Document:

Exhibit 4.6

 

EXECUTION COPY

 

BACKUP
SERVICING AGREEMENT

 

among

 

CNH CAPITAL
RECEIVABLES LLC,

as Seller

 

NEW HOLLAND
CREDIT COMPANY, LLC,

as Servicer

 

CNH EQUIPMENT
TRUST 2009-A,

as Issuing Entity

 

and

 

SYSTEMS &
SERVICES TECHNOLOGIES, INC.

as Backup Servicer

 

Dated as of March 1, 2009

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  Article I DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 1.1.

  	
  Definitions

  	
   

  	
  1

  
	
  Section 1.2.

  	
  Usage of Terms

  	
   

  	
  3

  
	
  Section 1.3.

  	
  Section References

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  Article II ADMINISTRATION
  AND SERVICING OF RECEIVABLES

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.1.

  	
  Duties of the Backup Servicer

  	
   

  	
  3

  
	
  Section 2.2.

  	
  Representations and Warranties of Backup
  Servicer

  	
   

  	
  4

  
	
  Section 2.3.

  	
  Backup Servicing Termination

  	
   

  	
  6

  
	
  Section 2.4.

  	
  Backup Servicer Fees; Payment of Expenses
  by Backup Servicer

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  Article III THE BACKUP
  SERVICER

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.1.

  	
  Liability of Backup Servicer; Indemnities

  	
   

  	
  7

  
	
  Section 3.2.

  	
  Limitation on Liability

  	
   

  	
  9

  
	
  Section 3.3.

  	
  Corporate Existence

  	
   

  	
  9

  
	
  Section 3.4.

  	
  Insurance

  	
   

  	
  9

  
	
  Section 3.5.

  	
  Compliance with Laws

  	
   

  	
  9

  
	
  Section 3.6.

  	
  Backup Servicer Legal Proceedings

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  Article IV TERMINATION
  EVENTS

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.1.

  	
  Termination Event

  	
   

  	
  10

  
	
  Section 4.2.

  	
  Consequences of a Termination Event

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  Article V MISCELLANEOUS
  PROVISIONS

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.1.

  	
  Waiver; Amendment

  	
   

  	
  11

  
	
  Section 5.2.

  	
  Governing Law

  	
   

  	
  12

  
	
  Section 5.3.

  	
  Severability of Provisions

  	
   

  	
  12

  
	
  Section 5.4.

  	
  Assignment

  	
   

  	
  12

  
	
  Section 5.5.

  	
  Third-Party Beneficiaries

  	
   

  	
  12

  
	
  Section 5.6.

  	
  Counterparts

  	
   

  	
  12

  
	
  Section 5.7.

  	
  Notices

  	
   

  	
  12

  
	
  Section 5.8.

  	
  Nonpetition Covenants

  	
   

  	
  13

  
	
  Section 5.9.

  	
  Term

  	
   

  	
  13

  
	
  Section 5.10.

  	
  Limitation of Liability of Trustee

  	
   

  	
  13

  
	
  Section 5.11.

  	
  Miscellaneous

  	
   

  	
  13

  
	
  Section 5.12.

  	
  Confidentiality

  	
   

  	
  14

  
	
  Section 5.13.

  	
  Information Requests

  	
   

  	
  14

  
	
  Section 5.14.

  	
  Notice to Moody’s

  	
   

  	
  14

  
	
  Section 5.15.

  	
  Form 8-K Filings

  	
   

  	
  14

  
	
  Section 5.16.

  	
  Indemnification

  	
   

  	
  14

  

 

i

 

SCHEDULES

 

SCHEDULE I                                                  Description
of Verification and Confirmation Duties (Backup Servicing)

 

ii

 

THIS BACKUP
SERVICING AGREEMENT, dated as of March 1, 2009, (this “Agreement”) is made among NEW HOLLAND
CREDIT COMPANY, LLC, a Delaware limited liability company (the “Servicer”), CNH CAPITAL RECEIVABLES LLC, a
Delaware limited liability company (the “Seller”),
CNH EQUIPMENT TRUST 2009-A, a Delaware statutory trust (the “Issuing Entity”), SYSTEMS &
SERVICES TECHNOLOGIES, INC., a Delaware corporation (the “Backup Servicer” or “SST”).

 

W I T N E S S E T H:

 

WHEREAS, the
Servicer, the Seller and the Issuing Entity have entered into the Sale and
Servicing Agreement dated as of the date hereof (the “Sale and Servicing Agreement”) a copy of
which is provided to the Backup Servicer as of the date hereof;

 

WHEREAS, the
Issuing Entity and the Servicer desire that the Backup Servicer perform certain
backup servicing duties in accordance with the terms and provisions of this
Agreement;

 

WHEREAS, the
Issuing Entity desires that the Backup Servicer assume the role of Successor
Servicer under the terms of the Sale and Servicing Agreement in the event that
the Servicer is terminated thereunder; and

 

WHEREAS, the
Backup Servicer is willing to perform the backup servicing duties specified
herein and assume the role of Successor Servicer under the terms of the Sale
and Servicing Agreement pursuant to the conditions and for the consideration
described herein.

 

NOW,
THEREFORE, in consideration of the mutual agreements herein contained, and of
other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the parties agree as follows:

 

ARTICLE
I

 

DEFINITIONS

 

Section 1.1.                         Definitions.  Unless otherwise specified herein, all terms
defined in the Indenture, shall have the same meaning in this Agreement.  Whenever capitalized and used in this
Agreement, the following words and phrases, unless the context otherwise
requires, shall have the following meanings:

 

Agreement or “this
Agreement”: 
This Backup Servicing Agreement, all amendments and supplements thereto
and all exhibits and schedules to any of the foregoing.

 

Backup
Servicer: Systems & Services Technologies, Inc.,
in its capacity as Backup Servicer under this Agreement, and its successors and
assigns in such capacity.

 

Backup
Servicer Account: 
means the account designated as such, established and maintained
pursuant to Section 5.1(a)(vii) of
the Sale and Servicing Agreement.

 

Backup
Servicer Expenses: 
is defined in Section 4.12
of the Sale and Servicing Agreement.

 

 

Backup
Servicer Termination Event:  An event described in Section 4.1.

 

Backup
Servicing Duties: 
The duties defined as such in Section 2.1.

 

Backup
Servicing Fee: 
means the greater of (a) 1/12 of 0.02% of the Pool Balance as of
the first day of each Collection Period and (b) $4,000.

 

Business Day:  means any day other than a Saturday, a Sunday
or a day on which banking institutions or trust companies in The City of New
York, New York, the City of Racine, Wisconsin and the City of St. Joseph,
Missouri are authorized or obligated by law, regulation or executive order to
remain closed.

 

Collection
Period:  means,
with respect to any Payment Date, the period from and including the end of the
preceding Collection Period (or, for the first Payment Date, the day after the
Initial Cutoff Date) to and including the last day of the calendar month
preceding the calendar month in which the Payment Date occurs.

 

Indenture:  means the Indenture dated as of March 1,
2009 between the Issuing Entity and the Indenture Trustee, as the same may be
amended and supplemented from time to time.

 

Indenture
Trustee: means The Bank of New York Mellon Trust
Company, N.A., a national banking association, not in its individual capacity
but solely as Indenture Trustee under the Indenture, or any successor Indenture
Trustee under the Indenture.

 

Initial
Collection Period: 
The Collection Period ending March 31, 2009.

 

Payment Date:
means, with respect to each Collection Period, the fifteenth day of the
calendar month following the end of that Collection Period, or, if such day is
not a Business Day, the next Business Day, commencing on April 15, 2009.

 

Person:  Any legal person, including any individual,
corporation, partnership, joint venture, estate, association, joint stock
company, trust, unincorporated organization or government or any agency or
political subdivision thereof, or any other entity.

 

Sale and
Servicing Agreement: 
The Sale and Servicing Agreement dated as of March 1, 2009 between
the Issuing Entity, the Seller and the Servicer, as the same may be amended
from time to time in accordance with its terms and with the written consent of
the Backup Servicer, such consent not to be unreasonably withheld.

 

Servicing
Transfer Date: 
The Business Day next succeeding the expiration of the Transfer Period.

 

Transfer
Notice:  Written
notice from the Indenture Trustee or Noteholders to the Backup Servicer and the
Servicer, (with a copy to the Rating Agencies, the Noteholders (if given by the
Indenture Trustee) and the Trustee provided by the Indenture Trustee) advising
the Backup Servicer of the transfer of active servicing duties for the Contracts
to the Backup Servicer.

 

2

 

Transfer
Period:  A
period of up to sixty (60) days following the Backup Servicer’s receipt of
a Transfer Notice and ending on the date the Backup Servicer is to begin Successor
Servicer duties for the Contracts and the related Receivables.

 

Verification
and Confirmation Duties:  The duties defined as such in Section 2.1(a).

 

Section 1.2.                         Usage
of Terms.  With respect to all terms
used in this Agreement, the singular includes the plural and the plural the
singular; words importing any gender include the other gender; references to “writing”
include printing, typing, lithography, and other means of reproducing words in
a visible form; references to agreements and other contractual instruments
include all subsequent amendments thereto or changes therein entered into in
accordance with their respective terms and not prohibited by this Agreement;
references to Persons include their permitted successors and assigns; and the
terms “include” or “including” mean “include without limitation” or “including
without limitation.”

 

Section 1.3.                         Section References.  All references to Articles, Sections,
paragraphs, subsections, exhibits and schedules shall be to such portions of
this Agreement unless otherwise specified.

 

ARTICLE
II

 

ADMINISTRATION
AND SERVICING OF RECEIVABLES

 

Section 2.1.                         Duties
of the Backup Servicer.

 

(a)                                  Verification
and Confirmation Duties.  The Backup
Servicer agrees to perform all of the duties of the Backup Servicer as identified
on Schedule I hereto (collectively, the “Verification
and Confirmation Duties”) on behalf of the Issuing Entity in
accordance with the terms of this Agreement. 
On or before each Determination Date (beginning with the Determination
Date immediately preceding the initial Payment Date), the Servicer shall
deliver to the Backup Servicer the Servicer’s Certificate and a computer tape
in a format acceptable to the Backup Servicer containing the information with
respect to the Receivables for the preceding Collection Period necessary for
the preparation of the Servicer’s Certificate and the performance of the
Verification and Confirmation Duties relating to such Collection Period.

 

(b)                                 Active
Servicing Duties.  Unless and until
the Backup Servicer or another Person is appointed as Successor Servicer, the
Backup Servicer agrees that, in the event the Servicer is terminated or
otherwise ceases to function as the Servicer pursuant to the Sale and Servicing
Agreement, if the Indenture Trustee or Noteholders representing not less than
25% of the Outstanding Amount of Notes shall issue a Transfer Notice to the
Backup Servicer and Servicer, then prior to the expiration of the Transfer
Period, the Backup Servicer shall promptly execute a counterpart to the Sale and
Servicing Agreement and thereafter shall assume the rights, obligations and
duties of a Successor Servicer as expressly set forth thereunder.

 

3

 

(c)                                  The
Servicer covenants and agrees to perform within three weeks after receipt of
the Transfer Notice (or on such later date as the Issuing Entity and the Backup
Servicer shall agree in writing) the following:

 

(i)                                     The
Servicer shall provide to the Backup Servicer all necessary servicing files and
records relating to the Contracts (as reasonably deemed necessary by the Backup
Servicer at such time) and the Servicer shall provide to the Backup Servicer
access to and transfer of records and use by the Backup Servicer of all
licenses or software necessary or desirable to collect the Contracts and the
related Receivables to the extent that any of the foregoing is not prohibited
under any licensing or other agreements with third parties.

 

(ii)                                  The
Servicer will provide to the Backup Servicer the servicing information necessary
to prepare and distribute the Servicer Certificate required to be delivered
under the Sale and Servicing Agreement.

 

(d)                                 Prior
to the expiration of the Transfer Period, the Servicer will send each Obligor
written notice containing the following information:  (i) the Servicing Transfer Date, (ii) the
address, telephone number and department of the Backup Servicer which is able
to answer questions regarding billing, (iii) notification that the legal
terms and conditions of such Obligor’s obligations will not be affected by the
servicing transfer and (iv) instructions as to how to handle any Contract
related questions.  The Backup Servicer
will consult with the Servicer concerning the form of any such notice.  If the Servicer has failed to send this notice
within three weeks after the Servicing Transfer Date, the Backup Servicer will
send such a notice to each such Obligor on the Backup Servicer’s or the
Servicer’s stationery within four weeks of the later of (A) the date a
counterpart to the Sale and Servicing Agreement executed by the Backup Servicer
is effective and (B) the Servicing Transfer Date.  The Servicer will provide the Backup Servicer
with its stationery in an amount sufficient to allow for the sending of the
notices described in this Section 2.1(d).  The Servicer hereby irrevocably appoints the
Backup Servicer as its attorney-in-fact for the purpose of sending such
notices.

 

(e)                                  Effective
upon the occurrence of the Servicing Transfer Date, the Servicer hereby
irrevocably authorizes and grants to the Backup Servicer an irrevocable
power-of-attorney to take any and all steps in the Servicer’s name and on
behalf of the Servicer that are necessary or desirable to perform its duties
hereunder, including collecting amounts due under the Receivables, endorsing
the Servicer’s name on checks and other instruments representing Collections
and enforcing the Receivables.

 

(f)                                    The
Servicer shall provide a copy of the Sale and Servicing Agreement to the Backup
Servicer on or prior to the Closing Date.

 

Section 2.2.                         Representations
and Warranties of Backup Servicer. 
The Backup Servicer represents and warrants as of the date of execution
and delivery of this Agreement (other than with respect to Section 2.2(f),
which is as of the dates specified therein):

 

(a)                                  Organization
and Good Standing.  The Backup
Servicer has been duly organized and is validly existing and in good standing
under the laws of its 

 

4

 

jurisdiction of organization, with power, authority
and legal right to own its properties and to conduct its business as such
properties are currently owned and such business is currently conducted, and
had at all relevant times, and now has, power, authority and legal right to
enter into and perform its obligations under this Agreement;

 

(b)                                 Due
Qualification.  The Backup Servicer
is duly qualified to do business as a foreign corporation in good standing, and
has obtained all necessary licenses and approvals, in all jurisdictions where
the failure to do so would materially and adversely affect the performance of
its obligations under this Agreement;

 

(c)                                  Power
and Authority.  The Backup Servicer
has the power and authority to execute and deliver this Agreement and to carry
out the terms hereof; and the execution, delivery and performance of this
Agreement have been duly authorized by the Backup Servicer by all necessary
corporate action;

 

(d)                                 Binding
Obligation.  This Agreement
constitutes the legal, valid and binding obligation of the Backup Servicer
enforceable in accordance with its terms, except as enforceability may be
limited by bankruptcy, insolvency, reorganization or other similar laws
affecting the enforcement of creditors rights generally and by equitable
limitations on the availability of specific remedies, regardless of whether
such enforceability is considered in a proceeding in equity or at law;

 

(e)                                  No
Violation.  The execution and
delivery of this Agreement, the consummation of the transactions contemplated
by this Agreement, and the fulfillment of the terms hereof, do not conflict
with, result in any breach of any of the terms and provisions of, or constitute
(with or without notice or lapse of time, or both) a default under, the
certificate of incorporation or bylaws of the Backup Servicer, or any
indenture, agreement, mortgage, deed of trust or other instrument to which the
Backup Servicer is a party or by which it is bound, or result in the creation
or imposition of any lien upon any of its properties pursuant to the terms of
any such indenture, agreement, mortgage, deed of trust or other instrument, or
violate any law, order, rule or regulation applicable to the Backup
Servicer of any court or of any federal or State regulatory body,
administrative agency or other governmental instrumentality having jurisdiction
over the Backup Servicer or any of its properties;

 

(f)                                    No
Proceedings.  As of the date of the
Underwriting Agreement, the Preliminary Prospectus Date, the Prospectus Date
and the Closing Date, there are no proceedings or investigations pending or, to
the Backup Servicer’s knowledge, threatened against the Backup Servicer, before
any court, regulatory body, administrative agency or other tribunal or
governmental instrumentality having jurisdiction over the Backup Servicer or
its properties (i) asserting the invalidity of this Agreement, (ii) seeking
to prevent the consummation of any of the transactions contemplated by this
Agreement, or (iii) seeking any determination or ruling that might
materially and adversely affect the performance by the Backup Servicer of its
obligations under, or the validity or enforceability of, this Agreement or
otherwise be material to the Noteholders, except as otherwise may be disclosed
in the Preliminary Prospectus and the Prospectus; and

 

5

 

(g)                                 No
Consents.  The Backup Servicer is not
required to obtain the consent of any other party or any consent, license,
approval or authorization, or registration or declaration with, any
governmental authority, bureau or agency in connection with the execution,
delivery, performance, validity or enforceability of this Agreement.

 

Section 2.3.                         Backup
Servicing Termination.

