Transaction Documents or any transaction
      contemplated hereby or thereby is, and all such information hereafter furnished
      by such Seller Party or any of its Affiliates to the Agent or any Purchaser
      will
      be, true and accurate in every material respect on the date such information
      is
      stated or certified and not incomplete by omitting to state any material fact
      necessary to make such information not misleading at such time. There is no
      fact
      now known to any Authorized Officer of any Seller Party which has, or
would
      reasonably be expected to have,
      a
      Material Adverse Effect which fact has not been set forth herein, in the
      financial statements, or any certificate, opinion or other written statement
      made or furnished by such Seller Party or any of its Affiliates to the Agent
      and
      the Purchasers.

     

    (h) Use
      of
      Proceeds.
      No
      proceeds of any Purchase hereunder will be used (i) for a purpose that violates,
      or would be inconsistent with, (A) Section 7.2(e) of this Agreement or (B)
      Regulation T, U or X promulgated by the Board of Governors of the Federal
      Reserve System from time to time or (ii) to acquire any security in any
      transaction which is subject to Section 12, 13 or 14 of the Securities Exchange
      Act of 1934, as amended.

     

    (i) Good
      Title.
      Seller
      is the legal and beneficial owner of the Receivables, Collections and Related
      Security with respect thereto, in each case free and clear of any Adverse Claim,
      except as created by the Transaction Documents. There have been duly filed
      all
      financing statements or other similar instruments or documents necessary under
      the UCC, the PPSA (as applicable) or any comparable law of all appropriate
      jurisdictions to perfect Seller’s ownership interest in each Receivable, its
      Collections and the Related Security.

     

    (j) Perfection.
      Subject
      to Section 13.12, this Agreement is effective to create a valid security
      interest in favor of the Agent for the benefit of the Secured Parties in the
      Purchased Assets to secure payment of the Aggregate Unpaids, free and clear
      of
      any Adverse Claim except as created by the Transactions Documents. There have
      been duly filed all financing statements or other similar instruments or
      documents necessary under the UCC, the PPSA (as applicable) or any comparable
      law of all appropriate jurisdictions to perfect the Agent’s (on behalf of the
      Secured Parties) security interest in the Purchased Assets.

     

    
      
         

      

      
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    (k) Places
      of
      Business and Locations of Records.
      The
      principal place of business and chief executive office of Seller and the offices
      where it keeps all of its Records are located at the address(es) listed on
      Exhibit III or such other locations of which the Agent has been notified in
      accordance with Section 7.2(a) in jurisdictions where all action required by
      Section 13.3(a) has been taken and completed. Seller’s Federal Employer
      Identification Number and Delaware Organization Identification Number are
      correctly set forth on Exhibit III.

     

    (l) Collections.
      The
      conditions and requirements set forth in Section 7.1(j) and Section 8.2 have
      at
      all times been satisfied and duly performed. The names, addresses and
      jurisdictions of organization of all Collection Banks, together with the account
      numbers of the Collection Accounts of Seller at each Collection Bank and the
      post office box number of each Lock-Box, are listed on Exhibit IV. Seller has
      not granted any Person, other than the Collateral Agent, on behalf of the Agent
      and the Bank Agent, dominion and control of any Lock-Box or Collection Account,
      or the right to take dominion and control of any such Lock-Box or Collection
      Account at a future time or upon the occurrence of a future event.

     

    (m) Material
      Adverse Effect.
      (i) The initial Servicer represents and warrants that since December 31,
      2005, no event has occurred that would have a material adverse effect on the
      financial condition or operations of the initial Servicer or the ability of
      the
      initial Servicer to perform its obligations under this Agreement, (ii) the
      Performance Guarantor represents and warrants that since December 31, 2005,
      no
      event has occurred that would have a material adverse effect on the financial
      condition or operations of the Performance Guarantor and its Subsidiaries or
      the
      ability of the Performance Guarantor to perform its obligations under this
      Agreement, and (iii) Seller represents and warrants that since the date of
      this Agreement, no event has occurred that would have a material adverse effect
      on (A) the financial condition or operations of Seller, (B) the ability of
      Seller to perform its obligations under the Transaction Documents, or (C) the
      collectibility of the Receivables generally or any material portion of the
      Receivables.

     

    (n) Names.
      The name
      in which Seller has executed this Agreement is identical to the name of Seller
      as indicated on the public record of its state of organization which shows
      Seller to have been organized. In the past five (5) years, Seller has not used
      any legal names, trade names or assumed names other than the name in which
      it
      has executed this Agreement.

     

    
      
         

      

      
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    (o) Ownership
      of Seller.
      Performance Guarantor owns, directly or indirectly, 100% of the issued and
      outstanding non-voting Equity Interests in Seller and 49% of the issued and
      outstanding voting Equity Interests in Seller, in each case free and clear
      of
      any Adverse Claim. Such Equity Interests are validly issued, fully paid and
      nonassessable, and there are no options, warrants or other rights to acquire
      securities of Seller.

     

    (p) Not
      an
      Investment Company.
      Such
      Seller Party is not an “investment company” within the meaning of the Investment
      Company Act of 1940, as amended, or any successor statute.

     

    (q) Compliance
      with Law.
      Such
      Seller Party has complied in all respects with all applicable laws, rules,
      regulations, orders, writs, judgments, injunctions, decrees or awards to which
      it is subject, except where the failure to so comply could not reasonably be
      expected to have a Material Adverse Effect. Each Receivable, together with
      the
      Contract related thereto, does not contravene any laws, rules or regulations
      applicable thereto (including, without limitation, laws, rules and regulations
      relating to truth in lending, fair credit billing, fair credit reporting, equal
      credit opportunity, fair debt collection practices and privacy), and no part
      of
      such Contract is in violation of any such law, rule or regulation, except where
      such contravention or violation could not reasonably be expected to have a
      Material Adverse Effect.

     

    (r) Compliance
      with Credit and Collection Policy.
      Such
      Seller Party has complied in all material respects with the Credit and
      Collection Policy with regard to each Receivable and the related Contract,
      and
      has not made any change to such Credit and Collection Policy, except such
      material change as to which the Agent has been notified in accordance with
      Section 7.1(a)(vii).

     

    (s) Payments
      to Applicable Originator.
      With
      respect to each Receivable transferred to Seller under a Receivables Sale
      Agreement, Seller has given reasonably equivalent value to the applicable
      Originator in consideration therefor and such transfer was not made for or
      on
      account of an antecedent debt. No transfer by any Originator of any Receivable
      under a Receivables Sale Agreement is or may be voidable under any section
      of
      the Bankruptcy Reform Act of 1978 (11 U.S.C. §§ 101 et
      seq.),
      as
      amended or, as applicable, under any Debtor Relief Laws (as defined in the
      Canadian Receivables Sale Agreement). 

     

    (t) Enforceability
      of Contracts.
      Each
      Contract with respect to each Receivable is effective to create, and has
      created, a legal, valid and binding obligation of the related Obligor to pay
      the
      Outstanding Balance of the Receivable created thereunder (or, in the case of
      any
      Receivable denominated in Canadian dollars, to pay the outstanding principal
      balance thereof in Canadian dollars) and any accrued interest thereon,
      enforceable against the Obligor in accordance with its terms, except as such
      enforcement may be limited by applicable bankruptcy, insolvency, reorganization
      or other similar laws relating to or limiting creditors’ rights generally and by
      general principles of equity (regardless of whether enforcement is sought in
      a
      proceeding in equity or at law).

     

    (u) Eligible
      Receivables.
      Each
      Receivable included in the Net Pool Balance as an Eligible Receivable on the
      date of any Settlement Report was an Eligible Receivable on such
      date.

     

    
      
         

      

      
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    (v) Purchase
      Limit and Maximum Receivable Interests.
      Immediately after giving effect to each Incremental Purchase hereunder, the
      Aggregate Invested Amount is less than or equal to the Purchase Limit and the
      aggregate of the Receivable Interests does not exceed 100%.

     

    (w) Accounting.
      The
      manner in which such Seller Party accounts for the transactions contemplated
      by
      this Agreement and the Receivables Sale Agreements does not jeopardize the
      true
      sale analysis.

     

    (x) OFAC.
      None of
      the Seller Parties, any Subsidiary of any Seller Party or to the best knowledge
      of any Seller Party, any Affiliate of any Seller Party (a) is a Sanctioned
      Person, (b) does business in a Sanctioned Country in violation of the economic
      sanctions of the United States administered by OFAC or (c) does business in
      such
      country or with any such agency, organization or person, in violation of the
      economic sanctions of the United States administered by OFAC.

     

    ARTICLE
      VI.

     

    CONDITIONS
      OF PURCHASES

     

    Section
      6.1 Conditions
      Precedent to Effectiveness of this Agreement.
      Effectiveness of the amendment and restatement of the Existing Agreement
      embodied in this Agreement is subject to the conditions precedent that (a)
      the
      Agent shall have received on or before the date of such Purchase those documents
      listed on Schedule B and (b) the Agent and each of the Purchasers have received
      all fees and expenses required to be paid on such date pursuant to the terms
      of
      this Agreement, the Fee Letters and the amendment fee letters dated as of
      January 24, 2008.

     

    Section
      6.2 Conditions
      Precedent to All Purchases and Reinvestments.
      Each
      Incremental Purchase and each Reinvestment shall be subject to the further
      conditions precedent that (a) in the case of each such Purchase: (i) the
      Servicer shall have delivered to the Agent on or prior to the date of such
      Purchase, in form and substance satisfactory to the Agent, all Settlement
      Reports as and when due under Section 8.5 and (ii) upon the Agent’s request, the
      Servicer shall have delivered to the Agent at least two (2) days prior to such
      Purchase an interim Settlement Report showing the amount of Eligible
      Receivables; (b) the Agent shall have received such other approvals, opinions
      or
      documents as it may reasonably request and (c) on each Purchase Date, the
      following statements shall be true (and acceptance of the proceeds of such
      Incremental Purchase or Reinvestment shall be deemed a representation and
      warranty by Seller that such statements are then true):

     

    (i) the
      representations and warranties set forth in Section 5.1 are true and correct
      on
      and as of the date of such Incremental Purchase or Reinvestment as though made
      on and as of such Purchase Date;

     

    (ii) no
      event
      has occurred and is continuing, or would result from such Incremental Purchase
      or Reinvestment, that will constitute an Amortization Event, and no event has
      occurred and is continuing, or would result from such Incremental Purchase
      or
      Reinvestment, that would constitute an Unmatured Amortization
      Event;

     

    
      
         

      

      
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    (iii) the
      Aggregate Invested Amount does not exceed the Purchase Limit and the aggregate
      Receivable Interests do not exceed 100%; and

     

    (iv) Servicer
      shall have delivered to the Agent the calculation required by Section 7.1(j)
      of
      the ABL Credit Agreement for the Production Month then most recently
      ended.

     

    It
      is
      expressly understood that each Reinvestment shall, unless otherwise directed
      by
      the Agent, occur automatically on each day that the Servicer shall receive
      any
      Collections without the requirement that any further action be taken on the
      part
      of any Person and notwithstanding the failure of Seller to satisfy any of the
      foregoing conditions precedent in respect of such Reinvestment. The failure
      of
      Seller to satisfy any of the foregoing conditions precedent in respect of any
      Reinvestment shall give rise to a right of the Agent, which right may be
      exercised at any time on demand of the Agent, to rescind the related purchase
      and direct Seller to pay to the Agent’s Account, for the benefit of the
      applicable Purchaser(s), an amount equal to the Collections prior to the
      Facility Termination Date that shall have been applied to the affected
      Reinvestment.

     

    ARTICLE
      VII.

     

    COVENANTS

     

    Section
      7.1 Affirmative
      Covenants of the Seller Parties.
      Until
      the date on which the Aggregate Unpaids have been indefeasibly paid in full
      and
      this Agreement terminates in accordance with its terms, each Seller Party hereby
      covenants, as to itself, as set forth below:

     

    (a) Financial
      Reporting.
      Such
      Seller Party will maintain, for itself and each of its Subsidiaries, a system
      of
      accounting established and administered in accordance with GAAP, and furnish
      or
      cause to be furnished to the Agent:

     

    (i) Annual
      Reporting.
      (x)
      Within 90 days after the close of each of its respective fiscal years, audited,
      unqualified consolidated financial statements (which shall include balance
      sheets, statements of income and retained earnings and a statement of cash
      flows) of Performance Guarantor and its Subsidiaries for such fiscal year
      certified in a manner acceptable to the Agent by independent public accountants
      reasonably acceptable to the Agent, and (y) within 120 days after the close
      of
      each of its respective fiscal years, audited, financial statements (which shall
      include balance sheets, statements of income and retained earnings and a
      statement of cash flows) of Seller for such fiscal year, all certified by its
      chief financial officer.

     

    (ii) Quarterly
      Reporting.
      Within
      45 days after the close of the first three (3) quarterly periods of each of
      its
      respective fiscal years, (i) consolidated balance sheets of Performance
      Guarantor and its Subsidiaries as at the close of each such period and
      consolidated statements of income and retained earnings and a statement of
      cash
      flows of Performance Guarantor and its Subsidiaries for the period from the
      beginning of such fiscal year to the end of such quarter, all certified by
      Performance Guarantor’s chief financial officer and (ii) balance sheets of
      Seller as at the close of each such period and consolidated statements of income
      and retained earnings and a statement of cash flows of Seller for the period
      from the beginning of such fiscal year to the end of such quarter, all certified
      by its chief financial officer.

     

    
      
         

      

      
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    (iii) Compliance
      Certificate.
      Together
      with the financial statements required hereunder, a compliance certificate in
      substantially the form of Exhibit V signed by such Seller Party’s Authorized
      Officer and dated the date of such annual financial statement or such quarterly
      financial statement, as the case may be.

     

    (iv) Shareholders
      Statements and Reports.
      Promptly
      upon the furnishing thereof to the shareholders of such Seller Party copies
      of
      all financial statements, reports and proxy statements so
      furnished.

     

    (v) S.E.C.
      Filings.
      Promptly
      upon the filing thereof, copies of all registration statements and annual,
      quarterly, monthly or other regular reports which any Seller Party or any of
      its
      Affiliates files with the Securities and Exchange Commission.

     

    (vi) Copies
      of
      Notices.
      Promptly
      upon its receipt of any notice, request for consent, financial statements,
      certification, report or other communication under or in connection with any
      Transaction Document from any Person other than the Agent or the Purchasers,
      copies of the same.

     

    (vii) Change
      in
      Credit and Collection Policy.
      At least
      thirty (30) days prior to the effectiveness of any material change in or
      material amendment to the Credit and Collection Policy, a copy of the Credit
      and
      Collection Policy then in effect and a notice (A) indicating such proposed
      change or amendment, and (B) if such proposed change or amendment would be
      reasonably likely to adversely affect the collectibility of the Receivables
      or
      decrease the credit quality of any newly created Receivables, requesting the
      Agent’s consent thereto.

     

    (viii) Other
      Information.
      Promptly, from time to time, such other information, documents, records or
      reports relating to the Receivables or the condition or operations, financial
      or
      otherwise, of such Seller Party as the Agent may from time to time reasonably
      request in order to protect the interests of the Agent, for the benefit of
      the
      Purchasers, under or as contemplated by this Agreement.

     

    (b) Notices.
      Such
      Seller Party will notify the Agent in writing signed by an Authorized Officer
      of
      such Seller Party of any of the following promptly upon learning of the
      occurrence thereof, describing the same and, if applicable, the steps being
      taken with respect thereto:

     

    (i) Amortization
      Events or Unmatured Amortization Events.
      The
      occurrence of each Amortization Event and each Unmatured Amortization
      Event.

     

    (ii) Judgments
      and Proceedings.
      (A) (1)
      The entry of any judgment or decree against the Performance Guarantor, the
      Servicer or any of the Performance Guarantor’s other Subsidiaries if the
      aggregate amount of all judgments and decrees then outstanding against the
      Performance Guarantor, the Servicer and the Performance Guarantor’s other
      Subsidiaries exceeds US$2,500,000 (or the Canadian Dollar Equivalent thereof)
      after deducting (a) the amount with respect to which the Performance Guarantor,
      the Servicer or any such other Subsidiary of the Performance Guarantor, as
      the
      case may be, is insured and with respect to which the insurer has not denied
      coverage, and (b) the amount for which the Performance Guarantor, the Servicer
      or any such other Subsidiary of the Performance Guarantor is otherwise
      indemnified if the terms of such indemnification are satisfactory to the Agent,
      and (2) the institution of any litigation, arbitration proceeding or
      governmental proceeding against the Performance Guarantor or the Servicer which,
      individually or in the aggregate, could reasonably be expected to have a
      Material Adverse Effect; and (B) the entry of any judgment or decree or the
      institution of any litigation, arbitration proceeding or governmental proceeding
      against Seller.

     

    
      
         

      

      
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    (iii) Material
      Adverse Effect.
      The
      occurrence of any event or condition that has had, or could reasonably be
      expected to have, a Material Adverse Effect.

     

    (iv) Termination
      Event.
      The
      occurrence of a “Termination
      Event”
      under
      and as defined in either of the Receivables Sale Agreements.

     

    (v) Defaults
      Under Other Agreements.
      The
      occurrence of a default or an event of default under any other financing
      arrangement pursuant to which such Seller Party is a debtor or an obligor and
      such financing arrangement is in excess of US$2,500,000 (or the Canadian Dollar
      Equivalent thereof).

     

    (vi) Notices
      under Receivables Sale Agreements.
      Copies
      of all notices delivered under a Receivables Sale Agreement.

     

    (vii) Downgrade
      of Performance Guarantor.
      Any
      downgrade in the rating of any Indebtedness of the Performance Guarantor by
      S&P or Moody’s, setting forth the Indebtedness affected and the nature of
      such change.

     

    (c) Compliance
      with Laws and Preservation of Corporate Existence.
      Such
      Seller Party will comply in all respects with all applicable laws, rules,
      regulations, orders, writs, judgments, injunctions, decrees or awards to which
      it is subject, except where the failure to so comply could not reasonably be
      expected to have a Material Adverse Effect. Such Seller Party will preserve
      and
      maintain its corporate existence, rights, franchises and privileges in the
      jurisdiction of its incorporation, and qualify and remain qualified in good
      standing as a foreign corporation in each jurisdiction where its business is
      conducted, except where the failure to so preserve and maintain or qualify
      could
      not reasonably be expected to have a Material Adverse Effect.

     

    (d) Audits.
      Such
      Seller Party will furnish to the Agent from time to time such information with
      respect to it and the Receivables as the Agent or the Co-Agent may reasonably
      request. Such Seller Party will, from time to time during regular business
      hours
      as requested by the Agent or the Co-Agent upon reasonable notice and at the
      sole
      cost of such Seller Party, permit the Agent and the Co-Agent, or their agents
      or
      representatives (and shall cause each Originator to permit the Agent and the
      Co-Agent or their agents or representatives): (i) to examine and make copies
      of
      and abstracts from all Records in the possession or under the control of such
      Person relating to the Purchased Assets, including, without limitation, the
      related Contracts, and (ii) to visit the offices and properties of such Person
      for the purpose of examining such materials described in clause (i) above,
      and
      to discuss matters relating to such Person’s financial condition or the
      Purchased Assets or any Person’s performance under any of the Transaction
      Documents or any Person’s performance under the Contracts and, in each case,
      with any of the officers or employees of Seller or the Servicer having knowledge
      of such matters (each of the foregoing examinations and visits, a “Review”);
      provided,
      however, that,
      so
      long as no Amortization Event has occurred and is continuing, the number of
      Reviews in any one calendar year shall be limited to a maximum of four (4)
      and;
provided,
      further,
      that,
      the Seller Parties, collectively, shall not be responsible for the reasonable
      costs and expenses of more than two (2) Reviews in any one calendar year unless
      (X) the immediately preceding audit was unsatisfactory to the Agent or the
      Co-Agent with respect to missing information, erroneous reporting, other
      non-compliance with the provisions of the Transaction Documents or questions
      that have not been answered to the Agent’s and CIT/BC’s satisfaction, or (Y) the
      Aggregate Invested Amount exceeds an amount equal to 0.75 times the difference
      between the most recently computed Net Pool Balance and the most recently
      computed Required Reserve.

     

    
      
         

      

      
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    (e) Keeping
      and Marking of Records and Books.

     

    (i) The
      Servicer will (and will cause each Originator to) maintain and implement
      administrative and operating procedures (including, without limitation, an
      ability to recreate records evidencing Receivables in the event of the
      destruction of the originals thereof), and keep and maintain all documents,
      books, records and other information reasonably necessary or advisable for
      the
      collection of all Receivables (including, without limitation, records adequate
      to permit the immediate identification of each new Receivable and all
      Collections of and adjustments to each existing Receivable). The Servicer will
      (and will cause each Originator to) give the Agent and the Co-Agent notice
      of
      any material change in the administrative and operating procedures referred
      to
      in the previous sentence.

     

    (ii) Such
      Seller Party will (and will cause each Originator to): (A) on or prior to the
      date hereof, mark its master data processing records and other books and records
      relating to the Receivables with a legend, acceptable to the Agent, describing
      the Agent’s security interest in the Purchased Assets and (B) upon the request
      of the Agent following the occurrence of an Amortization Event: (x) mark each
      Contract with a legend describing the Agent’s security interest and (y) deliver
      to the Agent all Contracts (including, without limitation, all multiple
      originals of any such Contract constituting an instrument, a certificated
      security or chattel paper) relating to the Receivables.

     

    (f) Compliance
      with Contracts and Credit and Collection Policy.
      Such
      Seller Party will (and will cause each Originator to) timely and fully (i)
      perform and comply with all provisions, covenants and other promises required
      to
      be observed by it under the Contracts related to the Receivables, and (ii)
      comply in all respects with the Credit and Collection Policy in regard to each
      Receivable and the related Contract.

     

    
      
         

      

      
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    (g) Performance
      and Enforcement of Receivables Sale Agreements.
      Seller
      will, and will require each Originator to, perform each of their respective
      obligations and undertakings under and pursuant to the applicable Receivables
      Sale Agreement, will purchase Receivables thereunder in strict compliance with
      the terms thereof and will vigorously enforce the rights and remedies accorded
      to Seller under the Receivables Sale Agreements. Seller will take all actions
      to
      perfect and enforce its rights and interests (and the rights and interests
      of
      the Agent, as Seller’s assignee) under the Receivables Sale Agreements as the
      Agent may from time to time reasonably request, including, without limitation,
      making claims to which it may be entitled under any indemnity, reimbursement
      or
      similar provision contained in the Receivables Sale Agreements.

     

    (h) Ownership.
      Seller
      will (or will cause each Originator to) take all necessary action to (i) vest
      legal and equitable title to the Purchased Assets purchased under the
      Receivables Sale Agreements irrevocably in Seller, free and clear of any Adverse
      Claims (other than Adverse Claims in favor of the Agent, for the benefit of
      the
      Secured Parties) including, without limitation, the filing of all financing
      statements or other similar instruments or documents necessary under the UCC,
      the PPSA (as applicable) or any comparable law of all appropriate jurisdictions
      to perfect Seller’s interest in such Purchased Assets and such other action to
      perfect, protect or more fully evidence the interest of Seller therein as the
      Agent may reasonably request), and (ii) establish and maintain, in favor of
      the
      Agent, for the benefit of the Secured Parties, a valid and perfected first
      priority security interest in all Purchased Assets, free and clear of any
      Adverse Claims, including, without limitation, the filing of all financing
      statements or other similar instruments or documents necessary under the UCC,
      the PPSA (as applicable) or any comparable law of all appropriate jurisdictions
      to perfect the Agent’s (for the benefit of the Secured Parties) security
      interest in the Purchased Assets and such other action to perfect, protect
      or
      more fully evidence the interest of the Agent for the benefit of the Secured
      Parties as the Agent may reasonably request.

     

    (i) Reliance.
      Seller
      acknowledges that the Agent and the Purchasers are entering into the
      transactions contemplated by this Agreement in reliance upon Seller’s identity
      as a legal entity that is separate from each Originator. Therefore, from and
      after the date of execution and delivery of this Agreement, Seller shall take
      all reasonable steps, including, without limitation, all steps that the Agent
      or
      any Purchaser may from time to time reasonably request, to maintain Seller’s
      identity as a separate legal entity and to make it manifest to third parties
      that Seller is an entity with assets and liabilities distinct from those of
      each
      Originator and any Affiliates thereof (other than Seller) and not just a
      division of any Originator or any such Affiliate. Without limiting the
      generality of the foregoing and in addition to the other covenants set forth
      herein, Seller will:

     

    (A) conduct
      its own business in its own name and require that all full-time employees of
      Seller, if any, identify themselves as such and not as employees of any
      Originator (including, without limitation, by means of providing appropriate
      employees with business or identification cards identifying such employees
      as
      Seller’s employees);

     

    (B) compensate
      all employees, consultants and agents directly, from Seller’s own funds, for
      services provided to Seller by such employees, consultants and agents and,
      to
      the extent any employee, consultant or agent of Seller is also an employee,
      consultant or agent of any Originator or any Affiliate thereof, allocate the
      compensation of such employee, consultant or agent between Seller and such
      Originator or such Affiliate, as applicable, on a basis that reflects the
      services rendered to Seller and such Originator or such Affiliate, as
      applicable;

     

    
      
         

      

      
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    (C) clearly
      identify its offices (by signage or otherwise) as its offices and, if such
      office is located in the offices of any Originator, Seller shall lease such
      office at a fair market rent;

     

    (D) have
      a
      separate telephone number, which will be answered only in its name and separate
      stationery and checks in its own name;

     

    (E) conduct
      all transactions with each Originator and the Servicer (including, without
      limitation, any delegation of its obligations hereunder as Servicer) strictly
      on
      an arm’s-length basis, allocate all overhead expenses (including, without
      limitation, telephone and other utility charges) for items shared between Seller
      and such Originator on the basis of actual use to the extent practicable and,
      to
      the extent such allocation is not practicable, on a basis reasonably related
      to
      actual use;

     

    (F) at
      all
      times have a board of managers consisting of three members, at least one member
      of which is an Independent Manager;

     

    (G) observe
      all corporate formalities as a distinct entity, and ensure that all limited
      liability company actions relating to (A) the selection, maintenance or
      replacement of the Independent Manager, (B) the dissolution or liquidation
      of
      Seller or (C) the initiation of, participation in, acquiescence in or consent
      to
      any bankruptcy, insolvency, reorganization or similar proceeding involving
      Seller, are duly authorized by unanimous vote of its board of managers
      (including the Independent Manager);

     

    (H) maintain
      Seller’s books and records separate from those of each Originator and any
      Affiliate thereof and otherwise readily identifiable as its own assets rather
      than assets of any Originator or any Affiliate thereof;

     

    (I) prepare
      its financial statements separately from those of each Originator and insure
      that any consolidated financial statements of any Originator or any Affiliate
      thereof that include Seller and that are filed with the Securities and Exchange
      Commission or any other governmental agency have notes clearly stating that
      Seller is a separate legal entity and that its assets will be available first
      and foremost to satisfy the claims of the creditors of Seller;

     

    (J) except
      as
      herein specifically otherwise provided, to the fullest extent practicable (1)
      maintain the funds or other assets of Seller separate from, and not commingled
      with, those of any Originator or any Affiliate thereof and (B) only maintain
      bank accounts or other depository accounts to which Seller alone is the account
      party, into which Seller alone makes deposits and from which Seller alone (or
      the Agent hereunder) has the power to make withdrawals;

     

    
      
         

      

      
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    (K) pay
      all
      of Seller’s operating expenses from Seller’s own assets (except for certain
      payments by any Originator or other Persons pursuant to allocation arrangements
      that comply with the requirements of this Section 7.1(i));

     

    (L) operate
      its business and activities such that: it does not engage in any business or
      activity of any kind, or enter into any transaction or indenture, mortgage,
      instrument, agreement, contract, lease or other undertaking, other than the
      transactions contemplated and authorized by this Agreement and the Receivables
      Sale Agreements; and does not create, incur, guarantee, assume or suffer to
      exist any indebtedness or other liabilities, whether direct or contingent,
      other
      than (1) as a result of the endorsement of negotiable instruments for deposit
      or
      collection or similar transactions in the ordinary course of business, (2)
      the
      incurrence of obligations under this Agreement, (3) the incurrence of
      obligations, as expressly contemplated in the Receivables Sale Agreements,
      to
      make payment to the applicable Originator thereunder for the purchase of
      Receivables from such Originator under the Receivables Sale Agreements, and
      (4)
      the incurrence of operating expenses in the ordinary course of business of
      the
      type otherwise contemplated by this Agreement;

     

    (M) maintain
      its Organizational Documents in conformity with this Agreement, such that it
      does not amend, restate, supplement or otherwise modify its Organizational
      Documents in any respect that would impair its ability to comply with the terms
      or provisions of any of the Transaction Documents, including, without
      limitation, Section 7.1(i) of this Agreement (it being understood and agreed
      that each of the Agent and the Purchasers has reviewed and approved the
      amendment to Sellers limited liability company agreement dated as of March
      31,
      2006);

     

    (N) maintain
      the effectiveness of, and continue to perform under the Receivables Sale
      Agreements and the Performance Undertaking, such that it does not amend,
      restate, supplement, cancel, terminate or otherwise modify the Receivables
      Sale
      Agreements or the Performance Undertaking, or give any consent, waiver,
      directive or approval thereunder or waive any default, action, omission or
      breach under the Receivables Sale Agreements or the Performance Undertaking
      or
      otherwise grant any indulgence thereunder, without (in each case) the prior
      written consent of the Agent;

     

    (O) maintain
      its limited liability company separateness such that it does not merge or
      consolidate with or into, or convey, transfer, lease or otherwise dispose of
      (whether in one transaction or in a series of transactions, and except as
      otherwise contemplated herein) all or substantially all of its assets (whether
      now owned or hereafter acquired) to, or acquire all or substantially all of
      the
      assets of, any Person, nor at any time create, have, acquire, maintain or hold
      any interest in any Subsidiary.

     

    
      
         

      

      
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    (P) maintain
      at all times the Required Capital Amount (as defined in the Receivables Sale
      Agreements) and refrain from making any dividend, distribution, redemption
      of
      Equity Interests or payment of any subordinated indebtedness which would cause
      the Required Capital Amount to cease to be so maintained; and

     

    (Q) take
      such
      other actions as are necessary on its part to ensure that the facts and
      assumptions set forth in the opinions relating to substantive consolidation
      issues issued by Dewey Ballantine LLP and Blake, Cassels & Graydon LLP in
      connection with the Receivables Sale Agreements, and in the certificates
      accompanying such opinion, remain true and correct in all material respects
      at
      all times.

     

    (j) Collections.
      Such
      Seller Party will cause (1) all proceeds from all Lock-Boxes to be directly
      deposited by a Collection Bank into a Collection Account and (2) each Lock-Box
      and Collection Account to be subject at all times to a Collection Account
      Agreement that is in full force and effect. In the event any payments relating
      to the Purchased Assets are remitted directly to Seller or any Affiliate of
      Seller, Seller will remit (or will cause all such payments to be remitted)
      directly to a Collection Bank and deposited into a Collection Account within
      two
      (2) Business Days following receipt thereof, and, at all times prior to such
      remittance, Seller will itself hold or, if applicable, will cause such payments
      to be held in trust for the exclusive benefit of the Agent and the Purchasers.
      The ownership, dominion and control (subject to the terms of this Agreement)
      of
      each Lock-Box and Collection Account shall be exclusively maintained by the
      Collateral Agent and Seller shall not grant the right to take dominion and
      control of any Lock-Box or Collection Account at a future time or upon the
      occurrence of a future event to any Person, except to the Collateral Agent
      as
      contemplated by this Agreement. 

     

    (k) Taxes.
      Such
      Seller Party will file all tax returns and reports required by law to be filed
      by it and will promptly pay all taxes and governmental charges at any time
      owing, except any such taxes which are not yet delinquent or are being
      diligently contested in good faith by appropriate proceedings and for which
      adequate reserves in accordance with GAAP shall have been set aside on its
      books. Seller will pay when due any taxes payable in connection with the
      Receivables, exclusive of taxes on or measured by income or gross receipts
      of
      the Agent or any Purchaser.

     

    (l) Payment
      to Applicable Originator.
      With
      respect to each Receivable purchased by Seller from any Originator, such sale
      shall be effected under, and in strict compliance with the terms of, the
      applicable Receivables Sale Agreement, including, without limitation, the terms
      relating to the amount and timing of payments to be made to such Originator
      in
      respect of the purchase price for such Receivable.