 

(a)                                  Prior
to the time the Backup Servicer receives a Transfer Notice, this Agreement may
be terminated upon delivery of thirty (30) days advance written notice to
the Backup Servicer of such termination. 
This Agreement shall be terminated pursuant to the previous sentence if (A) (i) the
Servicer notifies the Issuing Entity in writing that the Servicer has engaged a
replacement backup servicer or a Successor Servicer, (ii) the agreement
with such replacement backup servicer or Successor Servicer, as the case may
be, is reasonably satisfactory to the Issuing Entity in form and substance and (iii) the
identity of such replacement backup servicer or Successor Servicer, as the case
may be, is acceptable to the Issuing Entity in its sole discretion, (B) Moody’s
shall have been given at least 10 Business Days’ prior notice thereof and shall
have not notified the Issuing Entity and the Indenture Trustee that such action
will result in a reduction or withdrawal of the then current rating of any Class of
the Notes or (C) CNH Global N.V.’s long term unsecured debt credit rating
by Moody’s rises to “Ba2” or higher.

 

(b)                                 Prior
to the time the Backup Servicer receives a Transfer Notice, the Backup Servicer
may resign as Backup Servicer under this Agreement for any reason in its sole
judgment and discretion upon delivery of one hundred twenty (120) days
advance written notice (“Resignation Notice”) to the Issuing Entity of such
resignation.  In the event that the
Backup Servicer delivers a Resignation Notice pursuant to the foregoing
sentence, the Servicer agrees to cooperate with the Issuing Entity, and to take
such actions as the Issuing Entity may reasonably request, in order to appoint
a replacement backup servicer as promptly as possible. If a successor Backup
Servicer has not accepted appointment as the Successor Backup Servicer pursuant
to Section 2.3(c) by the last day of such 120 day period, this
Agreement shall terminate on the last day of such period.

 

(c)                                  The
Issuing Entity may appoint a replacement backup servicer to serve as the backup
servicer hereunder (a “Successor Backup Servicer”).  Provided that the Successor Backup Servicer
has executed a written assumption instrument acceptable to the Issuing Entity,
the Successor Backup Servicer shall become the Backup Servicer hereunder
effective on the date specified in such assumption instrument, which shall be a
date not later than the day the predecessor Backup Servicer ceases to perform
as Backup Servicer hereunder.  The
Successor Backup Servicer shall be the successor in all respects to the
predecessor Backup Servicer (except with respect to responsibilities and obligations
of the predecessor Backup Servicer set forth in Section 3.1) and shall be subject to all the
responsibilities, duties and liabilities arising thereafter relating thereto
placed on the predecessor Backup Servicer and shall be entitled to the Backup
Servicing Fee and all the rights granted to the predecessor Backup Servicer by
this Agreement.  None of the Backup
Servicer, the Indenture Trustee, the Issuing Entity, the Administrator, the
Trustee or any other Successor Backup Servicer shall be deemed to be liable for
or in breach of any obligations hereunder due to any act or omission of a
predecessor Backup Servicer.

 

6

 

Section 2.4.                         Backup
Servicer Fees; Payment of Expenses by Backup Servicer.  Unless and until the Backup Servicer or
another Person is appointed as Successor Servicer, on the Payment Date relating
to the Initial Collection Period and each Payment Date thereafter the Backup
Servicer shall be entitled to receive the Backup Servicer Fees in accordance
with the terms of the Sale and Servicing Agreement and the Indenture.  The Backup Servicer shall further receive all
reimbursable Backup Servicer Expenses in accordance with the terms of the Sale
and Servicing Agreement and the Indenture. 
The Backup Servicer shall be required to pay all other expenses incurred
by it in connection with its activities under this Agreement (including taxes
imposed on the Backup Servicer and all expenses incurred in connection with
reports to the Issuing Entity).

 

ARTICLE
III

 

THE
BACKUP SERVICER

 

Section 3.1.                         Liability
of Backup Servicer; Indemnities.

 

(a)                                  The
Backup Servicer shall be liable hereunder only to the extent of the obligations
in this Agreement specifically undertaken by the Backup Servicer and the
representations made by the Backup Servicer. 
Other than as specifically set forth in this Backup Servicing Agreement,
the Backup Servicer shall have no obligation to supervise, verify, monitor or
administer the performance of the Servicer and shall have no liability for any
action taken or omitted by the Servicer.

 

(b)                                 The
Backup Servicer shall indemnify, defend and hold harmless the Servicer, the
Issuing Entity and their respective officers, trustees, directors, agents and
employees from and against any and all costs, expenses, losses, claims, damages
and liabilities to the extent that such cost, expense, loss, claim, damage or
liability arose out of, or was imposed upon the Servicer or the Issuing Entity
through the Backup Servicer’s breach of this Agreement, the negligence, willful
misfeasance or bad faith of the Backup Servicer in the performance of its
duties under this Agreement or by reason of reckless disregard of its
obligations and duties under this Agreement.

 

(c)                                  The
Servicer shall indemnify, defend and hold harmless the Backup Servicer and its
respective officers, directors, agents and employees from and against any and
all costs, expenses, losses, claims, damages and liabilities to the extent that
such cost, expense, loss, claim, damage or liability arose out of, or was
imposed upon the Backup Servicer through the Servicer’s breach of this
Agreement, the negligence, willful misfeasance or bad faith of the Servicer in
the performance of its duties under this Agreement or by reason of reckless
disregard of its obligations and duties under this Agreement.

 

(d)                                 The
Issuing Entity shall (solely from amounts paid pursuant to Section 5.6(b)(xi) of the Sale and
Servicing Agreement) indemnify, defend and hold harmless the Backup Servicer
and its respective officers, directors, agents and employees from and against
any and all costs, expenses, losses, claims, damages and liabilities to the
extent that such cost, expense, loss, claim, damage or liability arose out of,
or was imposed 

 

7

 

upon the Backup Servicer through the Issuing Entity’s
breach of this Agreement, the negligence, willful misfeasance or bad faith of
the Issuing Entity in the performance of its duties under this Agreement or by
reason of reckless disregard of its obligations and duties under this
Agreement.

 

(e)                                  The
Backup Servicer may accept and reasonably rely on all accounting and servicing
records and other documentation provided to the Backup Servicer by or at the
direction of the Servicer, including documents prepared or maintained by any
Originator, or Servicer, or any party providing services related to the
Receivables (collectively “Third Party”).  The Servicer agrees to indemnify (subject to
the limitation provided in Section 3.2
below) and hold harmless the Backup Servicer, its respective officers,
employees and agents against any and all claims, losses, penalties, fines,
forfeitures, legal fees and related costs, judgments, and any other costs, fees
and expenses that the Backup Servicer may sustain in any way related to the
negligence, willful misfeasance or bad faith of any Third Party with respect to
the Receivables.  The Backup Servicer
shall have no duty, responsibility, obligation or liability (collectively “Liability”) for the acts or omissions of
any such Third Party.  If any error,
inaccuracy or omission (collectively “Error”)
exists in any information provided to the Backup Servicer of which it is not
aware and such Errors cause or materially contribute to the Backup Servicer
making or continuing any Error (collectively “Continuing
Errors”), the Backup Servicer shall have no liability for such
Continuing Errors; provided, however, that this provision shall not protect the
Backup Servicer against any liability which would otherwise be imposed by
reason of willful misconduct, bad faith or negligence in failing to discover or
correct any Error or in the performance of its duties contemplated herein.

 

In the event
the Backup Servicer becomes aware of Errors and/or Continuing Errors which, in
the opinion of the Backup Servicer, impair its ability to perform its services
hereunder, the Backup Servicer shall promptly notify the Servicer and the
Indenture Trustee of such Errors and/or Continuing Errors.  The Backup Servicer shall discuss such Errors
with the Servicer, and the Servicer and the Backup Servicer shall use their
reasonable efforts to correct such Errors. 
If after such discussion such Errors are not promptly corrected, with
the prior consent of the Indenture Trustee, the Backup Servicer may undertake
to reconstruct any data or records appropriate to correct such Errors and/or
Continuing Errors and to prevent future Continuing Errors.  The Backup Servicer shall be entitled to
recover its costs thereby expended as Backup Servicer Expenses in accordance
with the Sale and Servicing Agreement and the Indenture.

 

(f)                                    Indemnification
under this Article shall include, without limitation, reasonable fees and
expenses of counsel (including but not limited to counsel who may be employees
of the Backup Servicer) and expenses of litigation.  If the indemnifying party has made any
indemnity payments pursuant to this Article and the recipient thereafter
collects any of such amounts from others, the recipient shall promptly repay
such amounts collected to the indemnifying party, together with any interest
earned thereon.

 

(g)                                 The
provisions of this Section shall
survive the termination of this Agreement.

 

8

 

Section 3.2.            Limitation on Liability.  Neither the Backup Servicer, the Servicer,
the Issuing Entity nor any of their respective directors or officers or
employees or agents shall be under any liability to the other, or any party to
the Basic Documents except as provided in this Agreement, for any action taken
or for refraining from the taking of any action in good faith pursuant to this
Agreement; provided, however, that this provision shall not protect the Backup
Servicer, the Servicer, the Issuing Entity or any such Person against any
liability that would otherwise be imposed by reason of a breach of this
Agreement, the inaccuracy of any of their respective representations or
warranties set forth in this Agreement or willful misfeasance, bad faith or negligence
in the performance of their respective duties, by reason of reckless disregard
of obligations and duties under this Agreement or any violation of law by the
Backup Servicer, the Servicer, the Issuing Entity or such Person, as the case
may be.  The Backup Servicer, the
Servicer, the Issuing Entity and any of their respective directors, officers,
employees or agents may rely in good faith on the advice of counsel (including
but not limited to counsel who may be employees of the Backup Servicer or the Servicer,
as the case may be) or on any document of any kind prima facie properly
executed and submitted by any Person respecting any matters arising under this
Agreement.

 

Section 3.3.            Corporate Existence.  The Backup Servicer shall maintain its
existence and rights as a corporation under the laws of the jurisdiction of its
incorporation, and will obtain and preserve its qualification to do business as
a foreign corporation in each jurisdiction in which the failure to so qualify
would have an adverse effect on the validity or enforceability of any
Receivable or this Agreement or on the ability of the Backup Servicer to
perform its duties under this Agreement.

 

Section 3.4.            Insurance.  The Backup Servicer shall maintain adequate
insurance in amounts and with terms customarily subscribed by companies in the
same industry performing similar functions to those of the Backup Servicer in
its role as Backup Servicer or Successor Servicer, as applicable.

 

Section 3.5.            Compliance with Laws.  The Backup Servicer covenants with the
parties hereto that, upon the expiration of the Transfer Period, the practices
used or to be used by the Backup Servicer to monitor collections with respect
to the Contracts and repossess and dispose of the Financed Equipment related to
the contracts will be, in all material respects, legal, proper and in
conformity with the requirements of all applicable federal and State laws, rules and
regulations.  Upon the expiration of the
Transfer Period, the Backup Servicer will be in possession of all State and
local licenses (including all debt collection licenses) required for it to
perform its services hereunder and under the Sale and Servicing Agreement, and
none of such licenses shall have been suspended, revoked or terminated.

 

Section 3.6.            Backup Servicer Legal Proceedings.  At any time when the Backup Servicer’s
reporting obligations under Section 15(d) of the Exchange Act are not
suspended, the Backup Servicer shall notify the Servicer within 5 Business Days
of the date that the Backup Servicer becomes aware of (a) the initiation
of any legal proceedings against the Backup Servicer, or of which any property
of the Backup Servicer is subject, that are material to the Noteholders, (b) any
developments in any such proceedings that are material to the Noteholders and (c) any
such material proceedings that are contemplated by any governmental authority
against the Backup Servicer or any property of the Backup Servicer that are
material to the 

 

9

 

Noteholders;
provided, however that in each case notice need not be provided to the extent
disclosure of same would not be required pursuant to the terms of Regulation AB
of the Exchange Act.

 

ARTICLE
IV

 

TERMINATION
EVENTS

 

Section 4.1.            Termination Event.  For purposes of this Agreement, each of the
following shall constitute a Termination Event (subsections (a) through (d) shall
further constitute a “Backup Servicer Event
of Default”):

 

(a)           Failure on the part of the Backup
Servicer duly to observe or perform in any material respect any covenant or
agreement of the Backup Servicer set forth in this Agreement, which failure
continues unremedied for a period of 30 days after the date on which written
notice of such failure, requiring the same to be remedied, shall have been
given to the Backup Servicer by the Servicer; or

 

(b)           (i) The commencement of an
involuntary case under the federal bankruptcy laws, as now or hereinafter in
effect, or another present or future federal or State bankruptcy, insolvency or
similar law and such case is not dismissed within 60 days; or (ii) the
entry of a decree or order for relief by a court or regulatory authority having
jurisdiction in respect of the Backup Servicer in an involuntary case under the
federal bankruptcy laws, as now or hereafter in effect, or another present or
future, federal or State, bankruptcy, insolvency or similar law, or appointing
a receiver, liquidator, assignee, trustee, custodian, sequestrator or other
similar official of the Backup Servicer or of any substantial part of its
properties or ordering the winding up or liquidation of the affairs of the
Backup Servicer; or

 

(c)           The commencement by the Backup
Servicer of a voluntary case under the federal bankruptcy laws, as now or
hereafter in effect, or any other present or future federal or State
bankruptcy, insolvency or similar law, or the consent by the Backup Servicer to
the appointment of or taking possession by a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of the Backup
Servicer or of any substantial part of its property or the making by the Backup
Servicer of an assignment for the benefit of creditors or the failure by the
Backup Servicer generally to pay its debts as such debts become due or the
taking of corporate action by the Backup Servicer in furtherance of any of the
foregoing; or

 

(d)           Any representation, warranty or
statement of the Backup Servicer made in this Agreement or any certificate,
report or other writing delivered by the Backup Servicer pursuant hereto shall
prove to be incorrect in any material respect as of the time when the same
shall have been made and, within thirty (30) days after written notice
thereof shall have been given to the Backup Servicer by the Servicer, the
circumstances or condition in respect of which such representation, warranty or
statement was incorrect shall not have been waived, eliminated or otherwise
cured; or

 

10

 

(e)           Failure on the part of the Backup
Servicer to receive Backup Servicer Fees or Backup Servicer Expenses as and
when due as set forth in the Sale and Servicing Agreement and the Indenture,
which failure shall not be cured within twenty (20) days after the date on
which written notice of such failure shall have been received by the Servicer
and the Issuing Entity; or

 

(f)            Failure on the part of the Backup
Servicer to notify the Servicer as required pursuant to Section 3.6.

 

Section 4.2.            Consequences
of a Termination Event.

 

(a)           If a Backup Servicer Event of Default
(as defined in Section 4.1
above) shall occur and be continuing, the Servicer may, by notice given in
writing to the Backup Servicer, terminate all of the rights and obligations of
the Backup Servicer under this Agreement, except as set forth in Sections 3.1(b), (c), (d), (e) and
(f).  On or after the receipt by the Backup
Servicer of such written notice, all authority, power, obligations and
responsibilities of the Backup Servicer under this Agreement shall be
terminated (other than Section 3.1(b), (c), (d), (e) and (f)).  The terminated Backup Servicer agrees to
cooperate with the Servicer in effecting the termination of the
responsibilities and rights of the terminated Backup Servicer under this
Agreement.

 

(b)           Notwithstanding any other provision of
this Agreement, in the event of a Termination Event pursuant to Section 4.1(e), this Agreement shall
terminate upon expiration of the given cure period, and the Backup Servicer
shall then have no obligations or responsibilities under this Agreement, except
as set forth in Section 3.1(b) and (f).

 

ARTICLE
V

 

MISCELLANEOUS
PROVISIONS

 

Section 5.1.            Waiver; Amendment.  Neither this Agreement nor any provision
hereof may be waived, amended or modified orally, but only by an instrument in
writing signed by the Servicer, the Seller, the Backup Servicer, the Indenture
Trustee and the Issuing Entity; provided that any such amendment shall
not materially and adversely affect the interests of any Noteholder; provided,
further, that any such amendment shall be deemed not to materially and
adversely affect the interests of any Noteholder if any of the following
conditions is satisfied:

 

(i)            the Servicer delivers an Opinion of
Counsel to the Backup Servicer to the effect that such amendment will not
materially and adversely affect the interests of the Noteholders; or

 

(ii)           the Servicer delivers an Officer’s
Certificate of the Servicer to the Backup Servicer to the effect that such
amendment will not materially and adversely affect the interests of the
Noteholders.

 

An amendment shall be deemed not to adversely affect in any material
respect the interests of any Noteholders of a Class of Notes if the Rating
Agency Condition has been satisfied with respect to such amendment for such Class of
Notes.

 

11

 

Prior to the execution of
any such amendment or consent, the Servicer shall furnish written notification
of the substance of such amendment or consent to each of the Rating Agencies.

 

Notwithstanding
anything herein to the contrary (other than as provided in the following
paragraph), any term or provision of this Agreement may be amended by the
Servicer and the Seller without the consent of the Noteholders or any other
Person to add, modify or eliminate any provisions as may be necessary or
advisable in order to comply with or obtain more favorable treatment under or
with respect to any law or regulation or any accounting rule or principle
(whether now or in the future in effect); it being a condition to any such
amendment that the Rating Agency Condition shall have been satisfied.

 

Section 5.2.            Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES UNDER THIS AGREEMENT SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

Section 5.3.            Severability of Provisions.  If any one or more of the covenants,
agreements, provisions or terms of this Agreement shall be for any reason
whatsoever held invalid, then such covenants, agreements, provisions or terms
shall be deemed severable from the remaining covenants, agreements, provisions
or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement.

 

Section 5.4.            Assignment.  Notwithstanding anything to the contrary
contained in this Agreement, this Agreement may not be assigned by the Backup
Servicer without the prior written consent of the Servicer.

 

Section 5.5.            Third-Party Beneficiaries.  This Agreement shall inure to the benefit of
and be binding upon the parties hereto and their respective successors and
permitted assigns.  Nothing in this
Agreement, express or implied, shall give to any Person, other than the parties
hereto, their successors hereunder and the Persons entitled to be indemnified
pursuant to Section 3.1, any
benefit or any legal or equitable right, remedy or claim under this Agreement.

 

Section 5.6.            Counterparts.  For the purpose of facilitating its execution
and for other purposes, this Agreement may be executed simultaneously in any
number of counterparts, each of which counterparts shall be deemed to be an
original, and all of which counterparts shall constitute but one and the same
instrument.

 

Section 5.7.            Notices.  All demands, notices and communications under
this Agreement shall be in writing, personally delivered or mailed, or by
facsimile transmission: (a) in the case of the Backup Servicer, at the
following address: 4315 Pickett Road, St. Joseph, Missouri 64503 Attention:
Jonathan Pike, Facsimile Number (816) 671-2038, with a copy to NCO Group, Inc.,
507 Prudential Road, Horsham, PA 19044, Attention: Joshua Gindin, Executive
Vice President/General Counsel; (b) in the case of the Servicer, at the
following address: New Holland Credit Company, LLC, 33 South Railroad
Avenue, New Holland, Pennsylvania 17557, Attention: Finance Manager, Facsimile
Number (630) 887-5448; with a copy to: New Holland Credit Company, LLC, 6900
Veterans Boulevard, Burr Ridge, Illinois 60527, Attention: 

 

12

 

Assistant
Treasurer, Facsimile Number (630) 887-5448; (c) in the case of the Issuing
Entity, at the following address: CNH Equipment Trust 2009-A, in care of
Wilmington Trust Company, Rodney Square North, 1100 North Market Street,
Wilmington, Delaware 19890 Attention: Corporate Trust Administration, Facsimile
Number (302) 636-4140; (d) in the case of the Seller, to CNH Capital
Receivables LLC, 6900 Veterans Boulevard, Burr Ridge, Illinois 60527,
Attention: Assistant Treasurer, Facsimile Number (630) 887-5448; and (e) in
the case of the Indenture Trustee, at its Corporate Trust Office; or at such
other address or facsimile number as shall be designated by any such party in a
written notice to the other parties.  All
such notices and communications shall be effective, upon receipt, or in the
case of (i) notice by mail, five days after being deposited in the United
States mail, first class postage prepaid, (ii) notice by telex, when
telexed against receipt of answer back, or (iii) notice by facsimile copy,
when verbal communication of receipt is obtained.

 

Section 5.8.            Nonpetition Covenants.  Notwithstanding any prior termination of this
Agreement, the Backup Servicer, the Servicer and the Indenture Trustee shall
not, prior to the date that is one year and one day after the payment in full
of all securities issued by Issuing Entity or any other special purpose entity
to which Seller transfers receivables, which securities are rated at issuance
by a nationally recognized statistical rating organization, with respect to the
Issuing Entity or the Seller, acquiesce, petition or otherwise invoke or cause
the Issuing Entity or the Seller to invoke the process of any court or
governmental authority for the purpose of commencing or sustaining a case
against the Issuing Entity or the Seller under any federal or state bankruptcy,
insolvency or similar law or appointing a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of the Issuing
Entity or the Seller or any substantial part of its property, or ordering the
winding up or liquidation of the affairs of the Issuing Entity or the
Seller.  The foregoing shall not limit
the right of the Backup Servicer, the Servicer or the Indenture Trustee to file
any claim in or otherwise take any action with respect to any such insolvency
proceeding that was instituted against the Issuing Entity or the Seller by any
Person other than the Backup Servicer, the Servicer or the Indenture Trustee.

 

Section 5.9.            Term.  The provisions of this Agreement and the
duties and obligations of the Backup Servicer hereunder shall commence on the
date hereof and shall continue in full force and effect until either (i) if
SST is not then the Successor Servicer, the Notes have been repaid in their
entirety or (ii) the Pool Balance equals zero, unless earlier terminated
pursuant to the terms of this Agreement.

 

Section 5.10.          Limitation of Liability of Trustee.  Notwithstanding anything contained herein to
the contrary, this Agreement has been countersigned by Wilmington Trust
Company, not in its individual capacity but solely in its capacity as Owner
Trustee of the Issuing Entity, and in no event shall Wilmington Trust Company,
in its individual capacity, or any beneficial owner of the Issuing Entity have
any liability for the representations, warranties, covenants, agreements or
other obligations of the Issuing Entity hereunder or in any of the
certificates, notices or agreements delivered pursuant hereto, as to all of
which recourse shall be had solely to the assets of the Issuing Entity.

 

Section 5.11.          Miscellaneous.  In connection with its execution and
performance of this Agreement, the Issuing Entity is entitled to all rights,
privileges, benefits and indemnities provided to it under the Sale and
Servicing Agreement.

 

13

 

Section 5.12.          Confidentiality.  SST shall maintain, and shall cause each
officer, employee and agent of itself and its affiliates to maintain, the
confidentiality of this Backup Servicing Agreement, the Basic Documents and all
other confidential proprietary information with respect to the Servicer, CNH
Capital America LLC, the Seller and CNH Global N.V. and their affiliates and
successors and each of their respective businesses obtained by SST in
connection with the structuring, negotiation and execution of the transactions
contemplated herein and in the other Basic Documents or as otherwise provided
to SST from time to time due to its role as Backup Servicer or Successor Servicer,
except for information that has become publicly available or information
disclosed (i) to legal counsel, accountants and other professional
advisors to SST, (ii) as required by law, regulation or legal process, (iii) in
connection with any legal or regulatory proceeding to which SST or any of their
affiliates is subject or (iv) any other disclosure with the prior written
consent of CNHCA.

 

Section 5.13.          Information Requests.  The parties hereto shall provide any
information reasonably requested by the Servicer or the Seller or any of their
Affiliates, at the expense of such party, in order to comply with or obtain
more favorable treatment under any current or future law, rule, regulation,
accounting rule or principle.

 

Section 5.14.          Notice to Moody’s.  The Servicer shall notify Moody’s upon the
termination of this Agreement pursuant to Section 2.3
or the termination of SST as Backup Servicer pursuant to Section 4.2.

 

Section 5.15.          Form 8-K Filings.  So long as the Seller is filing Exchange Act
Reports with respect to the Issuer, the Backup Servicer shall promptly notify
the Seller, but in no event later than five (5) Business Days after its
occurrence, of any Reportable Event of which a Responsible Officer of the
Backup Servicer has actual knowledge (other than a Reportable Event described
in clause (a) or (b) of the definition thereof as to which the Seller
or the Servicer has actual knowledge). 
The Backup Servicer shall be deemed to have actual knowledge of any such
event to the extent that it relates to the Backup Servicer in its individual
capacity or any action by the Backup Servicer under this Agreement.

 

Section 5.16.          Indemnification.

 

(a)           The Backup Servicer shall indemnify
the Seller, each Affiliate of the Seller or each Person who controls any of
such parties (within the meaning of Section 15 of the Securities Act and Section 20
of the Exchange Act) and the respective present and former directors, officers,
employees and agents of each of the foregoing, and shall hold each of them
harmless from and against any losses, damages, penalties, fines, forfeitures,
legal fees and expenses and related costs, judgments, and any other costs, fees
and expenses that any of them may sustain arising out of or based upon:

 

(i)            (A)          any
untrue statement of a material fact contained in any information provided in
writing by the Backup Servicer to the Seller or its affiliates under Sections
3.6 or 5.15 (such information, the “Provided Information”), or (B) the
omission to state in the Provided Information a material fact required to be
stated in the Provided Information, or necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading; provided, by way of clarification, that clause (B) of
this 

 

14

 

paragraph shall be
construed solely by reference to the related information and not to any other
information communicated in connection with a sale or purchase of securities,
without regard to whether the Provided Information or any portion thereof is
presented together with or separately from such other information; or

 

(ii)           any failure by the Backup Servicer to
deliver any information report, or other material when and as required under
Sections 3.6 or 5.15.

 

(b)           In the case of any failure of
performance described in clause (a)(ii) of this Section, the Backup
Servicer shall promptly reimburse the Seller for all costs reasonably incurred
in order to obtain the information, report or other material not delivered as
required by the Backup Servicer.

 

(c)           Notwithstanding anything to the
contrary contained herein, in no event shall the Backup Servicer be liable
under this Section 5.16 for special, indirect or consequential damages of
any kind whatsoever, including but not limited to lost profits, even if the
Backup Servicer has been advised of the likelihood of such loss or damage and
regardless of the form of action.

 

(d)           Depositor agrees to pay, and to
protect, indemnify and save harmless the Backup Servicer, and its respective
officers, directors, shareholders, employees, agents and each person, if any,
who controls the Backup Servicer, within the meaning of either Section 15
of the Securities Act or Section 20 of the Exchange Act, from and against,
any and all claims, losses, liabilities (including penalties), actions, suits,
judgments, demands, damages, costs or expenses (including reasonable fees and
expenses of attorneys or, as necessary, consultants and auditors and reasonable
costs of investigations) (collectively, “Backup Servicer Losses”) of any nature
to the extent such Backup Servicer Losses arise out of or are based upon any
untrue statement of a material fact contained under the heading “Depositor” in
the base prospectus contained in the Preliminary Prospectus and the Prospectus
or any omission to state under the heading “Depositor” in the base prospectus
contained in the Preliminary Prospectus and the Prospectus a material fact
required to be stated therein or necessary to make the statements therein, in light
of the circumstance under which they were made, not misleading.  Notwithstanding anything to the contrary
contained herein, in no event shall the Depositor be liable under this Section 5.16
for special, indirect or consequential damages of any kind whatsoever,
including but not limited to lost profits, even if the Depositor has been
advised of the likelihood of such loss or damage and regardless of the form of
action.

 

[The balance of
this page has been intentionally left blank]

 

15

 

IN WITNESS
WHEREOF, the Servicer, the Issuing Entity, the Backup Servicer, the Seller and
the Indenture Trustee have caused this Backup Servicing Agreement to be duly
executed by their respective officers as of the day and year first above
written.

 

	
   

  	
  NEW
  HOLLAND CREDIT COMPANY, LLC,

  
	
   

  	
  as Servicer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas N. Beckmann

  
	
   

  	
  Name:

  	
  Thomas N. Beckmann

  
	
   

  	
  Title:

  	
  Assistant Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CNH
  CAPITAL RECEIVABLES LLC,

  
	
   

  	
  as Seller

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas N. Beckmann

  
	
   

  	
  Name:

  	
  Thomas N. Beckmann

  
	
   

  	
  Title:

  	
  Assistant Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CNH
  EQUIPMENT TRUST 2009-A,

  
	
   

  	
  as Issuing
  Entity

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Wilmington Trust Company, not in its individual
  capacity but solely as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dorri Costello

  
	
   

  	
  Name:

  	
  Dorri Costello

  
	
   

  	
  Title:

  	
  Financial Services Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SYSTEMS &
  SERVICES TECHNOLOGIES, INC., 

  as Backup Servicer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joshua Gindin

  
	
   

  	
  Name:

  	
  Joshua Gindin

  
	
   

  	
  Title:

  	
  Secretary and General Counsel

  

 

 

ACKNOWLEDGED AND AGREED:

 

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
not in its individual capacity but solely as Indenture Trustee

 

	
  By:

  	
  /s/ David H. Hill

  	
   

  
	
  Name:

  	
  David H. Hill

  	
   

  
	
  Title:

  	
  Assistant Vice
  President

  	
   

  

 

 

SCHEDULE
I

 

DESCRIPTION OF VERIFICATION AND
CONFIRMATION DUTIES

(BACKUP SERVICING)

 

The Backup Servicer shall provide the following
services related to backup servicing in connection with the Contracts.

 

(i)                                     The
Backup Servicer will work with the Servicer’s personnel to obtain the necessary
systems and data information from the servicing systems in use by the Servicer
(the “Initial Data File Data Layouts and
Definitions” as set forth in Appendix A).  Using this information, the Backup Servicer
will create a set of conversion routines and database mapping programs, as
necessary, that will enable the Backup Servicer to receive data from the
Servicer on a monthly basis (at the time and in the manner specified in Section 2.1(a) of the Backup
Servicing Agreement) and to ensure that the data is readable.

 

(ii)                                  On
a monthly basis, commencing with the Initial Collection Period, the Backup
Servicer shall (x) verify receipt of the monthly data files, as set forth
in Appendix B, required to be delivered by the Servicer (at the time and
in the manner specified in Section 2.1(a) of
the Backup Servicing Agreement) and (y) verify that the records and data
contained in the monthly data files are in a readable format.

 

(iii)                               On the 10th Business Day
after receipt of the monthly data files and the Servicer’s Certificate from the
Servicer (“Backup Servicer Notice Date”), the Backup Servicer shall notify the
Servicer that (i) the Backup Servicer has reviewed the monthly data files
for the related Collection Period, (ii) a review of the information
concerning delinquency aging, defaults and ending Contract Value reflected on
the Servicer’s Certificate has been made and (iii) to the best of SST’s
knowledge using its best reasonable efforts, the data in such monthly data
files ties to such items on the Servicer’s Certificate, resulting in no
discrepancies between them.  If the
preceding statement cannot be made in the affirmative, on or by the Backup
Servicer Notice Date, SST shall notify the Servicer of the nature of any and
all discrepancies.  The Backup Servicer
and the Servicer shall attempt to reconcile all discrepancies with respect to
such Servicer’s Certificate.  The effect,
if any, of such reconciliation shall be reflected in the next succeeding
Servicer’s Certificate.

 

 

APPENDIX
A

 

INITIAL DATA FILE DATA
LAYOUTS AND DEFINITIONS

 

	
  Record length = 100

  	
   

  	
  LOS01

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DESCRIPTION

  	
   

  	
  START

  	
   

  	
  END

  	
   

  	
  POS

  	
   

  	
  ANNOTATIONS

  
	
  ENTITY

  	
   

  	
  001

  	
   

  	
  005

  	
   

  	
  5

  	
   

  	
   

  
	
  COST CENTER

  	
   

  	
  006

  	
   

  	
  011

  	
   

  	
  6

  	
   

  	
   

  
	
  POOL IDENTIFIER

  	
   

  	
  012

  	
   

  	
  014

  	
   

  	
  3

  	
   

  	
   

  
	
  SUB POOL IDENTIFIER

  	
   

  	
  015

  	
   

  	
  024

  	
   

  	
  10

  	
   

  	
   

  
	
  CUSTOMER #

  	
   

  	
  025

  	
   

  	
  034

  	
   

  	
  10

  	
   

  	
   

  
	
  NOTE #

  	
   

  	
  035

  	
   

  	
  042

  	
   

  	
  8

  	
   

  	
   

  
	
  MT CODE

  	
   

  	
  043

  	
   

  	
  045

  	
   

  	
  3

  	
   

  	
   

  
	
  TRANSACTION CODE

  	
   

  	
  046

  	
   

  	
  047

  	
   

  	
  2

  	
   

  	
  WILL HAVE ‘MT’ IF FEED IS FROM MT,
  OTHERWISE THE CL TRANS. CODE.

  
	
  TRANSACTION CODE QUALIFIER

  	
   

  	
  048

  	
   

  	
  049

  	
   

  	
  2

  	
   

  	
   

  
	
  TRANSACTION DATE

  	
   

  	
  050

  	
   

  	
  057

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  BUSINESS LINE

  	
   

  	
  058

  	
   

  	
  059

  	
   

  	
  2

  	
   

  	
   

  
	
  ACKTBL TRANSACTION CODE

  	
   

  	
  060

  	
   

  	
  062

  	
   

  	
  3

  	
   

  	
   

  
	
  TRANSACTION AMOUNT

  	
   

  	
  063

  	
   

  	
  079

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  063

  	
   

  	
  063

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  064

  	
   

  	
  076

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  077

  	
   

  	
  077

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  078

  	
   

  	
  079

  	
   

  	
  2

  	
   

  	
   

  
	
  GL ACCOUNT NUMBER

  	
   

  	
  080

  	
   

  	
  093

  	
   

  	
  14

  	
   

  	
   

  
	
  ACCOUNT

  	
   

  	
  080

  	
   

  	
  089

  	
   

  	
  10

  	
   

  	
   

  
	
  SUB ACCOUNT
  NUMBER

  	
   

  	
  090

  	
   

  	
  093

  	
   

  	
  4

  	
   

  	
   

  
	
  VARIABLE RATE TYPE

  	
   

  	
  094

  	
   

  	
  095

  	
   

  	
  2

  	
   

  	
   

  
	
  FILLER

  	
   

  	
  094

  	
   

  	
  100

  	
   

  	
  5

  	
   

  	
   

  

 

	
  Record length = 3775

  	
   

  	
  SS01

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DESCRIPTION

  	
   

  	
  START

  	
   

  	
  END

  	
   

  	
  POS.