     

    Section
      7.2 Negative
      Covenants of the Seller Parties.
      Until
      the date on which the Aggregate Unpaids have been indefeasibly paid in full
      and
      this Agreement terminates in accordance with its terms, each Seller Party hereby
      covenants, as to itself, that: 

     

    (a) Name
      Change, Offices and Records.
      Such
      Seller Party will not change its name, identity or structure (within the meaning
      of any applicable enactment of the UCC), change its jurisdiction of
      organization, or change any office where Records are kept unless it shall have:
      (i) given the Agent and the Co-Agent at least ten (10) Business Days’ prior
      written notice thereof and (ii) delivered to the Agent all financing statements,
      instruments and other documents requested by the Agent in connection with such
      change or relocation.

     

    
      
         

      

      
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    (b) Change
      in
      Payment Instructions to Obligors.
      Except
      as may be required by the Agent pursuant to Section 8.2(b), such Seller Party
      will not add or terminate any bank as a Collection Bank, or make any change
      in
      the instructions to Obligors regarding payments to be made to any Lock-Box
      or
      Collection Account, unless the Agent and the Co-Agent shall have received,
      at
      least ten (10) days before the proposed effective date therefor, (i) written
      notice of such addition, termination or change and (ii) with respect to the
      addition of a Collection Bank or a Collection Account or Lock-Box, an executed
      Collection Account Agreement with respect to the new Collection Account or
      Lock-Box; provided,
      however,
      that the
      Servicer may make changes in instructions to Obligors regarding payments if
      such
      new instructions require such Obligor to make payments to another existing
      Collection Account.

     

    (c) Modifications
      to Contracts and Credit and Collection Policy.
      Such
      Seller Party will not make, and will not consent to any Originator’s making, any
      change to the Credit and Collection Policy that could adversely affect the
      collectibility of the Receivables or decrease the credit quality of any newly
      created Receivables. Except as provided in Section 8.2(d), the Servicer will
      not, and will not permit any Originator to, extend, amend or otherwise modify
      the terms of any Receivable or any Contract related thereto other than in
      accordance with the Credit and Collection Policy.

     

    (d) Sales,
      Liens.
      Except
      as otherwise expressly permitted by the Transaction Documents, Seller will
      not
      sell, assign (by operation of law or otherwise) or otherwise dispose of, or
      grant any option with respect to, or create or suffer to exist any Adverse
      Claim
      upon (including, without limitation, the filing of any financing statement)
      or
      with respect to, any of the Purchased Assets, or assign any right to receive
      income with respect thereto (other than, in each case, the creation of a
      security interest therein in favor of the Agent as provided for herein), and
      Seller will defend the right, title and interest of the Secured Parties in,
      to
      and under any of the foregoing property, against all claims of third parties
      claiming through or under Seller or any Originator.

     

    (e) Use
      of
      Proceeds.
      Seller
      will not use the proceeds of the Purchases for any purpose other than (i) paying
      for Receivables and Related Security under and in accordance with the
      Receivables Sale Agreements, including without limitation, making payments
      on
      the Subordinated Notes to the extent permitted thereunder and under the U.S.
      Receivables Sale Agreement, (ii) paying its ordinary and necessary operating
      expenses when and as due, and (iii) making Restricted Junior Payments to the
      extent permitted under this Agreement.

     

    (f) Termination
      Date Determination.
      Seller
      will not designate the Termination Date (as defined in either of the Receivables
      Sale Agreements), or send any written notice to any Originator in respect
      thereof, without the prior written consent of the Agent, except with respect
      to
      the occurrence of such Termination Date arising pursuant to Section 5.1(e)
      of
      either Receivables Sale Agreement.

     

    
      
         

      

      
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    (g) Restricted
      Junior Payments.
      Seller
      will not make any Restricted Junior Payment if after giving effect thereto,
      Seller’s Net Worth (as defined in the U.S. Receivables Sale Agreement) would be
      less than the Required Capital Amount (as defined in the U.S. Receivables Sale
      Agreement).

     

    (h) Seller
      Indebtedness.
      Seller
      will not incur or permit to exist any Indebtedness or liability on account
      of
      deposits except: (i) the Aggregate Unpaids, (ii) the Subordinated Loans, and
      (iii) other current accounts payable arising in the ordinary course of business
      and not overdue.

     

    (i) Prohibition
      on Certain Additional Agreements.
      From and
      after the date of the Existing Agreement, the Seller Parties will not enter
      into
      or assume any agreement (other than the Transaction Documents) that (i)
      prohibits or restricts any Originator’s conveyance of the Receivables and
      Related Security to Seller in accordance with the Receivables Sale Agreements,
      (ii) prohibits or restricts Seller’s conveyance of Receivable Interests or grant
      of security interests in the Purchased Assets pursuant to this Agreement and
      the
      other Transaction Documents, or (iii) creates any Adverse Claim upon the
      Subordinated Notes.

     

    ARTICLE
      VIII.

     

    ADMINISTRATION
      AND COLLECTION

     

    Section
      8.1 Designation
      of Servicer.

     

    (a) The
      servicing, administration and collection of the Receivables shall be conducted
      by such Person (the “Servicer”)
      so
      designated from time to time in accordance with this Section 8.1. Wolverine
      Finance is hereby designated as, and hereby agrees to perform the duties and
      obligations of, the Servicer pursuant to the terms of this Agreement. The Agent
      may at any time following the occurrence of an Amortization Event designate
      as
      Servicer any Person to succeed Wolverine Finance or any successor
      Servicer.

     

    (b) Wolverine
      Finance may delegate, and Wolverine Finance hereby advises the Agent and the
      Purchasers that it has delegated, to the U.S. Originators, as sub-servicers
      of
      the Servicer, certain of its duties and responsibilities as Servicer hereunder
      in respect of the Receivables originated by such U.S. Originator. Without the
      prior written consent of the Agent and the Co-Agent, Wolverine Finance shall
      not
      be permitted to delegate any of its duties or responsibilities as Servicer
      to
      any Person other than (i) Seller, (ii) the U.S. Originators, and (iii) with
      respect to certain Defaulted Receivables, outside collection agencies in
      accordance with its customary practices. Neither Seller nor any Originator
      shall
      be permitted to further delegate to any other Person any of the duties or
      responsibilities of the Servicer delegated to it by Wolverine Finance. If at
      any
      time following an Amortization Event, the Agent shall designate as Servicer
      any
      Person other than Wolverine Finance, all duties and responsibilities theretofore
      delegated by Wolverine Finance to Seller or the U.S. Originators may, at the
      discretion of the Agent, be terminated forthwith on notice given by the Agent
      to
      Wolverine Finance and to Seller and the U.S. Originators.

     

    
      
         

      

      
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    (c) Notwithstanding
      the foregoing subsection (b) or anything else contained herein or in any other
      Transaction Document:

     

    (i)
      Wolverine Finance shall be and remain primarily liable to the Agent and the
      Purchasers for the full and prompt performance of all duties and
      responsibilities of the Servicer hereunder and the Agent and the Purchasers
      shall be entitled to deal exclusively with Wolverine Finance in matters relating
      to the discharge by the Servicer of its duties and responsibilities
      hereunder;

     

    (ii)
      the
      Agent and the Purchasers shall not be required to give notice, demand or other
      communication to any Person other than Wolverine Finance in order for
      communication to the Servicer and its sub-servicer or other delegate with
      respect thereto to be accomplished. Wolverine Finance, at all times that it
      is
      the Servicer, shall be responsible for providing any sub-servicer or other
      delegate of the Servicer with any notice given to the Servicer under this
      Agreement; and

     

    (iii)
      the
      Servicer may not, directly or indirectly, delegate to the Canadian Originator
      (or any other Person which is a resident of Canada or carries on business in
      Canada for purposes of the Income Tax Act (Canada)), the right to, and neither
      the Canadian Originator nor any such other Person may, perform any services
      in
      Canada in connection with the Receivables or, without limitation, contract
      for,
      or conclude contracts in the name of, or otherwise act as agent for, the
      Purchasers or the Agent in Canada and neither the Servicer nor Seller nor any
      delegate thereof is permitted to (nor has authority to) carry on business on
      behalf of, or establish an office or other fixed place of business of, the
      Purchasers or the Agent in Canada.

     

    In
      any
      event, any Person to whom the Servicer delegates any responsibility, may only
      carry out such delegated responsibility from a place of business in the United
      States and shall not, in any manner whatsoever, carry out any such delegated
      responsibility in Canada. To the extent any responsibilities of the Servicer
      or
      Seller in respect of the Receivables and Related Rights hereunder or under
      any
      other Transaction Document involve or require the Servicer or Seller to contract
      for, or conclude a contract in the name of, the Purchasers or the Agent,
      such servicing responsibility shall be fulfilled solely by the Servicer (and
      not
      by any other person) and the Servicer is authorized to take such action, but
      only from a place of business in the United States. None of the functions,
      obligations or authority of the Servicer in respect of the Receivables and
      Related Rights shall be carried out in Canada; provided that the Servicer may
      engage Canadian counsel from time to time for the sole purpose of bringing
      legal
      action on behalf of the Servicer to enforce payment of Receivables.

     

    Section
      8.2 Duties
      of
      Servicer.

     

    (a) The
      Servicer shall take or cause to be taken all such actions as may be necessary
      or
      advisable to collect each Receivable from time to time, all in accordance with
      applicable laws, rules and regulations, with reasonable care and diligence,
      and
      in accordance with the Credit and Collection Policy.

     

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    

     

    (b) The
      Servicer will instruct all Obligors to pay all Collections directly to a
      Lock-Box or Collection Account. The Servicer shall effect a Collection Account
      Agreement substantially in the form of Exhibit VI with each bank party to a
      Collection Account at any time. In the case of any remittances received in
      any
      Lock-Box or Collection Account that shall have been identified, to the
      satisfaction of the Servicer, to not constitute Collections or other proceeds
      of
      the Receivables or the Related Security, the Servicer shall promptly remit
      such
      items to the Person identified to it as being the owner of such remittances.
      The
      Agent may request that the Servicer, and the Servicer thereupon promptly shall
      instruct all Obligors with respect to the Receivables, to remit all payments
      thereon to a new depositary account specified by the Agent and, at all times
      thereafter, Seller and the Servicer shall not deposit or otherwise credit,
      and
      shall not permit any other Person to deposit or otherwise credit to such new
      depositary account any cash or payment item other than Collections.

     

    (c) The
      Servicer shall administer the Collections in accordance with the procedures
      described herein and in Article II. The Servicer shall set aside and hold in
      trust for the account of Seller and the Purchasers their respective shares
      of
      the Collections in accordance with Article II. The Servicer shall, upon the
      request of the Agent, segregate, in a manner acceptable to the Agent, all cash,
      checks and other instruments received by it from time to time constituting
      Collections from the general funds of the Servicer or Seller prior to the
      remittance thereof in accordance with Article II. If the Servicer shall be
      required to segregate Collections pursuant to the preceding sentence, the
      Servicer shall segregate and deposit with a bank designated by the Agent such
      allocable share of Collections of Receivables set aside for the Purchasers
      on
      the first Business Day following receipt by the Servicer of such Collections,
      duly endorsed or with duly executed instruments of transfer.

     

    (d) The
      Servicer may, in accordance with the Credit and Collection Policy, extend the
      maturity of any Receivable or adjust the Outstanding Balance of any Receivable
      as the Servicer determines to be appropriate to maximize Collections thereof;
      provided,
      however,
      that
      such extension or adjustment shall not alter the status of such Receivable
      as a
      Delinquent Receivable or Defaulted Receivable or limit the rights of the Agent
      or any Purchaser under this Agreement. Notwithstanding anything to the contrary
      contained herein, the Agent shall have the absolute and unlimited right upon
      the
      occurrence and during the continuation of an Amortization Event to direct the
      Servicer to commence or settle any legal action with respect to any Receivable
      or to foreclose upon or repossess any Related Security.

     

    (e) The
      Servicer shall hold in trust for Seller and the Agent and the Purchasers all
      Records that (i) evidence or relate to the Receivables, the related Contracts
      and Related Security or (ii) are otherwise necessary or desirable to collect
      the
      Receivables and shall, as soon as practicable upon demand of the Agent, deliver
      or make available to the Agent all such Records, at a place selected by the
      Agent. The Servicer shall, as soon as practicable following receipt thereof
      turn
      over to Seller any cash collections or other cash proceeds received with respect
      to Indebtedness not constituting Receivables. The Servicer shall, from time
      to
      time at the request of the Agent or any Purchaser, furnish to the Purchasers
      (promptly after any such request) a calculation of the amounts set aside for
      the
      Purchasers pursuant to Article II.

     

    (f) Any
      payment by an Obligor in respect of any indebtedness owed by it to Originator
      or
      Seller shall, except as otherwise specified by such Obligor or otherwise
      required by contract or law and unless otherwise instructed by the Agent, be
      applied as a Collection of any Receivable of such Obligor (starting with the
      oldest such Receivable) to the extent of any amounts then due and payable
      thereunder before being applied to any other receivable or other obligation
      of
      such Obligor.

     

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

    

     

    Section
      8.3 Control
      of Lock-Box and Collection Accounts.
      Seller
      hereby transfers to the Collateral Agent, for the benefit of the Agent and
      the
      Bank Agent, the exclusive control of each Lock-Box and the Collection Accounts.
      Seller hereby authorizes the Collateral Agent and the Agent, and agrees that
      the
      Collateral Agent and the Agent shall be entitled (i) to endorse Seller’s
      name on checks and other instruments representing Collections, (ii) to take
      such
      action as shall be necessary or desirable to cause all cash, checks and other
      instruments constituting Collections of Receivables to come into the possession
      of the Collateral Agent or Agent rather than Seller and (iii) at any time after
      the occurrence and during the continuation of an Amortization Event, to enforce
      the Receivables, the related Contracts and the Related Security.

     

    Section
      8.4 Responsibilities
      of Seller.
      Anything
      herein to the contrary notwithstanding, the exercise by the Agent, on behalf
      of
      the Purchasers, of the Agent’s rights hereunder shall not release the Servicer,
      any Originator or Seller from any of their duties or obligations with respect
      to
      any Receivables or under the related Contracts. The Agent and the Purchasers
      shall have no obligation or liability with respect to any Receivables or related
      Contracts, nor shall any of them be obligated to perform the obligations of
      Seller or any Originator thereunder.

     

    Section
      8.5 Settlement
      and Weekly Reports.
      The
      Servicer shall prepare and forward to the Agent and the Co-Agent (i) on each
      Monthly Reporting Date, a Settlement Report and an electronic file of the data
      contained therein, (ii) upon two (2) Business Day’s notice by Agent, a listing
      by Obligor of all Receivables together with an aging of such Receivables in
      an
      electronic file format satisfactory to the Agent, and (iii) not later than
      12:00
      noon (Alabama time) on each Weekly Reporting Date, a Weekly Report as of
      midnight (Alabama time) on the immediately preceding Sunday, and an electronic
      file of the data contained therein; provided,
      however,
      that
      the Agent may request that the Servicer deliver a Settlement Report more
      frequently than monthly.

     

    Section
      8.6 Servicing
      Fee.
      As
      compensation for the Servicer’s servicing activities on their behalf, the
      Servicer shall be paid the Servicing Fee in arrears on each Settlement Date
      out
      of Collections in accordance with Article II.

     

    ARTICLE
      IX.

     

    AMORTIZATION
      EVENTS

     

    Section
      9.1 Amortization
      Events.
      The
      occurrence of any one or more of the following events shall constitute an
      Amortization Event:

     

    (a) Any
      Seller Party shall fail to make any payment or deposit required to be made
      by it
      under the Transaction Documents when due and, for any such payment or deposit
      which is not in respect of the Aggregate Invested Amount, such failure continues
      for three (3) consecutive Business Days.

     

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

    

     

    (b) Any
      representation, warranty, certification or statement made by any Seller Party
      in
      any Transaction Document to which it is a party or in any other document
      delivered pursuant thereto shall prove to have been incorrect when made or
      deemed made.

     

    (c) Any
      Seller Party shall fail to perform or observe any covenant contained in Section
      7.2 or 8.5 when performance or observance is due; provided,
      however, that
      no
      Amortization Event shall exist if the Servicer is one Business Day late in
      delivering a Weekly Report not more than once in any calendar month (it being
      understood that such late delivery shall not delay the Weekly Adjustment Date
      for such week).

     

    (d) Any
      Seller Party shall fail to perform or observe any other covenant or agreement
      under any Transaction Documents and such failure shall continue for ten (10)
      consecutive Business Days.

     

    (e) Failure
      of Seller to pay any Indebtedness (other than the Aggregate Unpaids) when due
      or
      the default by Seller in the performance of any term, provision or condition
      contained in any agreement under which any such Indebtedness was created or
      is
      governed, the effect of which is to cause, or to permit the holder or holders
      of
      such Indebtedness to cause, such Indebtedness to become due prior to its stated
      maturity; or any such Indebtedness of Seller shall be declared to be due and
      payable or required to be prepaid (other than by a regularly scheduled payment)
      prior to the date of maturity thereof.

     

    (f) Failure
      of Performance Guarantor or any of its Subsidiaries other than Seller to pay
      Indebtedness in excess of US$2,500,000 (or the Canadian Dollar Equivalent
      thereof) in aggregate principal amount (hereinafter, “Material
      Indebtedness”)
      when
      due; or the default by Performance Guarantor or any of its Subsidiaries other
      than Seller in the performance of any term, provision or condition contained
      in
      any agreement under which any Material Indebtedness was created or is governed,
      the effect of which is to cause, or to permit the holder or holders of such
      Material Indebtedness to cause, such Material Indebtedness to become due prior
      to its stated maturity; or any Material Indebtedness of the Performance
      Guarantor or any of its Subsidiaries other than Seller shall be declared to
      be
      due and payable or required to be prepaid (other than by a regularly scheduled
      payment) prior to the date of maturity thereof.

     

    (g) An
      Event
      of Bankruptcy shall occur with respect to the Performance Guarantor or any
      of
      its Subsidiaries.

     

    (h) As
      at the
      end of any Calculation Period:

     

    (i) the
      three-month rolling average Delinquency Ratio shall exceed 2.75%,

     

    (ii) the
      three-month rolling average Default Ratio shall exceed 2.50%, or

     

    (iii) the
      three-month rolling average Dilution Ratio shall exceed 5.0%.

     

    (i) A
      Change
      of Control shall occur.

     

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

    

     

    (j) (i)
      One
      or more final judgments for the payment of money in an aggregate amount of
      US$12,300 (or the Canadian Dollar Equivalent thereof)or more shall be entered
      against Seller or (ii) one or more final judgments for the payment of money
      in
      an amount in excess of US$2,500,000 (or the Canadian Dollar Equivalent thereof),
      individually or in the aggregate, shall be entered against Performance Guarantor
      or any of its Subsidiaries (other than Seller on claims not covered by insurance
      or as to which the insurance carrier has denied its responsibility, and such
      judgment shall continue unsatisfied and in effect for thirty (30) consecutive
      days without a stay of execution.

     

    (k) The
      “Termination
      Date”
      under
      and as defined in either of the Receivables Sale Agreements shall occur under
      such Receivables Sale Agreement or any Originator shall for any reason cease
      to
      transfer, or cease to have the legal capacity to transfer, or otherwise be
      incapable of transferring Receivables to Seller under the applicable Receivables
      Sale Agreement (other than solely by reason of a merger of such Originator
      with
      and into another Originator).

     

    (l) This
      Agreement shall terminate in whole or in part (except in accordance with its
      terms), or shall cease to be effective or to be the legally valid, binding
      and
      enforceable obligation of Seller, or any Obligor shall directly or indirectly
      contest in any manner such effectiveness, validity, binding nature or
      enforceability, or the Agent for the benefit of the Purchasers shall cease
      to
      have a valid and perfected first priority security interest in the Purchased
      Assets.

     

    (m) On
      any
      Settlement Date, after giving effect to the turnover of Collections by the
      Servicer on such date and the application thereof to the Aggregate Unpaids
      in
      accordance with this Agreement, the Aggregate Invested Amount shall exceed
      the
      Purchase Limit.

     

    (n) The
      Performance Undertaking shall cease to be effective or to be the legally valid,
      binding and enforceable obligation of Performance Guarantor, or Performance
      Guarantor shall directly or indirectly contest in any manner such effectiveness,
      validity, binding nature or enforceability of its obligations
      thereunder.

     

    (o) The
      Internal Revenue Service shall file notice of a lien pursuant to Section 6323
      of
      the Tax Code with regard to any of the Purchased Assets and such lien shall
      not
      have been released within seven (7) days, or the PBGC shall, or shall indicate
      its intention to, file notice of a lien pursuant to Section 4068 of ERISA with
      regard to any of the Purchased Assets.

     

    (p) Any
      Plan
      of Performance Guarantor or any of its ERISA Affiliates:

     

    (i) shall
      fail to be funded in accordance with the minimum funding standard required
      by
      applicable law, the terms of such Plan, Section 412 of the Tax Code or Section
      302 of ERISA for any plan year or a waiver of such standard is sought or granted
      with respect to such Plan under applicable law, the terms of such Plan or
      Section 412 of the Tax Code or Section 303 of ERISA; or

     

    (ii) is
      being,
      or has been, terminated or the subject of termination proceedings under
      applicable law or the terms of such Plan; or

     

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

    

     

    (iii) shall
      require Performance Guarantor or any of its ERISA Affiliates to provide security
      under applicable law, the terms of such Plan, Section 401 or 412 of the Tax
      Code
      or Section 306 or 307 of ERISA; or

     

    (iv) results
      in a liability to Performance Guarantor or any of its ERISA Affiliates under
      applicable law, the terms of such Plan, or Title IV ERISA,

     

    and
      there
      shall result from any such failure, waiver, termination or other event a
      liability to the PBGC or a Plan that would have a Material Adverse
      Effect.

     

    (q) Any
      event
      shall occur which (i) materially and adversely impairs the ability of the
      Originators to originate Receivables of a credit quality that is at least equal
      to the credit quality of the Receivables sold or contributed to Seller on or
      prior to the date of this Agreement or (ii) has, or could be reasonably expected
      to have a Material Adverse Effect.

     

    (r) The
      Net
      Pool Balance shall at any time be less than an amount equal to the sum of (i)
      the Aggregate Invested Amount plus
      (ii) the
      Required Reserve after giving effect to the turnover of Collections by the
      Servicer on the next Settlement Date and the application thereof to the
      Aggregate Unpaid in accordance with this Agreement.

     

    (s) Failure
      of the Consolidated Parties
      to
      maintain a Fixed Charge Coverage Ratio during any period (i) beginning on
      the date on which the Obligations outstanding under and as defined in the ABL
      Credit Agreement shall equal or exceed US$25,000,000 and continuing until the
      termination of ABL Credit Agreement and the repayment in full of all such
      Obligations and (ii) after the termination of ABL Credit Agreement,
      equal to or more than the following amounts as of the last day of each month
      ended in the periods indicated below:

     

    

    
      	
               

              Period

            	
               

              Ratio

            
	
              1st
                Fiscal Quarter 2005 through 1st Fiscal Quarter 2006

            	
              1.00
                to 1.0

            
	
              2nd
                Fiscal Quarter 2006 through 3rd
                Fiscal Quarter 2006

            	
              1.05
                to 1.0

            
	
              4th
                Fiscal Quarter 2006 through 2nd
                Fiscal Quarter 2007

            	
              1.10
                to 1.0

            
	
              3rd
                Fiscal Quarter 2007

            	
              1.15
                to 1.0

            
	
              4th
                Fiscal Quarter and thereafter

            	
              1.20
                to 1.0

            

    

    

     

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

    
      (t) The
        Consolidated Parties
        shall make
        Capital Expenditures in excess of US$15,000,000 or the Canadian Dollar
        Equivalent thereof) during any fiscal year. 

       

      (u) Commencing
        with the fiscal quarter of the Consolidated Parties ending closest to June
        30,
        2007, and for each fiscal quarter thereafter, Consolidated EBITDA for the
        Consolidated Parties shall be less than US$32,000,000 (or the Canadian Dollar
        Equivalent thereof), calculated on a rolling four quarter basis.

       

      (v) The
        ABL
        Credit Agreement is terminated.

    

     

    Section
      9.2 Remedies.
      Upon the
      occurrence and during the continuation of an Amortization Event, the Agent
      may,
      or upon the direction of Wachovia and CIT/BC shall, take any of the following
      actions: (i) replace the Person then acting as Servicer, (ii) declare the
      Facility Termination Date to have occurred, whereupon Reinvestments shall
      immediately terminate and the Facility Termination Date shall forthwith occur,
      all without demand, protest or further notice of any kind, all of which are
      hereby expressly waived by each Seller Party; provided,
      however,
      that
      upon the occurrence of an Event of Bankruptcy with respect to any Seller Party,
      the Facility Termination Date shall automatically occur, without demand, protest
      or any notice of any kind, all of which are hereby expressly waived by each
      Seller Party, (iii) exercise all rights and remedies of a secured party upon
      default under the UCC, the PPSA and other applicable laws, and (iv) notify
      Obligors of the Agent’s security interest in the Receivables and other Purchased
      Assets. The aforementioned rights and remedies shall be without limitation,
      and
      shall be in addition to all other rights and remedies of the Agent and the
      Purchasers otherwise available under any other provision of this Agreement,
      by
      operation of law, at equity or otherwise, all of which are hereby expressly
      preserved, including, without limitation, all rights and remedies provided
      under
      the UCC, the PPSA (as applicable) or any comparable law, all of which rights
      shall be cumulative.

     

    ARTICLE
      X.

     

    INDEMNIFICATION

     

    Section
      10.1 Indemnities.

     

    10.1.1 Indemnities
      by Seller.
      Without
      limiting any other rights that the Agent or the Purchasers, may have hereunder
      or under applicable law, Seller hereby agrees to indemnify (and pay upon demand
      to) the Agent, each of the Purchasers and each of the respective assigns,
      officers, directors, agents and employees of the foregoing (each, an
“Indemnified
      Party”)
      from
      and against any and all damages, losses, claims, taxes, liabilities, costs,
      expenses and for all other amounts payable, including reasonable attorneys’ fees
      (which attorneys may be employees of the Agent or another Indemnified Party)
      and
      disbursements (all of the foregoing being collectively referred to as
“Indemnified
      Amounts”)
      awarded
      against or incurred by any of them arising out of or as a result of this
      Agreement or the acquisition, either directly or indirectly, by any Purchaser
      of
      an interest in the Receivables, excluding,
      however:

     

     

    
      
         

      

      
        30

        
          

        

      

      
         

      

    

     

    
      (a)
        Indemnified Amounts to the extent a final judgment of a court of competent
        jurisdiction holds that such Indemnified Amounts resulted from gross negligence
        or willful misconduct on the part of the Indemnified Party seeking
        indemnification; 

       

      (b)
        Indemnified Amounts to the extent the same includes losses in respect of
        Receivables that are uncollectible on account of the insolvency, bankruptcy
        or
        lack of creditworthiness of the related Obligor; or

       

      (c)
        (i)
        taxes on or measured by the overall net income of such Indemnified Party
        imposed
        by the United States, the jurisdiction under the laws of which such Indemnified
        Party is incorporated or otherwise organized, in which such Indemnified Party
        is
        a resident for income tax purposes, or in which such Indemnified Party’s
        principal executive office or lending office is located, in each case, including
        any political subdivision thereof, (ii) branch profits taxes, franchise taxes,
        or similar taxes imposed on the Indemnified Party, and (iii) other taxes
        imposed
        by any jurisdiction in which such Indemnified Party is subject to taxation
        for
        reasons other than the execution, delivery, performance, filing, recording,
        and
        enforcement of, and the other activities contemplated in this Agreement and
        the
        Indemnified Party’s participation in the transactions contemplated by this
        Agreement, to the extent that the computation of such taxes is consistent
        with
        the characterization for income tax purposes of the acquisition by any
        Purchaser, of Receivables as a loan or loans by any Purchaser, to Seller
        secured
        by the Receivables, the Related Security, the Collection Accounts and the
        Collections; 

provided,
      however,
      that
      nothing contained in this sentence shall limit the liability of Seller or limit
      the recourse of any Purchaser, to Seller for amounts otherwise specifically
      provided to be paid by Seller under the terms of this Agreement. Without
      limiting the generality of the foregoing indemnification, Seller shall indemnify
      the Agent and the Purchasers, for Indemnified Amounts (including, without
      limitation, losses in respect of uncollectible receivables, regardless of
      whether reimbursement therefor would constitute recourse to Seller) relating
      to
      or resulting from:

     

    (a) PLEASE
      do
      not delete this hidden level

     

    (i) any
      representation or warranty made by Seller or (to the extent Seller actually
      receives indemnity under a Receivables Sale Agreement) the Originator (or any
      officers of any such Person) under or in connection with this Agreement, any
      other Transaction Document or any other information or report delivered by
      any
      such Person pursuant hereto or thereto, which shall have been false or incorrect
      when made or deemed made;

     

    (ii) the
      failure by Seller or (to the extent Seller actually receives indemnity under
      a
      Receivables Sale Agreement) the Originator to comply with any applicable law,
      rule or regulation with respect to any Receivable or Contract related thereto,
      or the nonconformity of any Receivable or Contract included therein with any
      such applicable law, rule or regulation or (to the extent Seller actually
      receives indemnity under a Receivables Sale Agreement) any failure of the
      Originator to keep or perform any of its obligations, express or implied, with
      respect to any Contract;

     

    (iii) any
      failure of Seller or (to the extent Seller actually receives indemnity under
      a
      Receivables Sale Agreement) the Originator to perform its duties, covenants
      or
      other obligations in accordance with the provisions of this Agreement or any
      other Transaction Document;

     

     

    
      
         

      

      
        31

        
          

        

      

      
         

      

    

    
      (iv) any
        products liability, personal injury or damage suit, or other similar claim
        arising out of or in connection with merchandise, insurance or services that
        are
        the subject of any Contract or any Receivable;

       

      (v) any
        dispute, claim, offset or defense (other than discharge in bankruptcy of
        the
        Obligor) of the Obligor to the payment of any Receivable (including, without
        limitation, a defense based on such Receivable or the related Contract not
        being
        a legal, valid and binding obligation of such Obligor enforceable against
        it in
        accordance with its terms), or any other claim resulting from the sale of
        the
        merchandise or service related to such Receivable or the furnishing or failure
        to furnish such merchandise or services;

    

     

    (vi) the
      commingling by Seller or (to the extent Seller actually receives indemnity
      under
      a Receivables Sale Agreement) by the Originator of Collections of Receivables
      at
      any time with other funds;

     

    (vii) any
      investigation, litigation or proceeding related to or arising from this
      Agreement or any other Transaction Document, the transactions contemplated
      hereby, the use of the proceeds of any Purchase, the Purchased Assets or any
      other investigation, litigation or proceeding relating to Seller or (to the
      extent Seller actually receives indemnity under a Receivables Sale Agreement)
      the Originator in which any Indemnified Party becomes involved as a result
      of
      any of the transactions contemplated hereby;

     

    (viii) any
      inability to litigate any claim against any Obligor in respect of any Receivable
      as a result of such Obligor being immune from civil and commercial law and
      suit
      on the grounds of sovereignty or otherwise from any legal action, suit or
      proceeding;

     

    (ix) any
      Amortization Event of the type described in Section 9.1(g) with respect to
      any
      Seller Party;

     

    (x) any
      failure of Seller to acquire and maintain legal and equitable title to, and
      ownership of any of the Purchased Assets from the Originator, free and clear
      of
      any Adverse Claim (other than as created hereunder); or any failure of Seller
      to
      give reasonably equivalent value to the Originator under a Receivables Sale
      Agreement in consideration of the transfer by the Originator of any Receivable,
      or any attempt by any Person to void such transfer under statutory provisions
      or
      common law or equitable action;

     

    (xi) any
      failure to vest and maintain vested in the Agent for the benefit of the
      Purchasers or to transfer to the Agent for the benefit of the Purchasers, a
      valid first priority perfected security interest in the Purchased Assets, free
      and clear of any Adverse Claim (except as created by the Transaction
      Documents);

     

    (xii) the
      failure to have filed, or any delay in filing, financing statements or other
      similar instruments or documents under the UCC, the PPSA (as applicable) or
      any
      comparable law of any applicable jurisdiction or other applicable laws with
      respect to any Purchased Assets, and the proceeds thereof, whether at the time
      of any Purchase or at any subsequent time;

    
       

      
        
           

        

        
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    (xiii) any
      action or omission by Seller which reduces or impairs the rights of the Agent
      or
      any Purchaser with respect to any Purchased Assets or the value of any Purchased
      Assets;

     

    (xiv) any
      attempt by any Person to void any Purchase or the Agent’s security interest in
      the Purchased Assets under statutory provisions or common law or equitable
      action;

     

    (xv) the
      failure of any Receivable included in the calculation of the Net Pool Balance
      as
      an Eligible Receivable to be an Eligible Receivable at the time so
      included;

     

    (xvi) any
      civil
      penalty or fine assessed by OFAC against, and all reasonable costs and expenses
      (including counsel fees and disbursements) incurred in connection with defense
      thereof by Agent or any Purchaser as a result of the funding of the Commitments
      or the acceptance of payments due under the Transaction Documents;

     

    (xvii) any
      payment required to be made by the Agent to the Collateral Agent under the
      Intercreditor Agreement or by the Collateral Agent under any Collection Account
      Agreement; and

     

    (xviii) any
      present or future Taxes (as defined in Section 10.1.3) or similar charges or
      imposts, together with all interest and penalties thereon or with respect
      thereto and all out-of-pocket costs and expenses, including the reasonable
      fees
      and expenses of counsel in defending against the same, which may arise by reason
      of the purchase or ownership of any interest in the Receivables or any Related
      Security, the financing of such purchase or ownership by Seller or the servicing
      of the Receivables, including without limitation, any withholding taxes that
      are
      imposed by Canada or any political subdivision thereof on any Indemnified Party
      or that are withheld from any Collections or other payments made hereunder,
      and
      any such Taxes or similar charges or imposts that are imposed on any Indemnified
      Party as a result of such Indemnified Party having a permanent establishment
      in
      Canada or being found to be carrying on business in Canada (unless it acquired
      such permanent establishment or commenced to be carrying on business in Canada
      otherwise than as a result of the transactions contemplated hereby or by the
      other Transaction Documents); provided
      that
      promptly
      following an Authorized Officer of any Indemnified Party becoming aware of
      receipt (the “Receipt”)
      by such
      Indemnified Party of a written claim (the “Claim”)
      from
      Canadian tax authorities for payment of any Taxes in respect of which this
      clause (xviii) would apply, such Indemnified Party shall notify Seller thereof;
      and provided,
      further,
      that
      failure or delay in giving any such notice shall not affect the rights of such
      Indemnified Party under this clause (xviii) except that, if such notice is
      not
      given within 30 days after such Authorized Officer becomes aware of such
      Receipt, and no employee or advisor of Seller or any Affiliate thereof has,
      within such 30-day period, otherwise learned of such Claim (or that Canadian
      tax
      authorities have made or may make a claim for payment of any Taxes that are
      the
      subject of such Claim),
      Seller
      will not
      be liable to such Indemnified Party in respect of any interest or penalties
      under this clause (xviii) on or with respect to such Taxes to the
      extent that such interest or penalty accrues after the end of such 30-day period
      and before the date an employee or advisor of Seller or any Affiliate thereof
      learns of such Claim (or that Canadian tax authorities have made or may make
      a
      claim for payment of any Taxes that are the subject of such Claim).