  	
   

  	
  ANNOTATIONS

  
	
  ACCOUNT #

  	
   

  	
  0001

  	
   

  	
  0026

  	
   

  	
  26

  	
   

  	
   

  
	
  BANK CODE

  	
   

  	
  0001

  	
   

  	
  0002

  	
   

  	
  2

  	
   

  	
   

  
	
  BRANCH CODE

  	
   

  	
  0003

  	
   

  	
  0005

  	
   

  	
  3

  	
   

  	
   

  
	
  RETAIL/LEASE
  CODE

  	
   

  	
  0006

  	
   

  	
  0008

  	
   

  	
  3

  	
   

  	
   

  
	
  CUSTOMER #

  	
   

  	
  0009

  	
   

  	
  0018

  	
   

  	
  10

  	
   

  	
   

  
	
  NOTE #

  	
   

  	
  0019

  	
   

  	
  0026

  	
   

  	
  8

  	
   

  	
   

  
	
  POOL IDENTIFIER

  	
   

  	
  0027

  	
   

  	
  0029

  	
   

  	
  3

  	
   

  	
   

  
	
  SUB POOL IDENTIFIER

  	
   

  	
  0030

  	
   

  	
  0039

  	
   

  	
  10

  	
   

  	
   

  
	
  CONTRACT DATE

  	
   

  	
  0040

  	
   

  	
  0047

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  ORIGINAL MATURITY DATE

  	
   

  	
  0048

  	
   

  	
  0055

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  CURRENT MATURITY DATE

  	
   

  	
  0056

  	
   

  	
  0063

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  ORIGINAL AMOUNT FINANCED

  	
   

  	
  0064

  	
   

  	
  0080

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0064

  	
   

  	
  0064

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  0065

  	
   

  	
  0077

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0078

  	
   

  	
  0078

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  0079

  	
   

  	
  0080

  	
   

  	
  2

  	
   

  	
   

  
	
  CURRENT OBLIGOR BALANCE

  	
   

  	
  0081

  	
   

  	
  0097

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0081

  	
   

  	
  0081

  	
   

  	
  1

  	
   

  	
   

  

 

Appendix A-1

 

	
  DOLLARS

  	
   

  	
  0082

  	
   

  	
  0094

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0095

  	
   

  	
  0095

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  0096

  	
   

  	
  0097

  	
   

  	
  2

  	
   

  	
   

  
	
  CURRENT HOLDER BALANCE

  	
   

  	
  0098

  	
   

  	
  0114

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0098

  	
   

  	
  0098

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  0099

  	
   

  	
  0111

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0112

  	
   

  	
  0112

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  0113

  	
   

  	
  0114

  	
   

  	
  2

  	
   

  	
   

  
	
  FIRST DUE DATE

  	
   

  	
  0115

  	
   

  	
  0122

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  NEXT DUE DATE

  	
   

  	
  0123

  	
   

  	
  0130

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  NEXT PAYMENT AMOUNT

  	
   

  	
  0131

  	
   

  	
  0147

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0131

  	
   

  	
  0131

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  0132

  	
   

  	
  0144

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0145

  	
   

  	
  0145

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  0146

  	
   

  	
  0147

  	
   

  	
  2

  	
   

  	
   

  
	
  CURRENT INTEREST RATE (APR)

  	
   

  	
  0148

  	
   

  	
  0155

  	
   

  	
  8

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0148

  	
   

  	
  0148

  	
   

  	
  1

  	
   

  	
   

  
	
  LEFT OF DECIMAL

  	
   

  	
  0149

  	
   

  	
  0149

  	
   

  	
  1

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0150

  	
   

  	
  0150

  	
   

  	
  1

  	
   

  	
   

  
	
  RIGHT OF DECIMAL

  	
   

  	
  0151

  	
   

  	
  0155

  	
   

  	
  5

  	
   

  	
   

  
	
  ORIGINAL TERMS

  	
   

  	
  0156

  	
   

  	
  0158

  	
   

  	
  3

  	
   

  	
   

  
	
  PAYMENT METHOD

  	
   

  	
  0159

  	
   

  	
  0159

  	
   

  	
  1

  	
   

  	
  C=COUPON

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  A=ACH

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  B=BILL

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  N=NO BILL

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INTEREST TYPE

  	
   

  	
  0160

  	
   

  	
  0161

  	
   

  	
  2

  	
   

  	
  00 = SIMPLE INTEREST

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  01=SIMPLE INTEREST

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  02=78’S INTEREST

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  03=STRIGHT LINE INTEREST

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  04=SIMPLE INTEREST (ON SCHEDULED
  PRIN. BAL.)  FOR LOANS
  W/AMORTIZED  PAYMENT SCHEDULE.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  05=SIMPLE INT. AVERAGE BAL.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  07=SIMPLE INT. W/BALANCE

  

 

	
  DESCRIPTION

  	
   

  	
  START

  	
   

  	
  END

  	
   

  	
  POS.

  	
   

  	
  ANNOTATIONS

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  SPREAD
  RATE ADJ.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  08=ACTURIAL

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  09=SUM OF BALANCE

  
	
  # OF DAYS LATE TO ASSESS LATE FEES

  	
   

  	
  0162

  	
   

  	
  0164

  	
   

  	
  3

  	
   

  	
   

  
	
  LATE FEE AMOUNT

  	
   

  	
  0165

  	
   

  	
  0181

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0165

  	
   

  	
  0165

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  0166

  	
   

  	
  0178

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0179

  	
   

  	
  0179

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  0180

  	
   

  	
  0181

  	
   

  	
  2

  	
   

  	
   

  
	
  LATE FEE PERCENT

  	
   

  	
  0182

  	
   

  	
  0189

  	
   

  	
  8

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0182

  	
   

  	
  0182

  	
   

  	
  1

  	
   

  	
   

  

 

Appendix A-2

 

	
  LEFT OF DECIMAL

  	
   

  	
  0183

  	
   

  	
  0183

  	
   

  	
  1

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0184

  	
   

  	
  0184

  	
   

  	
  1

  	
   

  	
   

  
	
  RIGHT OF DECIMAL

  	
   

  	
  0185

  	
   

  	
  0189

  	
   

  	
  5

  	
   

  	
   

  
	
  INTEREST PAID THROUGH DATE

  	
   

  	
  0190

  	
   

  	
  0197

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  INTEREST ACCRUED/UNPAID AT TRANSFER

  	
   

  	
  0198

  	
   

  	
  0214

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0198

  	
   

  	
  0198

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  0199

  	
   

  	
  0211

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0212

  	
   

  	
  0212

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  0213

  	
   

  	
  0214

  	
   

  	
  2

  	
   

  	
   

  
	
  LATE FEES DUE

  	
   

  	
  0215

  	
   

  	
  0231

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0215

  	
   

  	
  0215

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  0216

  	
   

  	
  0228

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0229

  	
   

  	
  0229

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  0230

  	
   

  	
  0231

  	
   

  	
  2

  	
   

  	
   

  
	
  OTHER AMOUNT DUE

  	
   

  	
  0232

  	
   

  	
  0248

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0232

  	
   

  	
  0232

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  0233

  	
   

  	
  0245

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0246

  	
   

  	
  0246

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  0247

  	
   

  	
  0248

  	
   

  	
  2

  	
   

  	
   

  
	
  REMAINING TERM

  	
   

  	
  0249

  	
   

  	
  0251

  	
   

  	
  3

  	
   

  	
   

  
	
  CHARGE OFF DATE

  	
   

  	
  0252

  	
   

  	
  0259

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  CHARGE OFF AMOUNT

  	
   

  	
  0260

  	
   

  	
  0276

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0260

  	
   

  	
  0260

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  0261

  	
   

  	
  0273

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0274

  	
   

  	
  0274

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  0275

  	
   

  	
  0276

  	
   

  	
  2

  	
   

  	
   

  
	
  CONTRACT STATE (DEALER)

  	
   

  	
  0277

  	
   

  	
  0278

  	
   

  	
  2

  	
   

  	
   

  
	
  LAST PAYMENT DATE

  	
   

  	
  0279

  	
   

  	
  0286

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TIMES PAST DUE DATA (1st occ. Info.
  Below)

  	
   

  	
  0287

  	
   

  	
  0306

  	
   

  	
  20

  	
   

  	
  OCCURS 5 TIMES

  
	
  SIGN

  	
   

  	
  0287

  	
   

  	
  0287

  	
   

  	
  1

  	
   

  	
  OCC
  1 = 10 DAYS PAST DUE

  
	
  DAYS

  	
   

  	
  0288

  	
   

  	
  0290

  	
   

  	
  3

  	
   

  	
  OCC
  2 = 30 DAYS PAST DUE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  OCC
  3 = 60 DAYS PAST DUE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  OCC
  4 = 90 DAYS PAST DUE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  OCC
  5 = 120 DAYS PAST DUE

  
	
  NUMBER OF NSF CHECKS

  	
   

  	
  0307

  	
   

  	
  0308

  	
   

  	
  2

  	
   

  	
   

  
	
  BUY-BACK (CLOSEOUT FEE)

  	
   

  	
  0309

  	
   

  	
  0316

  	
   

  	
  8

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0309

  	
   

  	
  0309

  	
   

  	
  1

  	
   

  	
   

  
	
  LEFT OF DECIMAL

  	
   

  	
  0310

  	
   

  	
  0310

  	
   

  	
  1

  	
   

  	
   

  
	
  DECIAML

  	
   

  	
  0311

  	
   

  	
  0311

  	
   

  	
  1

  	
   

  	
   

  
	
  RIGHT OF DECIMAL

  	
   

  	
  0312

  	
   

  	
  0316

  	
   

  	
  5

  	
   

  	
   

  
	
  BRANCH/REGION/PROCESSING CENTER

  	
   

  	
  0317

  	
   

  	
  0319

  	
   

  	
  3

  	
   

  	
   

  
	
  ORIGINATOR APPLICATION NUMBER

  	
   

  	
  0320

  	
   

  	
  0329

  	
   

  	
  10

  	
   

  	
   

  
	
  ORIGINATOR FUNDING DATE

  	
   

  	
  0330

  	
   

  	
  0337

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  PAY AHEAD BALANCE

  	
   

  	
  0338

  	
   

  	
  0354

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0338

  	
   

  	
  0338

  	
   

  	
  1

  	
   

  	
   

  

 

	
  DESCRIPTION

  	
   

  	
  START

  	
   

  	
  END

  	
   

  	
  POS.

  	
   

  	
  ANNOTATIONS

  
	
  DOLLARS

  	
   

  	
  0339

  	
   

  	
  0351

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0352

  	
   

  	
  0352

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  0353

  	
   

  	
  0354

  	
   

  	
  2

  	
   

  	
   

  
	
  TITLE STATE

  	
   

  	
  0355

  	
   

  	
  0356

  	
   

  	
  2

  	
   

  	
   

  

 

Appendix A-3

 

	
  RECOURSE CODE

  	
   

  	
  0357

  	
   

  	
  0357

  	
   

  	
  1

  	
   

  	
   

  
	
  PDI INSURANCE

  	
   

  	
  0358

  	
   

  	
  0358

  	
   

  	
  1

  	
   

  	
  R=RAMSEY-KRUG

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  U=UNIVERSAL

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  F=FIREMANS’S FUND

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  G=EPG

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  O=OTHER

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  SPACE=NONE

  
	
  LIFE INSURANCE

  	
   

  	
  0359

  	
   

  	
  0359

  	
   

  	
  1

  	
   

  	
  M=AMERICAN MODERN (USA)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  P=PACIFIC LIFE (CANADA)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  SPACE=NONE

  
	
  LIABILITY INSURANCE

  	
   

  	
  0360

  	
   

  	
  0360

  	
   

  	
  1

  	
   

  	
  E=ELPA

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  SPACE=NONE

  
	
  DISABILITY INSURANCE

  	
   

  	
  0361

  	
   

  	
  0361

  	
   

  	
  1

  	
   

  	
  M=AMERICAN MODERN

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  SPACE=NONE

  
	
  ESPP INSURANCE

  	
   

  	
  0362

  	
   

  	
  0362

  	
   

  	
  1

  	
   

  	
  G=EPG

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  SPACE=NONE

  
	
  RESIDUAL INSURANCE

  	
   

  	
  0363

  	
   

  	
  0363

  	
   

  	
  1

  	
   

  	
  P=PACIFIC LIFE (CANADA)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  SPACE=NONE

  
	
  LOAN STATUS

  	
   

  	
  0364

  	
   

  	
  0364

  	
   

  	
  1

  	
   

  	
  A=ACTIVE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  C=CLOSED

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  D=ACCOUNT IN REPOESSION
  BUT NOT IN BANKRUPTCY.

  
	
  REPO BALANCE

  	
   

  	
  0365

  	
   

  	
  0381

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0365

  	
   

  	
  0365

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  0366

  	
   

  	
  0378

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0379

  	
   

  	
  0379

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  0380

  	
   

  	
  0381

  	
   

  	
  2

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REPO ESTIMATED LOSS

  	
   

  	
  0382

  	
   

  	
  0398

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0382

  	
   

  	
  0382

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  0383

  	
   

  	
  0395

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0396

  	
   

  	
  0396

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  0397

  	
   

  	
  0398

  	
   

  	
  2

  	
   

  	
   

  
	
  INTEREST START DATE

  	
   

  	
  0399

  	
   

  	
  0406

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FIXED OR VARIABLE

  	
   

  	
  0407

  	
   

  	
  0407

  	
   

  	
  1

  	
   

  	
  F=FIXED

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  V=VARIABLE

  
	
  VARIABLE INDEX ADDITION

  	
   

  	
  0408

  	
   

  	
  0415

  	
   

  	
  8

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0408

  	
   

  	
  0408

  	
   

  	
  1

  	
   

  	
   

  
	
  LEFT OF DECIMAL

  	
   

  	
  0409

  	
   

  	
  0409

  	
   

  	
  1

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0410

  	
   

  	
  0410

  	
   

  	
  1

  	
   

  	
   

  
	
  RIGHT OF DECIMAL

  	
   

  	
  0411

  	
   

  	
  0415

  	
   

  	
  5

  	
   

  	
   

  
	
  VARIABLE FLOOR

  	
   

  	
  0416

  	
   

  	
  0423

  	
   

  	
  8

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0416

  	
   

  	
  0416

  	
   

  	
  1

  	
   

  	
   

  
	
  LEFT OF DECIMAL

  	
   

  	
  0417

  	
   

  	
  0417

  	
   

  	
  1

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0418

  	
   

  	
  0418

  	
   

  	
  1

  	
   

  	
   

  
	
  RIGHT OF DECIMAL

  	
   

  	
  0419

  	
   

  	
  0423

  	
   

  	
  5

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VARIABLE CEILING

  	
   

  	
  0424

  	
   

  	
  0431

  	
   

  	
  8

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0424

  	
   

  	
  0424

  	
   

  	
  1

  	
   

  	
   

  
	
  LEFT OF DECIMAL

  	
   

  	
  0425

  	
   

  	
  0425

  	
   

  	
  1

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0426

  	
   

  	
  0426

  	
   

  	
  1

  	
   

  	
   

  
	
  RIGHT OF DECIMAL

  	
   

  	
  0427

  	
   

  	
  0431

  	
   

  	
  5

  	
   

  	
   

  
	
  STOP ACCRUAL INTEREST

  	
   

  	
  0432

  	
   

  	
  0448

  	
   

  	
  17

  	
   

  	
   

  

 

Appendix A-4

 

	
  DESCRIPTION

  	
   

  	
  START

  	
   

  	
  END

  	
   

  	
  POS.

  	
   

  	
  ANNOTATIONS

  
	
  SIGN

  	
   

  	
  0432

  	
   

  	
  0432

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  0433

  	
   

  	
  0445

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0446

  	
   

  	
  0446

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  0447

  	
   

  	
  0448

  	
   

  	
  2

  	
   

  	
   

  
	
  STOP
  ACCRUAL DATE

  	
   

  	
  0449

  	
   

  	
  0456

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  PAYMENT
  SCHEDULE REVIEW

  	
   

  	
  0457

  	
   

  	
  0457

  	
   

  	
  1

  	
   

  	
   

  
	
  RESIDUAL
  AMOUNT (FINANCE LEASES)

  	
   

  	
  0458

  	
   

  	
  0474

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0458

  	
   

  	
  0458

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  0459

  	
   

  	
  0471

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0472

  	
   

  	
  0472

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  0473

  	
   

  	
  0474

  	
   

  	
  2

  	
   

  	
   

  
	
  FINANCE
  CHARGE (PRE COMPUTED)

  	
   

  	
  0475

  	
   

  	
  0491

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0475

  	
   

  	
  0475

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  0476

  	
   

  	
  0488

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0489

  	
   

  	
  0489

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  0490

  	
   

  	
  0491

  	
   

  	
  2

  	
   

  	
   

  
	
  DUE
  DATE/PAYMENT AMT. INFO. (1st occ. Info. Below)

  	
   

  	
  0492

  	
   

  	
  2991

  	
   

  	
  2500

  	
   

  	
  OCCURS
  100 TIMES

  
	
  DUE
  DATE

  	
   

  	
  0492

  	
   

  	
  0499

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  DUE
  AMOUNT

  	
   

  	
  0500

  	
   

  	
  0514

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0500

  	
   

  	
  0500

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  0501

  	
   

  	
  0513

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0514

  	
   

  	
  0514

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  0515

  	
   

  	
  0516

  	
   

  	
  2

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BILL
  DATE/PAYMENT INFO. (1st occ. info. below)

  	
   

  	
  2992

  	
   

  	
  3447

  	
   

  	
  456

  	
   

  	
  OCCURS
  6 TIMES

  
	
  BILLED
  DUE DATE

  	
   

  	
  2992

  	
   

  	
  2999

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  BILLED
  PRINCIPAL

  	
   

  	
  3000

  	
   

  	
  3016

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  3000

  	
   

  	
  3000

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  3001

  	
   

  	
  3013

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  3014

  	
   

  	
  3014

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  3015

  	
   

  	
  3016

  	
   

  	
  2

  	
   

  	
   

  
	
  BILLED
  INTEREST

  	
   

  	
  3017

  	
   

  	
  3033

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  3017

  	
   

  	
  3017

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  3018

  	
   

  	
  3030

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  3031

  	
   

  	
  3031

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  3032

  	
   

  	
  3033

  	
   

  	
  2

  	
   

  	
   

  
	
  BILLED
  LATE CHARGES

  	
   

  	
  3034

  	
   

  	
  3050

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  3034

  	
   

  	
  3034

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  3035

  	
   

  	
  3047

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  3048

  	
   

  	
  3048

  	
   

  	
  1

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  3049

  	
   

  	
  3050

  	
   

  	
  2

  	
   

  	
   

  
	
  BILLED
  OTHER FEES

  	
   

  	
  3051

  	
   

  	
  3067

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  3051

  	
   

  	
  3051

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  3052

  	
   

  	
  3064

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  3065

  	
   

  	
  3065

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  3066

  	
   

  	
  3067

  	
   

  	
  2

  	
   

  	
   

  
	
  BILLED
  THROUGH DATE

  	
   

  	
  3448

  	
   

  	
  3455

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  

 

Appendix A-5

 

	
  ACCRUAL
  BASIS YEAR

  	
   

  	
  3456

  	
   

  	
  3456

  	
   

  	
  1

  	
   

  	
  0=365-DAY
  YEAR

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1=360-DAY
  YEAR

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2=365/366-DAY
  YEAR

  
	
  ACCRUAL
  BASIS MONTH

  	
   

  	
  3457

  	
   

  	
  3457

  	
   

  	
  1

  	
   

  	
  0=ACTUAL-DAYMONTH

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1=30-DAY
  MONTH

  
	
  PAYMENT
  SCHEDULE INFO. (1st occ. Info. below)

  	
   

  	
  3458

  	
   

  	
  3637

  	
   

  	
  180

  	
   

  	
  OCCURS
  5 TIMES

  
	
  PAYMENT
  SCHEDULE STATUS

  	
   

  	
  3458

  	
   

  	
  3458

  	
   

  	
  1

  	
   

  	
   

  
	
  PAYMENT
  SCHEDULE TYPE

  	
   

  	
  3459

  	
   

  	
  3459

  	
   

  	
  1

  	
   

  	
   

  
	
  PAYMENT
  SCHEDULE INTERVAL

  	
   

  	
  3460

  	
   

  	
  3462

  	
   

  	
  3

  	
   

  	
   

  
	
  PAYMENT
  SCHEDULE START DATE

  	
   

  	
  3463

  	
   

  	
  3470

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  PAYMENT
  SCHEDULE TOTAL PAYMENTS

  	
   

  	
  3471

  	
   

  	
  3473

  	
   

  	
  3

  	
   

  	
   

  

 

	
  DESCRIPTION

  	
   

  	
  START

  	
   

  	
  END

  	
   

  	
  POS.

  	
   

  	
  ANNOTATIONS

  
	
  PAYMENT
  SCHEDULE TIMES BILLED

  	
   

  	
  3474

  	
   

  	
  3476

  	
   

  	
  3

  	
   

  	
   

  
	
  PAYMENT
  SCHEDULE AMOUNT

  	
   

  	
  3477

  	
   

  	
  3493

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  3477

  	
   

  	
  3477

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  3478

  	
   

  	
  3490

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  3491

  	
   

  	
  3491

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  3492

  	
   

  	
  3493

  	
   

  	
  2

  	
   

  	
   

  
	
  CURRENT
  PAYOFF AMOUNT

  	
   

  	
  3638

  	
   

  	
  3654

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  3638

  	
   

  	
  3638

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  3639

  	
   

  	
  3651

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  3652

  	
   

  	
  3652

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  3653

  	
   

  	
  3654

  	
   

  	
  2

  	
   

  	
   

  
	
  NON
  RECOGNIZED ACCRUED INTEREST

  	
   

  	
  3655

  	
   

  	
  3671

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  3655

  	
   

  	
  3655

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  3656

  	
   

  	
  3668

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  3669

  	
   

  	
  3669

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  3670

  	
   

  	
  3671

  	
   

  	
  2

  	
   

  	
   

  
	
  VARIABLE
  RATE TYPE

  	
   

  	
  3672

  	
   

  	
  3673

  	
   

  	
  2

  	
   

  	
  11 =
  CHANGES ON 15TH (USA)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  12 =
  CHANGES ON 20TH (USA)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  22 =
  CHANGES ON 15TH (CAN.)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  23 =
  CHANGES ON 20TH (CAN.)

  
	
  RSS
  MONTHLY CASH FLOW

  	
   

  	
  3674

  	
   

  	
  3690

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  3674

  	
   

  	
  3674

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  3675

  	
   

  	
  3687

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  3688

  	
   

  	
  3688

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  3689

  	
   

  	
  3690

  	
   

  	
  2

  	
   

  	
   

  
	
  PRINCIPAL
  WRITE OFF AMOUNT

  	
   

  	
  3691

  	
   

  	
  3707

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  3691

  	
   

  	
  3691

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  3692

  	
   

  	
  3704

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  3705

  	
   

  	
  3705

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  3706

  	
   

  	
  3707

  	
   

  	
  2

  	
   

  	
   

  
	
  PAST
  DUE DAYS

  	
   

  	
  3708

  	
   

  	
  3713

  	
   

  	
  6

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  3708

  	
   

  	
  3708

  	
   

  	
  1

  	
   

  	
   

  
	
  DAYS

  	
   

  	
  3709

  	
   

  	
  3713

  	
   

  	
  5

  	
   

  	
   

  
	
  PAST
  DUE ALTERNATE

  	
   

  	
  3714

  	
   

  	
  3719

  	
   

  	
  6

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  3714

  	
   

  	
  3714

  	
   

  	
  1

  	
   

  	
   

  
	
  DAYS

  	
   

  	
  3715

  	
   

  	
  3719

  	
   

  	
  3

  	
   

  	
   

  

 

Appendix A-6

 

	
  RECOVERIES

  	
   

  	
  3720

  	
   

  	
  3736

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  3720

  	
   

  	
  3720

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  3721

  	
   

  	
  3733

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  3734

  	
   

  	
  3734

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  3735

  	
   

  	
  3736

  	
   

  	
  2

  	
   

  	
   

  
	
  FILLER

  	
   

  	
  3737

  	
   

  	
  3775

  	
   

  	
  39

  	
   

  	
   

  

 

	
  Record
  length = 650

  	
   

  	
  SS02

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DESCRIPTION

  	
   

  	
  START

  	
   

  	
  END

  	
   

  	
  POS

  	
   

  	
  ANNOTATION

  
	
  ACCOUNT
  #

  	
   

  	
  001

  	
   

  	
  026

  	
   

  	
  26

  	
   

  	
   

  
	
  BANK
  CODE

  	
   

  	
  001

  	
   

  	
  002

  	
   

  	
  2

  	
   

  	
   

  
	
  BRANCH
  CODE

  	
   

  	
  003

  	
   

  	
  005

  	
   

  	
  3

  	
   

  	
   

  
	
  RETAIL/LEASE
  CODE

  	
   

  	
  006

  	
   

  	
  008

  	
   

  	
  3

  	
   

  	
   

  
	
  CUSTOMER
  #

  	
   

  	
  009

  	
   

  	
  018

  	
   

  	
  10

  	
   

  	
   

  
	
  NOTE
  #

  	
   

  	
  019

  	
   

  	
  026

  	
   

  	
  8

  	
   

  	
   

  
	
  OBLIGOR
  MAILING ADDRESS 01

  	
   

  	
  027

  	
   

  	
  066

  	
   

  	
  40

  	
   

  	
   

  
	
  OBLIGOR
  MAILING ADDRESS 02

  	
   

  	
  067

  	
   

  	
  106

  	
   

  	
  40

  	
   

  	
   

  
	
  OBLIGOR
  MAILING ADDRESS 03

  	
   

  	
  107

  	
   

  	
  146

  	
   

  	
  40

  	
   

  	
   

  
	
  OBLIGOR
  MAILING ADDRESS 04

  	
   

  	
  147

  	
   

  	
  186

  	
   

  	
  40

  	
   

  	
   

  
	
  OBLIGOR
  MAILING CITY

  	
   

  	
  187

  	
   

  	
  226

  	
   

  	
  40

  	
   

  	
   

  
	
  OBLIGOR
  MAILING STATE

  	
   

  	
  227

  	
   

  	
  228

  	
   

  	
  2

  	
   

  	
   

  
	
  OBLIGOR
  MAILING ZIP

  	
   

  	
  229

  	
   

  	
  237

  	
   

  	
  9

  	
   

  	
   

  
	
  ZIP
  FIRST 5 POS

  	
   

  	
  229

  	
   

  	
  233

  	
   

  	
  5

  	
   

  	
   

  
	
  ZIP
  LAST 4 POS

  	
   

  	
  234

  	
   

  	
  237

  	
   

  	
  4

  	
   

  	
   

  
	
  OBLIGOR
  PHYSICAL ADDRESS 01

  	
   

  	
  238

  	
   

  	
  277

  	
   

  	
  40

  	
   

  	
   

  
	
  OBLIGOR
  PHYSICAL ADDRESS 02

  	
   

  	
  278

  	
   

  	
  317

  	
   

  	
  40

  	
   

  	
   

  
	
  OBLIGOR
  PHYSICAL ADDRESS 03

  	
   

  	
  318

  	
   

  	
  357

  	
   

  	
  40

  	
   

  	
   

  
	
  OBLIGOR
  PHYSICAL ADDRESS 04

  	
   

  	
  358

  	
   

  	
  397

  	
   

  	
  40

  	
   

  	
   

  
	
  OBLIGOR
  PHYSICAL CITY

  	
   

  	
  398

  	
   

  	
  437

  	
   

  	
  40

  	
   

  	
   

  
	
  OBLIGOR
  PHYSICAL STATE

  	
   

  	
  438

  	
   

  	
  439

  	
   

  	
  2

  	
   

  	
   

  
	
  OBLIGOR
  PHYSICAL ZIP

  	
   

  	
  440

  	
   

  	
  448

  	
   

  	
  9

  	
   

  	
   

  
	
  ZIP
  FIRST 5 POS

  	
   

  	
  440

  	
   

  	
  444

  	
   

  	
  5

  	
   

  	
   

  
	
  ZIP
  LAST 4 POS

  	
   

  	
  445

  	
   

  	
  448

  	
   

  	
  4

  	
   

  	
   

  
	
  OBLIGOR
  HOME PHONE

  	
   

  	
  449

  	
   

  	
  462

  	
   

  	
  14

  	
   

  	
   

  
	
  OBLIGOR
  HM PH AREA CODE

  	
   

  	
  449

  	
   

  	
  451

  	
   

  	
  3

  	
   

  	
   

  
	
  OBLIGOR
  HM PH FIRST 3 POS

  	
   

  	
  452

  	
   

  	
  454

  	
   

  	
  3

  	
   

  	
   

  
	
  OBLIGOR
  HM PH SECOND 4 POS

  	
   

  	
  455

  	
   

  	
  458

  	
   

  	
  4

  	
   

  	
   

  
	
  OBLIGOR
  HM PH EXTENSION

  	
   

  	
  459

  	
   

  	
  462

  	
   

  	
  4

  	
   

  	
   

  
	
  OBLIGOR
  EXTRA PH 01

  	
   

  	
  463

  	
   

  	
  476

  	
   

  	
  14

  	
   

  	
   

  
	
  OBLIGOR
  EXTRA PH 01 AREA CODE

  	
   

  	
  463

  	
   

  	
  465

  	
   

  	
  3

  	
   

  	
   

  
	
  OBLIGOR
  EXTRA PH 01 FIRST 3 POS

  	
   

  	
  466

  	
   

  	
  468

  	
   

  	
  3

  	
   

  	
   

  
	
  OBLIGOR
  EXTRA PH 01 SECOND 4 POS

  	
   

  	
  469

  	
   

  	
  472

  	
   

  	
  4

  	
   

  	
   

  
	
  OBLIGOR
  EXTRA PH 01 EXTENSION

  	
   

  	
  473

  	
   

  	
  476

  	
   

  	
  4

  	
   

  	
   

  
	
  OBLIGOR
  EXTRA PH 02

  	
   

  	
  477

  	
   

  	
  490

  	
   

  	
  14

  	
   

  	
   

  
	
  OBLIGOR
  EXTRA PH 02 AREA CODE

  	
   

  	
  477

  	
   

  	
  479

  	
   

  	
  3

  	
   

  	
   

  
	
  OBLIGOR
  EXTRA PH 02 FIRST 3 POS

  	
   

  	
  480

  	
   

  	
  482

  	
   

  	
  3

  	
   

  	
   

  
	
  OBLIGOR
  EXTRA PH 02 SECOND 4 POS

  	
   

  	
  483

  	
   

  	
  486

  	
   

  	
  4

  	
   

  	
   

  
	
  OBLIGOR
  EXTRA PH 02 EXTENSION

  	
   

  	
  487

  	
   

  	
  490

  	
   

  	
  4

  	
   

  	
   

  
	
  OBLIGOR
  EXTRA PH 03

  	
   

  	
  491

  	
   

  	
  504

  	
   

  	
  14

  	
   

  	
   

  
	
  OBLIGOR
  EXTRA PH 03 AREA CODE

  	
   

  	
  491

  	
   

  	
  493

  	
   

  	
  3

  	
   

  	
   

  
	
  OBLIGOR
  EXTRA PH 03 FIRST 3 POS

  	
   

  	
  494

  	
   

  	
  496

  	
   

  	
  3

  	
   

  	
   

  
	
  OBLIGOR
  EXTRA PH 03 SECOND 4 POS

  	
   

  	
  497

  	
   

  	
  500

  	
   

  	
  4

  	
   

  	
   

  
	
  OBLIGOR
  EXTRA PH 03 EXTENSION

  	
   

  	
  501

  	
   

  	
  504

  	
   

  	
  4

  	
   

  	
   

  

 

Appendix A-7

 

	
  OBLIGOR
  E-MAIL ADDRESS

  	
   

  	
  505

  	
   

  	
  544

  	
   

  	
  40

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OBLIGOR
  SSN OR TAX ID NUMBER

  	
   

  	
  545

  	
   

  	
  553

  	
   

  	
  9

  	
   

  	
   

  
	
  OBLIGOR
  SSN OR TAX CODE INDICATOR

  	
   

  	
  554

  	
   

  	
  554

  	
   

  	
  1

  	
   

  	
  0 =
  NONE

  1 = TAX ID

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2 =
  SSN

  
	
  OBLIGOR
  BIRTH DATE

  	
   

  	
  555

  	
   

  	
  562

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OBLIGOR
  EMPLOYER NAME

  	
   

  	
  563

  	
   

  	
  582

  	
   

  	
  20

  	
   

  	
   

  
	
  OBLIGOR
  EMPLOYER ADDRESS 01

  	
   

  	
  583

  	
   

  	
  600

  	
   

  	
  18

  	
   

  	
   

  
	
  OBLIGOR
  EMPLOYER CITY

  	
   

  	
  601

  	
   

  	
  615

  	
   

  	
  15

  	
   

  	
   

  
	
  OBLIGOR
  EMPLOYER STATE

  	
   

  	
  616

  	
   

  	
  617

  	
   

  	
  2

  	
   

  	
   

  
	
  OBLIGOR
  EMPLOYER ZIP

  	
   

  	
  618

  	
   

  	
  626

  	
   

  	
  9

  	
   

  	
   

  
	
  ZIP
  FIRST 5 POS

  	
   

  	
  618

  	
   

  	
  622

  	
   

  	
  5

  	
   

  	
   

  
	
  ZIP
  LAST 4 POS

  	
   

  	
  623

  	
   

  	
  626

  	
   

  	
  4

  	
   

  	
   

  
	
  OBLIGOR
  EMPLOYER PHONE

  	
   

  	
  627

  	
   

  	
  640

  	
   

  	
  14

  	
   

  	
   

  
	
  OBLIGOR
  EMPLOYER AREA CODE

  	
   

  	
  627

  	
   

  	
  629

  	
   

  	
  3

  	
   

  	
   

  
	
  OBLIGOR
  EMPLOYER PH FIRST 3 POS

  	
   

  	
  630

  	
   

  	
  632

  	
   

  	
  3

  	
   

  	
   

  
	
  OBLIGOR
  EMPLOYER PH SECOND 4 POS

  	
   

  	
  633

  	
   

  	
  636

  	
   

  	
  4

  	
   

  	
   

  
	
  OBLIGOR
  EMPLOYER PH EXTENSION

  	
   

  	
  637

  	
   

  	
  640

  	
   

  	
  4

  	
   

  	
   

  
	
  FILLER

  	
   

  	
  641

  	
   

  	
  650

  	
   

  	
  10

  	
   

  	
   

  

 

	
  RECORD
  LENGTH = 625

  	
   

  	
  SS03

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DESCRIPTION

  	
   

  	
  START

  	
   

  	
  END

  	
   

  	
  POS.