    
       

      
        
           

        

        
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    10.1.2 Indemnity
      by Servicer.
      Without
      limiting any other rights which any such Person may have hereunder or under
      applicable law, Servicer agrees to indemnify each Indemnified Party for any
      and
      all Indemnified Amounts incurred by any of them arising out of or relating
      to:
      (i) any breach by Servicer of any of its obligations or duties under the
      Transaction Documents, (ii) the inaccuracy of any representation made by
      Servicer hereunder or in any certificate or written statement delivered pursuant
      hereto or any other Transaction Document, (iii) any commingling of any funds
      by
      Servicer or any of its Affiliates relating to the Receivables with any of
      Servicer’s funds or the funds of any other Person, (iv) except for adjustments
      permitted under Section 8.2(d), any action or omission by Servicer which reduces
      or impairs the rights of the Agent or the Purchasers with respect to any
      Receivable or the value of any such Receivable, (v) any investigation,
      litigation or proceeding relating to Servicer in which any Indemnified Party
      becomes involved specifically as a result of its servicing activities hereunder,
      (vi) any Amortization Event described in Section 9.1(g) with respect to
      Servicer, (vii) Servicer’s inclusion of any Receivable in the calculation of the
      Net Pool Balance as an Eligible Receivable if Seller or Originator had
      previously advised Servicer that such Receivable was not an Eligible Receivable,
      (viii) any civil penalty or fine assessed by OFAC against, and all reasonable
      costs and expenses (including counsel fees and disbursements) incurred in
      connection with defense thereof by Agent or any Purchaser as a result of any
      servicing activities hereunder; and (ix) any payment required to be made by
      the Agent to the Collateral Agent under the Intercreditor Agreement or by the
      Collateral Agent under any Collection Account Agreement. The foregoing indemnity
      by Servicer shall exclude Indemnified Amounts of the type described in the
      exclusion clause of Section 10.1.1 to the extent applicable.

    

     

    
      
        10.1.3
          Payments
          Free and Clear of Taxes, Etc.

      

    

     

    (a) Any
      and
      all payments required to be made by any Seller Party hereunder shall be made
      free and clear of and without deduction for any and all present or future taxes,
      levies, imposts, deductions, charges or withholdings, and all liabilities with
      respect thereto, excluding, in the case of any Indemnified Party, taxes imposed
      on its income by the United States (other than withholding taxes on interest),
      and franchise taxes and net income taxes (or equivalent taxes computed under
      alternative methods, at least one of which is based on net income) imposed
      on it
      by the jurisdiction under the laws of which such Indemnified Party is organized
      or by any political subdivision thereof (all such non-excluded taxes, levies,
      imposts, deductions, charges, withholdings and liabilities being hereinafter
      referred to as “Taxes”).
      If any
      Seller Party shall be required by law to deduct any Taxes from or in respect
      of
      any sum payable hereunder to (or for the benefit of) any Indemnified Party:
      (i) the sum payable shall be increased as may be necessary so that after
      making all required deductions (including deductions applicable to additional
      sums payable under this Section) such Indemnified Party receives an amount
      equal
      to the sum it would have received had no such deductions been made,
      (ii) such Seller Party shall make such deductions and (iii) such
      Seller Party shall pay the full amount deducted to the relevant taxation
      authority or other authority in accordance with applicable law.

    
       

      
        
           

        

        
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    (b) In
      addition, each Seller Party agrees to pay any present or future stamp or other
      documentary taxes or any other excise or property taxes, charges or similar
      levies which arise from any payment made hereunder or from the execution,
      delivery or registration of, or otherwise with respect to, this Agreement,
      other
      than U.S. federal taxes except for withholding taxes on interest (hereinafter
      referred to as “Other
      Taxes”).

     

    (c) Each
      Seller Party will indemnify each of the Indemnified Parties for the full amount
      of Taxes or Other Taxes (including, without limitation, any Taxes or Other
      Taxes
      imposed by any jurisdiction on amounts payable under this Section) paid by
      such
      Indemnified Party or deducted from any Collections (including any Taxes or
      amounts on account of Taxes deducted by any Obligor) and any liability
      (including penalties, interest and expenses) arising therefrom or with respect
      thereto, whether or not such Taxes or Other Taxes were correctly or legally
      asserted; provided
      that that
      applicable Seller Party will be entitled to reimbursement of amounts paid
      pursuant to this Section 10.1.3 that are ultimately determined not to be
      correctly or legally asserted. This indemnification shall be made within 30
      days
      from the date such Indemnified Party makes written demand therefor. A
      certificate as to the amount of such indemnification submitted to the Seller
      Parties by any Indemnified Party setting forth, in reasonable detail, the basis
      for and the calculation thereof, shall be conclusive and binding for all
      purposes absent manifest error.

     

    10.1.4 Currency.
      Unless
      otherwise expressly stated in this Agreement, to the extent that any Receivables
      are denominated in Canadian dollars, references herein to the balance or amount
      of such Receivables or Collections thereof, including the Outstanding Balance
      thereof, shall be deemed for all purposes to be references to the U.S. Dollar
      Equivalent of such balance or amount of such Receivables or Collections thereof
      denominated in Canadian dollars. Each of the Seller Parties will each make
      all
      payments of amounts owing by it hereunder in U.S. dollars (the “Original
      Currency”).
      If any
      Seller Party makes any such payment to any Indemnified Party in a currency
      (the
“Other
      Currency”)
      other
      than the Original Currency (whether voluntarily or pursuant to an order or
      judgment of a court or tribunal of any jurisdiction), such payment will
      constitute a discharge of the liability of such party hereunder in respect
      of
      such amount owing only to the extent of the amount of the Original Currency
      which such Indemnified Party is able to purchase, with the amount it receives
      on
      the date of receipt. If the amount of the Original Currency which such
      Indemnified Party is able to purchase is less than the amount of such currency
      originally so due in respect of such amount, such Seller Party will indemnify
      and save such Indemnified Party harmless from and against any loss or damage
      arising as a result of such deficiency. This indemnity will constitute an
      obligation separate and independent from the other obligations contained in
      this
      Agreement, will give rise to a separate and independent cause of action, will
      survive termination hereof, will apply irrespective of any indulgence granted
      by
      such Indemnified Party and will continue in full force and effect
      notwithstanding any judgment or order in respect of any amount due hereunder
      or
      under any judgment or order.

     

    Section
      10.2 Increased
      Cost and Reduced Return.
      If after
      April 28, 2005 (in the case of Wachovia) or April 4, 2006 (in the case of
      CIT/BC), any Regulatory Change shall occur: (i) that subjects any Committed
      Purchaser to any charge or withholding on or with respect to any Transaction
      Document, or on or with respect to the Receivables, or changes the basis of
      taxation of payments to any Committed Purchaser of any amounts payable under
      any
      Transaction Document (except for changes in the rate of tax on the overall
      net
      income of a Committed Purchaser or taxes excluded by Section 10.1) or (ii)
      that
      imposes, modifies or deems applicable any reserve, assessment, insurance charge,
      special deposit or similar requirement against assets of, deposits with or
      for
      the account of a Committed Purchaser, or credit extended by a Committed
      Purchaser pursuant to this Agreement or (iii) that imposes any other condition
      (other than with respect to taxes) the result of which is to increase the cost
      to a Committed Purchaser of performing its obligations under this Agreement,
      or
      to reduce the rate of return on a Committed Purchaser’s capital as a consequence
      of its obligations under this Agreement, or to reduce the amount of any sum
      received or receivable by a Committed Purchaser under any Transaction Document
      or to require any payment calculated by reference to the amount of interests
      or
      loans held or interest received by it, then, such Committed Purchaser shall
      notify the Agent and the Seller within 120 days after any Regulatory Change
      (other than with respect to taxes) giving rise to any such fee, expense,
      increased cost or reduced return and, upon written demand by the Agent setting
      forth in reasonable detail the basis for and computation of the amount of such
      claim, Seller shall pay to the Agent, for the benefit of the relevant Committed
      Purchaser, such amounts charged to such Committed Purchaser or such amounts
      to
      otherwise compensate such Committed Purchaser for such increased cost or such
      reduction. Failure of any Committed Purchaser to give notice within the 120-day
      period following a Regulatory Change (other than with respect to taxes) shall
      limit the applicable Committed Purchaser’s right to reimbursement to any such
      fees, expenses, increased costs or reduced returns that accrue or are incurred
      from and after the date on which such notice is actually given.

     

    
      
         

      

      
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    Section
      10.3 Other
      Costs and Expenses.
      Seller
      shall pay to the Agent and the Purchasers, on demand all reasonable costs and
      out-of-pocket expenses in connection with the preparation, execution, delivery
      and administration of this Agreement, the transactions contemplated hereby
      and
      the other documents to be delivered hereunder, including without limitation,
      the
      cost of the Agent’s auditors auditing the books, records and procedures of
      Seller (subject to the limitations in 7.1(d)), reasonable fees and out-of-pocket
      expenses of legal counsel for any Purchaser and the Agent (which such counsel
      may be employees of such Purchaser or the Agent) with respect thereto and with
      respect to advising such Purchaser or the Agent as to their respective rights
      and remedies under this Agreement. Seller shall pay to the Agent, for the
      benefit of the Agent and the applicable Purchaser(s), on demand any and all
      reasonable costs and expenses of the Agent and the Purchasers, if any, including
      reasonable counsel fees and expenses in connection with the enforcement of
      this
      Agreement and the other documents delivered hereunder and in connection with
      any
      restructuring or workout of this Agreement or such documents, or the
      administration of this Agreement following an Amortization Event.

     

    ARTICLE
      XI.

     

    THE
      AGENT AND THE CO-AGENT

     

    Section
      11.1 Authorization
      and Action.
      CIT/BC
      hereby designates and appoints CIT/BC to act as its co-agent under the
      Transaction Documents to which it is a party for the sole purpose of giving
      and
      receiving certain notices and reports. Each Purchaser hereby designates and
      appoints Wachovia to act as its agent under each Transaction Document, and
      authorizes the Agent to execute the Intercreditor Agreement and take such
      actions as agent on its behalf and to exercise such powers as are delegated
      to
      the Agent by the terms of the Transaction Documents together with such powers
      as
      are reasonably incidental thereto. The Agent and the Co-Agent shall not have
      any
      duties or responsibilities, except those expressly set forth in the Transaction
      Documents, or any fiduciary relationship with any Purchaser, and no implied
      covenants, functions, responsibilities, duties, obligations or liabilities
      on
      the part of the Agent or the Co-Agent shall be read into any Transaction
      Document or otherwise exist for the Agent or the Co-Agent. In performing its
      functions and duties under the Transaction Documents, the Agent shall act solely
      as agent for the Purchasers and does not assume nor shall be deemed to have
      assumed any obligation or relationship of trust or agency with or for any Seller
      Party or any of such Seller Party’s successors or assigns. The Agent shall not
      be required to take any action that exposes the Agent to personal liability
      or
      that is contrary to any Transaction Document or applicable law. The appointment
      and authority of the Agent hereunder shall terminate upon the indefeasible
      payment in full of all Aggregate Unpaids.

     

    
      
         

      

      
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    Section
      11.2 Delegation
      of Duties.
      The
      Agent may execute any of its duties under the Transaction Documents by or
      through agents or attorneys-in-fact and shall be entitled to advice of counsel
      concerning all matters pertaining to such duties. The Agent shall not be
      responsible for the negligence or misconduct of any agents or attorneys-in-fact
      selected by it with reasonable care.

     

    Section
      11.3 Exculpatory
      Provisions.
      Neither
      the Agent nor any of its directors, officers, agents or employees shall be
      (i)
      liable for any action lawfully taken or omitted to be taken by it or them under
      or in connection with any Transaction Document (except for its, their or such
      Person’s own gross negligence or willful misconduct), or (ii) responsible in any
      manner to any of the Purchasers for any recitals, statements, representations
      or
      warranties made by any Seller Party contained in any Transaction Document or
      any
      certificate, report, statement or other document referred to or provided for
      in,
      or received under or in connection with, any Transaction Document or for the
      value, validity, effectiveness, genuineness, enforceability or sufficiency
      of
      any Transaction Document or any other document furnished in connection
      therewith, or for any failure of any Seller Party to perform its obligations
      thereunder, or for the satisfaction of any condition specified in Article VI,
      or
      for the perfection, priority, condition, value or sufficiency of any collateral
      pledged in connection herewith. The Agent shall not be under any obligation
      to
      any Purchaser to ascertain or to inquire as to the observance or performance
      of
      any of the agreements or covenants contained in, or conditions of, this
      Agreement or any other Transaction Document, or to inspect the properties,
      books
      or records of the Seller Parties. The Agent shall not be deemed to have
      knowledge of any Amortization Event or Unmatured Amortization Event unless
      the
      Agent has received notice from a Seller Party or a Purchaser.

     

    Section
      11.4 Reliance
      by Agent.
      The
      Agent shall in all cases be entitled to rely, and shall be fully protected
      in
      relying, upon any document or conversation believed by it to be genuine and
      correct and to have been signed, sent or made by the proper Person or Persons
      and upon advice and statements of legal counsel (including, without limitation,
      counsel to Seller), independent accountants and other experts selected by the
      Agent. The Agent shall in all cases be fully justified in failing or refusing
      to
      take any action under the any Transaction Document unless it shall first receive
      such advice or concurrence of either Committed Purchaser or all of the
      Purchasers, as applicable, as it deems appropriate and it shall first be
      indemnified to its satisfaction by the Purchasers, provided that unless and
      until the Agent shall have received such advice, the Agent may take or refrain
      from taking any action, as the Agent shall deem advisable and in the best
      interests of the Purchasers. The Agent shall in all cases be fully protected
      in
      acting, or in refraining from acting, in accordance with a request of Wachovia
      or CIT/BC or all of the Purchasers, as applicable, and such request and any
      action taken or failure to act pursuant thereto shall be binding upon all the
      Purchasers.

    

      
        
           

        

        
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    Section
      11.5 Non-Reliance
      on Agent and Other Purchasers.
      Each
      Purchaser expressly acknowledges that neither the Agent, nor any of its
      officers, directors, employees, agents, attorneys-in-fact or affiliates has
      made
      any representations or warranties to it and that no act by the Agent hereafter
      taken, including, without limitation, any review of the affairs of any Seller
      Party, shall be deemed to constitute any representation or warranty by the
      Agent. Each Purchaser represents and warrants to the Agent that it has and
      will,
      independently and without reliance upon the Agent or any other Purchaser and
      based on such documents and information as it has deemed appropriate, made
      its
      own appraisal of and investigation into the business, operations, property,
      prospects, financial and other conditions and creditworthiness of Seller and
      made its own decision to enter into this Agreement, the other Transaction
      Documents and all other documents related hereto or thereto. 

     

    Section
      11.6 Reimbursement
      and Indemnification.
      The
      Committed Purchasers agree to reimburse and indemnify the Agent and its
      officers, directors, employees, representatives and agents ratably according
      to
      their respective Commitments, to the extent not paid or reimbursed by the Seller
      Parties (i) for any amounts for which the Agent, acting in its capacity as
      Agent, is entitled to reimbursement by the Seller Parties hereunder and (ii)
      for
      any other expenses incurred by the Agent, in its capacity as Agent and acting
      on
      behalf of the Purchasers, in connection with the administration and enforcement
      of this Agreement and the other Transaction Documents.

     

    Section
      11.7 Agent
      in
      its Individual Capacity.
      The
      Agent and its Affiliates may make loans to, accept deposits from and generally
      engage in any kind of business with Seller or any Affiliate of Seller as though
      the Agent were not the Agent hereunder. With respect to the acquisition of
      Receivable Interests pursuant to this Agreement, the Agent shall have the same
      rights and powers under this Agreement in its individual capacity as any
      Purchaser and may exercise the same as though it were not the Agent, and the
      terms “Committed
      Purchaser,” “Purchaser,” “Committed
      Purchasers,” and
      “Purchasers”
      shall be
      deemed to include the Agent in its individual capacity.

     

    Section
      11.8 Successor
      Agent.
      The
      Agent may, upon five days’ notice to Seller and the Purchasers, and the Agent
      will, upon the direction of all of the Purchasers (other than the Agent in
      its
      individual capacity) resign as Agent. If the Agent shall resign, then CIT/BC
      shall become the successor agent. After the effectiveness of any retiring
      Agent’s resignation hereunder as Agent, the retiring Agent shall be discharged
      from its duties and obligations hereunder and under the other Transaction
      Documents and the provisions of this Article XI and Article X shall continue
      in
      effect for its benefit with respect to any actions taken or omitted to be taken
      by it while it was Agent under this Agreement and under the other Transaction
      Documents.

     

    
      
         

      

      
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    ARTICLE
      XII.

     

    ASSIGNMENTS
      AND PARTICIPATIONS

     

    Section
      12.1 Prohibition
      on Assignments by Seller Parties.
      Except
      for delegation of servicing duties in accordance with Section 8.1(b), no Seller
      Party may assign any of its rights or obligations under this Agreement without
      the prior written consent of the Agent and the Purchasers (which consent shall
      not be unreasonably withheld),.

     

    Section
      12.2 Assignments
      by Purchasers.

     

    (a) [Intentionally
      deleted].

     

    (b) With
      the
      consent of the Agent and, prior to the Amortization, Seller, such consents
      not
      to be unreasonably withheld, any Committed Purchaser may at any time and from
      time to time assign to one or more Persons (“Purchasing
      Committed Purchasers”)
      all or
      any part of its rights and obligations under this Agreement pursuant to an
      assignment agreement in a form reasonably acceptable to the Agent (an
“Assignment
      Agreement”)
      executed by such Purchasing Committed Purchaser and such selling Committed
      Purchaser. Upon delivery of the executed Assignment Agreement to the Agent,
      such
      selling Committed Purchaser shall be released from its obligations hereunder
      to
      the extent of such assignment. Thereafter the Purchasing Committed Purchaser
      shall for all purposes be a Committed Purchaser party to this Agreement and
      shall have all the rights and obligations of a Committed Purchaser under this
      Agreement to the same extent as if it were an original party hereto and no
      further consent or action by Seller, any other Purchaser or the Agent shall
      be
      required; provided, however, that no Purchasing Committed Purchaser shall be
      entitled to receive any greater payment under Section 10.1.1 than the selling
      Committed Purchaser would have been entitled to receive thereunder.

     

    Section
      12.3 Participations.
      Any
      Purchaser may, in the ordinary course of its business at any time sell to one
      or
      more Persons (each such Person, a “Participant”)
      participating interests in its interests in the Receivable Interests or any
      other interest of such Purchaser hereunder. Notwithstanding any such sale by
      a
      Purchaser of a participating interest to a Participant, such Purchaser’s rights
      and obligations under this Agreement shall remain unchanged, such Purchaser
      shall remain solely responsible for the performance of its obligations
      hereunder, and Seller and the Agent shall continue to deal solely and directly
      with such Purchaser, as applicable, in connection with such Purchaser’s rights
      and obligations under this Agreement. Each Purchaser agrees that any agreement
      between such Purchaser and any such Participant in respect of such participating
      interest shall not restrict such Purchaser’s right to agree to any amendment,
      supplement, waiver or modification to this Agreement, except for any amendment,
      supplement, waiver or modification described in Section 13.1(b)(i). No
      Participant shall be entitled to receive any indemnification rights, benefits
      or
      payments direct from Seller under Section 10.1.1.

     

    

      
        
           

        

        
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    ARTICLE
      XIII.

     

    MISCELLANEOUS

     

    Section
      13.1 Waivers
      and Amendments.

     

    (a) No
      failure or delay on the part of the Agent or any Purchaser in exercising any
      power, right or remedy under this Agreement shall operate as a waiver thereof,
      nor shall any single or partial exercise of any such power, right or remedy
      preclude any other further exercise thereof or the exercise of any other power,
      right or remedy. The rights and remedies herein provided shall be cumulative
      and
      nonexclusive of any rights or remedies provided by law. Any waiver of this
      Agreement shall be effective only in the specific instance and for the specific
      purpose for which given.

     

    (b) No
      provision of this Agreement may be amended, supplemented, modified or waived
      except in writing in accordance with the provisions of this Section 13.1(b).
      Seller, the Agent and the Purchasers may enter into written modifications or
      waivers of any provisions of this Agreement, provided,
      however,
      that no
      such modification or waiver shall:

     

    (i) without
      the consent of each affected Purchaser, (A) extend the Facility Termination
      Date
      or the date of any payment or deposit of Collections by Seller or the Servicer,
      (B) reduce the rate or extend the time of payment of Yield (or any component
      of
      Yield), (C) reduce any fee payable to the Agent for the benefit of any
      Purchaser, (D) change the Invested Amount of any Receivable Interest, (E) amend,
      modify or waive any provision of this Section 13.1(b), (F) consent to or permit
      the assignment or transfer by Seller of any of its rights and obligations under
      this Agreement, (G) change the definition of “Eligible
      Receivable,” “Currency
      Reserve,” “Deemed Interest Reserve,” “Loss Reserve,” “Dilution
      Reserve,” “Purchase
      Price,” “Yield Reserve,” “Servicing Reserve,” “Servicing Fee Rate,” “Required
      Reserve” or
      “Required
      Reserve Factor Floor” or
      (H)
      amend or modify any defined term (or any defined term used directly or
      indirectly in such defined term) used in clauses (A) through (G) above in a
      manner that would circumvent the intention of the restrictions set forth in
      such
      clauses; or

     

    (ii) without
      the written consent of the then Agent, amend, modify or waive any provision
      of
      this Agreement if the effect thereof is to affect the rights or duties of such
      Agent.

     

    Section
      13.2 Notices.
      Except
      as provided in this Section 13.2, all communications and notices provided for
      hereunder shall be in writing (including bank wire, telecopy, e-mail or
      electronic facsimile transmission or similar writing) and shall be given to
      the
      other parties hereto at their respective addresses, e-mail addresses or telecopy
      numbers set forth on the signature pages hereof or at such other address or
      telecopy number as such Person may hereafter specify for the purpose of notice
      to each of the other parties hereto. Each such notice or other communication
      shall be effective (i) if given by telecopy, upon the receipt thereof, (ii)
      if
      given by mail, three (3) Business Days after the time such communication is
      deposited in the mail with first class postage prepaid, (iii) if given by
      e-mail, upon sender’s receipt of an acknowledgement from the intended recipient
      of a return e-mail, which may be delivered through a “request a read receipt for
      this message” function, as available, or other written acknowledgement, in each
      case acknowledging that sender’s e-mail has been read or (iv) if given by any
      other means, when received at the address specified in this Section 13.2. Seller
      hereby authorizes the Agent and the Co-Agent to effect Purchases and Interest
      Period and Yield Rate selections based on telephonic notices made by any Person
      whom the Agent or the Co-Agent, as the case may be, in good faith believes
      to be
      acting on behalf of Seller. Seller agrees to deliver promptly to the Agent
      and
      the Co-Agent a written confirmation of each telephonic notice signed by an
      authorized officer of Seller; provided,
      however,
      the
      absence of such confirmation shall not affect the validity of such notice.
      If
      the written confirmation differs from the action taken by the Agent or the
      Co-Agent, the records of the Agent or the Co-Agent, as the case may be, shall
      govern absent manifest error.

    
      
         

      

      
        40

        
          

        

      

      
         

      

    

    

    
       

      Section
        13.3 Protection
        of Agent’s Security Interest.

       

      (a) Seller
        agrees that from time to time, at its expense, it will promptly execute and
        deliver all instruments and documents, and take all actions, that may be
        necessary or desirable, or that the Agent may request, to perfect, protect
        or
        more fully evidence the Agent’s security interest in the Purchased Assets, or to
        enable the Agent or the Purchasers to exercise and enforce their rights and
        remedies hereunder. The Agent may, or the Agent may direct Seller or the
        Servicer to, notify the Obligors of Receivables, at Seller’s expense, of the
        ownership or security interests of the Purchasers under this Agreement and
        may
        also direct that payments of all amounts due or that become due under any
        or all
        Receivables be made directly to the Agent or its designee. Seller or the
        Servicer (as applicable) shall, at the Agent’s request, withhold the identities
        of the Agent and the Purchasers in any such notification.

       

    

    (b) If
      any
      Seller Party fails to perform any of its obligations hereunder, the Agent may
      (but shall not be required to), after delivery of notice to such Seller Party
      (which notice shall not be required after the occurrence of an Amortization
      Event), perform, or cause performance of, such obligations, and the Agent’s
      costs and expenses incurred in connection therewith shall be payable by Seller
      as provided in Section 10.3. Each Seller Party irrevocably authorizes the Agent
      at any time and from time to time in the sole discretion of the Agent, and
      appoints the Agent as its attorney-in-fact, to act on behalf of such Seller
      Party (i) to execute on behalf of Seller as debtor (if required) and to file
      financing statements necessary or desirable in the Agent’s sole discretion to
      perfect and to maintain the perfection and priority of the interest of the
      Purchasers in the Receivables and (ii) to file a carbon, photographic or other
      reproduction of this Agreement or any financing statement with respect to the
      Receivables as a financing statement in such offices as the Agent in its sole
      discretion deems necessary or desirable to perfect and to maintain the
      perfection and priority of the Agent’s security interest in the Purchased
      Assets, for the benefit of the Secured Parties. This appointment is coupled
      with
      an interest and is irrevocable. Each of the Seller Parties (A) hereby authorizes
      the Agent to file financing statements and other filing or recording documents
      with respect to the Receivables and Related Security (including any amendments
      thereto, or continuation or termination statements thereof), without the
      signature or other authorization of such Seller Party, in such form and in
      such
      offices as the Agent reasonably determines appropriate to perfect or maintain
      the perfection of the security interest of the Agent hereunder, (B) acknowledges
      and agrees that it is not authorized to, and will not, file financing statements
      or other filing or recording documents with respect to the Receivables or
      Related Security (including any amendments thereto, or continuation or
      termination statements thereof), without the express prior written approval
      by
      the Agent, consenting to the form and substance of such filing or recording
      document, and (C) approves, authorizes and ratifies any filings or recordings
      made by or on behalf of the Agent in connection with the perfection of the
      security interests in favor of Seller or the Agent.

    
      
         

      

      
        41

        
          

        

      

      
         

      

    

     

    Section
      13.4 Confidentiality.

     

    (a) Each
      of
      the Seller Parties shall maintain and shall cause each of its directors,
      officers and employees to maintain the confidentiality of the Fee Letters and
      the other confidential or proprietary information with respect to the Agent
      or
      any Purchaser and their respective businesses obtained by such Seller Party
      in
      connection with the structuring, negotiating and execution of the transactions
      contemplated herein, except that such Seller Party and its directors, officers
      and employees may disclose such information to such Seller Party’s external
      accountants, advisors and attorneys and as required by any applicable law or
      order of any judicial or administrative proceeding, provided
      that
      each
      such Person is informed of the confidential nature of such information and
      either agrees (or is under a professional ethical obligation) to keep such
      information confidential.

     

    (b) Anything
      herein to the contrary notwithstanding, each Seller Party hereby consents to
      the
      disclosure of any nonpublic information with respect to it (i) to the Agent
      and
      each of the Purchasers by each other, (ii) by the Agent or any Purchaser to
      any
      prospective or actual assignee or participant of any of them, and (iii) by
      the
      Agent or any Purchaser to any directors, officers, employees, outside
      accountants, advisors and attorneys of any of the foregoing, provided
      that
      each
      such Person in this clause (iii) is informed of the confidential nature of
      such
      information and either agrees (or is under a professional ethical obligation)
      to
      keep such information confidential. In addition, each of the Purchasers and
      the
      Agent may disclose any such nonpublic information pursuant to any law, rule,
      regulation, direction, request or order of any judicial, administrative or
      regulatory authority or proceedings (whether or not having the force or effect
      of law).

     

    (c) Notwithstanding
      any other express or implied agreement to the contrary, the parties hereto
      agree
      that each of them and each of their employees, representatives, and other agents
      may disclose to any and all Persons, without limitation of any kind, the tax
      treatment and tax structure of the transaction and all materials of any kind
      (including opinions or other tax analyses) that are provided to any of them
      relating to such tax treatment and tax structure, except where confidentiality
      is reasonably necessary to comply with U.S. federal or state securities laws.
      For purposes of this paragraph, the terms “tax treatment” and “tax structure”
have the meanings specified in Treasury Regulation section
      1.6011-4(c).

     

    Section
      13.5 [Intentionally
      deleted]. 

     

    Section
      13.6 Limitation
      of Recourse and Liability.

     

    (a)
      Except with respect to any claim arising out of the willful misconduct or gross
      negligence of the Agent or any Purchaser, no claim may be made by any Seller
      Party or any other Person against the Agent or any Purchaser or their respective
      Affiliates, directors, officers, employees, attorneys or agents for any special,
      indirect, consequential or punitive damages in respect of any claim for breach
      of contract or any other theory of liability arising out of or related to the
      transactions contemplated by this Agreement, or any act, omission or event
      occurring in connection therewith; and each Seller Party hereby waives,
      releases, and agrees not to sue upon any claim for any such damages, whether
      or
      not accrued and whether or not known or suspected to exist in its
      favor.

    
      
         

      

      
        42

        
          

        

      

      
         

      

    

     

    (b)
      No
      recourse under or with respect to any obligation, covenant or agreement
      (including, without limitation, the payment of any fees or any other
      obligations) of any Purchaser as contained in this Agreement or any other
      agreement, instrument or document entered into by it pursuant hereto or in
      connection herewith shall be had against any administrator of such Purchaser
      or
      any incorporator, affiliate, stockholder, officer, employee or director of
      such
      Purchaser or of any such administrator, as such, by the enforcement of any
      assessment or by any legal or equitable proceeding, by virtue of any statute
      or
      otherwise; it being expressly agreed and understood that the agreements of
      such
      Purchaser contained in this Agreement and all of the other agreements,
      instruments and documents entered into by it pursuant hereto or in connection
      herewith are, in each case, solely the corporate obligations of such Purchaser,
      and that no personal liability whatsoever shall attach to or be incurred by
      any
      administrator of such Purchaser or any incorporator, stockholder, affiliate,
      officer, employee or director of such Purchaser or of any such administrator,
      as
      such, or any other of them, under or by reason of any of the obligations,
      covenants or agreements of such Purchaser contained in this Agreement or in
      any
      other such instruments, documents or agreements, or that are implied therefrom,
      and that any and all personal liability of every such administrator of such
      Purchaser and each incorporator, stockholder, affiliate, officer, employee
      or
      director of such Purchaser or of any such administrator, or any of them, for
      breaches by such Purchaser of any such obligations, covenants or agreements,
      which liability may arise either at common law or at equity, by statute or
      constitution, or otherwise, is hereby expressly waived as a condition of and
      in
      consideration for the execution of this Agreement. The provisions of this
      Section 13.6 shall survive the termination of this Agreement.

     

    Section
      13.7 CHOICE
      OF
      LAW.
      THIS
      AGREEMENT SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
      STATE OF NEW YORK,
      WITHOUT
      REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS THEREOF OTHER THAN SECTION 5-1401
      OF THE GENERAL OBLIGATIONS LAW (EXCEPT IN THE CASE OF THE OTHER TRANSACTION
      DOCUMENTS, TO THE EXTENT OTHERWISE EXPRESSLY STATED THEREIN) AND
      EXCEPT
      TO THE EXTENT THAT THE PERFECTION OF THE OWNERSHIP INTEREST OF SELLER OR THE
      SECURITY INTEREST OF THE AGENT, FOR THE BENEFIT OF THE SECURED PARTIES, IN
      ANY
      OF THE COLLATERAL IS GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE
      STATE
      OF NEW YORK.

     

    Section
      13.8 CONSENT
      TO JURISDICTION.
      EACH
      PARTY TO THIS AGREEMENT HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE
      JURISDICTION OF ANY UNITED STATES FEDERAL OR NEW YORK STATE COURT SITTING IN
      NEW
      YORK, NEW YORK, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
      AGREEMENT OR ANY DOCUMENT EXECUTED BY SUCH PERSON PURSUANT TO THIS AGREEMENT,
      AND EACH SUCH PARTY HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF
      SUCH
      ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND
      IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE
      OF
      ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT
      IS AN INCONVENIENT FORUM. NOTHING HEREIN SHALL LIMIT THE RIGHT OF THE AGENT
      OR
      ANY PURCHASER TO BRING PROCEEDINGS AGAINST ANY SELLER PARTY IN THE COURTS OF
      ANY
      OTHER JURISDICTION. ANY JUDICIAL PROCEEDING BY ANY SELLER PARTY AGAINST THE
      AGENT OR ANY PURCHASER OR ANY AFFILIATE OF THE AGENT OR ANY PURCHASER INVOLVING,
      DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR
      CONNECTED WITH THIS AGREEMENT OR ANY DOCUMENT EXECUTED BY SUCH SELLER PARTY
      PURSUANT TO THIS AGREEMENT SHALL BE BROUGHT ONLY IN A COURT IN NEW YORK, NEW
      YORK.

    
      
         

      

      
        43

        
          

        

      

      
         

      

    

    
       

      Section
        13.9 WAIVER
        OF
        JURY TRIAL.
        EACH
        PARTY HERETO HEREBY WAIVES TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING,
        DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR
        OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS
        AGREEMENT, ANY DOCUMENT EXECUTED BY ANY SELLER PARTY PURSUANT TO THIS AGREEMENT
        OR THE RELATIONSHIP ESTABLISHED HEREUNDER OR THEREUNDER.

       

      Section
        13.10 Integration;
        Binding Effect; Survival of Terms.

       

      (a) This
        Agreement and each other Transaction Document contain the final and complete
        integration of all prior expressions by the parties hereto with respect to
        the
        subject matter hereof and shall constitute the entire agreement among the
        parties hereto with respect to the subject matter hereof superseding all
        prior
        oral or written understandings.

    

     

    (b) This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective successors and permitted assigns (including any trustee
      in
      bankruptcy). This Agreement shall create and constitute the continuing
      obligations of the parties hereto in accordance with its terms and shall remain
      in full force and effect until terminated in accordance with its terms;
provided,
      however,
      that the
      rights and remedies with respect to (i) any breach of any representation and
      warranty made by any Seller Party pursuant to Article V, (ii) the
      indemnification and payment provisions of Article X, and Sections 13.4 and
      13.5
      shall be continuing and shall survive any termination of this
      Agreement.

     

    Section
      13.11 Counterparts;
      Severability; Section References.
      This
      Agreement may be executed in any number of counterparts and by different parties
      hereto in separate counterparts, each of which when so executed shall be deemed
      to be an original and all of which when taken together shall constitute one
      and
      the same Agreement. Delivery of an executed counterpart of a signature page
      to
      this Agreement by telecopier shall be effective as delivery of a manually
      executed counterpart of a signature page to this Agreement. Any provisions
      of
      this Agreement which are 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, and
      any
      such prohibition or unenforceability in any jurisdiction shall not invalidate
      or
      render unenforceable such provision in any other jurisdiction. Unless otherwise
      expressly indicated, all references herein to “Article,” “Section,” “Schedule”
      or
“Exhibit”
      shall
      mean articles and sections of, and schedules and exhibits to, this
      Agreement.

    
      
         

      

      
        44

        
          

        

      

      
         

      

    

     

    Section
      13.12 Characterization.

     

    (a) It
      is the
      intention of the parties hereto that each Purchase hereunder shall constitute
      and be treated as an absolute and irrevocable sale, which Purchase shall provide
      the Purchasers with the full benefits of ownership of the applicable Receivable
      Interest. Except as specifically provided in this Agreement, each sale of a
      Receivable Interest hereunder is made without recourse to Seller; provided,
      however,
      that (i)
      Seller shall be liable to the Purchasers and the Agent for all representations,
      warranties, covenants and indemnities made by Seller pursuant to the terms
      of
      this Agreement, and (ii) such sale does not constitute and is not intended
      to
      result in an assumption by any Purchaser or the Agent or any assignee thereof
      of
      any obligation of Seller or any Originator or any other person arising in
      connection with the Receivables, the Related Security, or the related Contracts,
      or any other obligations of Seller or any Originator.

     

    (b) In
      addition to any ownership interest which the Agent or the Purchasers may from
      time to time acquire pursuant hereto, Seller hereby grants to the Agent for
      the
      ratable benefit of Secured Parties a valid and perfected security interest
      in
      all of Seller’s right, title and interest in, to and under all Receivables now
      existing or hereafter arising, the Collections, each Lock-Box, each Collection
      Account, all Related Security, all other rights and payments relating to such
      Receivables, and all proceeds of any of the foregoing prior to all other liens
      on and security interests therein to secure the prompt and complete payment
      of
      the Aggregate Unpaids. To the fullest extent permitted by applicable law, Seller
      hereby authorizes the Agent and its counsel to file the UCC or PPSA financing
      statements (and any and all amendments thereto and continuations thereof),
      which
      financing statements may include “all-assets” descriptions of collateral,
      necessary or desirable in the opinion of the Agent to perfect or maintain the
      perfection of the Agent’s security interest granted herein or any portion
      thereof, in each of the foregoing cases, without the signature and without
      further authorization of Seller. The Agent, on behalf of the Secured Parties,
      shall have, in addition to the rights and remedies that it may have under this
      Agreement, all other rights and remedies provided to a secured creditor under
      the UCC, the PPSA (as applicable) and other applicable law, which rights and
      remedies shall be cumulative.

     

    <signature
      pages follow>

    
      
         

      

      
        45

        
          

        

      

      
         

      

    

    

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto have caused this Agreement to be executed and delivered by their
      duly authorized officers or attorneys-in-fact as of the date
      hereof.

     

    DEJ
      98
      FINANCE, LLC

    

    

    By:      

    Name:

    Title:

    

    

    Address: 

    

    DEJ
      98
      Finance, LLC

    200
      Clinton Avenue, Suite 1100 

    Huntsville,
      AL  35801

    Attention: David
      A.
      Owen, Chief Financial Officer 

    Telephone: (256)
      580-3976 

    Facsimile: 
       (256)
      580-3996

    E-mail:       
      owend@wlv.com

    

    

    

    

    

    WOLVERINE
      FINANCE, LLC

    

    

    By:      

    Name:

    Title:

    

    Address: 

    

    Wolverine
      Finance, LLC

    200
      Clinton Avenue, Suite 1000 

    Huntsville,
      AL  35801

    Attention: David
      A.
      Owen, Chief Financial Officer 

    Telephone: (256)
      580-3976 

    Facsimile: 
       (256)
      580-3996

    E-mail:       
      owend@wlv.com

    
 

    
      
         

      

      
        46

        
          

        

      

      
         

      

    

    

    WOLVERINE
      TUBE, INC.

    

    

    By:      

    Name:

    Title

    

    Address: 

    

    Wolverine
      Tube, Inc.

    200
      Clinton Avenue, Suite 1000 

    Huntsville,
      AL  35801

    Attention: David
      A.
      Owen, Chief Financial Officer 

    Telephone: (256)
      580-3976 

    Facsimile:   
      (256)
      580-3996

    E-mail:       
       owend@wlv.com

    

    

    

    
      
         

      

      
        47

        
          

        

      

      
         

      

    

    THE
      CIT
      GROUP/BUSINESS CREDIT, INC.,

    individually
      and as Co-Agent

    

    

    

    By:
      __________________________________

    Name:
      

    Title:
      

    

    Address:

    CIT
      Group

    11
      West
      42nd
      St,
      Floor 13

    New
      York,
      NY 10036

    Attention:
      Andrew Talbot

    

    Email:
        Andrew.Talbot@CIT.com

    Phone: 
      212-461-7865

    Fax:     
      212-461-7760

    

    
      
         

      

      
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    WACHOVIA
      BANK, NATIONAL
      ASSOCIATION,
      as a
      Committed Purchaser and as Agent

    

    

    By:      

    Name:

    Title:

    

    Address:

    

    Wachovia
      Bank, National Association

    171
      17th
      Street, N.W., 4th Floor

    Mail-stop
      GA4524

    Atlanta,
      GA 30363

    Attention:
      Elizabeth Wagner

    Phone: (404)
      214-5456

    Fax: (404)
      214-5481

    E-mail:
      elizabeth.wagner@wachovia.com

    

    

    
      
         

      

      
        49

        
          

        

      

      
         

      

    

    EXHIBIT
      I

    

    DEFINITIONS

    

    As
      used in this Agreement, the following terms shall have the following meanings
      (such meanings to be equally applicable to both the singular and plural forms
      of
      the terms defined):

     

    “ABL
      Credit Agreement” has
      the
      meaning set forth in the definition of the term “Bank Agent”.

     

    “Adjusted
      Dilution Ratio”
      means,
      at any time, the rolling average of the Dilution Ratio for the 12 Calculation
      Periods then most recently ended.

     

    “Adverse
      Claim”
      means a
      lien, security interest, charge, hypothec or encumbrance, or other right or
      claim in, of or on any Person’s assets or properties in favor of any other
      Person.

     

    “Affiliate”
      means,
      with respect to any Person, any other Person directly or indirectly controlling,
      controlled by, or under direct or indirect common control with, such Person
      or
      any Subsidiary of such Person. A Person shall be deemed to control another
      Person if the controlling Person owns 10% or more of any class of voting
      securities of the controlled Person or possesses, directly or indirectly, the
      power to direct or cause the direction of the management or policies of the
      controlled Person, whether through ownership of stock, by contract or
      otherwise.

     

    “Agent”
      has the
      meaning set forth in the preamble to this Agreement.

     

    “Agent’s
      Account”
      means
      account #2000002391825 at Wachovia Bank, National Association, ABA #053 000
      219.

     

    “Aggregate
      Invested Amount”
      means,
      on any date of determination, the aggregate Invested Amount of all Receivable
      Interests outstanding on such date.

     

    “Aggregate
      Reduction”
      has the
      meaning specified in Section 1.3.

     

    “Aggregate
      Unpaids”
      means,
      at any time, an amount equal to the sum of (i) the Aggregate Invested Amount,
      plus
      (ii) all
      Recourse Obligations (whether due or accrued) at such time.

     

    “Agreement”
      means
      this Amended and Restated Receivables Purchase Agreement, as it may be amended
      or modified and in effect from time to time.

     

    “Alternate
      Base Rate”
      means
      for any day, (i) the rate per
      annum
      equal to
      the higher as of such day of (x) the Prime Rate, or (y) one-half of one percent
      (0.50%) above the Federal Funds Rate plus
      (ii) the Applicable Base Rate Percentage per
      annum
      then in
      effect. For purposes of determining the Alternate Base Rate for any day, changes
      in the Prime Rate or the Federal Funds Rate shall be effective on the date
      of
      each such change.

     

    
      
         

      

      
        50

        
          

        

      

      
         

      

    

    

     

    “Amortization
      Date”
      means
      the earliest to occur of (i) the Business Day immediately prior to the
      occurrence of an Event of Bankruptcy with respect to any Seller Party, (ii)
      the
      Business Day specified in a written notice from the Agent following the
      occurrence of any other Amortization Event, and (iii) the date which is ten
      (10)
      Business Days after the Agent’s receipt of written notice from Seller that it
      wishes to terminate the facility evidenced by this Agreement.

     

    “Amortization
      Event”
      has the
      meaning specified in Article IX.

     

    “Applicable
      Base Rate Percentage”
has
      the
      meaning specified in each Fee Letter.

     

    “Applicable
      LIBO Rate Percentage”
      has the
      meaning specified in each Fee Letter.

     

    “Applicable
      Percentage”
      has the
      meaning specified in each Fee Letter.

     

    “Authorized
      Officer”
      means,
      with respect to any Person, its president, corporate controller, treasurer
      or
      chief financial officer.

     

    “Bank
      Agent” means
      Wachovia Bank, National Association, as administrative agent for the financial
      institutions party to that certain Amended and Restated Credit Agreement, dated
      as of April 28, 2005 (as the same may be amended, restated or otherwise modified
      from time to time, the “ABL
      Credit Agreement”),
      and
      its successors and assigns.

     

    “Best
      Possible DSO” means,
      as
      of any date of determination, the product of (i) a fraction, the numerator
      of which is the average, during the three most recently ended fiscal months
      of
      the Originators, of the aggregate Outstanding Balance of Current Receivables
      as
      of the last day of each such fiscal month, and the denominator of which is
      the
      average, during such three fiscal month period, of the aggregate sales generated
      by the Originators during each such fiscal month, multiplied
      by (ii)
      30.

     

    “Broken
      Funding Costs”
      means
      for any Receivable Interest which: (i) has its Invested Amount reduced without
      compliance by Seller with the notice requirements hereunder or (ii) does not
      become subject to an Aggregate Reduction following the delivery of any Reduction
      Notice, an amount equal to the excess, if any, of (A) the Yield that would
      have
      accrued during the remainder of the Interest Periods subsequent to the date
      of
      such reduction, assignment or termination (or in respect of clause (ii) above,
      the date such Aggregate Reduction was designated to occur pursuant to the
      Reduction Notice) of the Invested Amount of such Receivable Interest if such
      reduction, assignment or termination had not occurred or such Reduction Notice
      had not been delivered, over (B) the sum of (x) to the extent all or a portion
      of such Invested Amount is allocated to another Receivable Interest, the amount
      of Yield actually accrued during the remainder of such period on such Invested
      Amount for the new Receivable Interest, and (y) to the extent such Invested
      Amount is not allocated to another Receivable Interest, the income, if any,
      actually received during the remainder of such period by the holder of such
      Receivable Interest from investing the portion of such Invested Amount not
      so
      allocated. All Broken Funding Costs shall be due and payable hereunder upon
      demand.

     

    
      
         

      

      
        51

        
          

        

      

      
         

      

    

    

     

    “Business
      Day” means
      any
      day on which banks are not authorized or required to close in New York, New
      York
      or Atlanta, Georgia, and The Depository Trust Company of New York is open for
      business, and, if the applicable Business Day relates to any computation or
      payment to be made with respect to the LIBO Rate, any day on which dealings
      in
      United States dollar deposits are carried on in the London interbank
      market.

     

    “Calculation
      Period” means
      each fiscal month of the Performance Guarantor or portion thereof which elapses
      during the term of the Agreement. The final Calculation Period shall terminate
      on the later “Termination Date” under and as defined in each of the Receivables
      Sale Agreements. As used in Section 3.2, Section 3.3, and the definition of
      the
      term “Servicing Fee” and as used in the Fee Letter, the first Calculation Period
      shall commence on the date hereof; otherwise Calculation Period may cover a
      period before the date hereof, as the context requires.

     

    “Canadian
      Dollar Equivalent”
means,
      at the date of determination, the amount of Canadian dollars that the Agent
      could purchase, in accordance with its normal practice, with a specified amount
      of U.S. dollars based on the Bank of Canada noon spot rate on such
      date.

     

    “Canadian
      Originator” means
      Wolverine Tube (Canada) Inc., an Ontario corporation.

     

    “Canadian
      Person” means
      (a)
      a natural person who  resides, carries on business or has assets in
      Canada; (b) a corporation or other  organization  that
      carries on business, does business or has assets in Canada, (c) the heirs,
      executors, liquidators, successors, administrators or other legal
      representatives of such a natural person or corporation or other organization
      and  (d) the government of Canada or any of its provinces or territories or
      any subdivision or agency of the foregoing.

     

    “Canadian
      Receivables Sale Agreement”
      means
      that certain Receivables Sale Agreement dated as of April 4, 2006, between
      the
      Canadian Originator and Seller, as the same may be amended, restated or
      otherwise modified from time to time.

     

    “Capital
      Expenditures”
means
      any current expenditure by the Consolidated Parties for fixed or capital assets
      as reflected on the financial statements of the Consolidated Parties, as
      prepared in accordance with GAAP.

     

    “Change
      of Control”
      means
      (a) the acquisition by any Person, or two or more Persons acting in concert,
      of
      beneficial ownership (within the meaning of Rule 13d-3 of the Securities and
      Exchange Commission under the Securities Exchange Act of 1934) of 20% or more
      of
      the outstanding shares of voting Equity Interests in Wolverine Finance, or
      (b)
      the Performance Guarantor ceases to own, directly or indirectly, 49% of
      outstanding voting Equity Interests in Seller.

     

    “Co-Agent”
      has the
      meaning set forth in the preamble to this Agreement.

     

    “Collateral
      Agent” means
      Wachovia Bank, National Association, acting as collateral agent under the
      Collection Account Agreement for the Agent and the Bank Agent.

     

    
      
         

      

      
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    “Collection
      Account”
      means
      each concentration account, depositary account, lock-box account or similar
      account in which any Collections are collected or deposited and which is listed
      on Exhibit IV.

     

    “Collection
      Account Agreement”
      means an
      agreement substantially in the form of Exhibit VI among an Seller, Wolverine
      Finance, the Collateral Agent and a Collection Bank.

     

    “Collection
      Bank”
      means,
      at any time, any of the banks holding one or more Collection
      Accounts.

     

    “Collections”
      means,
      with respect to any Receivable, all cash collections and other cash proceeds
      in
      respect of such Receivable, including, without limitation, all Finance Charges
      (except with respect to any Receivable originated by the Canadian Originator)
      or
      other related amounts accruing in respect thereof and all cash proceeds of
      Related Security with respect to such Receivable (excluding, for the avoidance
      of doubt, the obligation to pay any PST or Finance Charges with respect to
      any
      Receivable originated by the Canadian Originator, but including, for greater
      certainty, any GST and QST with respect thereto).

     

    “Commitment”
      means,
      for each Committed Purchaser, the commitment of such Committed Purchase to
      purchase Receivable Interests from Seller in an amount not to exceed (i) in
      the
      aggregate, the amount set forth opposite such Committed Purchaser’s name on
      Schedule A to this Agreement, as such amount may be modified in accordance
      with
      the terms hereof and (ii) with respect to any individual purchase hereunder,
      the
      portion of the Purchase Price therefor specified in Section 1.2(c)
      hereof.

     

    “Committed
      Purchaser”
      means
      each of CIT/BC and Wachovia.

     

    “Committed
      Purchaser Investment”
      means
      each portion of any Receivable Interest which is funded by CIT/BC or by
      Wachovia.

     

    “Contingent
      Obligation”
      of a
      Person means any agreement, undertaking or arrangement by which such Person
      assumes, guarantees, endorses, contingently agrees to purchase or provide funds
      for the payment of, or otherwise becomes or is contingently liable upon, the
      obligation or liability of any other Person, or agrees to maintain the net
      worth
      or working capital or other financial condition of any other Person, or
      otherwise assures any creditor of such other Person against loss, including,
      without limitation, any comfort letter, operating agreement, take-or-pay
      contract or application for a letter of credit.

     

    “Consolidated
      Cash Interest Expense”
means,
      for
      any
      applicable period of computation,
      whether
      expensed or capitalized, all cash interest expense of the Consolidated Parties
      for such period, net of interest income for such period, all as determined
      in
      accordance with GAAP. 

     

    “Consolidated
      Cash Taxes”
      means,
      for any
      applicable period of computation, the aggregate of all
      taxes
of
      the
Consolidated
      Parties determined
      in accordance with applicable law and GAAP applied on a consistent
      basis,
      to the
      extent the same are paid in cash during such period. 

     

    
      
         

      

      
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    “Consolidated
      EBITDA”
has
      the
      meaning specified in the ABL Credit Agreement.

     

    “Consolidated
      Fixed Charges”
      means,
      for any
      applicable period of computation, without duplication, the sum of (i) all
      Consolidated Cash Interest Expense for the applicable period plus
      (ii)
      all
      Consolidated Scheduled Funded Debt Payments for the applicable
      period.

     

    “Consolidated
      Funded Debt”
means,
      as of the date of determination, all Funded Debt of the Performance Guarantor
      and its consolidated Subsidiaries, determined on a consolidated basis in
      accordance with GAAP. 

     

    “Consolidated
      Interest Expense”
means,
      for any applicable period of computation, whether expensed or capitalized,
      all
      interest expense of the Consolidated Parties for such period, net of interest
      income for such period, all as determined in accordance with GAAP.

     

    “Consolidated
      Parties”
means
      the Performance Guarantor and all of its consolidated Subsidiaries whether
      direct or indirect and whether now owned or hereafter acquired. 

     

    “Consolidated
      Net Income”
means,
      for any applicable
      period of computation,
      the net
      income after taxes of the Consolidated Parties for such period, as adjusted
      for
      (i) non-cash adjustments to Consolidated Net Income due to the effect of changes
      in accounting methods required by GAAP and (ii) the
      tax
      adjusted net value of (a) the non-cash adjustments to Consolidated Net Income
      on
      account of gains or losses resulting from changes in the metal variance account
      required by the mark to market of the Copper Hedge, as determined in accordance
      with GAAP and (b) the non-cash adjustments to valuations of inventory that
      consists of copper covered by the Copper Hedge resulting from the Performance
      Guarantor’s mark to market of inventory levels under the Copper Hedge at the
      time of testing (the Performance Guarantor shall provide the Agent with copies
      of reconciliation of these adjustments when and as provided to the Bank Agent
      pursuant to and in accordance with the ABL Credit Agreement).

     

    “Consolidated
      Scheduled Funded Debt Payments”
means,
      as of the end of each fiscal quarter (or month, as applicable) of the Company
      and its consolidated
      Subsidiaries on a consolidated basis, the sum of all scheduled payments of
      principal on Consolidated Funded Debt (other than intercompany Indebtedness)
      for
      the four
      (4)
      consecutive quarters (or 12 consecutive months, as applicable) beginning
on
      such
      date (including the principal component of payments due on capital leases or
      under any synthetic lease, tax retention operating lease, off-balance sheet
      loan
      or similar off-balance sheet financing product during the applicable period
      beginning on such date). 

     

    “Copper
      Hedge”
means
      the Trading Agreements between PB Financial, Inc. and Wolverine Tube, Inc.,
      Wolverine Tube (Canada) Inc. and Wolverine Joining Technologies, LLC related
      to
      hedging copper and any other copper hedging contract permitted under the ABL
      Credit Agreement. 

     

    “Contract”
      means,
      with respect to any Receivable, any and all instruments, agreements, invoices
      or
      other writings pursuant to which such Receivable arises or which evidences
      such
      Receivable.

     

    
      
         

      

      
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    “Credit
      and Collection Policy”
      means
      Seller’s credit and collection policies and practices relating to Contracts and
      Receivables existing on the date hereof and summarized in Exhibit VII hereto,
      as
      modified from time to time in accordance with this Agreement.

     

    “Currency
      Reserve” means,
      for any fiscal week or fiscal month of the Performance Guarantor, the product
      of
      :

     

    (a)
       the
      highest MCE Percentage in effect during the 12 months preceding the first day
      of
      such fiscal period, and

     

    (b) the
      U.S.
      Dollar Equivalent of the Outstanding Balance of all Canadian dollar denominated
      Receivables as of the last day covered by the most recent prior Settlement
      Report or Weekly Report, as applicable. 

     

    “Current
      Receivable” means
      a
      Receivable that has not aged beyond its originally stated due date.

     

    “Cut-Off
      Date”
      means
      the last day of a Calculation Period.

     

    “Days
      Sales Outstanding”
      means,
      as of any day, an amount equal to the product of (x) 91, multiplied by (y)
      the
      amount obtained by dividing (i) the aggregate outstanding balance of Receivables
      as of the most recent Cut-Off Date, by (ii) the aggregate sales generated by
      the
      Originators during the three (3) Calculation Periods including and immediately
      preceding such Cut-Off Date.

     

    “Deemed
      Collections” means
      Collections deemed received by Seller under Section 1.4(a).

     

    “Deemed
      Interest Reserve” means,
      for any Calculation Period, the product of:

     

    (a)
      the
      Outstanding Balance of all Receivables owing from Obligors which are Canadian
      Persons that are payable in U.S. dollars, and

     

    (b)
      25%
      of the percentage determined pursuant to clause (a) of the definition of
“Currency
      Reserve”
      for such
      Calculation Period.

     

    “Default
      Horizon Ratio”
      means,
      as of any Cut-Off Date, the ratio (expressed as a decimal) computed by dividing
      (i) the aggregate sales generated by the Originators during the three
      Calculation Periods ending on such Cut-Off Date, by (ii) the Net Pool Balance
      as
      of such Cut-off Date.

     

    “Default
      Rate”
      means a
      rate per annum equal to the sum of (i) the Alternate Base Rate plus
      (ii) the Applicable Base Rate Percentage then in effect plus
      (iii)
      2.00%, changing when and as the Alternate Base Rate changes.

     

    “Default
      Ratio”
      means,
      as of any Cut-Off Date, the ratio (expressed as a percentage) computed by
      dividing (x) the total amount of Receivables which became Defaulted Receivables
      during the Calculation Period that includes such Cut-Off Date, by (y) the
      aggregate sales generated by the Originators during the Calculation Period
      occurring three months prior to the Calculation Period ending on such Cut-Off
      Date.

     

    
      
         

      

      
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    “Defaulted
      Receivable”
      means a
      Receivable: (i) as to which the Obligor thereof has suffered an Event of
      Bankruptcy; (ii) which, consistent with the Credit and Collection Policy, would
      be written off Seller’s books as uncollectible; or (iii) as to which any
      payment, or part thereof, remains unpaid for 61 days or more from the original
      due date for such payment.

     

    “Delinquency
      Ratio”
      means,
      at any time, a percentage equal to (i) the aggregate Outstanding Balance of
      all
      Receivables that were Delinquent Receivables at such time divided by (ii) the
      aggregate Outstanding Balance of all Receivables at such time.

     

    “Delinquent
      Receivable”
      means a
      Receivable as to which any payment, or part thereof, remains unpaid for
      31-60 days
      from
      the original due date for such payment.

     

    “Designated
      Obligor”
      means an
      Obligor indicated by the Agent to Seller in writing.

     

    “Dilution”
      means
      the amount of any reduction or cancellation of the Outstanding Balance of a
      Receivable as described in Section 1.4(a).

     

    “Dilution
      Horizon Ratio”
      means,
      as of any Cut-off Date, a ratio (expressed as a decimal), computed by dividing
      (i) the aggregate sales generated by the Originators during the Calculation
      Period (or any other period as established by the Agent by notice to Seller
      from
      time to time in Agent’s discretion based on Agent’s analysis of results of
      Reviews conducted after the date of the Agreement) ending on such Cut-Off Date,
      by (ii) the Net Pool Balance as of such Cut-Off Date.

     

    “Dilution
      Ratio”
      means,
      as of any Cut-Off Date, a ratio (expressed as a percentage), computed by
      dividing (i) the total amount of decreases in Outstanding Balances due to
      Dilutions during the Calculation Period ending on such Cut-Off Date, by (ii)
      the
      aggregate sales generated by the Originators during the Calculation Period
      prior
      to the Calculation Period ending on such Cut-Off Date.

     

    “Dilution
      Reserve”
      means,
      for any Calculation Period, the product (expressed as a percentage)
      of:

     

    (a)
      the
      sum of (i) the Stress Factor times the Adjusted Dilution Ratio as of the
      immediately preceding Cut-Off Date, plus
      (ii) the
      Dilution Volatility Component as of the immediately preceding Cut-Off Date,
      times

     

    (b)
      the
      Dilution Horizon Ratio as of the immediately preceding Cut-Off
      Date.

     

    “Dilution
      Volatility Component”
      means
      the product (expressed as a percentage) of (i) the difference between (a) the
      highest three (3)-month rolling average Dilution Ratio over the past 12
      Calculation Periods and (b) the Adjusted Dilution Ratio, and (ii) a fraction,
      the numerator of which is equal to the ratio specified in (i)(a) of this
      definition and the denominator of which is equal to the ratio specified in
      (i)(b) of this definition.

     

    
      
         

      

      
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    “Eligible
      Foreign Receivable”
      means a
      Receivable, the Obligor of which is United Technologies Corporation, American
      Standard Inc., Whirlpool Corporation, General Electric Company, York
      International Corporation or any wholly-owned subsidiary thereof.

     

    “Eligible
      Receivable”
      means,
      at any time, a Receivable:

     

    (i) the
      Obligor of which: (a) is not a natural person; (b) is a corporation or other
      business organization organized under the laws of the United States or Canada
      or
      any political subdivision of either of the foregoing and has its chief executive
      office in the United States or Canada, unless such receivable is an Eligible
      Foreign Receivable; (c) is not an Affiliate of any of the parties hereto; (d)
      is
      not a government or a governmental subdivision or agency; and (e) is not a
      Designated Obligor,

     

    (ii) which
      is
      not a Defaulted Receivable,

     

    (iii) which
      is
      not owing from an Obligor as to which more than 50% of the aggregate Outstanding
      Balance of all Receivables owing from such Obligor are Defaulted
      Receivables,

     

    (iv) which
      by
      its terms is due and payable within 120 days of the original billing date
      therefor and has not been outstanding for more than 90 days past such original
      billing date and has not had its payment terms extended more than once;
provided,
      however,
      in the
      event that the Best Possible DSO exceeds 40 days, the outstanding balance of
      Receivables payable within 120 days of the original billing date therefor shall
      be deducted from the numerator set forth in clause (i) of the definition of
      the
      term “Best Possible DSO” in an amount necessary to cause the Best Possible DSO
      to be 40 days or less,

     

    (v) which
      is
      an “account” or a “payment intangible” within the meaning of Article 9 of the
      UCC of all applicable jurisdictions or an “account” or “intangible” under the
      PPSA of Ontario,

     

    (vi) which
      is
      denominated and payable only in United States dollars or Canadian dollars in
      the
      United States or Canada,

     

    (vii) which
      arises under a Contract in a form which the Agent has not deemed to be
      unacceptable in its reasonable discretion and which, together with such
      Receivable, is in full force and effect and constitutes the legal, valid and
      binding obligation of the related Obligor enforceable against such Obligor
      in
      accordance with its terms subject to no offset, counterclaim or other
      defense,

     

    (viii) which
      arises under a Contract which (A) does not contain an enforceable prohibition
      on
      pledge or assignment by the applicable Originator or its assigns or require
      the
      Obligor under such Contract to consent to the transfer, sale, pledge or
      assignment of the rights and duties of the applicable Originator or any of
      its
      assignees under such Contract and (B) does not contain a confidentiality
      provision that purports to restrict the ability of any Purchaser to exercise
      its
      rights under this Agreement, including, without limitation, its right to review
      the Contract,

     

    
      
         

      

      
        57

        
          

        

      

      
         

      

    

    

     

    (ix) which
      arises under a Contract that contains an obligation to pay a specified sum
      of
      money, contingent only upon the sale of goods or the provision of services
      by
      the applicable Originator,

     

    (x) which,
      together with the Contract related thereto, does not contravene any law, rule
      or
      regulation applicable thereto (including, without limitation, any law, rule
      and
      regulation relating to consumer protection, truth in lending or other cost
      of
      borrowing disclosure, fair credit billing, fair credit reporting, equal credit
      opportunity, fair debt collection practices and privacy) and with respect to
      which no part of the Contract related thereto is in violation of any such law,
      rule or regulation,

     

    (xi) which
      satisfies all applicable requirements of the Credit and Collection
      Policy,

     

    (xii) which
      was
      generated in the ordinary course of the applicable Originator’s
      business,

     

    (xiii) which
      arises solely from the sale of goods or (except with respect to any Receivable
      originated by the Canadian Originator) the provision of services to the related
      Obligor by the applicable Originator, and not by any other Person (in whole
      or
      in part),

     

    (xiv) as
      to
      which the Agent has not notified Seller that the Agent has determined that
      such
      Receivable or class of Receivables is not acceptable as an Eligible Receivable,
      including, without limitation, because such Receivable arises under a Contract
      that is not acceptable to the Agent,

     

    (xv) which
      is
      not subject to any dispute, counterclaim, right of rescission, set-off,
      counterclaim or any other defense (including defenses arising out of violations
      of usury laws) of the applicable Obligor against the applicable Originator
      or
      any other Adverse Claim, and the Obligor thereon holds no right as against
      such
      Originator to cause such Originator to repurchase the goods or merchandise
      the
      sale of which shall have given rise to such Receivable (except with respect
      to
      sale discounts effected pursuant to the Contract, or defective goods returned
      in
      accordance with the terms of the Contract); provided,
      however,
      that if
      such dispute, offset, counterclaim or defense affects only a portion of the
      Outstanding Balance of such Receivable, then such Receivable may be deemed
      an
      Eligible Receivable to the extent of the portion of such Outstanding Balance
      which is not so affected, and provided,
      further,
      that
      Receivables of any Obligor which has any accounts payable by the applicable
      Originator or by a wholly-owned Subsidiary of such Originator (thus giving
      rise
      to a potential offset against such Receivables) may be treated as Eligible
      Receivables to the extent that the Obligor of such Receivables has agreed
      pursuant to a written agreement in form and substance satisfactory to the Agent,
      that such Receivables shall not be subject to such offset,

     

    (xvi) as
      to
      which the applicable Originator has satisfied and fully performed all
      obligations on its part with respect to such Receivable required to be fulfilled
      by it, and no further action is required to be performed by any Person with
      respect thereto other than payment thereon by the applicable
      Obligor,

     

    
      
         

      

      
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    (xvii) as
      to
      which each of the representations and warranties contained in Sections 5.1(g),
      (i), (j), (r), (s), (t) and (u) is true and correct,

     

    (xviii) all
      right, title and interest to and in which has been validly transferred by the
      applicable Originator directly to Seller under and in accordance with the
      applicable Receivables Sale Agreement, and Seller has good and marketable title
      thereto free and clear of any Adverse Claim.