  	
   

  	
  ANNOTATIONS

  
	
  ACCOUNT
  #

  	
   

  	
  001

  	
   

  	
  026

  	
   

  	
  26

  	
   

  	
   

  
	
  BANK
  CODE

  	
   

  	
  001

  	
   

  	
  002

  	
   

  	
  2

  	
   

  	
   

  
	
  BRANCH
  CODE

  	
   

  	
  003

  	
   

  	
  005

  	
   

  	
  3

  	
   

  	
   

  
	
  RETAIL/LEASE
  CODE

  	
   

  	
  006

  	
   

  	
  008

  	
   

  	
  3

  	
   

  	
   

  
	
  CUSTOMER
  #

  	
   

  	
  009

  	
   

  	
  018

  	
   

  	
  10

  	
   

  	
   

  
	
  NOTE
  #

  	
   

  	
  019

  	
   

  	
  026

  	
   

  	
  8

  	
   

  	
   

  
	
  CO-BUYER
  INFO. (1st occ. Info. Below)

  	
   

  	
  027

  	
   

  	
  215

  	
   

  	
  189

  	
   

  	
  OCCURS
  3 TIMES

  
	
  CO-BUYER
  FIRST NAME

  	
   

  	
  027

  	
   

  	
  041

  	
   

  	
  15

  	
   

  	
  OCC. 1
  - CO BUYER INFO.

  
	
  CO-BUYER
  INITIAL

  	
   

  	
  042

  	
   

  	
  042

  	
   

  	
  1

  	
   

  	
  OCC. 2
  - 3rd PARTY INFO.

  
	
  CO-BUYER
  LAST NAME

  	
   

  	
  043

  	
   

  	
  062

  	
   

  	
  20

  	
   

  	
  OCC. 3
  - 4th PARTY INFO.

  
	
  CO-BUYER
  NAME SUFFIX

  	
   

  	
  063

  	
   

  	
  065

  	
   

  	
  3

  	
   

  	
   

  
	
  CO-BUYER
  STREET ADDRESS

  	
   

  	
  066

  	
   

  	
  095

  	
   

  	
  30

  	
   

  	
   

  
	
  CO-BUYER
  CITY ADDRESS

  	
   

  	
  096

  	
   

  	
  110

  	
   

  	
  15

  	
   

  	
   

  
	
  CO-BUYER
  STATE

  	
   

  	
  111

  	
   

  	
  112

  	
   

  	
  2

  	
   

  	
   

  
	
  CO-BUYER
  ZIP

  	
   

  	
  113

  	
   

  	
  121

  	
   

  	
  9

  	
   

  	
   

  
	
  ZIP
  FIRST 5 POS

  	
   

  	
  113

  	
   

  	
  117

  	
   

  	
  5

  	
   

  	
   

  
	
  ZIP
  LAST 4 POS

  	
   

  	
  118

  	
   

  	
  121

  	
   

  	
  4

  	
   

  	
   

  
	
  CO-BUYER
  PHY STREET ADDRESS

  	
   

  	
  122

  	
   

  	
  151

  	
   

  	
  30

  	
   

  	
   

  
	
  CO-BUYER
  PHY CITY ADDRESS

  	
   

  	
  152

  	
   

  	
  166

  	
   

  	
  15

  	
   

  	
   

  
	
  CO-BUYER
  PHY STATE

  	
   

  	
  167

  	
   

  	
  168

  	
   

  	
  2

  	
   

  	
   

  
	
  CO-BUYER
  PHY ZIP

  	
   

  	
  169

  	
   

  	
  177

  	
   

  	
  9

  	
   

  	
   

  
	
  ZIP
  FIRST 5 POS

  	
   

  	
  169

  	
   

  	
  173

  	
   

  	
  5

  	
   

  	
   

  
	
  ZIP
  LAST 4 POS

  	
   

  	
  174

  	
   

  	
  177

  	
   

  	
  4

  	
   

  	
   

  
	
  CO-BUYER
  HOME PHONE

  	
   

  	
  178

  	
   

  	
  187

  	
   

  	
  10

  	
   

  	
   

  
	
  HM
  PH AREA CODE

  	
   

  	
  178

  	
   

  	
  180

  	
   

  	
  3

  	
   

  	
   

  
	
  HM
  PH FIRST 3 POS

  	
   

  	
  181

  	
   

  	
  183

  	
   

  	
  3

  	
   

  	
   

  
	
  HM
  PH LAST 4 POS

  	
   

  	
  184

  	
   

  	
  187

  	
   

  	
  4

  	
   

  	
   

  
	
  CO-BUYER
  EXTRA PHONE

  	
   

  	
  188

  	
   

  	
  197

  	
   

  	
  10

  	
   

  	
   

  
	
  EXT
  PH AREA CODE

  	
   

  	
  188

  	
   

  	
  190

  	
   

  	
  3

  	
   

  	
   

  

 

Appendix A-8

 

	
  EXT
  PH FIRST 3 POS

  	
   

  	
  191

  	
   

  	
  193

  	
   

  	
  3

  	
   

  	
   

  
	
  EXT
  PH LAST 4 POS

  	
   

  	
  194

  	
   

  	
  197

  	
   

  	
  4

  	
   

  	
   

  
	
  CO-BUYER SSN OR TAX ID
  NUMBER

  	
   

  	
  198

  	
   

  	
  206

  	
   

  	
  9

  	
   

  	
   

  
	
  CO-BUYER BIRTH DATE

  	
   

  	
  207

  	
   

  	
  214

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  CO-BUYER STATUS

  	
   

  	
  215

  	
   

  	
  215

  	
   

  	
  1

  	
   

  	
  C=COAP

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  G=GAURANTOR

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  O=OFFICER

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  P=PARTNER

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  SPACE
  = NONE

  
	
  FILLER

  	
   

  	
  593

  	
   

  	
  625

  	
   

  	
  32

  	
   

  	
   

  

 

	
  RECORD
  LENGTH = 125

  	
   

  	
  SS04

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DESCRIPTION

  	
   

  	
  START

  	
   

  	
  END

  	
   

  	
  POS

  	
   

  	
  ANNOTATIONS

  
	
  ACCOUNT
  #

  	
   

  	
  001

  	
   

  	
  026

  	
   

  	
  26

  	
   

  	
   

  
	
  BANK
  CODE

  	
   

  	
  001

  	
   

  	
  002

  	
   

  	
  2

  	
   

  	
   

  
	
  BRANCH
  CODE

  	
   

  	
  003

  	
   

  	
  005

  	
   

  	
  3

  	
   

  	
   

  
	
  RETAIL/LEASE
  CODE

  	
   

  	
  006

  	
   

  	
  008

  	
   

  	
  3

  	
   

  	
   

  
	
  CUSTOMER
  #

  	
   

  	
  009

  	
   

  	
  018

  	
   

  	
  10

  	
   

  	
   

  
	
  NOTE
  #

  	
   

  	
  019

  	
   

  	
  026

  	
   

  	
  8

  	
   

  	
   

  
	
  EQUIP.
  SEQUENCE #

  	
   

  	
  027

  	
   

  	
  029

  	
   

  	
  3

  	
   

  	
   

  
	
  VEHICLE
  I.D. # (VIN)

  	
   

  	
  030

  	
   

  	
  046

  	
   

  	
  17

  	
   

  	
   

  
	
  VEHICLE
  MAKE

  	
   

  	
  047

  	
   

  	
  053

  	
   

  	
  7

  	
   

  	
   

  
	
  VEHICLE
  MODEL

  	
   

  	
  054

  	
   

  	
  060

  	
   

  	
  7

  	
   

  	
   

  
	
  VEHICLE
  YEAR

  	
   

  	
  061

  	
   

  	
  062

  	
   

  	
  2

  	
   

  	
   

  
	
  VEHICLE
  NEW/USED CODE

  	
   

  	
  063

  	
   

  	
  063

  	
   

  	
  1

  	
   

  	
  N =
  NEW

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  U =
  USED

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  S =
  CROSS COLLATERAL

  
	
  ORIGINAL
  SALES PRICE

  	
   

  	
  064

  	
   

  	
  080

  	
   

  	
  17

  	
   

  	
   

  
	
  ORIG
  SALES PRICE SIGN

  	
   

  	
  064

  	
   

  	
  064

  	
   

  	
  1

  	
   

  	
   

  
	
  ORIG
  SALES PRICE DOL

  	
   

  	
  065

  	
   

  	
  077

  	
   

  	
  13

  	
   

  	
   

  
	
  ORIG
  SALES PRICE DCL

  	
   

  	
  078

  	
   

  	
  078

  	
   

  	
  1

  	
   

  	
   

  
	
  ORIG
  SALES PRICE CENTS

  	
   

  	
  079

  	
   

  	
  080

  	
   

  	
  2

  	
   

  	
   

  
	
  WHOLESALE
  PRICE

  	
   

  	
  081

  	
   

  	
  097

  	
   

  	
  17

  	
   

  	
   

  
	
  WHSALE
  SIGN

  	
   

  	
  081

  	
   

  	
  081

  	
   

  	
  1

  	
   

  	
   

  
	
  WHSALE
  DOL

  	
   

  	
  082

  	
   

  	
  094

  	
   

  	
  13

  	
   

  	
   

  
	
  WHSALE
  DCL

  	
   

  	
  095

  	
   

  	
  095

  	
   

  	
  1

  	
   

  	
   

  
	
  WHSALE
  CENTS

  	
   

  	
  096

  	
   

  	
  097

  	
   

  	
  2

  	
   

  	
   

  
	
  EQUIP
  TITLED CODE

  	
   

  	
  098

  	
   

  	
  098

  	
   

  	
  1

  	
   

  	
  Y =
  YES

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  N = NO

  
	
  EQUIP
  HRS AT START

  	
   

  	
  099

  	
   

  	
  105

  	
   

  	
  7

  	
   

  	
   

  
	
  EQUIP
  HRS SIGN

  	
   

  	
  099

  	
   

  	
  099

  	
   

  	
  1

  	
   

  	
   

  
	
  EQUIP
  HRS HOURS

  	
   

  	
  100

  	
   

  	
  104

  	
   

  	
  5

  	
   

  	
   

  
	
  EQUIP
  HRS DCL

  	
   

  	
  105

  	
   

  	
  105

  	
   

  	
  1

  	
   

  	
   

  
	
  EQUIP
  HRS TENTHS

  	
   

  	
  106

  	
   

  	
  107

  	
   

  	
  2

  	
   

  	
   

  
	
  FILLER

  	
   

  	
  108

  	
   

  	
  125

  	
   

  	
  18

  	
   

  	
   

  

 

	
  RECORD
  LENGTH = 300

  	
   

  	
  SS05

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DESCRIPTION

  	
   

  	
  START

  	
   

  	
  END

  	
   

  	
  POS

  	
   

  	
  ANNOTATIONS

  
	
  ACCOUNT
  #

  	
   

  	
  001

  	
   

  	
  026

  	
   

  	
  26

  	
   

  	
   

  
	
  BANK
  CODE

  	
   

  	
  001

  	
   

  	
  002

  	
   

  	
  2

  	
   

  	
   

  
	
  BRANCH
  CODE

  	
   

  	
  003

  	
   

  	
  005

  	
   

  	
  3

  	
   

  	
   

  
	
  RETAIL/LEASE
  CODE

  	
   

  	
  006

  	
   

  	
  008

  	
   

  	
  3

  	
   

  	
   

  
	
  CUSTOMER
  #

  	
   

  	
  009

  	
   

  	
  018

  	
   

  	
  10

  	
   

  	
   

  
	
  NOTE
  #

  	
   

  	
  019

  	
   

  	
  026

  	
   

  	
  8

  	
   

  	
   

  
	
  TRANSACTION
  SEQ. #

  	
   

  	
  027

  	
   

  	
  031

  	
   

  	
  5

  	
   

  	
   

  

 

Appendix A-9

 

	
  TRANSACTION
  DATE

  	
   

  	
  032

  	
   

  	
  039

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  TRANSACTION
  CODE

  	
   

  	
  040

  	
   

  	
  046

  	
   

  	
  7

  	
   

  	
   

  
	
  TRAN
  CD

  	
   

  	
  040

  	
   

  	
  041

  	
   

  	
  2

  	
   

  	
   

  
	
  TRAN
  QUAL

  	
   

  	
  042

  	
   

  	
  043

  	
   

  	
  2

  	
   

  	
   

  
	
  TRAN
  SOURCE

  	
   

  	
  044

  	
   

  	
  046

  	
   

  	
  3

  	
   

  	
   

  
	
  TRANSACTION
  AMOUNT

  	
   

  	
  047

  	
   

  	
  063

  	
   

  	
  17

  	
   

  	
   

  
	
  TRAN
  SIGN

  	
   

  	
  047

  	
   

  	
  047

  	
   

  	
  1

  	
   

  	
   

  
	
  TRAN
  DOL

  	
   

  	
  048

  	
   

  	
  060

  	
   

  	
  13

  	
   

  	
   

  
	
  TRAN
  DCL

  	
   

  	
  061

  	
   

  	
  061

  	
   

  	
  1

  	
   

  	
   

  
	
  TRAN
  CENTS

  	
   

  	
  062

  	
   

  	
  063

  	
   

  	
  2

  	
   

  	
   

  
	
  TRANSACTION
  EFFECTIVE DATE

  	
   

  	
  064

  	
   

  	
  071

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  PAYMENT
  DATE SATISFIED

  	
   

  	
  072

  	
   

  	
  079

  	
   

  	
  32

  	
   

  	
  CCYYMMDD
  OCCURS 4 TIMES

  
	
  PRINCIPAL
  AMOUNT

  	
   

  	
  104

  	
   

  	
  121

  	
   

  	
  17

  	
   

  	
   

  
	
  PRIN
  SIGN

  	
   

  	
  104

  	
   

  	
  104

  	
   

  	
  1

  	
   

  	
   

  
	
  PRIN
  DOL

  	
   

  	
  105

  	
   

  	
  117

  	
   

  	
  13

  	
   

  	
   

  
	
  PRIN
  DCL

  	
   

  	
  118

  	
   

  	
  118

  	
   

  	
  1

  	
   

  	
   

  
	
  PRIN
  CENTS

  	
   

  	
  119

  	
   

  	
  120

  	
   

  	
  2

  	
   

  	
   

  
	
  INTEREST
  AMOUNT

  	
   

  	
  121

  	
   

  	
  137

  	
   

  	
  17

  	
   

  	
   

  
	
  INT
  SIGN

  	
   

  	
  121

  	
   

  	
  121

  	
   

  	
  1

  	
   

  	
   

  
	
  INT
  DOL

  	
   

  	
  122

  	
   

  	
  134

  	
   

  	
  13

  	
   

  	
   

  
	
  INT
  DCL

  	
   

  	
  135

  	
   

  	
  135

  	
   

  	
  1

  	
   

  	
   

  
	
  INT
  CENTS

  	
   

  	
  136

  	
   

  	
  137

  	
   

  	
  2

  	
   

  	
   

  
	
  ACTUARIAL
  INT. AMOUNT

  	
   

  	
  138

  	
   

  	
  154

  	
   

  	
  17

  	
   

  	
   

  
	
  ACTRL
  SIGN

  	
   

  	
  138

  	
   

  	
  138

  	
   

  	
  1

  	
   

  	
   

  
	
  ACTRL
  DOL

  	
   

  	
  139

  	
   

  	
  151

  	
   

  	
  13

  	
   

  	
   

  
	
  ACTRL
  DCL

  	
   

  	
  152

  	
   

  	
  152

  	
   

  	
  1

  	
   

  	
   

  
	
  ACTRL
  CENTS

  	
   

  	
  153

  	
   

  	
  154

  	
   

  	
  2

  	
   

  	
   

  
	
  LATE
  FEE AMOUNT

  	
   

  	
  155

  	
   

  	
  171

  	
   

  	
  17

  	
   

  	
   

  
	
  LTE
  FEE SIGN

  	
   

  	
  155

  	
   

  	
  155

  	
   

  	
  1

  	
   

  	
   

  
	
  LTE
  FEE DOL

  	
   

  	
  156

  	
   

  	
  168

  	
   

  	
  13

  	
   

  	
   

  
	
  LTE
  FEE DCL

  	
   

  	
  169

  	
   

  	
  169

  	
   

  	
  1

  	
   

  	
   

  
	
  LTE
  FEE CENTS

  	
   

  	
  170

  	
   

  	
  171

  	
   

  	
  2

  	
   

  	
   

  
	
  OTHER
  AMOUNT

  	
   

  	
  172

  	
   

  	
  188

  	
   

  	
  17

  	
   

  	
   

  
	
  OTH
  SIGN

  	
   

  	
  172

  	
   

  	
  172

  	
   

  	
  1

  	
   

  	
   

  
	
  OTH
  DOL

  	
   

  	
  173

  	
   

  	
  185

  	
   

  	
  13

  	
   

  	
   

  
	
  OTH
  DCL

  	
   

  	
  186

  	
   

  	
  186

  	
   

  	
  1

  	
   

  	
   

  
	
  OTH
  CENTS

  	
   

  	
  187

  	
   

  	
  188

  	
   

  	
  2

  	
   

  	
   

  
	
  OBLIGOR
  BAL BEFORE TRANS.