     

    “ERISA”
      means
      the Employee Retirement Income Security Act of 1974, as amended from time to
      time, and any rule or regulation issued thereunder.

     

    “ERISA
      Affiliate”
      means
      any trade or business (whether or not incorporated) under common control with
      the Performance Guarantor within the meaning of Section 414(b) or (c) of the
      Tax
      Code (and Sections 414(m) and (o) of the Tax Code for purposes of provisions
      relating to Section 412 of the Tax Code).

     

    “Event
      of Bankruptcy”
      shall be
      deemed to have occurred with respect to a Person if (i) in the case of a
      Canadian Person, an Insolvency Event shall occur with respect to such Person,
      or
      (ii) in the case of any other Person, either:

     

    (a)
      a
      case or other proceeding shall be commenced, without the application or consent
      of such Person, in any court, seeking the liquidation, reorganization, debt
      arrangement, dissolution, winding up, or composition or readjustment of debts
      of
      such Person, the appointment of a trustee, receiver, custodian, liquidator,
      assignee, sequestrator or the like for such Person or all or substantially
      all
      of its assets, or any similar action with respect to such Person under any
      law
      relating to bankruptcy, insolvency, reorganization, winding up or composition
      or
      adjustment of debts, and such case or proceeding shall continue undismissed,
      or
      unstayed and in effect, for a period of 60 consecutive days; or an order for
      relief in respect of such Person shall be entered in an involuntary case under
      the federal bankruptcy laws or other similar laws now or hereafter in effect;
      or

     

    (b)
      such
      Person shall commence a voluntary case or other proceeding under any applicable
      bankruptcy, insolvency, reorganization, debt arrangement, dissolution or other
      similar law now or hereafter in effect, or shall consent to the appointment
      of
      or taking possession by a receiver, liquidator, assignee, trustee (other than
      a
      trustee under a deed of trust, indenture or similar instrument), custodian,
      sequestrator (or other similar official) for, such Person or for any substantial
      part of its property, or shall make any general assignment for the benefit
      of
      creditors, or shall be adjudicated insolvent, or admit in writing its inability
      to pay its debts generally as they become due, or, if a corporation or similar
      entity, its board of directors shall vote to implement any of the
      foregoing.

     

    “Existing
      Agreement” has
      the
      meaning specified in the Preliminary Statements of this Agreement.

     

    “Facility
      Account”
      means
      Seller’s account no. 005-3313 at Mellon Bank, N.A.

     

    
      
         

      

      
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    “Facility
      Termination Date”
      means
      the earlier of (i) February 19, 2009 and (ii) the Amortization
      Date.

     

    “Federal
      Funds Effective Rate”
      means,
      for any period, a fluctuating interest rate per
      annum
      for each
      day during such period equal to (i) the weighted average of the rates on
      overnight federal funds transactions with members of the Federal Reserve System
      arranged by federal funds brokers, as published for such day (or, if such day
      is
      not a Business Day, for the preceding Business Day) by the Federal Reserve
      Bank
      of New York in the Composite Closing Quotations for U.S. Government Securities;
      or (ii) if such rate is not so published for any day which is a Business Day,
      the average of the quotations at approximately 11:30 a.m. (New York time) for
      such day on such transactions received by the Agent from three federal funds
      brokers of recognized standing selected by it.

     

    “Fee
      Letter”
      means
      (a) that certain amended and restated letter agreement dated as of February
      21,
      2008 among Seller, the Agent and Parent, as it may be amended, restated or
      otherwise modified and in effect from time to time, and (b) that certain amended
      and restated letter agreement dated as of February 21, 2008 among Seller, Parent
      and CIT/BC, as it may be amended, restated or otherwise modified and in effect
      from time to time.

     

    “Final
      Payout Date”
      means
      the date on which all Aggregate Unpaids have been paid in full and the Purchase
      Limit has been reduced to zero.

     

    “Finance
      Charges”
      means,
      with respect to a Contract, any finance, interest, late payment charges or
      similar charges owing by an Obligor pursuant to such Contract.

     

    “Foreign
      Receivable”
means
      a
      Receivable the Obligor of which (a) if a natural person, is a resident of a
      country other than the United States or Canada, or (b) if a corporation or
      other business organization, is organized under the laws of a country other
      than
      the United States or Canada, and has its chief executive office in a country
      other than the United States or Canada.

     

    “Fixed
      Charge Coverage Ratio”
means,
      for any applicable period of computation, the ratio of (i) Consolidated EBITDA
      less
      Unfinanced Capital Expenditures less
      all
      Consolidated Cash Taxes paid during the applicable period less cash
      dividends paid by the Performance Guarantor for the applicable
      period
      to (ii)
      total Consolidated Fixed Charges. The applicable period of computation shall
      be
      (a) for the purpose of determining the Applicable Percentage, the four (4)
      consecutive quarters ending as of the date of determination, except with respect
      to the Consolidated Scheduled Funded Debt Payments component of Consolidated
      Fixed Charges, which shall be for the four (4) consecutive quarters beginning
      as
      of the date of determination and (b) for the purpose of determining compliance
      with Section 9.1(s) of the Agreement, the 12 consecutive month period ending
      as
      of the date of determination, except with respect to the Consolidated Scheduled
      Funded Debt Payments component of Consolidated Fixed Charges, which shall be
      for
      the 12 consecutive month period beginning as of the date of
      determination. 

     

    “Funded
      Debt”
means,
      without duplication, the sum of (a) all Indebtedness (as such term is defined
      in
      the ABL Credit Agreement) of the Consolidated Parties for borrowed money, (b)
      the principal portion of all obligations of the Consolidated Parties under
      capital leases (including capital leases incurred in accordance with the terms
      of Section 9.1 of the ABL Credit Agreement), (c) all commercial letters of
      credit and the maximum or face amount of all performance and standby letters
      of
      credit issued for the account of a member of the Consolidated Parties,
      including, without duplication, all unreimbursed draws thereunder, (d) all
      Guaranty Obligations (as such term is defined in the ABL Credit Agreement)
      of
      the Consolidated Parties with respect to Funded Debt of another Person, (e)
      all
      Funded Debt of another entity secured by a lien on any property of the
      Consolidated Parties, to the extent of the book value of the property secured
      thereby, whether or not such Funded Debt has been assumed by a member of the
      Consolidated Parties, (f) all Funded Debt of any partnership or unincorporated
      joint venture to the extent a member of the Consolidated Parties is legally
      obligated or has a reasonable expectation of being liable with respect thereto,
      net of any assets of such partnership or joint venture and (g) the principal
      balance outstanding under any synthetic lease, tax retention operating lease,
      off-balance sheet loan or similar off-balance sheet financing product of a
      member of the Consolidated Parties where such transaction is considered borrowed
      money indebtedness for tax purposes but is classified as an operating lease
      in
      accordance with GAAP.

     

    
      
         

      

      
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    “Funding
      Percentage”
      means,
      as to each Committed Purchaser, the ratio of its Commitment to the aggregate
      of
      all Commitments.

     

    “GAAP”
      means,
      (i) with respect to all Persons other than the Canadian Originator, generally
      accepted accounting principles in effect in the United States of America as
      of
      the date of the Existing Agreement, and (ii) solely with respect to the Canadian
      Originator, generally accepted accounting principles in effect in Canada as
      of
      the date of this Agreement.

     

    “Incremental
      Purchase”
      means a
      purchase of one or more Receivable Interests which increases the total
      outstanding Aggregate Invested Amount hereunder.

     

    “Indebtedness”
      of a
      Person means such Person’s (i) obligations for borrowed money, (ii) obligations
      representing the deferred purchase price of property or services (other than
      accounts payable arising in the ordinary course of such Person’s business
      payable on terms customary in the trade), (iii) obligations, whether or not
      assumed, secured by liens or payable out of the proceeds or production from
      property now or hereafter owned or acquired by such Person, (iv) obligations
      which are evidenced by notes, acceptances, or other instruments, (v) capitalized
      lease obligations, (vi) net liabilities under interest rate swap, exchange
      or
      cap agreements, (vii) Contingent Obligations and (viii) liabilities in respect
      of unfunded vested benefits under plans covered by Title IV of
      ERISA.

     

    “Indemnified
      Amounts” has
      the
      meaning specified in Section 10.1.

     

    “Indemnified
      Party” has
      the
      meaning specified in Section 10.1.

     

    “Independent
      Manager”
      shall
      mean a member of the board of managers of Seller who is not at such time, and
      has not been at any time during the preceding five (5) years: (A) a director,
      officer, employee or affiliate of any Originator or any of their respective
      Subsidiaries or Affiliates (other than Seller), or (B) the beneficial owner
      (at
      the time of such individual’s appointment as an Independent Manager or at any
      time thereafter while serving as an Independent Manager) of any of the
      outstanding common shares of Seller, any Originator, or any of their respective
      Subsidiaries or Affiliates, having general voting rights.

     

    
      
         

      

      
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    “Insolvency
      Event”
      means,
      with respect to any Person, that such Person (i) shall generally not pay
      its debts as such debts become due; (ii) shall admit in writing its
      inability to pay its debts generally, (iii) shall make an assignment for
      the benefit of its creditors or file a notice of intention to make a proposal
      to
      some or all of its creditors, (iv) shall petition or apply to any court of
      competent jurisdiction for the appointment of a receiver, receiver manager,
      administrator, inspector, liquidator, agent, trustee or other similar official
      (a “Receiver”)
      for it
      or for any substantial part of its property, (v) is adjudged or declared
      bankrupt or insolvent and such judgment or declaration is not dismissed,
      rescinded, withdrawn or stayed within 60 days (provided that upon any such
      stay
      ceasing to be in full force and effect, an Insolvency Event shall thereupon
      be
      deemed to occur unless the related judgment or declaration has theretofore
      been
      dismissed, rescinded or withdrawn) or if such Person acknowledges its bankruptcy
      or insolvency, (vi) is dissolved, liquidated or wound-up,
      (vii) commences or files notice of any proceedings relating to it or any
      substantial part of its property under any law, whether now or hereafter in
      effect, of any jurisdiction relating to dissolution, liquidation, winding-up,
      bankruptcy, insolvency, reorganization of insolvent debtors, arrangement
      (including the Companies’
      Creditors Arrangement Act)
      or
      readjustment or moratorium of debts (including passing any effective resolution
      authorizing any such proceeding), (viii) by any act or omission to act
      indicates its consent to, approval of, or acquiescence in, any such proceeding
      for it or for any substantial part of its property commenced by any other Person
      or if there is no such consent, approval or acquiescence, either any such
      proceeding commenced by any other Person is not dismissed within 60 days, or
      any
      of the remedies or actions sought in any such proceeding shall be granted
      (including the appointment of a Receiver or an order for relief against all
      or a
      substantial part of its property), (ix) shall suffer the private
      appointment of any Receiver, and any such appointment is not set aside or stayed
      within 60 days after the date that such appointment was suffered, provided
      that
      such 60-day period shall only apply if such appointment was not applied for,
      consented to, approved by or acquiesced in, and is being actively and diligently
      contested in good faith by appropriate proceedings; or (x) shall have all
      or any substantial part of its assets or property seized or repossessed by
      any
      encumbrance or other Person.

     

    “Intercreditor
      Agreement”
      means
      that certain Amended and Restated Intercreditor Agreement, dated as of April
      4,
      2006, by and among the Bank Agent, the Agent, Wolverine Finance, Seller and
      the
      Originators, as the same may be amended, restated or otherwise modified from
      time to time.

     

    “Interest
      Period”
      means,
      with respect to any Receivable Interest:

     

    (a) if
      Yield
      for such Receivable Interest is calculated on the basis of the LIBO Rate, a
      period of one month, or such other period as may be mutually agreeable to the
      applicable Committed Purchaser and Seller, commencing on a Business Day selected
      by Seller pursuant to this Agreement and ending on a Settlement Date;
      or

     

    (b) if
      Yield
      for such Receivable Interest is calculated on the basis of the Alternate Base
      Rate, a period commencing on a Business Day selected by Seller and ending on
      the
      earlier to occur of the next Settlement Date or the first day of an Interest
      Period described in clause (a) above.

     

    
      
         

      

      
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    In
      the
      case of any Interest Period which commences before the Facility Termination
      Date
      and would otherwise end on a date occurring after the Facility Termination
      Date,
      such Interest Period shall end on the Facility Termination Date. The duration
      of
      each Interest Period which commences after the Facility Termination Date shall
      be of such duration (not to exceed one month) as selected by the
      Agent.

     

    “Invested
      Amount”
      of any
      Receivable Interest means, at any time, (A) the Purchase Price of such
      Receivable Interest, minus (B) the sum of the aggregate amount of Collections
      and other payments received by the Agent which in each case are applied to
      reduce such Invested Amount in accordance with the terms and conditions of
      this
      Agreement; provided
      that
      such
      Invested Amount shall be restored (in accordance with Section 2.4) in the amount
      of any Collections or other payments so received and applied if at any time
      the
      distribution of such Collections or payments are rescinded, returned or refunded
      for any reason.

     

    “LIBO
      Rate”
      means,
      for any Interest Period, (i) the rate per annum determined on the basis of
      the offered rate for deposits in United States dollars of amounts equal or
      comparable to the Invested Amount offered for a term comparable to such Interest
      Period, which rates appear on a Bloomberg L.P. terminal, displayed under the
      address “US0001M
      <Index> Q <Go>” (or,
      for
      Interest Periods of longer than one month, the comparable address for the
      applicable number of months) effective as of 11:00 A.M., London time, two
      Business Days prior to the first day of such Interest Period, provided
      that if
      no such offered rates appear on such page, the LIBO Rate for such Interest
      Period will be the arithmetic average (rounded upwards, if necessary, to the
      next higher 1/100th of 1%) of rates quoted by not less than two major banks
      in
      New York, New York, selected by the Agent, at approximately 10:00 a.m.(New
      York
      time), two Business Days prior to the first day of such Interest Period, for
      deposits in United States dollars offered by leading European banks for a period
      comparable to such Interest Period in an amount comparable to the Invested
      Amount, divided by (b) one minus the maximum aggregate reserve requirement
      (including all basic, supplemental, marginal or other reserves) which is imposed
      against the Agent in respect of Eurocurrency liabilities, as defined in
      Regulation D of the Board of Governors of the Federal Reserve System as in
      effect from time to time (expressed as a decimal), applicable to such Interest
      Period plus
      (ii) the Applicable LIBO Rate Percentage per
      annum
      then in
      effect. The LIBO Rate shall be rounded, if necessary, to the next higher 1/16
      of
      1%.

     

    “Lock-Box”
      means
      each locked postal box with respect to which a bank who has executed a
      Collection Account Agreement has been granted exclusive access for the purpose
      of retrieving and processing payments made on the Receivables and which is
      listed on Exhibit IV.

     

    “Loss
      Reserve”
      means,
      for any Calculation Period, the product (expressed as a percentage) of (a)
      the
      Stress Factor, times (b) the highest average of Default Ratios for any
      consecutive three-month period occurring during the 12 Calculation Periods
      ending on the immediately preceding Cut-Off Date, times (c) the Default Horizon
      Ratio as of the immediately preceding Cut-Off Date.

     

    
      
         

      

      
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    “Material
      Adverse Effect”
      means a
      material adverse effect on (i) the financial condition or operations of
      Performance Guarantor and its Subsidiaries, taken as a whole, (ii) the ability
      of any Seller Party to perform its obligations under this Agreement or the
      Performance Guarantor to perform its obligations under the Performance
      Undertaking, (iii) the legality, validity or enforceability of this Agreement
      or
      any other Transaction Document, (iv) the Agent’s security interest, for the
      benefit of the Secured Parties, in the Receivables generally or in any
      significant portion of the Receivables, the Related Security or the Collections
      with respect thereto, or (v) the collectibility of the Receivables generally
      or
      of any material portion of the Receivables.

     

    “MCE
      Percentage”
      means a
      percentage established, and periodically updated, by the Corporate &
Investment Banking division of Wachovia Capital Markets, LLC pursuant to its
      credit policy requirements as a measure of risk associated with changes in
      the
      value of the Canadian dollar relative to the U.S. dollar that may occur during
      a
      period of four months. The MCE Percentage in effect on the date of this
      Agreement is 7.5%. The highest MCE Percentage during the twelve months
      immediately preceding the date of this Agreement is 8.5%. The Agent will notify
      the Servicer of changes to the MCE Percentage as they occur from time to
      time.

     

    “Monthly
      Reporting Date” means
      the
      20th day of each month after the date of this Agreement (or if any such day
      is
      not a Business Day, the next succeeding Business Day thereafter) or such other
      days of any month as Agent may request in connection with Section 8.5
      hereof.

     

    “Moody’s”
      means
      Moody’s Investors Service, Inc.

     

    “Net
      Pool Balance”
      means,
      at any time, the aggregate Outstanding Balance of all Eligible Receivables
      at
      such time reduced by the sum of (a) the aggregate amount by which the
      Outstanding Balance of all Eligible Receivables of each Obligor and its
      Affiliates exceeds the Obligor Concentration Limit for such Obligor, (b) the
      amount by which the aggregate Outstanding Balance of all Eligible Foreign
      Receivables exceeds the product of (X) the Eligible Foreign Receivables Limit
      (as such term is defined in the Fee Letter) multiplied
      by (Y)
      the
      aggregate Outstanding Balance of all Eligible Receivables and (c) the
      amount deducted from the numerator set forth in clause (i) of the definition
      of
      the term “Best Possible DSO” pursuant to the proviso of clause (iv) of the
      definition of the term “Eligible Receivable”.

     

    “Obligor”
      means a
      Person obligated to make payments pursuant to a Contract.

     

    “Obligor
      Concentration Limit” means,
      at
      any time, in relation to the aggregate Outstanding Balance of Receivables owed
      by any single Obligor and its Affiliates (if any), the applicable concentration
      limit shall be determined as follows for Obligors who have short term unsecured
      debt ratings currently assigned to them by S&P and Moody’s (or in the
      absence thereof, the equivalent long term unsecured senior debt ratings), the
      applicable concentration limit shall be determined according to the following
      table:

     

    
      
         

      

      
        64

        
          

        

      

      
         

      

    

    

     

    
      	
              S&P
                Rating

            	
              Moody’s
                Rating

            	
              Allowable
                % of Eligible Receivables

            
	
              A-1+

            	
              P-1

            	
              10.0%

            
	
              A-1

            	
              P-1

            	
              9.5%

            
	
              A-2

            	
              P-2

            	
              9.0%

            
	
              A-3

            	
              P-3

            	
              6.5%

            
	
              Below
                A-3 or Not Rated by either S&P or Moody’s

            	
              Below
                P-3 or Not Rated by either S&P or Moody’s

            	
              4.0%

            

    

    

     

    ;
      provided,
      however, that
      (a)
      if any Obligor has a split rating, the applicable rating will be the lower
      of
      the two, (b) if any Obligor is not rated by either S&P or Moody’s, the
      applicable Obligor Concentration Limit shall be the one set forth in the last
      line of the table above, and (c) subject to a possible increase in the
      percentage set forth in clause (a)(i) of the definition of “Required
      Reserve,”
      upon
      Seller’s request from time to time, the Agent may agree to a higher percentage
      of Eligible Receivables for a particular Obligor and its Affiliates (each such
      higher percentage, a “Special
      Concentration Limit”),
      it
      being understood that any Special Concentration Limit may be cancelled by the
      Agent upon not less than five (5) Business Days’ written notice to the Seller
      Parties.

     

    “OFAC”
      means
      the
      U.S. Department of the Treasury's Office of Foreign Assets Control.

     

    “Originator”
      means
      each of the U.S. Originators and the Canadian Originator.

     

    “Outstanding
      Balance”
      of any
      Receivable at any time means the then outstanding principal balance thereof
      plus, in the case of any Receivable originated by the Canadian Originator,
      any
      GST payable in connection therewith; provided,
      however,
      that to
      the extent that any Receivable is denominated in Canadian dollars, references
      herein to the Outstanding Balance thereof shall be deemed for all purposes
      to be
      references to the U.S. Dollar Equivalent of such balance.

     

    “Participant”
      has the
      meaning set forth in Section 12.3.

     

    “PBGC”
      means
      the Pension Benefit Guaranty Corporation, or any successor thereto.

     

    “Pension
      Plan”
      means a
      pension plan (as defined in Section 3(2) of ERISA) subject to Title IV of ERISA
      which Performance Guarantor sponsors or maintains, or to which it makes, is
      making, or is obligated to make contributions, or in the case of a multiple
      employer plan (as described in Section 4064(a) of ERISA) has made contributions
      at any time during the immediately preceding five plan years.

     

    
      
         

      

      
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    “Performance
      Guarantor”
      means
      Wolverine Tube, Inc., a Delaware corporation.

     

    “Performance
      Undertaking”
      means
      that certain Amended and Restated Performance Undertaking, dated as of April
      4,
      2006 by Performance Guarantor in favor of Seller, substantially in the form
      of
      Exhibit IX, as the same may be amended, restated or otherwise modified from
      time
      to time.

     

    “Person”
      means an
      individual, partnership, corporation (including a business trust), limited
      liability company, joint stock company, trust, unincorporated association,
      joint
      venture or other entity, or a government or any political subdivision or agency
      thereof.

     

    “Plan”
      means an
      employee benefit plan (as defined in Section 3(3) of ERISA) which Performance
      Guarantor or any of its ERISA Affiliates sponsors or maintains or to which
      Performance Guarantor or any of its ERISA Affiliates makes, is making, or is
      obligated to make contributions and includes any Pension Plan, other than a
      Plan
      maintained outside the United States primarily for the benefit of Persons who
      are not U.S. residents.

     

    “Prime
      Rate”
      means a
      rate per
      annum
      equal to
      the prime rate of interest announced from time to time by Wachovia (which is
      not
      necessarily the lowest rate charged to any customer), changing when and as
      said
      prime rate changes.

     

    “Production
      Month”
      shall
      have the meaning specified in the ABL Credit Agreement.

     

    “Proposed
      Reduction Date”
      has the
      meaning set forth in Section 1.3.

     

    “Purchase”
      means
      an
      Incremental Purchase or a Reinvestment.

     

    “Purchase
      Date” means
      each Business Day on which a Purchase is made hereunder.

     

    “Purchase
      Limit” means
      US$75,000,000.

     

    “Purchase
      Notice”
      has the
      meaning set forth in Section 1.2.

     

    “Purchase
      Price”
      means,
      with respect to any Incremental Purchase of a Receivable Interest, the amount
      paid to Seller by the Purchasers for such Receivable Interest which shall not
      exceed the least of (i) the amount requested by Seller in the applicable
      Purchase Notice, (ii) the unused portion of the Purchase Limit on the applicable
      purchase date, (iii) the excess, if any, of the Net Pool Balance (less the
      Required Reserve) on the applicable purchase date over the aggregate outstanding
      amount of Aggregate Invested Amount determined as of the date of the most recent
      Settlement Report, taking into account such proposed Incremental Purchase and
      (iv) the excess, if any, of the product of 85% times the aggregate Outstanding
      Balance of Eligible Receivables on the applicable purchase date over the
      aggregate outstanding amount of Aggregate Invested Amount determined as of
      the
      date of the most recent Settlement Report, taking into account such proposed
      Incremental Purchase.

     

    
      
         

      

      
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    “Purchased
      Assets” means
      all
      of Seller’s right, title and interest, whether now owned and existing or
      hereafter arising in and to all of the Receivables, the Related Security, the
      Collections and all proceeds of the foregoing.

     

    “Purchaser”
      means
      any
      Committed Purchaser.

     

    “Quebec
      Assets”
      is
      defined in Section 1.1(a)(i).

     

    “Quebec
      Receivable”
      means
      any Receivable in respect of which either the Obligor is a resident of (or
      has
      its mailing address in) the Province of Quebec, or the related Contract provides
      that payment of such Receivable shall be made to a location in the Province
      of
      Quebec.

     

    “Receivable”
      means
      each “Receivable” under and as defined in a Receivables Sale Agreement in which
      Seller acquires any interest.

     

    “Receivable
      Interest”
      means,
      at any time, an undivided percentage ownership interest (computed as set forth
      below) associated with a designated amount of Invested Amount, selected pursuant
      to the terms and conditions hereof in (i) each Receivable arising prior to
      the
      time of the most recent computation or recomputation of such undivided interest,
      (ii) all Related Security with respect to each such Receivable, and (iii) all
      Collections with respect to, and other proceeds of, each such Receivable. Each
      such undivided percentage interest shall equal:

     

    
      	
              IA
                + RR

            
	
              NPB

            

    

    

    where:

     

    
      	 	
              IA

            	
              =
                the Invested Amount of such Receivable
                Interest.

            

    

     

    
      	 	
              NPB

            	
              =
                the Net Pool Balance.

            

    

     

    
      	 	
              RR

            	
              =
                the Required Reserve.

            

    

     

    Such
      undivided percentage ownership interest shall be initially computed on its
      date
      of purchase. Thereafter, until the Facility Termination Date, each Receivable
      Interest shall be automatically recomputed (or deemed to be recomputed) on
      each
      day prior to the Facility Termination Date. The variable percentage represented
      by any Receivable Interest as computed (or deemed recomputed) as of the close
      of
      the Business Day immediately preceding the Facility Termination Date shall
      remain constant at all times thereafter. Notwithstanding the foregoing, the
      Receivable Interest shall at all times include 100% of the Quebec
      Assets.

     

    “Receivables
      Sale Agreement”
      means
      each of the U.S. Receivables Sale Agreement and the Canadian Receivables Sale
      Agreement.

     

    
      
         

      

      
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    “Records”
      means,
      with respect to any Receivable, all Contracts and other documents, books,
      records and other information (including, without limitation, computer programs,
      tapes, disks, punch cards, data processing software and related property and
      rights) relating to such Receivable, any Related Security therefor and the
      related Obligor.

     

    “Recourse
      Obligations”
      has the
      meaning set forth in Section 2.1.

     

    “Reduction
      Notice”
      has the
      meaning set forth in Section 1.3.

     

    “Regulatory
      Change”
      means
      any change after the date of this Agreement in United States (federal, state
      or
      municipal) or foreign laws, regulations (including Regulation D) or accounting
      principles or the adoption or making after such date of any interpretations,
      directives or requests applying to a class of financial institutions (including
      any Committed Purchaser) of or under any United States (federal, state or
      municipal) or foreign laws, regulations (whether or not having the force of
      law)
      or accounting principles by any court, governmental or monetary authority,
      or
      accounting board or authority (whether or not part of government) charged with
      the establishment, interpretation or administration thereof. For the avoidance
      of doubt, any interpretation of Accounting Research Bulletin No. 51 by the
      Financial Accounting Standards Board shall constitute a Regulatory
      Change..

     

    “Reinvestment”
      has the
      meaning set forth in Section 2.2.

     

    “Related
      Security”
      means,
      with respect to any Receivable:

     

    (i) all
      of
      Seller’s interest in the inventory and goods (including returned or repossessed
      inventory or goods), if any, the sale, financing or lease of which by an
      Originator gave rise to such Receivable, and all insurance contracts with
      respect thereto,

     

    (ii) all
      other
      security interests, liens or other Adverse Claims and property subject thereto
      from time to time, if any, purporting to secure payment of such Receivable,
      whether pursuant to the Contract related to such Receivable or otherwise,
      together with all financing statements and security agreements describing any
      collateral securing such Receivable,

     

    (iii) all
      guaranties, letters of credit, insurance and other agreements or arrangements
      of
      whatever character from time to time supporting or securing payment of such
      Receivable whether pursuant to the Contract related to such Receivable or
      otherwise,

     

    (iv) all
      service contracts and other contracts and agreements associated with such
      Receivable,

     

    (v) all
      Records related to such Receivable,

     

    (vi) all
      of
      Seller’s right, title and interest in, to and under the applicable Receivables
      Sale Agreement in respect of such Receivable and all of Seller’s right, title
      and interest in, to and under the Performance Undertaking, and

     

    
      
         

      

      
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    (vii) all
      proceeds of any of the foregoing.

     

    “Required
      Notice Period”
      means
      [two (2)] Business Days.

     

    “Required
      Reserve” means,
      on
      any day during a Calculation Period, the sum of:

     

    (a)
      the
      product of (i) the greater of (A) the Required Reserve Factor Floor
      and (B)
      the
      sum of the Loss Reserve, the Yield Reserve, the Dilution Reserve and the
      Servicing Reserve, times
      (ii) the
      Net Pool Balance as of the Cut-Off Date immediately preceding such Calculation
      Period, plus

     

    (b)
      the
      sum of (i) the Currency Reserve and (ii) the Deemed Interest
      Reserve.

     

    “Required
      Reserve Factor Floor” means,
      for any Calculation Period, the greater of (a) the sum (expressed as a
      percentage) of (i) 12.25% plus
      (ii) the
      product of the Adjusted Dilution Ratio and the Dilution Horizon Ratio, in each
      case, as of the immediately preceding Cut-Off Date, and (b) 15.0%.

     

    “Restricted
      Junior Payment”
      means
      (i) any dividend or other distribution, direct or indirect, on account of any
      class of Equity Interests in Seller now or hereafter outstanding, except a
      dividend payable solely in Equity Interests of that class or in any junior
      class
      of Equity Interests in Seller, (ii) any redemption, retirement, sinking fund
      or
      similar payment, purchase or other acquisition for value, direct or indirect,
      of
      any class of Equity Interests in Seller now or hereafter outstanding, (iii)
      any
      payment or prepayment of principal of, premium, if any, or interest, fees or
      other charges on or with respect to, and any redemption, purchase, retirement,
      defeasance, sinking fund or similar payment and any claim for rescission with
      respect to the Subordinated Loans (as defined in the U.S. Receivables Sale
      Agreement), (iv) any payment made to redeem, purchase, repurchase or retire,
      or
      to obtain the surrender of, any outstanding warrants, options or other rights
      to
      acquire any class of Equity Interests in Seller now or hereafter outstanding,
      and (v) any payment of management fees by Seller (except for reasonable
      management fees to any Originator or its Affiliates in reimbursement of actual
      management services performed).

     

    “Sanctioned
      Country”
      means a
      country subject to a sanctions program identified on the list maintained by
      OFAC
      and available at http://www.treas.gov/offices/eotffc/ofac/
      sanctions/index.html,
      or as
      otherwise published from time to time.

     

    “Sanctioned
      Person”
      means
      (a) a person named on the list of Specially Designated Nationals or Blocked
      Persons maintained by OFAC available at http://www.treas.gov/offices/
      eotffc/ofac/sdn/index.html,
      or as
      otherwise published from time to time, or (b) (i) an agency of the
      government of a Sanctioned Country, (ii) an organization controlled by a
      Sanctioned Country, or (iii) a person resident in a Sanctioned Country, to
      the extent subject to a sanctions program administered by OFAC.

     

    “S&P”
      means
      Standard and Poor’s Ratings Services, a division of The McGraw Hill Companies,
      Inc.

     

    “Secured
      Parties”
      means
      the Indemnified Parties.

     

    
      
         

      

      
        69

        
          

        

      

      
         

      

    

    

     

    “Seller”
      has the
      meaning set forth in the preamble to this Agreement.

     

    “Seller
      Parties”
      means,
      collectively, (a) Seller, (b) at any time while it is acting as Servicer,
      Wolverine Finance, and (c) at any time while it is acting as Performance
      Guarantor, Wolverine Tube, Inc.

     

    “Servicer”
      means at
      any time the Person (which may be the Agent) then authorized pursuant to Article
      VIII to service, administer and collect Receivables.

     

    “Servicing
      Fee”
      means,
      for each day in a Calculation Period:

     

    (a)
      an
      amount equal to (i) the Servicing Fee Rate (or, at any time while Wolverine
      Finance or one of its Affiliates is the Servicer, such lesser percentage as
      may
      be agreed between Seller and the Servicer on an arms’ length basis based on then
      prevailing market terms for similar services), times
      (ii) the
      aggregate Outstanding Balance of all Receivables at the close of business on
      the
      Cut-Off Date immediately preceding such Calculation Period, times
      (iii)
      1/360; or

     

    (b)
      on
      and after the Servicer’s reasonable request made at any time when Wolverine
      Finance or one of its Affiliates is no longer acting as Servicer hereunder,
      an
      alternative amount specified by the successor Servicer not exceeding (i) 110%
      of
      such Servicer’s reasonable costs and expenses of performing its obligations
      under this Agreement during the preceding Calculation Period, divided
      by
      (ii) the
      number of days in the current Calculation Period.

     

    “Servicing
      Fee Rate”
      means
      1.0% per
      annum.

     

    “Servicing
      Reserve”
      means,
      for any Calculation Period, the product (expressed as a percentage) of (a)
      the
      Servicing Fee Rate, times
      (b) a
      fraction, the numerator of which is the highest Days Sales Outstanding for
      the
      most recent 12 Calculation Periods and the denominator of which is
      360.

     

    “Settlement
      Date”
      means
      (i) the 2nd
      Business
      Day after each Monthly Reporting Date and (ii) the Facility Termination
      Date.

     

    “Settlement
      Period”
      means
      the Calculation Period immediately preceding each Settlement Date.

     

    “Settlement
      Report”
      means a
      report, in substantially the form of Exhibit VIII hereto (appropriately
      completed), furnished by the Servicer to the Agent and the Co-Agent pursuant
      to
      Section 8.5.

     

    “Stress
      Factor”
      means,
      for any Calculation Period, a number greater than or equal to 1.5 and less
      than
      or equal to 2.5 selected by the Agent from time to time in its sole discretion
      and notified to the Seller Parties upon not less than 2 Business Days’ written
      notice.

     

    “Subsidiary”
      of a
      Person means (i) any corporation more than 50% of the outstanding securities
      having ordinary voting power of which shall at the time be owned or controlled,
      directly or indirectly, by such Person or by one or more of its Subsidiaries
      or
      by such Person and one or more of its Subsidiaries, or (ii) any partnership,
      association, limited liability company, joint venture or similar business
      organization more than 50% of the ownership interests having ordinary voting
      power of which shall at the time be so owned or controlled; it being understood
      that the Seller is not a Subsidiary of the Performance Guarantor. 

     

    
      
         

      

      
        70

        
          

        

      

      
         

      

    

    

     

    “Tax
      Code” means
      the
      Internal Revenue Code of 1986, as the same may be amended from time to
      time.

     

    “Terminating
      Tranche”
      has the
      meaning set forth in Section 4.3(b).

     

    “Transaction
      Documents”
      means,
      collectively, this Agreement, each Purchase Notice, the Receivables Sale
      Agreements, each Collection Account Agreement, the Performance Undertaking,
      the
      Fee Letters, each Subordinated Note (as defined in the U.S. Receivables Sale
      Agreement) and all other instruments, documents and agreements executed and
      delivered in connection herewith.

     

    “2009
      Senior Note Indenture”
      shall
      have the meaning specified in the ABL Credit Agreement.

     

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

     

    “Unfinanced
      Capital Expenditures”
means,
      for any period, all Capital Expenditures not financed from proceeds of
      Consolidated Funded Debt (other than Loans made under and as defined in the
      ABL
      Credit Agreement
      or from
      proceeds of the
      Sale
      Price under and as defined in each of the Receivables Sale Agreements received
      by any Originator). 

     

    “Unmatured
      Amortization Event”
      means an
      event which, with the passage of time or the giving of notice, or both, would
      constitute an Amortization Event.

     

    “U.S.
      Dollar Equivalent”
means,
      at the date of determination, the amount of U.S. dollars that the Agent could
      purchase, in accordance with its normal practice, with a specified amount of
      Canadian dollars based on the Bank of Canada noon spot rate on such
      date.

     

    “U.S.
      Originator”
      means
      each of Wolverine Tube, Inc., a Delaware corporation, Tube Forming, LP, a
      Delaware limited partnership, Wolverine Joining Technologies, LLC, a Delaware
      limited liability company and, prior to February 29, 2008, Small Tube
      Manufacturing LLC, a Delaware limited liability company, each in its capacity
      as
      a seller under the U.S. Receivables Sale Agreement.

     

    “U.S.
      Receivables Sale Agreement”
      means
      that certain Receivables Sale Agreement, dated as of April 28, 2005, among
      the
      US Originators and Seller, as the same may be amended, restated or otherwise
      modified from time to time.

     

    “Wachovia”
      has the
      meaning set forth in the preamble to this Agreement.

     

    
      
         

      

      
        71

        
          

        

      

      
         

      

    

    

     

    “Weekly
      Adjustment Date”
      means
      the Business Day after each Weekly Reporting Date.

     

    “Weekly
      Report”
      means a
      report in the form of Exhibit X hereto (appropriately completed), furnished
      by
      the Servicer to the Agent and the Co-Agent pursuant to Section 8.5, as such
      form
      may be updated from time to time by the Agent.

     

    “Weekly
      Reporting Date”
      means
      Wednesday of each week (or if any Wednesday is not a Business Day, the next
      succeeding Business Day).

     

    “Yield”
      means
      for each Interest Period relating to a Committed Purchaser Investment, an amount
      equal to the product of the applicable Yield Rate for such Committed Purchaser
      Investment multiplied by the Invested Amount thereof for each day elapsed during
      such Interest Period, annualized on a 360 day basis.

     

    “Yield
      Rate”
      means,
      with respect to each Committed Purchaser Investment, the LIBO Rate, the
      Alternate Base Rate or the Default Rate, as applicable.

     

    “Yield
      Reserve”
      means,
      for any Calculation Period, the product (expressed as a percentage) of (i)
      1.5
times
      (ii) the
      Alternate Base Rate as of the immediately preceding Cut-Off Date times
      (iii) a
      fraction the numerator of which is the highest Days Sales Outstanding for the
      most recent 12 Calculation Periods and the denominator of which is
      360.

     

    All
      accounting terms not specifically defined herein shall be construed in
      accordance with GAAP. All terms used in Article 9 of the UCC in the State of
      New
      York, and not specifically defined herein, are used herein as defined in such
      Article 9. Except as otherwise expressly stated, all references to dollar
      amounts are to such amounts in United States dollars.

     

    
      
         

      

      
        72

        
          

        

      

      
         

      

    

    

     

    EXHIBIT
      II

     

    FORM
      OF PURCHASE NOTICE

     

    ---

     

    DEJ
      98 FINANCE, LLC

    

    PURCHASE
      NOTICE

    dated
      ______________, 20__

    for
      Purchase on ________________, 20__

    

    

    Wachovia
      Bank, National Association, as Agent

    171
      17th
      Street, N.W., 4th Floor

    Mail-stop
      GA4524

    Atlanta,
      GA 30363

    Attention:
      Elizabeth Wagner

    Fax: (404)
      214-5481

    

    CIT
      Business Capital

    900
      Ashwood Parkway, Suite 610

    Atlanta,
      Georgia 30338

    Attention:
      Portfolio Manager

    Fax: (770)
      552-7673

    

    

    Ladies
      and Gentlemen:

    

    Reference
      is made to the Second Amended and Restated Receivables Purchase Agreement dated
      as of February 21, 2008 (as amended, supplemented or otherwise modified from
      time to time, the “Receivables
      Purchase Agreement”)
      among
      DEJ 98 Finance, LLC, a Delaware limited liability company (the “Seller”),
      Wolverine Finance, LLC, a Tennessee limited liability company, as initial
      Servicer, Wolverine Tube, Inc., a Delaware corporation, as Performance
      Guarantor, The CIT Group/Business Credit, Inc., individually and as Co-Agent,
      and Wachovia Bank, National Association, individually and as Agent. Capitalized
      terms defined in the Receivables Purchase Agreement are used herein with the
      same meanings.

     

    1.
      The
      Servicer, on behalf of the Seller hereby certifies, represents and warrants
      to
      the Agent and the Purchasers that on and as of the Purchase Date (as hereinafter
      defined):

     

    (a)
      all
      applicable conditions precedent set forth in Article VI of the Receivables
      Purchase Agreement have been satisfied;

     

    (b)
      each
      of its representations and warranties contained in Section 5.1 of the
      Receivables Purchase Agreement will be true and correct, in all material
      respects, as if made on and as of the Purchase Date;

     

    
      
         

      

      
        73

        
          

        

      

      
         

      

    

    

     

    (c)
      no
      event will have occurred and is continuing, or would result from the requested
      Purchase, that constitutes an Amortization Event or Unmatured Amortization
      Event;

     

    (d)
      the
      Facility Termination Date has not occurred; and

     

    (e)
      after
      giving effect to the Purchase requested below, the Aggregate Invested Amount
      will not exceed the Purchase Limit and the aggregate Receivable Interests will
      not exceed 100%.

     

    2.
      The
      Servicer, on behalf of the Seller hereby requests that the Purchasers make
      a
      Purchase on ___________, 20__ (the “Purchase
      Date”)
      as
      follows:

     

    (a)
      Purchase Price: US$_____________

     

    (b)
      Servicer on behalf of the Seller requests that the Invested Amount (which will
      initially accrue Yield at the Alternate Base Rate) begin to accrued Yield at
      a
      LIBO Rate for a Interest Period of _____ months on the third Business Day after
      the Purchase Date).

     

    3.
      Please
      disburse the proceeds of the Purchase as follows:

     

    [Apply
      US$________ to payment of Aggregate Unpaids due on the Purchase Date].
      [Wire
      transfer US$________ to account no. ________ at ___________ Bank, in
[city,
      state],
      ABA No.
      __________, Reference: ________].

     

    IN
      WITNESS WHEREOF, the
      Servicer, on behalf of the Seller has caused this Purchase Request to be
      executed and delivered as of this ____ day of ___________, _____.

     

    
      	 	
              [_______________________,
                as Servicer, on behalf of:]
                ____________., as Seller

            
	 	 	 
	 	 	 
	 	
              By:
                

            	
              _________________________________

            
	 	
              Name:

            
	 	
              Title:

            

    

    

    
      
         

      

      
        74

        
          

        

      

      
         

      

    

    

    EXHIBIT
      III

     

    PLACES
      OF BUSINESS OF THE SELLER; LOCATIONS OF RECORDS;

     

    FEDERAL
      EMPLOYER AND ORGANIZATIONAL IDENTIFICATION NUMBERS

     

    

     

     

     

    
      
         

      

      
        75

        
          

        

      

      
         

      

    

    

    EXHIBIT
      IV

     

    NAMES
      OF COLLECTION BANKS; LOCK-BOXES & COLLECTION ACCOUNTS

     

    
      	 	 	 	 	 	 	
              US
                Based Bank Accounts

            	 	 
	
              Account
                #

            	 	
              Bank

            	 	
              Currency

            	 	
              Entity

            	 	
              Address

            
	 	 	 	 	 	 	 	 	 
	
              032-3230

            	 	
              Mellon
                Bank

            	 	
              USD
                $

            	 	
              Tube
                Forming Salary Payroll

            	 	
              1533
                Crescent Dr., Carrollton, Texas 75006

            
	
              016-4507

            	 	
              Mellon
                Bank

            	
              USD
                $

            	 	
              Tube
                Forming Hourly Payroll

            	 	
              1533
                Crescent Dr., Carrollton, Texas 75006

            
	 	 	 	 	 	 	 	 	 
	
              035
                - 3236

            	 	
              Mellon
                Bank

            	
              USD
                $

            	 	
              Wolverine
                China Investments Account

            	 	
              2100
                Market Street, NE Decatur, AL 35601

            
	 	 	 	 	 	 	 	 	 
	
              093
                - 5279

            	 	
              Mellon
                Bank

            	
              USD
                $

            	 	
              STP
                Salary Payroll Account

            	 	
              PO
                BOX 1674 Spring Meadows, Altoona, PA 16603

            
	
              093
                - 5244

            	 	
              Mellon
                Bank

            	
              USD
                $

            	 	
              STP
                Hourly Payroll Account

            	 	
              PO
                BOX 1674 Spring Meadows, Altoona, PA 16603

            
	 	 	 	 	 	 	 	 	 
	
              004
                - 4521

            	 	
              Mellon
                Bank

            	
              USD
                $

            	 	
              Wachovia
                Bank as collateral agent for 

              Wolverine
                Finance, LLC

            	
              2100
                Market Street, NE Decatur, AL 35601

            
	
              371148

            	 	
              Mellon
                Bank

            	
              USD
                $

            	 	
              Tube
                Forming Lockbox

            	 	
              1533
                Crescent Dr., Carrollton, Texas 75006

            
	
              360877

            	 	
              Mellon
                Bank

            	
              USD
                $

            	 	
              STP
                Pittsburgh Lockbox

            	 	
              PO
                BOX 1674 Spring Meadows, Altoona, PA 16603

            
	
              360265

            	 	
              Mellon
                Bank

            	
              USD
                $

            	 	
              Wolverine
                Finance Pittsburgh Lockbox

            	 	
              2100
                Market Street, NE Decatur, AL 35601

            
	
              360750

            	 	
              Mellon
                Bank

            	
              USD
                $

            	 	
              Wolverine
                Joining Technologies, Inc. - 

              Lockbox

            	
              236
                Kilvert Street, Warwick, RI 02886

            
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
              122
                - 6853

            	 	
              Mellon
                Bank

            	
              USD
                $

            	 	
              Wolverine
                Tube, Inc. Operating Account

            	
              2100
                Market Street, NE Decatur, AL 35601

            
	
              108
                - 9300

            	 	
              Mellon
                Bank

            	
              USD
                $

            	 	
              Wolverine
                Tube, Inc. Salary Payroll

            	 	
              2100
                Market Street, NE Decatur, AL 35601

            
	 	 	 	 	 	 	 	 	 
	
              108
                - 9115

            	 	
              Mellon
                Bank

            	
              USD
                $

            	 	
              Decatur
                Hourly Payroll

            	 	
              2100
                Market Street, NE Decatur, AL 35601

            
	 	 	 	 	 	 	 	 	 
	
              108
                - 8500

            	 	
              Mellon
                Bank

            	
              USD
                $

            	 	
              Shawnee
                Hourly Payroll

            	 	
              500
                Wolverine Dr., Shawnee, OK 74801

            
	 	 	 	 	 	 	 	 	 
	
              093
                - 5287

            	 	
              Mellon
                Bank

            	
              USD
                $

            	 	
              Booneville
                Hourly Payroll

            	 	
              1
                Wolverine Dr., Booneville, MS 38829

            
	 	 	 	 	 	 	 	 	 
	
              076-9063

            	 	
              Mellon
                Bank

            	
              USD
                $

            	 	
              Wolverine
                Joining Technologies, Inc. 

              -
                Operating

            	
              235
                Kilvert Street, Warwick, RI 02886

            
	
              076-9071

            	 	
              Mellon
                Bank

            	
              USD
                $

            	 	
              Wolverine
                Joining Technologies, Inc.

               -
                Payroll

            	
              235
                Kilvert Street, Warwick, RI 02886

            
	 	 	 	 	 	 	 	 	 
	
              103-0869

            	 	
              Mellon
                Bank

            	
              USD
                $

            	 	
              Wolverine
                Tube, Inc. - ACH Pre-

              funding
                account

            	
              2100
                Market Street, Decatur, AL
                35601-2626

            

    

    

    
      
         

      

      
        76

        
          

        

      

      
         

      

    

    

    
      	 	 	 	 	 	 	 	 	 
	
              005-3313

            	 	
              Mellon

            	 	
              USD
                $

            	 	
              DEJ
                98 Finance, LLC

            	 	
              PO
                Box 2202, Decatur, AL 35609-2202

            
	
              00042-02219-10

            	
              Scotia
                Bank

            	
              CAD
                $

            	 	
              DEJ
                98 Finance, LLC Wachovia Bank as 

              Collateral
                Agent

            	
              PO
                Box 2202, Decatur, AL 35609-2202

            
	
              00042-02222-16

            	
              Scotia
                Bank

            	
              CAD
                $

            	 	
              DEJ
                98 Finance, LLC

            	 	
              PO
                Box 2202, Decatur, AL 35609-2202

            
	
              00042-01447-11

            	
              Scotia
                Bank

            	
              USD
                $

            	 	
              DEJ
                98 Finance, LLC Wachovia Bank as 

              Collateral
                Agent

            	
              PO
                Box 2202, Decatur, AL 35609-2202

            
	
              00042-02624-12

            	
              Scotia
                Bank

            	
              USD
                $

            	 	
              DEJ
                98 Finance, LLC

            	 	
              PO
                Box 2202, Decatur, AL 35609-2202

            

    

    
 

    
      
        	 Canadian
                Based Bank Accounts
	
                Account

              	
                Bank

              	
                Currency

              	
                Entity

              	 	
                Address

              
	 	 	 	 	 	 
	
                20552
                  00001 16

              	
                Scotiabank

              	
                CAD
                  $

              	
                Wolverine
                  Tube (Canada) Inc. General

              	 	
                1010
                  Clarke Road P.O. Box 7515 London, Ontario N5Y 5S6

              
	
                20552
                  00630 10

              	
                Scotiabank

              	
                USD
                  $

              	
                Wolverine
                  Tube (Canada) Inc. General

              	 	
                1010
                  Clarke Road P.O. Box 7515 London, Ontario N5Y 5S6

              
	
                00042
                  01680 17

              	
                Scotiabank

              	
                CAD
                  $

              	
                Wolverine
                  Tube Canada Limited Partnership

              	 	
                1010
                  Clarke Road P.O. Box 7515 London, Ontario N5Y 5S6

              
	
                00042
                  01681 14

              	
                Scotiabank

              	
                CAD
                  $

              	
                Nova
                  Scotia Company 3072996

              	 	
                1010
                  Clarke Road P.O. Box 7515 London, Ontario N5Y 5S6

              
	
                00042
                  01684 16

              	
                Scotiabank

              	
                CAD
                  $

              	
                Nova
                  Scotia Company 3072452

              	 	
                1010
                  Clarke Road P.O. Box 7515 London, Ontario N5Y 5S6

              
	
                00042
                  01685 13

              	
                Scotiabank

              	
                CAD
                  $

              	
                Nova
                  Scotia Company 3072453

              	 	
                1010
                  Clarke Road P.O. Box 7515 London, Ontario N5Y
                  5S6

              

      

    

    

    
      
         

      

      
        77

        
          

        

      

      
         

      

    

    EXHIBIT
      V

    

    FORM
      OF COMPLIANCE CERTIFICATE

    

    
      	To:	
              Wachovia
                Bank, National Association, as
                Agent

            

    

    The
      CIT
      Group/Business Credit, Inc.

    

    This
      Compliance Certificate is furnished pursuant to that certain Second Amended
      and
      Restated Receivables Purchase Agreement dated as of February 21, 2008 among
      DEJ
      98 Finance, LLC, a Delaware limited liability company (the “Seller”),
      Wolverine Finance, LLC, a Tennessee limited liability company, (the “Servicer”),
      Wolverine Tube, Inc., a Delaware corporation, “Performance
      Guarantor”),
      The
      CIT Group/Business Credit, Inc., individually and as Co-Agent, and Wachovia
      Bank, National Association, individually and as Agent (the “Agreement”).

     

    THE
      UNDERSIGNED HEREBY CERTIFIES THAT:

     

    1. I
      am the
      duly elected _________________ of [Seller/Servicer/Performance
      Guarantor].

     

    2. I
      have
      reviewed the terms of the Agreement and I have made, or have caused to be made
      under my supervision, a detailed review of the transactions and conditions
      of
      Seller and its Subsidiaries during the accounting period covered by the attached
      financial statements.

     

    3. The
      examinations described in paragraph 2 did not disclose, and I have no knowledge
      of, the existence of any condition or event which constitutes an Amortization
      Event or Unmatured Amortization Event, as each such term is defined under the
      Agreement, during or at the end of the accounting period covered by the attached
      financial statements or as of the date of this Certificate[,
      except
      as set forth in paragraph 5 below].

     

    4. Schedule
      I attached hereto sets forth financial data and computations evidencing the
      compliance with certain covenants of the Agreement, all of which data and
      computations are true, complete and correct.

     

    [5. Described
      below are the exceptions, if any, to paragraph 3 by listing, in detail, the
      nature of the condition or event, the period during which it has existed and
      the
      action which Seller has taken, is taking, or proposes to take with respect
      to
      each such condition or event: ____________________]

     

    
      
         

      

      
        78

        
          

        

      

      
         

      

    

    The
      foregoing certifications, together with the computations set forth in Schedule
      I
      hereto and the financial statements delivered with this Certificate in support
      hereof, are made and delivered as of ______________, 20__.

     

    

    

      
        	 	
                By:___________________________

              
	 	
                Name:

              
	 	
                Title:

              

      

    

     

     

     

    

    
      
         

      

      
        79

        
          

        

      

      
         

      

    

    SCHEDULE
      I TO COMPLIANCE CERTIFICATE

    

    A. Schedule
      of Compliance as of __________, ____ with Section ___ of the Agreement. Unless
      otherwise defined herein, the terms used in this Compliance Certificate have
      the
      meanings ascribed thereto in the Agreement.

     

    This
      schedule relates to the month ended: _______________

     

    
      
         

      

      
        80

        
          

        

      

      
         

      

    

    

     

    EXHIBIT
      VI

     

    FORM
      OF COLLECTION ACCOUNT AGREEMENT

     

    

     

    

     

    [copy
      of existing agreements to be attached by L&W]

    
      
         

      

      
        81

        
          

        

      

      
         

      

    

    EXHIBIT
      VII

    

    CREDIT
      AND COLLECTION POLICY

    

    

    

    [copy
      of existing policies to be attached by L&W]

    

    

    
      
         

      

      
        82

        
          

        

      

      
         

      

    

    EXHIBIT
      VIII

    

    FORM
      OF SETTLEMENT REPORT

    

    

    
      	
              DEJ
                98 Finance Monthly Servicer Report

            
	
              For
                the Month Ended: [Date]

            
	
              ($000's)

            
	 	 	
              Calculated
                Funding Availability

            	 	 	 	 	 	 
	
              A/R
                ROLLFORWARD

            	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	
              Beginning
                Balance 

            	 	 	 	 	 	 
	 	 	
              Add:
                New Billings

            	 	 	 	 	 	 
	 	 	
              Add:
                Debits

            	 	 	 	 	 	 
	 	 	
              Less:
                Net Cash

            	 	 	 	 	 	 
	 	 	
              Less:
                Dilution

            	 	 	 	 	 	 
	 	 	
              Less:
                Gross Write-Offs

            	 	 	 	 	 	 
	 	 	
              EOM
                AR Balance

            	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
              AGING
                SCHEDULE

            	 	 	 	
              %
                of Total Aging

            
	 	 	 	 	 	
              Current

            	
              Current
                Month

            	
              1
                Month Prior

            	
              2
                Months Prior

            
	 	 	
              Current

            	 	 	 	 	 	 
	 	 	
              1-30
                DPD

            	 	 	 	 	 	 
	 	 	
              31-60
                DPD

            	 	 	 	 	 	 
	 	 	
              61-90
                DPD

            	 	 	 	 	 	 
	 	 	
              91+
                DPD

            	 	 	 	 	 	 
	 	 	
              Total
                Credits in Agings

            	 	 	 	 	 	 
	 	 	 	 	
              Total
                Aging

            	
              $____

            	
              100.00%

            	
              100.00%

            	
              100.00%

            
	 	 	 	 	 	 	 	 	 
	
              A/R
                RECONCILIATIONS

            	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	
              Calculated
                Ending A/R

            	 	 	 	 	 	 
	 	 	
              Reported
                Ending A/R

            	 	 	 	 	 	 
	 	 	
              Difference

            	 	 	 	 	
               

            	 
	 	 	 	 	 	 	 	 	 
	 	 	
              Calculated
                Ending A/R

            	 	 	 	 	 	 
	 	 	
              Total
                Aging

            	 	 	 	 	 	 
	 	 	
              Difference

            	 	 	 	 	
              Check

            	 
	 	 	 	 	 	 	 	 	 
	
              INELIGIBLES

            	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	
              Defaulted
                Receivables (Gross)

            	 	 	 	 	 	 
	 	 	
              Contra
                Accounts

            	 	 	 	 	 	 
	 	 	
              Cross-Aged
                50%

            	 	 	 	 	 	 
	 	 	
              Volume
                Rebate Accrual

            	 	 	 	 	 	 
	 	 	
              Chargebacks

            	 	 	 	 	 	 
	 	 	
              Bankrupt
                A/R

            	 	 	 	 	 	 

    

    

    
      
         

      

      
        83

        
          

        

      

      
         

      

    

    

    
      	 	 	
              Other
                Foreign

            	 	 	 	 	 	 
	 	 	
              Ineligible
                Payment Terms

            	 	 	 	 	 	 
	 	 	
              Canadian
                Currency Reserve

            	 	 	 	 	
              Not
                Ineligible (used for Required Reserves)

            	 
	 	 	
              Difference
                between Canada Aging and Canada GL

            	 	 	 	 
	 	 	
              U.S.
                Dollar Equivalent of non-assignable Receivables

            	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	
              Total
                Ineligibles

            	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	
              Eligible
                Receivables

            	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

    

    

    
      	 	 	 	 	 	 	
              Current
                Month

            	
              One
                Month Prior

            	
              Two
                Months Prior

            	 

    

    
      	
              EXCESS
                CARVEOUTS

            	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	
              Over-concentrations
                (From Obligor Concentrations)

            	 	 	 	 	 
	 	 	
              Excess
                Foreign

            	 	 	 	 	 	 	 
	 	 	
              Deduction
                for Best Possible DSO

            	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	
              FUNDING
                AVAILABILITY CALCULATION

            	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	
              Total
                A/R

            	 	 	 	 	 	 	 
	 	 	
              Less:
                Total Ineligibles

            	 	 	
               

            	 	 	 	 
	 	 	
              Eligible
                Receivables

            	 	 	 	 	 	 	 
	 	 	
              Less:
                Total Excess Carveouts

            	 	 	 	 	 	 
	 	 	
              NET
                POOL BALANCE

            	 	 	
               

            	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	
              RESERVES

            	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	
              Loss
                Reserve

            	 	 	 	 	 	 	 
	 	 	
              Dilution
                Reserve

            	 	 	 	 	 	 	 
	 	 	
              Yield
                Reserve

            	 	 	 	 	 	 	 
	 	 	
              Servicing
                Reserve

            	 	 	 	 	 	 	 
	 	 	
              Total
                Dynamic Reserve

            	 	 	 	 	 	 	 
	 	 	
              Reserve
                Floor

            	 	 	 	 	 	 	 
	 	 	
              Required
                Reserve %

            	 	 	 	 	 	 	 
	 	 	
              Required
                Reserve $ (RR)

            	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 

    

    

    
      
         

      

      
        84

        
          

        

      

      
         

      

    

    

    
      	
              FUNDING
                AVAILABILITY

            	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	
              Net
                Pool Balance (NPB)

            	 	 	 	 	 	 	 
	 	 	
              Less:
                Required Reserve

            	 	 	 	 	 	 	 
	 	 	
              CALCULATED
                FUNDING AVAILABILITY

            	 	 	 	 	 	 
	 	 	
              Maximum
                Funding Available

            	 	 	 	 	 	 
	 	 	
              Purchase
                Availability (or Required Paydown)

            	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	
              Purchase
                (or Paydown) at Settlement

            	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	
              TRIGGER
                COMPLIANCE

            	 	 	 	 	 	 	 
	 	 	 	
              Compliance
                Test

            	
              Compliance
                Level

            	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	
              Asset
                Interest

            	
              (AIA+RR)
                / NPB < 100%

            	 	 	
              %

            	
              %

            	
              %

            	 
	 	 	 	 	 	 	 	 	 	 
	 	 	
              3M
                Delinquency Trigger

            	
              Less
                than 2.75%

            	 	 	
              %

            	
              %

            	
              %

            	 
	 	 	 	 	 	 	 	 	 	 
	 	 	
              3M
                Default Ratio

            	
              Less
                than 2.5%

            	 	 	
              %

            	
              %

            	
              %

            	 
	 	 	 	 	 	 	 	 	 	 
	 	 	
              3M
                Dilution Ratio

            	
              Less
                than 5%

            	 	 	
              %

            	
              %

            	
              %

            	 
	 	 	 	 	 	 	 	 	 	 
	 	 	
              Best
                Possible DSO

            	
              <=
                40

            	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	
              Purchase
                Limit

            	
              <=
                $75,000,000

            	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	
              [Financial
                Covenant 1]

            	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 

    

    

    
      
         

      

      
        85

        
          

        

      

      
         

      

    

    

    
      	 	 	
              [Financial
                Covenant 2]

            	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	
              [Financial
                Covenant 3]

            	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	
              EXCESS
                CONCENTRATIONS

            	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	
              Obligor
                Name

            	
              Short
                Term Debt Rating

            	
              Allowable
                %

            	
              Total
                Receivables

            	
              %
                of Total

            	
              Excess
                Receivables

            	 

    

     

    
      	
              1.

            	 	 	
              NR/NR

            	
              4.00%

            	 	 	 	 	 
	
              2.

            	 	 	
              [Special
                Obligor]

            	
              4.25%

            	 	 	 	 	 
	
              3.

            	 	 	
              A3/P3

            	
              9.50%

            	 	 	 	 	 
	
              4.

            	 	 	
              A1/P1

            	
              8.00%

            	 	 	 	 	 
	
              5.

            	 	 	
              A2/P2

            	
              9.00%

            	 	 	 	 	 
	
              6.

            	 	 	
              A1+/P-1

            	
              10.00%

            	 	 	 	 	 
	 	 	 	 	 	 	
              Total

            	
              $
                

            	 	 

    

     

    
      	
               

              The
                undersigned hereby represents and warrants that the foregoing is
                a true
                and accurate accounting with respect to outstanding receivables as
                of
                [Date] in accordance with the Second Amended and Restated Receivables
                Purchase Agreement dated as of February 21, 2008 and that all
                representations and warranties related to such Agreement are restated
                and
                reaffirmed.

               

               

            
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	
              Signed:

            	 
 	
              Date:

            	 
 	 	 	 	 
	
              Title:

            	 	 	 	 	 	 	 	 	 

    

    

    

    
      
         

      

      
        86

        
          

        

      

      
         

      

    

    

    EXHIBIT
      IX

    FORM
      OF PERFORMANCE UNDERTAKING

     

    -
      - - 

     

    SECOND
      AMENDED AND RESTATED PERFORMANCE UNDERTAKING

     

    THIS
      SECOND AMENDED AND RESTATED PERFORMANCE UNDERTAKING
      (this
“Undertaking”),
      dated
      as of February 21, 2008, is executed by Wolverine Tube, Inc., a Delaware
      corporation (“WTI”
      or the
“Performance
      Guarantor”)
      in
      favor of DEJ 98 Finance, LLC, a Delaware limited liability company (together
      with its successors and assigns, “Recipient”).