  	
   

  	
  189

  	
   

  	
  205

  	
   

  	
  17

  	
   

  	
   

  
	
  OBL
  BAL BEF SIGN

  	
   

  	
  189

  	
   

  	
  189

  	
   

  	
  1

  	
   

  	
   

  
	
  OBL
  BAL BEF DOL

  	
   

  	
  190

  	
   

  	
  202

  	
   

  	
  13

  	
   

  	
   

  
	
  OBL
  BAL BEF DCL

  	
   

  	
  203

  	
   

  	
  203

  	
   

  	
  1

  	
   

  	
   

  
	
  OBL
  BAL BEF CENTS

  	
   

  	
  204

  	
   

  	
  205

  	
   

  	
  2

  	
   

  	
   

  
	
  OBLIGOR
  BAL AFTER TRANS

  	
   

  	
  206

  	
   

  	
  222

  	
   

  	
  17

  	
   

  	
   

  
	
  OBL
  BAL AFT SIGN

  	
   

  	
  206

  	
   

  	
  206

  	
   

  	
  1

  	
   

  	
   

  
	
  OBL
  BAL AFT DOL

  	
   

  	
  207

  	
   

  	
  219

  	
   

  	
  13

  	
   

  	
   

  
	
  OBL
  BAL AFT DCL

  	
   

  	
  220

  	
   

  	
  220

  	
   

  	
  1

  	
   

  	
   

  
	
  OBL
  BAL AFT CENTS

  	
   

  	
  221

  	
   

  	
  222

  	
   

  	
  2

  	
   

  	
   

  
	
  HOLDER
  BAL BEFORE TRANS

  	
   

  	
  223

  	
   

  	
  239

  	
   

  	
  17

  	
   

  	
   

  
	
  HLD
  BAL BEF SIGN

  	
   

  	
  223

  	
   

  	
  223

  	
   

  	
  1

  	
   

  	
   

  
	
  HLD
  BAL BEF DOL

  	
   

  	
  224

  	
   

  	
  236

  	
   

  	
  13

  	
   

  	
   

  
	
  HLD
  BAL BEF DCL

  	
   

  	
  237

  	
   

  	
  237

  	
   

  	
  1

  	
   

  	
   

  
	
  HLD
  BAL BEF CENTS

  	
   

  	
  238

  	
   

  	
  239

  	
   

  	
  2

  	
   

  	
   

  
	
  HOLDER
  BAL AFTER TRANS

  	
   

  	
  240

  	
   

  	
  256

  	
   

  	
  17

  	
   

  	
   

  
	
  HLD
  BAL AFT SIGN

  	
   

  	
  240

  	
   

  	
  240

  	
   

  	
  1

  	
   

  	
   

  

 

Appendix A-10

 

	
  HLD
  BAL AFT DOL

  	
   

  	
  241

  	
   

  	
  253

  	
   

  	
  13

  	
   

  	
   

  
	
  HLD
  BAL AFT DCL

  	
   

  	
  254

  	
   

  	
  254

  	
   

  	
  1

  	
   

  	
   

  
	
  HLD
  BAL AFT CENTS

  	
   

  	
  255

  	
   

  	
  256

  	
   

  	
  2

  	
   

  	
   

  
	
  INSTRUMENT

  	
   

  	
  257

  	
   

  	
  259

  	
   

  	
  3

  	
   

  	
  004 =
  ACH

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  005 =
  LOCK BOX

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  014 =
  APS

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ALL
  OTHERS = CASH

  
	
  REVERSAL

  	
   

  	
  260

  	
   

  	
  260

  	
   

  	
  1

  	
   

  	
  Y =
  REVERSAL TRANSACTION

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  SPACE
  = NOT REVERSAL TRAN

  
	
  EFFECTS
  OBLIGOR BAL.

  	
   

  	
  261

  	
   

  	
  261

  	
   

  	
  1

  	
   

  	
  Y =
  YES

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  N = NO

  
	
  EFFECTS
  HOLDER BAL.

  	
   

  	
  262

  	
   

  	
  262

  	
   

  	
  1

  	
   

  	
  Y =
  YES

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  N = NO

  
	
  TRANSACTION
  DESCRIPTION

  	
   

  	
  263

  	
   

  	
  282

  	
   

  	
  20

  	
   

  	
   

  
	
  TRANSACTION
  RATE

  	
   

  	
  283

  	
   

  	
  291

  	
   

  	
  9

  	
   

  	
   

  
	
  TRAN
  RATE SIGN

  	
   

  	
  283

  	
   

  	
  283

  	
   

  	
  1

  	
   

  	
   

  
	
  TRAN
  RATE DCL

  	
   

  	
  284

  	
   

  	
  284

  	
   

  	
  1

  	
   

  	
   

  
	
  TRAN
  RATE RATE

  	
   

  	
  285

  	
   

  	
  291

  	
   

  	
  7

  	
   

  	
   

  
	
  FILLER

  	
   

  	
  292

  	
   

  	
  300

  	
   

  	
  9

  	
   

  	
   

  

 

	
  RECORD
  LENGTH = 850

  	
   

  	
  SS06

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DESCRIPTION

  	
   

  	
  START

  	
   

  	
  END

  	
   

  	
  POS

  	
   

  	
  ANNOTATION

  
	
  ACCOUNT
  #

  	
   

  	
  001

  	
   

  	
  026

  	
   

  	
  26

  	
   

  	
   

  
	
  BANK
  CODE

  	
   

  	
  001

  	
   

  	
  002

  	
   

  	
  2

  	
   

  	
   

  
	
  BRANCH
  CODE

  	
   

  	
  003

  	
   

  	
  005

  	
   

  	
  3

  	
   

  	
   

  
	
  RETAIL/LEASE
  CODE

  	
   

  	
  006

  	
   

  	
  008

  	
   

  	
  3

  	
   

  	
   

  
	
  CUSTOMER
  #

  	
   

  	
  009

  	
   

  	
  018

  	
   

  	
  10

  	
   

  	
   

  
	
  NOTE
  #

  	
   

  	
  019

  	
   

  	
  026

  	
   

  	
  8

  	
   

  	
   

  
	
  USER

  	
   

  	
  027

  	
   

  	
  066

  	
   

  	
  40

  	
   

  	
   

  
	
  COMMENT
  DATE

  	
   

  	
  067

  	
   

  	
  074

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  COMMENT
  TIME

  	
   

  	
  075

  	
   

  	
  080

  	
   

  	
  6

  	
   

  	
  HHMMSS

  
	
  COMMENT
  TEXT

  	
   

  	
  081

  	
   

  	
  830

  	
   

  	
  750

  	
   

  	
   

  
	
  FILLER

  	
   

  	
  831

  	
   

  	
  850

  	
   

  	
  20

  	
   

  	
   

  

 

	
  RECORD
  LENGTH = 275

  	
   

  	
  SS07

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DESCRIPTION

  	
   

  	
  START

  	
   

  	
  END

  	
   

  	
  POS

  	
   

  	
  ANNOTATION

  
	
  ACCOUNT
  #

  	
   

  	
  001

  	
   

  	
  029

  	
   

  	
  26

  	
   

  	
   

  
	
  BANK
  CODE

  	
   

  	
  001

  	
   

  	
  002

  	
   

  	
  2

  	
   

  	
   

  
	
  BRANCH
  CODE

  	
   

  	
  003

  	
   

  	
  005

  	
   

  	
  3

  	
   

  	
   

  
	
  RETAIL/LEASE
  CODE

  	
   

  	
  006

  	
   

  	
  008

  	
   

  	
  3

  	
   

  	
   

  
	
  CUSTOMER
  #

  	
   

  	
  009

  	
   

  	
  018

  	
   

  	
  10

  	
   

  	
   

  
	
  NOTE
  #

  	
   

  	
  019

  	
   

  	
  026

  	
   

  	
  8

  	
   

  	
   

  
	
  SEQUENCE
  #

  	
   

  	
  027

  	
   

  	
  029

  	
   

  	
  3

  	
   

  	
   

  
	
  DATE
  AUTHORIZED FOR REPO.

  	
   

  	
  030

  	
   

  	
  037

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  REPO.
  ASSIGNMENT DATE

  	
   

  	
  038

  	
   

  	
  045

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  REPO.
  SALES LOCATION

  	
   

  	
  046

  	
   

  	
  085

  	
   

  	
  40

  	
   

  	
   

  
	
  DATE
  REPOSSESSED

  	
   

  	
  086

  	
   

  	
  093

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  BALANCE
  AT REPOSSESSION

  	
   

  	
  094

  	
   

  	
  110

  	
   

  	
  17

  	
   

  	
   

  
	
  REPO
  BAL SIGN

  	
   

  	
  094

  	
   

  	
  094

  	
   

  	
  1

  	
   

  	
   

  
	
  REPO
  BAL DOL

  	
   

  	
  095

  	
   

  	
  107

  	
   

  	
  13

  	
   

  	
   

  
	
  REPO
  BAL DCL

  	
   

  	
  108

  	
   

  	
  108

  	
   

  	
  1

  	
   

  	
   

  
	
  REPO
  BAL CENTS

  	
   

  	
  109

  	
   

  	
  110

  	
   

  	
  2

  	
   

  	
   

  
	
  INTEREST
  DUE AT REPO.

  	
   

  	
  111

  	
   

  	
  127

  	
   

  	
  17

  	
   

  	
   

  
	
  REPO
  INT DUE SIGN

  	
   

  	
  111

  	
   

  	
  111

  	
   

  	
  1

  	
   

  	
   

  

 

Appendix A-11

 

	
  REPO
  INT DUE DOL

  	
   

  	
  112

  	
   

  	
  124

  	
   

  	
  13

  	
   

  	
   

  
	
  REPO
  INT DUE DCL

  	
   

  	
  125

  	
   

  	
  125

  	
   

  	
  1

  	
   

  	
   

  
	
  REPO
  INT DUE CENTS

  	
   

  	
  126

  	
   

  	
  127

  	
   

  	
  2

  	
   

  	
   

  
	
  ALLOW
  REINSTATEMENT

  	
   

  	
  128

  	
   

  	
  128

  	
   

  	
  1

  	
   

  	
  Y =
  YES (Always ‘Y’)

  
	
  NOTICE
  OF INTENT EXPIR. DATE

  	
   

  	
  129

  	
   

  	
  136

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  AUCTION
  REPORT RECEIVED DATE

  	
   

  	
  137

  	
   

  	
  144

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  DATE
  VEHICLE SOLD

  	
   

  	
  145

  	
   

  	
  152

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  GROSS
  AMOUNT OF SALE

  	
   

  	
  153

  	
   

  	
  169

  	
   

  	
  17

  	
   

  	
   

  
	
  GROSS
  SALE SIGN

  	
   

  	
  153

  	
   

  	
  153

  	
   

  	
  1

  	
   

  	
   

  
	
  GROSS
  SALE DOL

  	
   

  	
  154

  	
   

  	
  166

  	
   

  	
  13

  	
   

  	
   

  
	
  GROSS
  SALE DCL

  	
   

  	
  167

  	
   

  	
  167

  	
   

  	
  1

  	
   

  	
   

  
	
  GROSS
  SALE CENTS

  	
   

  	
  168

  	
   

  	
  169

  	
   

  	
  2

  	
   

  	
   

  
	
  NET
  AUCTION FEES

  	
   

  	
  170

  	
   

  	
  186

  	
   

  	
  17

  	
   

  	
   

  
	
  NET
  AUCTION SIGN

  	
   

  	
  170

  	
   

  	
  170

  	
   

  	
  1

  	
   

  	
   

  
	
  NET
  AUCTION DOL

  	
   

  	
  171

  	
   

  	
  183

  	
   

  	
  13

  	
   

  	
   

  
	
  NET
  AUCTION DCL

  	
   

  	
  184

  	
   

  	
  184

  	
   

  	
  1

  	
   

  	
   

  
	
  NET
  AUCTION CENTS

  	
   

  	
  185

  	
   

  	
  186

  	
   

  	
  2

  	
   

  	
   

  
	
  REPO.
  FEE AMOUNT

  	
   

  	
  187

  	
   

  	
  203

  	
   

  	
  17

  	
   

  	
   

  
	
  REPO
  FEE SIGN

  	
   

  	
  187

  	
   

  	
  187

  	
   

  	
  1

  	
   

  	
   

  
	
  REPO
  FEE DOL

  	
   

  	
  188

  	
   

  	
  200

  	
   

  	
  13

  	
   

  	
   

  
	
  REPO
  FEE DCL

  	
   

  	
  201

  	
   

  	
  201

  	
   

  	
  1

  	
   

  	
   

  
	
  REPO
  FEE CENTS

  	
   

  	
  202

  	
   

  	
  203

  	
   

  	
  2

  	
   

  	
   

  
	
  TRANSPORTATION
  FEES

  	
   

  	
  204

  	
   

  	
  220

  	
   

  	
  17

  	
   

  	
   

  
	
  TRANSPORT
  FEE SIGN

  	
   

  	
  204

  	
   

  	
  204

  	
   

  	
  1

  	
   

  	
   

  
	
  TRANSPORT
  FEE DOL

  	
   

  	
  205

  	
   

  	
  217

  	
   

  	
  13

  	
   

  	
   

  
	
  TRANSPORT
  FEE DCL

  	
   

  	
  218

  	
   

  	
  218

  	
   

  	
  1

  	
   

  	
   

  
	
  TRANSPORT
  FEE CENTS

  	
   

  	
  219

  	
   

  	
  220

  	
   

  	
  2

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STORAGE
  FEES

  	
   

  	
  221

  	
   

  	
  237

  	
   

  	
  17

  	
   

  	
   

  
	
  STORAGE
  FEE SIGN

  	
   

  	
  221

  	
   

  	
  221

  	
   

  	
  1

  	
   

  	
   

  
	
  STORAGE
  FEE DOL

  	
   

  	
  222

  	
   

  	
  234

  	
   

  	
  13

  	
   

  	
   

  
	
  STORAGE
  FEE DCL

  	
   

  	
  235

  	
   

  	
  235

  	
   

  	
  1

  	
   

  	
   

  
	
  STORAGE
  FEE CENTS

  	
   

  	
  236

  	
   

  	
  237

  	
   

  	
  2

  	
   

  	
   

  
	
  RECONDITIONING
  FEES

  	
   

  	
  238

  	
   

  	
  254

  	
   

  	
  17

  	
   

  	
   

  
	
  RECON
  FEES SIGN

  	
   

  	
  238

  	
   

  	
  238

  	
   

  	
  1

  	
   

  	
   

  
	
  RECON
  FEES DOL

  	
   

  	
  239

  	
   

  	
  251

  	
   

  	
  13

  	
   

  	
   

  
	
  RECON
  FEES DCL

  	
   

  	
  252

  	
   

  	
  252

  	
   

  	
  1

  	
   

  	
   

  
	
  RECON
  FEES CENTS

  	
   

  	
  253

  	
   

  	
  254

  	
   

  	
  2

  	
   

  	
   

  
	
  FILLER

  	
   

  	
  255

  	
   

  	
  275

  	
   

  	
  21

  	
   

  	
   

  

 

	
  RECORD
  LENGTH = 75

  	
   

  	
  SS08

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DESCRIPTION

  	
   

  	
  START

  	
   

  	
  END

  	
   

  	
  POS

  	
   

  	
  ANNOTATION

  
	
  ACCOUNT
  #

  	
   

  	
  001

  	
   

  	
  026

  	
   

  	
  26

  	
   

  	
   

  
	
  BANK
  CODE

  	
   

  	
  001

  	
   

  	
  002

  	
   

  	
  2

  	
   

  	
   

  
	
  BRANCH
  CODE

  	
   

  	
  003

  	
   

  	
  005

  	
   

  	
  3

  	
   