     

    RECITALS

     

    1. Tube
      Forming, LP, a Delaware limited partnership and, prior to February 29, 2008,
      Small Tube Manufacturing LLC, a Delaware limited liability company (all of
      the
      foregoing, collectively, the “U.S.
      Subsidiary Originators”),
      WTI,
      and Recipient entered into a Receivables Sale Agreement, dated as of
      April 28, 2005 (as amended, restated or otherwise modified from time
      to time, the “U.S.
      Sale Agreement”),
      pursuant to which WTI and the U.S. Subsidiary Originators, subject to the terms
      and conditions contained therein, are selling (and, in the case of WTI,
      contributing) their respective right, title and interest in their accounts
      receivable to Recipient.

     

    2. As
      an
      inducement for Recipient to acquire U.S. Subsidiary Originators’ accounts
      receivable pursuant to the U.S. Sale Agreement, Performance Guarantor entered
      into a Performance Undertaking dated as of April 28, 2005 with
      Recipient (the “Original
      Performance Undertaking”)
      whereby
      Performance Guarantor agreed to guaranty (a) the due and punctual
      performance by the U.S. Subsidiary Originators of their respective obligations
      under the U.S. Sale Agreement, as well as (b) the Servicing Related
      Obligations (as hereinafter defined) of Wolverine Finance, LLC, a Tennessee
      limited liability company (“Wolverine
      Finance”).

     

    3. Wolverine
      Tube (Canada) Inc., an Ontario Corporation (the “Canadian
      Subsidiary Originator”;
      together with the U.S. Subsidiary Originators, the “Subsidiary
      Originators”)
      has
      entered into a Canadian Receivables Sale Agreement dated as of April 4, 2006
      (as
      amended, restated or otherwise modified from time to time, the “Canadian
      Sale Agreement”;
      together with the U.S. Sale Agreement, the “Sale
      Agreements”),
      pursuant to which the Canadian Subsidiary Originator, subject to the terms
      and
      conditions contained therein, is selling its right, title and interest in its
      accounts receivable to Recipient.

     

    4. In
      connection with the execution of the Canadian Sale Agreement, the parties to
      the
      Receivables Purchase Agreement (as defined in the Original Performance
      Undertaking), Performance Guarantor executed an Amended and Restated Performance
      Undertaking dated as of April 4, 2006 in favor of Recipient (the “Existing
      Performance Undertaking”).

     

    
      
         

      

      
        87

        
          

        

      

      
         

      

    

    

     

    5. On
      the
      date hereof, Recipient is entering into the Receivables Purchase Agreement
      (hereinafter defined). It is a condition precedent to effectiveness of the
      Receivables Purchase Agreement that Performance Guarantor reaffirm its guarantee
      of the obligations of the Canadian Subsidiary Originator to Recipient under
      or
      in respect of the Canadian Sale Agreement and its guarantee of the obligations
      of the U.S. Subsidiary Originators to Recipient under or in respect of the
      U.S.
      Sale Agreement and of Wolverine Finance’s Servicing Related Obligations on the
      terms and conditions hereinafter set forth.

     

    6. Performance
      Guarantor owns, directly or indirectly, 100% of the Equity Interests of each
      of
      the Subsidiary Originators and 100% of the non-voting Equity Interests and
      49%
      of the voting Equity Interests in Recipient, and accordingly, Performance
      Guarantor, receives and is expected to receive substantial direct and indirect
      benefits from their sale of receivables to Recipient pursuant to the Sale
      Agreements (which benefits are hereby acknowledged).

     

    7. To
      reflect the foregoing, the parties hereto have agreed to certain amendments
      to
      the Existing Performance Undertaking and for convenience, have agreed to amend
      and restate the Existing Performance Undertaking in its entirety, on the terms
      and conditions set forth herein.

     

    AGREEMENT

     

    NOW,
      THEREFORE,
      Performance Guarantor hereby agrees as follows:

     

    Section
      1. Definitions.
      Capitalized terms used herein and not defined herein shall have the respective
      meanings assigned thereto in the Sale Agreements or the Receivables Purchase
      Agreement (as hereinafter defined). In addition:

     

    “Agreements”
      means,
      collectively, the Sale Agreements and the Receivables Purchase
      Agreement.

     

    “Equity
      Interests”
      means,
      with respect to any Person, any and all shares, interests, participations or
      other equivalents, including membership interests (however designated, whether
      voting or non-voting), of capital of such Person, including, if such Person
      is a
      partnership, partnership interests (whether general or limited) and any other
      interest or participation that confers on a Person the right to receive a share
      of the profits and losses of, or distributions of assets of, such partnership,
      whether outstanding on the date hereof or issued after the date of this
      Agreement.

     

    “Guaranteed
      Obligations”
      means,
      collectively, (a) all covenants, agreements, terms, conditions and
      indemnities to be performed and observed by any Subsidiary Originator under
      and
      pursuant to the Sale Agreements or either of them and each other document
      executed and delivered by any Subsidiary Originator pursuant to the Sale
      Agreements or either of them, including, without limitation, the due and
      punctual payment of all sums which are or may become due and owing by any
      Subsidiary Originator under either Sale Agreement, whether for fees, expenses
      (including counsel fees), indemnified amounts or otherwise, whether upon any
      termination or for any other reason and (b) all Servicing Related
      Obligations, in each case, whether now existing or hereafter
      arising.

     

    
      
         

      

      
        88

        
          

        

      

      
         

      

    

    

     

    “Receivable
      Purchase Agreement” means
      the
      Second Amended and Restated Receivables Purchase Agreement, dated as of the
      date
      hereof by and among Recipient, as Seller, Wolverine Finance, as Servicer, the
      Performance Guarantor, The CIT Group/Business Credit, Inc., individually and
      as
      Co-Agent, and Wachovia Bank, National Association, individually and as
      Agent.

     

    “Servicing
      Related Obligations”
      means
      all obligations of Wolverine Finance (a) as Servicer under the Receivables
      Purchase Agreement or (b) which arise pursuant to Sections 8.2 or 13.3
      of the Receivables Purchase Agreement as a result of its termination as
      Servicer.

     

    Section
      2. Guaranty
      of Performance of Guaranteed Obligations.
      Performance Guarantor hereby guarantees to Recipient, the full and punctual
      payment and performance by each Subsidiary Originator and Wolverine Finance
      of
      its respective Guaranteed Obligations. This Undertaking is an absolute,
      unconditional and continuing guaranty of the full and punctual performance
      of
      all Guaranteed Obligations and is in no way conditioned upon any requirement
      that Recipient first attempt to collect any amounts owing by any Subsidiary
      Originator or Wolverine Finance, as applicable, to Recipient, the Agent,
      Wachovia or any other Purchaser from any other Person or resort to any
      collateral security, any balance of any deposit account or credit on the books
      of Recipient, the Agent, Wachovia or any other Purchaser in favor of any
      Subsidiary Originator, Wolverine Finance or any other Person or other means
      of
      obtaining payment. Should any Subsidiary Originator or Wolverine Finance default
      in the payment or performance of any of its Guaranteed Obligations, Recipient
      (or its assigns) may cause the immediate performance by Performance Guarantor
      of
      such Guaranteed Obligations and cause any payment Guaranteed Obligations to
      become forthwith due and payable to Recipient (or its assigns), without demand
      or notice of any nature (other than as expressly provided herein), all of which
      are hereby expressly waived by Performance Guarantor. Notwithstanding the
      foregoing, this Undertaking is not a guarantee of the collection of any of
      the
      Receivables and Performance Guarantor shall not be responsible for any
      Guaranteed Obligations to the extent the failure to perform such Guaranteed
      Obligations by any Subsidiary Originator or Wolverine Finance results from
      Receivables being uncollectible on account of the insolvency, bankruptcy or
      lack
      of creditworthiness of the related Obligor; provided
      that
      nothing
      herein shall relieve any Subsidiary Originator or Wolverine Finance from
      performing in full its Guaranteed Obligations under the Agreements or
      Performance Guarantor of its undertaking hereunder with respect to the full
      performance of such duties.

     

    Section
      3. Performance
      Guarantor’s Further Agreements to Pay.
      Performance Guarantor further agrees, as the principal obligor and not as a
      guarantor only, to pay to Recipient (and its assigns), forthwith upon demand
      in
      funds immediately available to Recipient, all reasonable costs and expenses
      (including court costs and reasonable legal expenses) incurred or expended
      by
      Recipient in connection with the Guaranteed Obligations, this Undertaking and
      the enforcement thereof, together with interest on amounts recoverable under
      this Undertaking from the time when such amounts become due until payment,
      at a
      rate of interest (computed for the actual number of days elapsed based on a
      360
      day year) equal to the Alternate Base Rate plus
      the
      Applicable Base Rate Percentage then in effect plus
      2%
per
      annum,
      such
      rate of interest changing when and as the Prime Rate changes.

     

    
      
         

      

      
        89

        
          

        

      

      
         

      

    

    

     

    Section
      4. Waivers
      by Performance Guarantor.
      Performance Guarantor waives notice of acceptance of this Undertaking, notice
      of
      any action taken or omitted by Recipient (or its assigns) in reliance on this
      Undertaking, and any requirement that Recipient (or its assigns) be diligent
      or
      prompt in making demands under this Undertaking, giving notice of any
      Termination Event, Amortization Event, other default or omission by any
      Subsidiary Originator or Wolverine Finance or asserting any other rights of
      Recipient under this Undertaking. Performance Guarantor warrants that it has
      adequate means to obtain from each Subsidiary Originator and Wolverine Finance,
      on a continuing basis, information concerning the financial condition of such
      Subsidiary Originator and Wolverine Finance, and that it is not relying on
      Recipient to provide such information, now or in the future. Performance
      Guarantor also irrevocably waives all defenses (i) that at any time may be
      available in respect of the Guaranteed Obligations by virtue of any statute
      of
      limitations, valuation, stay, moratorium law or other similar law now or
      hereafter in effect or (ii) that arise under the law of suretyship, including
      impairment of collateral. Recipient (and its assigns) shall be at liberty,
      without giving notice to or obtaining the assent of Performance Guarantor and
      without relieving Performance Guarantor of any liability under this Undertaking,
      to deal with each Subsidiary Originator, Wolverine Finance and each other party
      who now is or after the date hereof becomes liable in any manner for any of
      the
      Guaranteed Obligations, in such manner as Recipient in its sole discretion
      deems
      fit, and to this end Performance Guarantor agrees that the validity and
      enforceability of this Undertaking, including without limitation, the provisions
      of Section 7 hereof, shall not be impaired or affected by any of the following:
      (a) any extension, modification or renewal of, or indulgence with respect to,
      or
      substitutions for, the Guaranteed Obligations or any part thereof or any
      agreement relating thereto at any time; (b) any failure or omission to enforce
      any right, power or remedy with respect to the Guaranteed Obligations or any
      part thereof or any agreement relating thereto, or any collateral securing
      the
      Guaranteed Obligations or any part thereof; (c) any waiver of any right, power
      or remedy or of any Termination Event, Amortization Event, or default with
      respect to the Guaranteed Obligations or any part thereof or any agreement
      relating thereto; (d) any release, surrender, compromise, settlement, waiver,
      subordination or modification, with or without consideration, of any other
      obligation of any person or entity with respect to the Guaranteed Obligations
      or
      any part thereof; (e) the enforceability or validity of the Guaranteed
      Obligations or any part thereof or the genuineness, enforceability or validity
      of any agreement relating thereto or with respect to the Guaranteed Obligations
      or any part thereof; (f) the application of payments received from any source
      to
      the payment of any payment obligations of any Subsidiary Originator or Wolverine
      Finance or any part thereof or amounts which are not covered by this Undertaking
      even though Recipient (or its assigns) might lawfully have elected to apply
      such
      payments to any part or all of the payment obligations of such Subsidiary
      Originator or to amounts which are not covered by this Undertaking; (g) the
      existence of any claim, setoff or other rights which Performance Guarantor
      may
      have at any time against any Subsidiary Originator in connection herewith or
      any
      unrelated transaction; (h) any assignment or transfer of the Guaranteed
      Obligations or any part thereof; or (i) any failure on the part of any
      Subsidiary Originator to perform or comply with any term of the Agreements
      or
      any other document executed in connection therewith or delivered thereunder,
      all
      whether or not Performance Guarantor shall have had notice or knowledge of
      any
      act or omission referred to in the foregoing clauses (a) through (i) of this
      Section 4.

     

    
      
         

      

      
        90

        
          

        

      

      
         

      

    

    

     

    Section
      5. Unenforceability
      of Guaranteed Obligations Against Subsidiary Originators or Wolverine
      Finance.
      Notwithstanding (a) any change of ownership of any Subsidiary Originator or
      the
      insolvency, bankruptcy or any other change in the legal status of any Subsidiary
      Originator; (b) the change in or the imposition of any law, decree, regulation
      or other governmental act which does or might impair, delay or in any way affect
      the validity, enforceability or the payment when due of the Guaranteed
      Obligations; (c) the failure of any Subsidiary Originator or Performance
      Guarantor to maintain in full force, validity or effect or to obtain or renew
      when required all governmental and other approvals, licenses or consents
      required in connection with the Guaranteed Obligations or this Undertaking,
      or
      to take any other action required in connection with the performance of all
      obligations pursuant to the Guaranteed Obligations or this Undertaking; or
      (d)
      if any of the moneys included in the Guaranteed Obligations have become
      irrecoverable from any Subsidiary Originator for any other reason other than
      final payment in full of the payment obligations in accordance with their terms,
      this Undertaking shall nevertheless be binding on Performance Guarantor. This
      Undertaking shall be in addition to any other guaranty or other security for
      the
      Guaranteed Obligations, and it shall not be rendered unenforceable by the
      invalidity of any such other guaranty or security. In the event that
      acceleration of the time for payment of any of the Guaranteed Obligations is
      stayed upon the insolvency, bankruptcy or reorganization of any Subsidiary
      Originator or for any other reason with respect to any Subsidiary Originator,
      all such amounts then due and owing with respect to the Guaranteed Obligations
      under the terms of the Agreements, or any other agreement evidencing, securing
      or otherwise executed in connection with the Guaranteed Obligations, shall
      be
      immediately due and payable by Performance Guarantor.

     

    Section
      6. Representations
      and Warranties.
      Performance Guarantor hereby represents and warrants to Recipient
      that:

     

    (a) Authorization,
      Execution and Delivery; Binding Effect.
      The
      execution and delivery by Performance Guarantor of this Undertaking, and the
      performance of its obligations hereunder, are within its corporate powers and
      authority and have been duly authorized by all necessary corporate action on
      its
      part. This Undertaking has been duly executed and delivered by Performance
      Guarantor. This Undertaking constitutes the legal, valid and binding obligation
      of Performance Guarantor enforceable against Performance Guarantor in accordance
      with their respective terms, except as such enforcement may be limited by
      applicable bankruptcy, insolvency, reorganization or other similar laws relating
      to or limiting creditors’ rights generally and by general principles of equity
      (regardless of whether enforcement is sought in a proceeding in equity or at
      law).

     

    (b) No
      Conflict; Government Consent.
      The
      execution and delivery by Performance Guarantor of this Undertaking, and the
      performance of its obligations hereunder do not contravene or violate (i) its
      certificate or articles of incorporation or by-laws, (ii) any law, rule or
      regulation applicable to it, (iii) any restrictions under any agreement,
      contract or instrument to which it is a party or by which it or any of its
      property is bound, or (iv) any order, writ, judgment, award, injunction or
      decree binding on or affecting it or its property, and do not result in the
      creation or imposition of any Adverse Claim on assets of Performance Guarantor
      or its Subsidiaries (except as created hereunder) except, in any case, where
      such contravention or violation could not reasonably be expected to have a
      Material Adverse Effect.

     

    
      
         

      

      
        91

        
          

        

      

      
         

      

    

    

     

    Section
      7. Subrogation;
      Subordination.
      Notwithstanding anything to the contrary contained herein, until the Guaranteed
      Obligations are paid in full Performance Guarantor: (a) will not enforce or
      otherwise exercise any right of subrogation to any of the rights of Recipient,
      the Agent or any other Purchaser against any Subsidiary Originator,
      (b) hereby waives all rights of subrogation (whether contractual, under
      Section 509 of the United States Bankruptcy Code, at law or in equity or
      otherwise) to the claims of Recipient and the Agent against any Subsidiary
      Originator and all contractual, statutory or legal or equitable rights of
      contribution, reimbursement, indemnification and similar rights and “claims” (as
      that term is defined in the United States Bankruptcy Code) which Performance
      Guarantor might now have or hereafter acquire against any Subsidiary Originator
      that arise from the existence or performance of Performance Guarantor’s
      obligations hereunder, (c) will not claim any setoff, recoupment or
      counterclaim against any Subsidiary Originator in respect of any liability
      of
      Performance Guarantor to such Subsidiary Originator and (d) waives any
      benefit of and any right to participate in any collateral security which may
      be
      held by Secured Parties or the Agent. The payment of any amounts due with
      respect to any indebtedness of any Subsidiary Originator now or hereafter owed
      to Performance Guarantor is hereby subordinated to the prior payment in full
      of
      all of the Guaranteed Obligations. Performance Guarantor agrees that, after
      the
      occurrence of any default in the payment or performance of any of the Guaranteed
      Obligations, Performance Guarantor will not demand, sue for or otherwise attempt
      to collect any such indebtedness of any Subsidiary Originator to Performance
      Guarantor until all of the Guaranteed Obligations shall have been paid and
      performed in full. If, notwithstanding the foregoing sentence, Performance
      Guarantor shall collect, enforce or receive any amounts in respect of such
      indebtedness while any obligations are still unperformed or outstanding, such
      amounts shall be collected, enforced and received by Performance Guarantor
      as
      trustee for Recipient (and its assigns) and be paid over to Recipient (or its
      assigns) on account of the Guaranteed Obligations without affecting in any
      manner the liability of Performance Guarantor under the other provisions of
      this
      Undertaking. The provisions of this Section 7 shall be supplemental to and
      not in derogation of any rights and remedies of Recipient under any separate
      subordination agreement which Recipient may at any time and from time to time
      enter into with Performance Guarantor.

     

    Section
      8. Termination
      of Performance Undertaking.
      Performance Guarantor’s obligations hereunder shall continue in full force and
      effect until all Aggregate Unpaids are finally paid and satisfied in full and
      the Receivables Purchase Agreement is terminated, provided
      that
      this
      Undertaking shall continue to be effective or shall be reinstated, as the case
      may be, if at any time payment or other satisfaction of any of the Guaranteed
      Obligations is rescinded or must otherwise be restored or returned upon the
      bankruptcy, insolvency, or reorganization of any Subsidiary Originator or
      otherwise, as though such payment had not been made or other satisfaction
      occurred, whether or not Recipient (or its assigns) is in possession of this
      Undertaking. No invalidity, irregularity or unenforceability by reason of the
      federal bankruptcy code or any insolvency or other similar law, or any law
      or
      order of any government or agency thereof purporting to reduce, amend or
      otherwise affect the Guaranteed Obligations shall impair, affect, be a defense
      to or claim against the obligations of Performance Guarantor under this
      Undertaking.

     

    
      
         

      

      
        92

        
          

        

      

      
         

      

    

    

     

    Section
      9. Effect
      of Bankruptcy.
      This
      Performance Undertaking shall survive the insolvency of any Subsidiary
      Originator and the commencement of any case or proceeding by or against any
      Subsidiary Originator under the federal bankruptcy code or other federal, state
      or other applicable bankruptcy, insolvency or reorganization statutes. No
      automatic stay under the federal bankruptcy code with respect to any Subsidiary
      Originator or other federal, state or other applicable bankruptcy, insolvency
      or
      reorganization statutes to which any Subsidiary Originator is subject shall
      postpone the obligations of Performance Guarantor under this
      Undertaking.

     

    Section
      10. Setoff.
      Regardless of the other means of obtaining payment of any of the Guaranteed
      Obligations, Recipient (and its assigns) is hereby authorized at any time and
      from time to time, without notice to Performance Guarantor (any such notice
      being expressly waived by Performance Guarantor) and to the fullest extent
      permitted by law, to set off and apply any deposits and other sums against
      the
      obligations of Performance Guarantor under this Undertaking, whether or not
      Recipient (or any such assign) shall have made any demand under this Undertaking
      and although such obligations may be contingent or unmatured.

     

    Section
      11. Taxes.
      All
      payments to be made by Performance Guarantor hereunder shall be made free and
      clear of any deduction or withholding. If Performance Guarantor is required
      by
      law to make any deduction or withholding on account of tax or otherwise from
      any
      such payment, the sum due from it in respect of such payment shall be increased
      to the extent necessary to ensure that, after the making of such deduction
      or
      withholding, Recipient receive a net sum equal to the sum which they would
      have
      received had no deduction or withholding been made.

     

    Section
      12. Further
      Assurances.
      Performance Guarantor agrees that it will from time to time, at the request
      of
      Recipient (or its assigns), provide information relating to the business and
      affairs of Performance Guarantor as Recipient may reasonably request.
      Performance Guarantor also agrees to do all such things and execute all such
      documents as Recipient (or its assigns) may reasonably consider necessary or
      desirable to give full effect to this Undertaking and to perfect and preserve
      the rights and powers of Recipient hereunder. 

     

    Section
      13. Successors
      and Assigns.
      This
      Performance Undertaking shall be binding upon Performance Guarantor, its
      successors and permitted assigns, and shall inure to the benefit of and be
      enforceable by Recipient and its successors and assigns. Performance Guarantor
      may not assign or transfer any of its obligations hereunder without the prior
      written consent of each of Recipient and the Agent. Without limiting the
      generality of the foregoing sentence, Recipient may assign or otherwise transfer
      the Agreements, any other documents executed in connection therewith or
      delivered thereunder or any other agreement or note held by them evidencing,
      securing or otherwise executed in connection with the Guaranteed Obligations,
      or
      sell participations in any interest therein, to any other entity or other
      person, and such other entity or other person shall thereupon become vested,
      to
      the extent set forth in the agreement evidencing such assignment, transfer
      or
      participation, with all the rights in respect thereof granted to the Secured
      Parties herein.

     

    Section
      14. Amendments
      and Waivers.
      No
      amendment or waiver of any provision of this Undertaking nor consent to any
      departure by Performance Guarantor therefrom shall be effective unless the
      same
      shall be in writing and signed by Recipient, the Agent and Performance
      Guarantor. No failure on the part of Recipient to exercise, and no delay in
      exercising, any right hereunder shall operate as a waiver thereof; nor shall
      any
      single or partial exercise of any right hereunder preclude any other or further
      exercise thereof or the exercise of any other right.

     

    
      
         

      

      
        93

        
          

        

      

      
         

      

    

    

     

    Section
      15. Notices.
      All
      notices and other communications provided for hereunder shall be made in writing
      and shall be addressed as follows: if to Performance Guarantor, at the address
      set forth beneath its signature hereto, and if to Recipient, at the addresses
      set forth beneath its signature hereto, or at such other addresses as each
      of
      Performance Guarantor or any Recipient may designate in writing to the other.
      Each such notice or other communication shall be effective (1) if given by
      telecopy, upon the receipt thereof, (2) if given by mail, three (3)
      Business Days after the time such communication is deposited in the mail with
      first class postage prepaid or (3) if given by any other means, when
      received at the address specified in this Section 15.

     

    Section
      16. GOVERNING
      LAW.
      THIS
      UNDERTAKING SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW
      OF
      THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES
      THEREOF OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL
      OBLIGATIONS LAW WHICH SHALL APPLY HERETO).

     

    Section
      17. CONSENT
      TO JURISDICTION.
      EACH OF
      PERFORMANCE GUARANTOR AND RECIPIENT HEREBY IRREVOCABLY SUBMITS TO THE
      NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR NEW YORK STATE COURT
      SITTING IN THE BOROUGH OF MANHATTAN IN ANY ACTION OR PROCEEDING ARISING OUT
      OF
      OR RELATING TO THIS UNDERTAKING, THE AGREEMENTS OR ANY OTHER DOCUMENT EXECUTED
      IN CONNECTION THEREWITH OR DELIVERED THEREUNDER AND EACH OF THE PERFORMANCE
      GUARANTOR AND RECIPIENT HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT
      OF
      SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND
      IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE
      OF
      ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT
      IS AN INCONVENIENT FORUM.

     

    Section
      18. [Intentionally deleted].

     

    Section
      19. Miscellaneous.
      This
      Undertaking constitutes the entire agreement of Performance Guarantor with
      respect to the matters set forth herein. The rights and remedies herein provided
      are cumulative and not exclusive of any remedies provided by law or any other
      agreement, and this Undertaking shall be in addition to any other guaranty
      of or
      collateral security for any of the Guaranteed Obligations. The provisions of
      this Undertaking are severable, and in any action or proceeding involving any
      state corporate law, or any state or federal bankruptcy, insolvency,
      reorganization or other law affecting the rights of creditors generally, if
      the
      obligations of Performance Guarantor hereunder would otherwise be held or
      determined to be avoidable, invalid or unenforceable on account of the amount
      of
      Performance Guarantor’s liability under this Undertaking, then, notwithstanding
      any other provision of this Undertaking to the contrary, the amount of such
      liability shall, without any further action by Performance Guarantor or
      Recipient, be automatically limited and reduced to the highest amount that
      is
      valid and enforceable as determined in such action or proceeding. Any provisions
      of this Undertaking which are 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, and
      any such prohibition or unenforceability in any jurisdiction shall not
      invalidate or render unenforceable such provision in any other jurisdiction.
      Unless otherwise specified, references herein to “Section”
      shall
      mean a reference to sections of this Undertaking.

     

    
      
         

      

      
        94

        
          

        

      

      
         

      

    

    

     

    Section
      20. Amendment
      and Restatement.
      This
      Undertaking amends, restates and supersedes in its entirety the Existing
      Performance Undertaking. All references to the Existing Performance Undertaking
      in any Transaction Document that is or shall have been executed by any party
      hereto and that becomes or remains effective on or after the date hereof shall
      hereafter be a reference to this Undertaking, except to the extent otherwise
      expressly provided herein or in such other document. 

     

    IN
      WITNESS WHEREOF,
      Performance Guarantor has caused this Undertaking to be executed and delivered
      as of the date first above written.

     

    
      	 	
              WOLVERINE
                TUBE, INC.

            
	 	 	 
	 	
              By:
                

            	
               
                

            
	 	
              Name:
                

            	
               
                

            
	 	
              Title:
                

            	
               
                

            
	 	 	 
	 	
              Address:

            
	 	 	 
	 	
              200
                Clinton Avenue, Suite 1000 

            
	 	
              Huntsville,
                AL  35801

            
	 	
              Attention:

            	
              David
                A. Owen, Chief Financial Officer 

            
	 	
              Telephone:

            	
              (256)
                580-3976 

            
	 	
              Facsimile:

            	
              (256)
                580-3996

            
	 	
              E-mail:

            	
              owend@wlv.com

            

    

    

    

    

    

    
      
         

      

      
        95

        
          

        

      

      
         

      

    

    EXHIBIT
      X

     

    INITIAL
      FORM OF WEEKLY REPORT

     

    [Attached]

    
      
         

      

      
        96

        
          

        

      

      
         

      

    

    

    

    

    
      	 	
              Weekly
                Calculated Funding Availability - Asset Securitization
                Facility

            	 
	 	
              Enter
                data as of week ending date in yellow-shaded cells.

            	 	 
	 	
              Enter
                data as of most recent month end date in blue-shaded
                cells.

            	 
	 	
              Cells
                that are not shaded contain formulas.

            	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 	
              Week
                Ending

            	 	 	
              3/26/06

            	 	 	 	 	 
	 	 	 	
              $US
                Equivalent 

            	 	 	 	 	 
	
              AGING
                SCHEDULE

            	
              Domestic
                

            	
              Canada
                

            	
              Combined
                

            	 	 	 	 	 
	 	
              Current

            	 	 	 	 	 	 	 	 
	 	
              1-30
                DPD 

            	 	 	 	 	 	 	 	 
	 	
              31-60
                DPD

            	 	 	 	 	 	 	 	 
	 	
              61-90
                DPD

            	 	 	 	 	 	 	 	 
	 	
              91+
                DPD

            	 	 	 	 	 	 	 	 
	 	
              Total

            	 	 	 	 	 	 	 	 
	 	
              U.S.
                Dollar Equivalent of Canadian Dollar denominated

            	 	 	 	 
	 	
              U.S.
                Dollar denominated only Receivables

            	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	
              INELIGIBLES

            	 	 	 	 	 	 	 	 
	 	
              Credit
                balance items > 60 DPD

            	 	 	 	
              Enter
                as a positive number. 

            	 	 
	 	
              Defaulted
                Receivables (Gross) 

            	 	 	 	
              Calculated
                

            	 	 	 	 
	 	
              Contra
                Accounts

            	 	 	
              -
                

            	
              Use
                most recent month-end balance 

            	 
	 	
              Cross-Aged
                50%

            	 	 	
              -
                

            	
              Use
                most recent month-end balance 

            	 
	 	
              Volume
                Rebate Accrual

            	 	 	 	
              Use
                most recent month-end balance 

            	 
	 	
              Chargebacks

            	 	 	 	
              Use
                most recent month-end balance 

            	 
	 	
              Bankrupt
                A/R

            	 	 	 	
              Use
                most recent month-end balance 

            	 
	 	
              Other
                Foreign

            	 	 	
              -
                

            	
              Use
                most recent month-end balance 

            	 
	 	
              Canadian
                A/R subject to anti-assignment

            	 	 	 	 
	 	
              Ineligible
                Payment Terms

            	 	 	
              -
                

            	
              Use
                most recent month-end balance 

            	 
	 	
              Total
                Ineligibles

            	 	 	 	
              Calculated
                

            	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 	
              Eligible
                Receivables

            	 	 	 	
              Calculated
                

            	 	 	 	 

    

    

    
      	 	 	 	 	 	 	 	 	
              Allowable
                Percentage

            	
              Credit
                Rating

            	
              Rating
                Code

            	 	 	 	 	 
	
              OBLIGOR
                CONCENTRATIONS (Top 5 under 60 DPD)

            	 	
              4.00%

            	
              NR/NR

            	
              1

            	 	
              Obligor
                Limit %

            	
              Obligor
                Limit $

            	
              Excess
                Obligor Balance

            	
              Excess
                Foreign Adjustment

            
	 	
              1

            	
              [Name]

            	 	 	 	
              1
                

            	 	
              6.50%

            	
              A3/P3

            	
              2

            	 	 	 	 	
              -
                

            	 
	 	
              2

            	
              [Special
                Obligor]

            	 	 	 	
              6
                

            	 	
              9.00%

            	
              A2/P2

            	
              3

            	 	 	 	 	
              -
                

            	 
	 	
              3

            	
              [Name]

            	 	 	 	
              2
                

            	 	
              9.5
                0%

            	
              A1/P1

            	
              4

            	 	 	 	 	 	 
	 	
              4

            	
              [Name]

            	 	 	 	
              4
                

            	 	
              10.00%

            	
              A1+/P1

            	
              5

            	 	 	 	 	
              -
                

            	 
	 	
              5

            	
              [Name]

            	 	 	 	
              3
                

            	 	
              4.25%

            	
              Goodman

            	
              6

            	 	 	 	 	
              -
                

            	 
	 	 	 	 	
              *
                Exclude amounts with respect to each Obligor that are included in
                row 22
                above. 

            	 	 	 	 
	
              EXCESS
                CARVEOUTS

            	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
              Over-concentrations
                

            	 	
              Calculated
                

            	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
              Eligible
                Foreign ([Names Above]

            	 	 	 	 	 	 	 	 	 	 	 
	 	 	
              Excess
                Foreign

            	 	
              Calculated
                

            	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
              Deduction
                for Best Possible DSO

            	 	
              Use
                most recent month-end balance 

            	 	 	 	 	 	 	 	 	 	 
	 	 	
              Total
                Excess Carveouts

            	 	
              Calculated
                

            	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

    

    

    
      
         

      

      
        97

        
          

        

      

      
         

      

    

    

    
      	
              FUNDING
                AVAILABILITY CALCULATION

            	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
              Total
                A/R 

            	 	
              Calculated
                

            	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
              Less:
                Total Ineligibles 

            	 	
              Calculated

            	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
              Eligible
                Receivables 

            	 	
              Calculated
                

            	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
              Less:
                Total Excess Carveouts 

            	 	
              Calculated

            	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
              NET
                POOL BALANCE 

            	 	
              Calculated
                

            	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              RESERVES

            	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
              Loss
                Reserve 

            	 	
              Use
                most recent month-end percentage 

            	 	 	 	 	 	 	 	 	 	 
	 	 	
              Dilution
                Reserve 

            	 	
              Use
                most recent month-end percentage 

            	 	 	 	 	 	 	 	 	 	 
	 	 	
              Yield
                Reserve 

            	 	
              Use
                most recent month-end percentage 

            	 	 	 	 	 	 	 	 	 	 
	 	 	
              Servicing
                Reserve 

            	 	
              Use
                most recent month-end percentage 

            	 	 	 	 	 	 	 	 	 	 
	 	 	
              Total
                Dynamic Reserve 

            	 	
              Calculated
                

            	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
              Reserve
                Floor 

            	 	
              Use
                most recent month-end percentage 

            	 	 	 	 	 	 	 	 	 	 
	 	 	
              Required
                Reserve % 

            	 	
              Calculated
                

            	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
              Applicable
                MCE Percentage 

            	 	
              Use
                most recent month-end percentage 

            	 	 	 	 	 	 	 	 	 	 
	 	 	
              Currency
                Reserve 

            	 	
              Calculated
                

            	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
              Deemed
                Interest Reserve 

            	 	
              Not
                applicable unless notified by Agent 

            	 	 	 	 	 	 	 	 	 	 
	 	 	
              Required
                Reserve $ (RR) 

            	 	
              Calculated
                

            	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              FUNDING
                AVAILABILITY

            	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
              Net
                Pool Balance (NPB) 

            	 	
              Calculated
                

            	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
              Less:
                Required Reserve 

            	 	
              Calculated
                

            	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
              CALCULATED
                FUNDING AVAILABILITY 

            	
              Calculated
                

            	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
              AVAILABILITY
                CAP 

            	
              __,000
                

            	
              Fixed
                

            	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
              Purchase
                Availability (or Required Paydown) 

            	
              Calculated
                

            	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

    

    

    

    
      
         

      

      
        98

        
          

        

      

      
         

      

    

    SCHEDULE
      A

    

    COMMITMENTS
      OF THE COMMITTED PURCHASERS

    

    

    
      	
              Committed
                Purchaser

            	
              Commitment

            
	 	 
	
              The
                CIT Group/Business Credit, Inc.

            	
              US$37,500,000.00

            
	 	 
	
              Wachovia
                Bank, National Association

            	
              US$37,500,000.00

            

    

    

    
      
         

      

      
        99

        
          

        

      

      
         

      

    

    SCHEDULE
      B

    

    DOCUMENTS
      TO BE DELIVERED TO THE AGENT

     

    ON
      OR PRIOR TO EFFECTIVENESS

     

    
      	
              1.

            	
              Amendment
                No. 4 to Existing Agreement and Amendment No. 1 to Wachovia Fee Letter
                (removing VFCC as parties thereto).

            

    

    

    
      	
              2.

            	
              Second
                Amended and Restated Receivables Purchase Agreement, duly executed
                by each
                of the parties hereto, together with all exhibits
                thereto.

            

    

    

    
      	
              3.

            	
              Amended
                and Restated Fee and Rate Letter for CIT/BC, duly executed by each
                of the
                parties thereto.

            

    

    

    
      	
              4.

            	
              Third
                Amended and Restated Fee Letter for Wachovia, duly executed by each
                of the
                parties thereto.

            

    

    

    
      	
              5.

            	
              Second
                Amended and Restated Performance Undertaking, duly executed by the
                Performance Guarantor.

            

    

     

    
      	
              6.

            	
              Good
                standing certificates with respect to Seller, Servicer and Performance
                Guarantor from their states of
                organization.

            

    

     

    
      	
              7.

            	
              Weekly
                Report as of February 17, 2008

            

    

     

    
      	
              8.

            	
              UCC-3
                Amendment to existing UCC-1 filing against the Seller in
                Delaware

            

    

     

    
      	
              9.

            	
              New
                UCC-1 filing against the Seller in Delaware [precautionary, just
                in case
                this amendment and restatement is viewed as material/a
                novation]

            

    

     

    
      	
              10.

            	
              Post-filing
                UCC search in Delaware [to be ordered by L&W
                post-filing]

            

    

     

    
      	
              11.

            	
              Amendment
                to Amendment and Restatement of ABL Credit
                Agreement.

            

    

     

    

    
      
         

      

      
        100a5620596ex10r_9.htm

    Exhibit
10r-9

    

    

    AMENDMENT
NO. 9 TO SUMMARY OF DIRECTOR AND EXECUTIVE OFFICER COMPENSATION

    

    As of
February 27, 2008

    

    

    

    

    Summary of
Director and Executive Officer Compensation, filed with the Securities and
Exchange Commission on March 18, 2005, and amended as of May 9, 2005, August 10,
2005, February 22, 2006, March 31, 2006, May 12, 2006, November 20, 2006,
February 27, 2007, and May 4, 2007, is hereby amended and restated in its
entirety:

    

    

    I.
DIRECTOR COMPENSATION.

    

    Directors
who are employees of Rogers receive no additional compensation for their
services as directors. The Compensation and Organization Committee periodically
reviews non-management director compensation policies with the assistance of
outside compensation consultant  Pearl Meyer & Partners. In
2007,  compensation for non-management directors consisted of an
annual retainer and meeting fees (“Fees Earned or Paid”) and stock options
(“Option Awards”). Each of these components is shown in the following table and
described in more detail below.

    

    

    
      	
              Name

            	
              Fees
      Earned or Paid  (1)

            	
              Option
      Awards (2)

            	
              Total

            
	
              Leonard
      M. Baker

            	
              $54,872

            	
              $87,953

            	
              $142,825

            
	
              Walter
      E. Boomer

            	
              $51,000

            	
              $87,953

            	
              $138,953

            
	
              Charles
      M. Brennan, III

            	
              $54,250

            	
              $87,953

            	
              $142,203

            
	
              Edward
      L. Diefenthal (3)

            	
              $17,718

            	
              $31,414

            	
              $  49,132

            
	
              Gregory
      B. Howey

            	
              $61,250

            	
              $87,953

            	
              $149,203

            
	
              J.
      Carl Hsu (3)

            	
              $23,000

            	
              $41,423

            	
              $  64,423

            
	
              Leonard
      R. Jaskol

            	
              $62,000

            	
              $87,953

            	
              $149,953

            
	
              Carol
      R. Jensen

            	
              $54,128

            	
              $87,953

            	
              $142,081

            
	
              Eileen
      S. Kraus

            	
              $65,178

            	
              $87,953

            	
              $153,131

            
	
              William
      E. Mitchell (3)

            	
              $17,968

            	
              $31,414

            	
              $  49,382

            
	
              Robert
      G. Paul

            	
              $80,250

            	
              $87,953

            	
              $168,203

            

    

    
 

    
      	
              1. 
        

            	
              Includes
      meeting fees and the annual retainer. Certain directors elected to receive
      compensation in Rogers common stock instead of cash.  The
      conversion of the cash amount into shares of Rogers common stock was made
      at fair market value.  Fractional shares were rounded up to
      whole shares.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              2. 
        

            	
              The
      fair value of option awards is the same as the compensation cost realized
      in financial statements because all options awarded to directors are
      immediately vested at grant.  For non-management directors who
      served for the entire year, there were two stock option grants for each
      individual: June 15, 2007 and December 17,
2007.

            

    

    

    
      	
              3. 
        

            	
              Messrs.
      Diefenthal and Mitchell did not stand for re-election at the 4/26/2007
      Annual Meeting of Shareholders, and their 2007 compensation was pro-rated,
      as was that for Dr. Hsu who joined the board of directors in June of
      2007.

            

    

    
 

    Annual
Retainer

     

    Non-management
directors earned an annual retainer of $35,000 in 2007. The lead director and
chairperson of each board committee earned an additional annual retainer as
follows: (i) Lead Director (Mr. Paul) - $15,000; (ii) Audit Committee
Chairperson (Mr. Paul) - $10,000; (iii) Compensation and Organization Committee
Chairperson (Ms. Kraus) - $7,500; (iv) Nominating and Governance Committee
Chairperson (Mr. Jaskol) - $5,000; (v) Finance Committee Chairperson (Mr. Howey)
- $5,000 and (vi) Safety and Environment Committee Chairperson  -
$3,500. (Dr. Baker
was chairperson of this committee until April 26, 2007 when Dr. Jensen became
this committee’s chairperson. Each of Drs. Baker and Jensen received a pro-rata
share of the $3,500. Specifically in 2007, Dr. Baker received $36,121.75 and Dr.
Jensen received $37,416.68.) The retainer is pro-rated for non-management
directors who serve for only a portion of the year. The annual retainer is
normally paid in June and December. Directors may elect to defer the annual
retainer pursuant to a non-qualified deferred compensation plan.

     

    Meeting
Fees

     

    Directors
currently earn $1,500 for each board meeting attended. Committee chairpersons
currently earn $1,500 for each committee meeting attended and other committee
members currently earn $1,000 for each committee meeting attended. Fees for
telephonic meetings are reduced by 50%. Meeting fees are paid in cash unless
Rogers stock compensation is elected. Directors may also elect to defer this
compensation pursuant to a non-qualified deferred compensation
plan.

     

    Elections

     

    For 2008,
certain of Rogers’ current non-management directors made the following
elections:

     

    Charles M.
Brennan, III:  Receive the annual retainer in Rogers stock on a
current basis.

     

    J. Carl
Hsu:  Receive the annual retainer in Rogers stock on a current
basis.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    Rogers’
other non-management directors, Leonard M. Baker,  Walter E. Boomer,
Gregory B. Howey, Leonard R. Jaskol, Carol R. Jensen, Eileen S. Kraus and Robert
G. Paul, by not making any such special election, will receive cash for the 2008
annual retainer on a current basis  and will receive their meeting
fees in cash on a current basis (as will  Messrs. Brennan and
Hsu).

     

    Stock
Options

     

    Stock
options were granted to non-management directors in June and December of 2007.
Each regular semi-annual grant was for 2,250 shares with an exercise price equal
to the fair market value of the stock at the time of the grant. Options granted
to non-management directors are immediately exercisable and expire ten years
after the grant date even if the individual ceases to be a
director.

     

    Perquisites

     

    Rogers
does not provide its non-management directors any additional benefits and/or
perquisites beyond what is reported in the table above. Rogers does reimburse
its directors for expenses associated with attending any board or committee
meetings and attending certain meetings in their capacity as board or committee
members.

    

 

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    
II.
EXECUTIVE COMPENSATION.

    

    The table
below sets forth the base salaries provided to the following executive officers
of Rogers as of the dates shown below.

     

    
      	
              Executive
      Officer  

            	 	
              2007

              Annual

               Salary

            	 	 	
              Annual

              Salary

              Effective

              3/31/08

            	 
	 
      	 	 	 	 	 	 
	
              Robert
      D. Wachob

            	 	$	465,324	 	 	$	500,006	 
	
              President
      and Chief Executive Officer

            	 	 	 	 	 	 	 	 
	 
      	 	 	 	 	 	 	 	 
	
              Dennis
      M. Loughran

            	 	 	 	 	 	 	 	 
	
              Vice
      President Finance and Chief Financial Officer

            	 	$	270,000	 	 	$	283,920	 
	 
      	 	 	 	 	 	 	 	 
	
              Robert
      C. Daigle

            	 	$	238,398	 	 	$	254,410	 
	
              Vice
      President, R&D and Chief
      Technology Officer

            	 	 	 	 	 	 	 	 
	 
      	 	 	 	 	 	 	 	 
	
              John
      A. Richie

            	 	$	212,178	 	 	$	225,576	 
	
              Vice
      President, Human Resources

            	 	 	 	 	 	 	 	 
	 
      	 	 	 	 	 	 	 	 
	
              Frank
      J. Gillern

            	 	$	210,262	 	 	$	220,688	 
	

              Vice
      President, Advanced Circuit
      Materials Division

            	 	 	 	 	 	 	 	 
	 
      	 	 	 	 	 	 	 	 
	
              Paul
      B. Middleton

            	 	$	191,670	 	 	$	203,684	 
	
              Treasurer
      since August 2007;

            	 	 	 	 	 	 	 	 
	Corporate
      Controller February 2006 to
      August 2007	 	 	 	 	 	 	 	 

    

     

     

    Executive
Officers are also eligible to receive a bonus each year under the Rogers Annual
Incentive Compensation Plan. The Annual Incentive Compensation Plan has target
bonuses of 60% to 75% of base salary for the CEO, and between 25% and 45% for
the other executive officers.  Actual bonuses may vary from 0% to 300%
of the target bonuses depending on performance relative to annual profit
improvement objectives. These amounts are determined by the performance of
Rogers (Net Income Per Share) versus the annual objectives. In general, the
broader the responsibility of the executive, the larger the portion of his or
her award which is based upon corporate, rather than divisional results; the
corporate portion is 100% of the consideration for the executive officers listed
below (except for Mr. Gillern, whose target is based 50% on corporate
performance and 50% on business unit performance). For 2006, overall corporate
performance exceeded the 300% target amount, and, as a result, all of the
following executive officers received a bonus at the 300% level except for Mr.
Gillern.    For 2007, overall corporate performance did not
meet the threshold amount and, as a result, none of the following executive
officers received a bonus.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    
      	
              Executive
      Officer

            	 	
              Bonus

              Amount
      at

              300%
      Level

              for
      2006 (1)

            	 	 	
              Bonus

              Earned for

              2007

            	 
	 
      	 	 	 	 	 	 
	
              Robert
      D. Wachob

            	 	$	909,308	 	 	$	0	 
	
              President
      and Chief Executive Officer

            	 	 	 	 	 	 	 	 
	 
      	 	 	 	 	 	 	 	 
	
              Dennis
      M. Loughran

            	 	$	312,000	 	 	$	0	 
	
              Vice
      President Finance and Chief
      Financial Officer

            	 	 	 	 	 	 	 	 
	 
      	 	 	 	 	 	 	 	 
	
              Robert
      C. Daigle

            	 	$	271,939	 	 	$	0	 
	
              Vice
      President, R&D and Chief
      Technology Officer

            	 	 	 	 	 	 	 	 
	
               

            	 	 	 	 	 	 	 	 
	
              John
      A. Richie

            	 	$	211,384	 	 	$	0	 
	
              Vice
      President, Human Resources

            	 	 	 	 	 	 	 	 
	 
      	 	 	 	 	 	 	 	 
	
              Frank
      J. Gillern

            	 	$	118,258	 	 	$	0	 
	Vice
      President, Advanced Circuit
      Materials Division	 	 	 	 	 	 	 	 
	 
      	 	 	 	 	 	 	 	 
	
              Paul
      B. Middleton

            	 	$	139,601	 	 	$	0	 
	
              Treasurer
      since August 2007;

            	 	 	 	 	 	 	 	 
	Corporate
      Controller February 2006
      to August 2007	 	 	 	 	 	 	 	 

    

     

    

    (1) With
respect to Mr. Gillern, Rogers’ Advanced Circuit Materials Division’s financial
performance earned him a bonus of 54% of his target bonus for business unit
performance.  As stated above, Mr. Gillern’s target bonus is based 50%
on corporate performance and 50% on business unit performance.

     

     

    III. A.
EXECUTIVE OFFICER STOCK OPTION GRANTS.

    

    Executive
officers of Rogers are eligible to receive stock option grants each year, based
on the individual's level in the organization and, the same performance criteria
used to determine salary adjustments. These criteria are not weighted. Options
generally have an exercise price equal to at least the fair market value of the
Rogers stock as of the date of grant. Regular options generally have a ten-year
life and generally vest in one-third increments on the second, third and fourth
anniversary dates of the grant.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    On
February 14, 2007 and February 14, 2008, the Compensation and Organization
Committee of the Board of Directors approved grants of stock options for a
number of Rogers employees including the following executive officers; except
for Mr. Wachob whose grants were approved on February 15, 2007 and February 15,
2008.

    

    

    
      	 
      	 
      	

              2007

              Number
of

              Shares
in

              Non-

              Qualified

              Stock

              Option

              Grant

            	

              2008

              Number
of

              Shares
in

              Non-

              Qualified

              Stock

              Option

              Grant

            
	
              Executive
      Officer

            	 
      	 
      	 
      
	 	 	 	 
	
              Robert
      D. Wachob

            	 	
              33,550

            	
              53,250

            
	
              President
      and Chief Executive Officer

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
              Dennis
      M. Loughran

            	 
      	
              10,350

            	
              16,600

            
	
              Vice
      President Finance and Chief
      Financial Officer

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
              Robert
      C. Daigle

            	 
      	
              10,350

            	
              16,600

            
	
              Vice
      President, R&D and Chief
      Technology Officer

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
              John
      A. Richie

            	 
      	
              8,550

            	
              13,700

            
	
              Vice
      President, Human Resources

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
              Frank
      J. Gillern

            	 
      	
              7,750

            	
              11,650

            
	Vice
      President, Advanced Circuit
      Materials Division	 	 	 
	 
      	 
      	 
      	 
      
	
              Paul
      B. Middleton

            	 
      	
              6,200

            	
              9,950

            
	
              Treasurer
      since August 2007;

            	 
      	 
      	 
      
	Corporate
      Controller February 2006 to August 2007	 
      	 
      	 
      

    

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    All of the
above 2007 non-qualified stock options permit the purchase, for up to ten years
(unless previously terminated), of the number of shares of common stock shown
above. Such 2007 grants were at an exercise price of $52.51, except in the case
of Mr. Wachob, whose exercise price was $53.10.  All such options vest
in one-third increments on the second, third, and fourth anniversary of the
grant date, February 14, 2007, except Mr. Wachob whose grant date was February
15, 2007.  None of the above individuals received an incentive stock
option in February of 2007.

    

    All of the
above 2008 non-qualified stock options permit the purchase, for up to ten years
(unless previously terminated), of the number of shares of common stock shown
above. Such 2008 grants were at an exercise price of $31.31, except in the case
of Mr. Wachob, whose exercise price was $31.69.  All such options vest
in one-third increments on the second, third, and fourth anniversary of the
grant date, February 14, 2008, except Mr. Wachob whose grant date was February
15, 2008.

     

     

    III. B.
EXECUTIVE OFFICER RESTRICTED STOCK GRANTS.

     

    On
February 14, 2007, the Committee approved awards of restricted stock to certain
executive officers and a restricted stock award was made to Mr. Wachob on
February 15, 2007 (collectively, the "2007 Awards").  The 2007 Awards
are subject to the achievement of a pre-established performance goal relating to
the cumulative annual growth in earnings per share of Rogers capital stock
during fiscal years 2007, 2008 and 2009 as set by the Committee. No shares of
restricted stock will be issued unless and until such performance goal is
met.

    

    On
February 14, 2008, the Committee approved awards of restricted stock to certain
executive officers and a restricted stock award was made to Mr. Wachob on
February 15, 2008 (collectively, the "2008 Awards").  The 2008 Awards
are subject to the achievement of a pre-established performance goal relating to
the cumulative annual growth in earnings per share of Rogers capital stock
during fiscal years 2007, 2008 and 2009 as set by the Committee. No shares of
restricted stock will be issued unless and until such performance goal is
met.

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    The 2007
and 2008 targeted restricted stock awards were granted to the following
executive officers:

     

    
      	
              Executive
      Officer 

            	 
      	
              Target
      Number of

              Shares
      in 2007

            	
              Target
      Number of

              Shares
      in 2008

            
	 
      	 
      	 
      	 
      
	
              Robert
      D. Wachob

            	 
      	
              5,200

            	
              8,550

            
	
              President
      and Chief Executive Officer

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
              Dennis
      M. Loughran

            	
              (1)

            	
              1,450

            	
              2,400

            
	
              Vice
      President Finance and Chief Financial Officer

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
              Robert
      C. Daigle

            	 
      	
              1,450

            	
              2,400

            
	
              Vice
      President, R&D and Chief
      Technology Officer

            	 
      	 
      	 
      
	
               

            	 
      	 
      	 
      
	
              John
      A. Richie

            	 
      	
              1,350

            	
              2,200

            
	
              Vice
      President, Human Resources

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
              Frank
      Gillern

            	 
      	
              1,200

            	
              1,600

            
	Vice
      President, Advanced Circuit
      Materials Division	 	 	 
	 
      	 
      	 
      	 
      
	
              Paul
      B. Middleton

            	 
      	
              1,000

            	
              1,600

            
	
              Treasurer
      since August 2007;

            	 
      	 
      	 
      
	Corporate
      Controller February 2006 to August 2007	 	 	 

    

     

    (1) A time
based award.

    

    The exact
number of shares of restricted stock that will be issued to each of the
executive officers listed above will depend upon where the actual performance
achieved during the three subsequent fiscal years from each grant falls on a
performance scale set by the Committee, which ranges from 0% to 200% of the
target number of shares specified above.   

     

    
 

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

     

    IV.
RETIREMENT PLANS.

     

    The table
below sets forth information regarding the present value as of December 31, 2006
of the accumulated benefits of the executive officers listed below under the
Rogers Corporation Defined Benefit Pension Plan (the “Pension Plan”) and the
Rogers Corporation Amended and Restated Pension Restoration Plan (the “Pension
Restoration Plan”). The present values were determined using interest rate and
mortality rate assumptions consistent with those outlined in footnote 5 in the
Company’s
financial statements, which were filed with the Securities and Exchange
Commission on February 27, 2007 as part of Rogers’ Annual Report on
Form 10-K and which are incorporated herein by reference.

     

    
      	 
      	 
      	 
      	
               Present
      Value 

            	
               Payments 

            
	 
      	 
      	
               Number of
      Years 

            	
               of
      Accumulated 

            	
               During the
      Last 

            
	
              Name 

            	
               Plan
      Name 

            	
               Credited
      Service 

            	
               Benefit 

            	
               Fiscal
      Year 

            
	
              Robert
      D. Wachob

            	
              Rogers
      Corporation Pension Plan

            	
              23

            	 
      	
              $695,238

            	
               —

            
	 
      	
              Rogers
      Corporation Restoration Plan

            	
              23

            	 
      	
              $1,182,834

            	
               —

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              Dennis
      M. Loughran

            	
              Rogers
      Corporation Pension Plan

            	
              1

            	 
      	
              $19,235

            	
               —

            
	 
      	
              Rogers
      Corporation Restoration Plan

            	
              1

            	 
      	
              $3,805

            	
               —

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              Robert
      C. Daigle

            	
              Rogers
      Corporation Pension Plan

            	
              19

            	 
      	
              $250,050

            	
               —

            
	
                

            	
              Rogers
      Corporation Restoration Plan

            	
              19

            	 
      	
              $2,771

            	
               —

            
	
                

            	 
      	 
      	 
      	 
      	 
      
	
              John
      A. Richie

            	
              Rogers
      Corporation Pension Plan

            	
              30

            	 
      	
              $782,325

            	
               —

            
	 
      	
              Rogers
      Corporation Restoration Plan

            	
              30

            	 
      	
              $206,951

            	
               —

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              Frank
      J. Gillern

            	
              Rogers
      Corporation Pension Plan

            	
              29

            	 
      	
              $664,736

            	
               —

            
	 
      	
              Rogers
      Corporation Restoration Plan

            	
              29

            	 
      	
              $467,416

            	
               —

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              Paul
      B. Middleton

            	
              Rogers
      Corporation Pension Plan

            	
              6

            	 
      	
              $54,242

            	
               —

            
	 
      	
              Rogers
      Corporation Restoration Plan

            	
              6

            	 
      	
              —

            	
               —

            

    

    

     

    Pension
Plan

     

    The basic
formula for determining an employee’s annual pension
benefit at normal retirement under the Pension Plan is equal to the sum of a
participant’s
base benefit, excess benefit, 30 year service benefit and the prior service
benefit, where:

     

    
      	
              · 
          

            	
              Base
      Benefit - 1.25% of the product of Average Monthly Compensation and
      Credited Service for periods after
2001.

            

    

     

    
      	
              ·    
       

            	
              Excess
      Benefit - 0.5% of Average Monthly Compensation in excess of 75% of Covered
      Compensation multiplied by Credited Service for periods after
      2001.

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

       

    

    
      	
              ·    
       

            	
              30
      Year Service Benefit - 0.5% of Average Monthly Compensation for periods
      after 2001 multiplied by Credited Service in excess of 30
      years.

            

    

     

    
      	
              ·   
        

            	
              Prior
      Service Benefit – 55% of Average Monthly Compensation for periods before
      2002 less 50% of the 12/31/2001 Social Security Benefit multiplied by the
      12/31/2001 Year of Service Ratio and the Pay Ratio
    Increase.

            

    

     

    
      	
              ·   
        

            	
              12/31/2001
      Year of Service Ratio - Years of Service as of December 31, 2001 divided
      by 30.

            

    

     

    
      	
              ·    
       

            	
              Pay
      Ratio Increase - current Average Monthly Compensation divided by Average
      Monthly Compensation as of
12/31/2001.

            

    

     

    Compensation
and period of employment are recognized under the Pension Plan as
follows:

     

    
      	
              ·    
       

            	
              Average
      Monthly Compensation for a salaried employee is based on the monthly base
      rate of salary in effect on June 1st over a 10-year period. Average
      Monthly Compensation is equal to the highest five consecutive June 1st
      amounts divided by 5. Bonuses and other special pay are disregarded under
      the Pension Plan.

            

    

     

    
      	
              ·    
       

            	
              Credited
      Service means the period during which a participant is employed by Rogers
      as an eligible employee (rounded up to the next highest whole number of
      years) as determined under tax-qualified plan
  rules.

            

    

     

    
      	
              ·    
       

            	
              Covered
      Compensation is generally the average of the Social Security taxable wage
      bases in effect for each calendar year during the 35 year period ending
      with the last day of the calendar year in which the participant would have
      reached his or her Social Security retirement
  age.

            

    

     

    A
participant may commence payment of early retirement benefits at any time after
attaining age 55 and completing five years of Vesting Service. Mr. Wachob, Mr.
Gillern and Mr. Richie are currently eligible to take early retirement. The
early retirement benefit equals the normal retirement benefit described above
reduced by 0.333% for each month (4% per year) that a participant commences
benefits before attaining normal retirement age.

    

    Available
forms of payment under the Pension Plan are as follows:

     

    
      	
              ·   
        

            	
              Single
      Life Annuity

            

    

     

    
      	
              ·    
       

            	
              Joint
      and Survivor Annuity (50%, 66 2/3% and
100%)

            

    

     

    
      	
              ·   
        

            	
              10
      Year Certain Annuity

            

    

     

    A lump sum
form of payment is unavailable under the Basic Pension Plan (except for a single
lump sum benefit if the actuarially equivalent value is $5,000 or
less).

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    Annuity
features providing for continued payment to a survivor or guaranteed payments to
beneficiaries are not subsidized by Rogers. Employees may elect their form of
payment under the Pension Plan when they begin to collect their pension
benefit.

    

    If a
participant dies before commencing payments under the Pension Plan, a death
benefit is payable to the participant’s surviving spouse
or, if there is no surviving spouse, the participant’s surviving
children under the age of 21. In general, this benefit equals the amount payable
under the survivor portion of the 50% Joint and Survivor Annuity beginning in no
event before the participant’s 55th
birthday.

    

    A
participant who becomes disabled while employed at Rogers will continue to be
treated as an active employee for purposes of the Pension Plan until age 65. As
such, a disabled participant will continue to be credited with years of service
and with the compensation rate in effect at the beginning of the disability. If
a disabled participant retires after age 55 and commences payment of benefits,
no additional credited service is granted.

    

    Pension
Restoration Plan

    

    The
Pension Plan limits the amount of pension benefits that may be provided to
participants under the basic formula described above in accordance with certain
limits under federal tax laws. The limits restrict the amount of compensation
that can be taken into account under the Pension Plan to $220,000 (for 2006) and
impose a maximum annual pension benefit commencing at age sixty-five to $175,000
(for 2006). To the extent that these limits reduce the benefits that one of the
executive officers listed above earns under the Pension Plan’s retirement
formula, Rogers provides an additional benefit under the Pension Restoration
Plan. The Pension Restoration Plan is intended to make a participant whole for
the benefits under the basic formula that could not be provided under the
Pension Plan due to these limits or deferrals being made under the Voluntary
Deferred Compensation Plan.

    

    In
addition, the Pension Restoration Plan provides for:

     

    
      	
              ·   
        

            	
              Average
      Monthly Compensation to include annual bonuses paid to certain senior
      executives over age 55 that have been specified by the Compensation and
      Organization Committee, (a) on or after January 1, 2004 in all events, and
      (b) paid before January 1, 2004 in the event of a covered executive’s
      death, disability, or termination of employment that results in the
      payment of severance. The only executive officers listed above currently
      entitled to this benefit are Messrs. Wachob, Gillern and
      Richie.

            

    

     

    
      	
              ·   
        

            	
              An
      executive officer at the time of a change of control will have benefits
      calculated under the Pension Restoration Plan (a) as if such officer had
      attained age 55 on the change of control and completed at least one day of
      service after attaining age 55 and (b) by including all annual bonuses as
      part of Average Monthly Compensation, subject to Internal Revenue Code
      Section 280G limitations discussed
below.

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
      	
              ·   
        

            	
              A
      lump sum payment will be made if there is a change of control. For amounts
      accrued and vested prior to 2005 a lump sum payment will be made if (a)
      the ratio of current assets to current liabilities falls below 1.4 to 1
      for two consecutive quarters or (b) Rogers’ long-term debt for borrowed
      money exceeds 85% of Rogers’ net worth as reflected in Rogers’ financial
      statements.

            

    

     

    
      	
              ·   
        

            	
              Other
      supplemental benefits determined from time to time by the Compensation and
      Organization Committee, including crediting of service to new hires. To
      date, no supplemental benefits have been provided to the executive
      officers under this provision, except for Mr. Gillern who received
      credited service for the time that he was employed at one of the Company’s
      50% owned joint ventures.

            

    

     

    Except in
the event of a change of control (as discussed above), benefit payments under
the Pension Restoration Plan shall generally commence at the same time as under
the Pension Plan. The form of payment will either be in annual installments or a
lump sum depending upon the value of the plan benefit as follows:

    

    
      	 
      	
              Lump Sum Actuarial Equivalent
      Value of Benefits 

            	
               Number of Annual
      Installments

            
	 
      	
              $50,000
      or less

            	
               Lump
      Sum

            
	 
      	
              $100,000
      or less, but greater than $ 50,000

            	
              2

            
	 
      	
              $150,000
      or less, but greater than $100,000

            	
              3

            
	 
      	
              $200,000
      or less, but greater than $150,000

            	
              4

            
	 
      	
              Greater
      than $200,000

            	
              5

            

    

    

    The
Pension Restoration Plan has not yet been amended to comply with the final
regulations under  Section 409A of the Internal Revenue
Code.

    

    

    V.
TERMINATION OF EMPLOYMENT AND CHANGE OF CONTROL ARRANGEMENTS.

    

    Rogers’
severance policy for regular, full-time salaried employees provides, in general,
for continuation of salary payments, health insurance and certain other benefits
for employees whose employment has been involuntarily terminated. The number of
weeks of salary and benefits continuance is based on length of service. The
policy may be amended, modified or terminated at any time by Rogers, except in
the case of the executive officers of Rogers as of November 1991. Such officers
may elect the benefits of either the policy in effect in November 1991, or the
severance policy, if any, which may be in existence at the time each such
individual’s employment terminates. The right of these executive officers to
make such an election may be cancelled by Rogers or the executive on three years
written notice. Mr. Wachob  would be entitled to 78 weeks of salary
and benefit continuance upon termination of employment covered by the policy in
effect in November 1991.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    The board
of directors determined that it would be in the best interests of Rogers to
ensure that the possibility of a change in control of Rogers would not interfere
with the continuing dedication of Rogers executive officers to their duties to
Rogers and its shareholders. Toward that purpose, Rogers has agreements with its
Chief Executive Officer and certain of its other executive officers which
provide certain severance benefits to them in the event of a termination of
their employment during a 36 month period following a change in control, as
defined in the agreements. The initial term of each agreement is three years and
the term is automatically extended for additional one-year periods each
anniversary date of the agreements, unless either party objects to such
extension. If within a 36 month period following a change in control, an
executive’s employment is terminated without cause, as defined in the
agreements, or if such executive resigns in certain specified circumstances,
then the executive is generally entitled to the following severance benefits:
(i) twice his annual base salary plus bonus; (ii) two years of additional
pension benefits; and (iii) the continuation of health and life insurance plans
and certain other benefits for up to two years. The agreements provide that
severance and other benefits be reduced to an amount so that such benefits would
not constitute so-called “excess parachute payments” under applicable provisions
of the Internal Revenue Code of 1986.  In the event that circumstances
occur which would invoke the provisions of both the November 1991 policy
described in the preceding paragraph and the change in control agreement,
Mr. Wachob is entitled to select one or the other, but not both, to apply in
that situation.

     

     

    13

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