  	
   

  
	
  RETAIL/LEASE
  CODE

  	
   

  	
  006

  	
   

  	
  008

  	
   

  	
  3

  	
   

  	
   

  
	
  CUSTOMER
  #

  	
   

  	
  009

  	
   

  	
  018

  	
   

  	
  10

  	
   

  	
   

  
	
  NOTE
  #

  	
   

  	
  019

  	
   

  	
  026

  	
   

  	
  8

  	
   

  	
   

  
	
  BK
  FILED DATE

  	
   

  	
  027

  	
   

  	
  034

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  BK
  CHAPTER FILED

  	
   

  	
  035

  	
   

  	
  037

  	
   

  	
  3

  	
   

  	
   

  
	
  BK
  CLOSE DATE

  	
   

  	
  038

  	
   

  	
  045

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  BK
  CLOSE REASON

  	
   

  	
  046

  	
   

  	
  047

  	
   

  	
  2

  	
   

  	
  RE =
  REAFFIRMED

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  LS =
  LIFT STAYED

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  DM =
  DISMISSED

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  DS =
  DISCHARGED

  
	
  DISCHARGE
  DATE

  	
   

  	
  048

  	
   

  	
  055

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  FILLER

  	
   

  	
  056

  	
   

  	
  075

  	
   

  	
  20

  	
   

  	
   

  

 

Appendix A-12

 

	
  RECORD
  LENGTH = 200

  	
   

  	
  SS09

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DESCRIPTION

  	
   

  	
  START

  	
   

  	
  END

  	
   

  	
  POS

  	
   

  	
  ANNOTATION

  
	
  ACCOUNT
  #

  	
   

  	
  001

  	
   

  	
  026

  	
   

  	
  26

  	
   

  	
   

  
	
  BANK
  CODE

  	
   

  	
  001

  	
   

  	
  002

  	
   

  	
  2

  	
   

  	
   

  
	
  BRANCH
  CODE

  	
   

  	
  003

  	
   

  	
  005

  	
   

  	
  3

  	
   

  	
   

  
	
  RETAIL/LEASE
  CODE

  	
   

  	
  006

  	
   

  	
  008

  	
   

  	
  3

  	
   

  	
   

  
	
  CUSTOMER
  #

  	
   

  	
  009

  	
   

  	
  018

  	
   

  	
  10

  	
   

  	
   

  
	
  NOTE
  #

  	
   

  	
  019

  	
   

  	
  026

  	
   

  	
  8

  	
   

  	
   

  
	
  CUSTOM
  CREDIT SCORE

  	
   

  	
  027

  	
   

  	
  032

  	
   

  	
  6

  	
   

  	
   

  
	
  CUST
  CR SIGN

  	
   

  	
  027

  	
   

  	
  027

  	
   

  	
  1

  	
   

  	
   

  
	
  CUST
  CR SCORE

  	
   

  	
  028

  	
   

  	
  032

  	
   

  	
  5

  	
   

  	
   

  
	
  EDAS
  SCORE

  	
   

  	
  033

  	
   

  	
  037

  	
   

  	
  5

  	
   

  	
   

  
	
  EDAS
  SIGN

  	
   

  	
  033

  	
   

  	
  033

  	
   

  	
  1

  	
   

  	
   

  
	
  EDAS
  SCORE

  	
   

  	
  034

  	
   

  	
  037

  	
   

  	
  4

  	
   

  	
   

  
	
  BOOK
  VALUE - INVOICE

  	
   

  	
  038

  	
   

  	
  054

  	
   

  	
  17

  	
   

  	
   

  
	
  BK
  VALUE SIGN

  	
   

  	
  038

  	
   

  	
  038

  	
   

  	
  1

  	
   

  	
   

  
	
  BK
  VALUE DOL

  	
   

  	
  039

  	
   

  	
  051

  	
   

  	
  13

  	
   

  	
   

  
	
  BK
  VALUE DCL

  	
   

  	
  052

  	
   

  	
  052

  	
   

  	
  1

  	
   

  	
   

  
	
  BK
  VALUE CENTS

  	
   

  	
  053

  	
   

  	
  054

  	
   

  	
  2

  	
   

  	
   

  
	
  DRIVERS
  LICENSE NUMBER

  	
   

  	
  055

  	
   

  	
  078

  	
   

  	
  24

  	
   

  	
   

  
	
  DRIVERS
  LICENSE STATE

  	
   

  	
  079

  	
   

  	
  080

  	
   

  	
  2

  	
   

  	
   

  
	
  APPLICATION
  DATE

  	
   

  	
  081

  	
   

  	
  088

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  LOAN
  TO VALUE RATIO

  	
   

  	
  089

  	
   

  	
  097

  	
   

  	
  9

  	
   

  	
   

  
	
  LOAN
  TO VALUE SIGN

  	
   

  	
  089

  	
   

  	
  089

  	
   

  	
  1

  	
   

  	
   

  
	
  LOAN
  TO VALUE LEFT

  	
   

  	
  090

  	
   

  	
  094

  	
   

  	
  5

  	
   

  	
   

  
	
  LOAN
  TO VALUE DCL

  	
   

  	
  095

  	
   

  	
  095

  	
   

  	
  1

  	
   

  	
   

  
	
  LOAN
  TO VALUE RIGHT

  	
   

  	
  096

  	
   

  	
  097

  	
   

  	
  2

  	
   

  	
   

  
	
  DOWN
  PAYMENT

  	
   

  	
  098

  	
   

  	
  114

  	
   

  	
  17

  	
   

  	
   

  
	
  DN
  PYMT SIGN

  	
   

  	
  098

  	
   

  	
  098

  	
   

  	
  1

  	
   

  	
   

  
	
  DN
  PYMT DOL

  	
   

  	
  099

  	
   

  	
  111

  	
   

  	
  13

  	
   

  	
   

  
	
  DN
  PYMT DCL

  	
   

  	
  112

  	
   

  	
  112

  	
   

  	
  1

  	
   

  	
   

  
	
  DN
  PYMT CENTS

  	
   

  	
  113

  	
   

  	
  114

  	
   

  	
  2

  	
   

  	
   

  
	
  TRADE
  IN AMOUNT

  	
   

  	
  115

  	
   

  	
  131

  	
   

  	
  17

  	
   

  	
   

  
	
  TR
  IN SIGN

  	
   

  	
  115

  	
   

  	
  115

  	
   

  	
  1

  	
   

  	
   

  
	
  TR
  IN DOL

  	
   

  	
  116

  	
   

  	
  128

  	
   

  	
  13

  	
   

  	
   

  
	
  TR
  IN DCL

  	
   

  	
  129

  	
   

  	
  129

  	
   

  	
  1

  	
   

  	
   

  
	
  TR
  IN CENTS

  	
   

  	
  130

  	
   

  	
  131

  	
   

  	
  2

  	
   

  	
   

  
	
  TOTAL
  ORIGINATION FEES

  	
   

  	
  132

  	
   

  	
  148

  	
   

  	
  17

  	
   

  	
   

  
	
  TOT
  ORIG SIGN

  	
   

  	
  132

  	
   

  	
  132

  	
   

  	
  1

  	
   

  	
   

  
	
  TOT
  ORIG DOL

  	
   

  	
  133

  	
   

  	
  145

  	
   

  	
  13

  	
   

  	
   

  
	
  TOT
  ORIG DCL

  	
   

  	
  146

  	
   

  	
  146

  	
   

  	
  1

  	
   

  	
   

  
	
  TOT
  ORIG CENTS

  	
   

  	
  147

  	
   

  	
  148

  	
   

  	
  2

  	
   

  	
   

  
	
  TOTAL
  COST OF SOFT ADDS

  	
   

  	
  149

  	
   

  	
  165

  	
   

  	
  17

  	
   

  	
   

  
	
  TOT
  CST SIGN

  	
   

  	
  149

  	
   

  	
  149

  	
   

  	
  1

  	
   

  	
   

  
	
  TOT
  CST DOL

  	
   

  	
  150

  	
   

  	
  162

  	
   

  	
  13

  	
   

  	
   

  
	
  TOT
  CST DCL

  	
   

  	
  163

  	
   

  	
  163

  	
   

  	
  1

  	
   

  	
   

  
	
  TOT
  CST CENTS

  	
   

  	
  164

  	
   

  	
  165

  	
   

  	
  2

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL
  TAXES

  	
   

  	
  166

  	
   

  	
  182

  	
   

  	
  17

  	
   

  	
   

  
	
  TOT
  TAX SIGN

  	
   

  	
  166

  	
   

  	
  166

  	
   

  	
  1

  	
   

  	
   

  
	
  TOT
  TAX DOL

  	
   

  	
  167

  	
   

  	
  179

  	
   

  	
  13

  	
   

  	
   

  
	
  TOT
  TAX DCL

  	
   

  	
  180

  	
   

  	
  180

  	
   

  	
  1

  	
   

  	
   

  
	
  TOT
  TAX CENTS

  	
   

  	
  181

  	
   

  	
  182

  	
   

  	
  2

  	
   

  	
   

  
	
  FILLER

  	
   

  	
  183

  	
   

  	
  200

  	
   

  	
  18

  	
   

  	
   

  

 

Appendix A-13

 

	
  RECORD
  LENGTH = 275

  	
   

  	
  SS10

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DESCRIPTION

  	
   

  	
  START

  	
   

  	
  END

  	
   

  	
  POS

  	
   

  	
  ANNOTATION

  
	
  ACCOUNT
  #

  	
   

  	
  001

  	
   

  	
  026

  	
   

  	
  26

  	
   

  	
   

  
	
  BANK
  CODE

  	
   

  	
  001

  	
   

  	
  002

  	
   

  	
  2

  	
   

  	
   

  
	
  BRANCH
  CODE

  	
   

  	
  003

  	
   

  	
  005

  	
   

  	
  3

  	
   

  	
   

  
	
  RETAIL/LEASE
  CODE

  	
   

  	
  006

  	
   

  	
  008

  	
   

  	
  3

  	
   

  	
   

  
	
  CUSTOMER
  #

  	
   

  	
  009

  	
   

  	
  018

  	
   

  	
  10

  	
   

  	
   

  
	
  NOTE
  #

  	
   

  	
  019

  	
   

  	
  026

  	
   

  	
  8

  	
   

  	
   

  
	
  DEALER
  ADDRESS 01

  	
   

  	
  027

  	
   

  	
  066

  	
   

  	
  40

  	
   

  	
   

  
	
  DEALER
  ADDRESS 02

  	
   

  	
  067

  	
   

  	
  106

  	
   

  	
  40

  	
   

  	
   

  
	
  DEALER
  ADDRESS 03

  	
   

  	
  107

  	
   

  	
  146

  	
   

  	
  40

  	
   

  	
   

  
	
  DEALER
  ADDRESS 04

  	
   

  	
  147

  	
   

  	
  186

  	
   

  	
  40

  	
   

  	
   

  
	
  DEALER
  ADDRESS CITY

  	
   

  	
  187

  	
   

  	
  226

  	
   

  	
  40

  	
   

  	
   

  
	
  DEALER
  ADDRESS STATE

  	
   

  	
  227

  	
   

  	
  228

  	
   

  	
  2

  	
   

  	
   

  
	
  DEALER
  ZIP

  	
   

  	
  229

  	
   

  	
  237

  	
   

  	
  9

  	
   

  	
   

  
	
  DLR
  ZIP FIRST 5

  	
   

  	
  229

  	
   

  	
  233

  	
   

  	
  5

  	
   

  	
   

  
	
  DLR
  ZIP LAST 4

  	
   

  	
  234

  	
   

  	
  237

  	
   

  	
  4

  	
   

  	
   

  
	
  OFFICE
  PHONE

  	
   

  	
  238

  	
   

  	
  251

  	
   

  	
  14

  	
   

  	
   

  
	
  OFF
  PH AREA CODE

  	
   

  	
  238

  	
   

  	
  240

  	
   

  	
  3

  	
   

  	
   

  
	
  OFF
  PH FIRST 3 POS

  	
   

  	
  241

  	
   

  	
  243

  	
   

  	
  3

  	
   

  	
   

  
	
  OFF
  PH LAST 4 POS

  	
   

  	
  244

  	
   

  	
  247

  	
   

  	
  4

  	
   

  	
   

  
	
  OFF
  PH EXTENSION

  	
   

  	
  248

  	
   

  	
  251

  	
   

  	
  4

  	
   

  	
   

  
	
  FAX

  	
   

  	
  252

  	
   

  	
  265

  	
   

  	
  14

  	
   

  	
   

  
	
  FAX
  AREA CODE

  	
   

  	
  252

  	
   

  	
  254

  	
   

  	
  3

  	
   

  	
   

  
	
  FAX
  FIRST 3 POS

  	
   

  	
  255

  	
   

  	
  257

  	
   

  	
  3

  	
   

  	
   

  
	
  FAX
  LAST 4 POS

  	
   

  	
  258

  	
   

  	
  261

  	
   

  	
  4

  	
   

  	
   

  
	
  FAX
  EXTENSION

  	
   

  	
  262

  	
   

  	
  265

  	
   

  	
  4

  	
   

  	
   

  
	
  FILLER

  	
   

  	
  266

  	
   

  	
  275

  	
   

  	
  10

  	
   

  	
   

  

 

	
  RECORD
  LENGTH = 375

  	
   

  	
  SS11

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DESCRIPTION

  	
   

  	
  START

  	
   

  	
  END

  	
   

  	
  POS

  	
   

  	
  ANNOTATION

  
	
  ACCOUNT
  #

  	
   

  	
  001

  	
   

  	
  026

  	
   

  	
  26

  	
   

  	
   

  
	
  BANK
  CODE

  	
   

  	
  001

  	
   

  	
  002

  	
   

  	
  2

  	
   

  	
   

  
	
  BRANCH
  CODE

  	
   

  	
  003

  	
   

  	
  005

  	
   

  	
  3

  	
   

  	
   

  
	
  RETAIL/LEASE
  CODE

  	
   

  	
  006

  	
   

  	
  008

  	
   

  	
  3

  	
   

  	
   

  
	
  CUSTOMER
  #

  	
   

  	
  009

  	
   

  	
  018

  	
   

  	
  10

  	
   

  	
   

  
	
  NOTE
  #

  	
   

  	
  019

  	
   

  	
  026

  	
   

  	
  8

  	
   

  	
   

  
	
  COMMENT
  SEQUENCE #

  	
   

  	
  027

  	
   

  	
  029

  	
   

  	
  3

  	
   

  	
   

  
	
  COMMENT
  DATA (1st occ. Info. Below)

  	
   

  	
  030

  	
   

  	
  341

  	
   

  	
  312

  	
   

  	
  4
  OCCURRENCES

  
	
  SCRATCH
  PAD DATA

  	
   

  	
  030

  	
   

  	
  104

  	
   

  	
  75

  	
   

  	
   

  
	
  SCRATCH
  PAD USER

  	
   

  	
  105

  	
   

  	
  107

  	
   

  	
  3

  	
   

  	
   

  
	
  OPEN
  DATE

  	
   

  	
  342

  	
   

  	
  349

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  SVC
  CODE

  	
   

  	
  350

  	
   

  	
  352

  	
   

  	
  3

  	
   

  	
   

  
	
  CLOSE
  DATE

  	
   

  	
  353

  	
   

  	
  360

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  FILLER

  	
   

  	
  361

  	
   

  	
  375

  	
   

  	
  15

  	
   

  	
   

  

 

Appendix A-14

 

APPENDIX B

 

MONTHLY DATA FILES

 

	
  Record
  length = 100

  	
   

  	
  LOS01

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DESCRIPTION

  	
   

  	
  START

  	
   

  	
  END

  	
   

  	
  POS

  	
   

  	
  ANNOTATIONS

  
	
  ENTITY

  	
   

  	
  001

  	
   

  	
  005

  	
   

  	
  5

  	
   

  	
   

  
	
  COST
  CENTER

  	
   

  	
  006

  	
   

  	
  011

  	
   

  	
  6

  	
   

  	
   

  
	
  POOL
  IDENTIFIER

  	
   

  	
  012

  	
   

  	
  014

  	
   

  	
  3

  	
   

  	
   

  
	
  SUB
  POOL IDENTIFIER

  	
   

  	
  015

  	
   

  	
  024

  	
   

  	
  10

  	
   

  	
   

  
	
  CUSTOMER
  #

  	
   

  	
  025

  	
   

  	
  034

  	
   

  	
  10

  	
   

  	
   

  
	
  NOTE #

  	
   

  	
  035

  	
   

  	
  042

  	
   

  	
  8

  	
   

  	
   

  
	
  MT
  CODE

  	
   

  	
  043

  	
   

  	
  045

  	
   

  	
  3

  	
   

  	
   

  
	
  TRANSACTION
  CODE

  	
   

  	
  046

  	
   

  	
  047

  	
   

  	
  2

  	
   

  	
  WILL
  HAVE ‘MT’ IF FEED IS FROM MT,  OTHERWISE THE CL TRANS. CODE.

  
	
  TRANSACTION
  CODE QUALIFIER

  	
   

  	
  048

  	
   

  	
  049

  	
   

  	
  2

  	
   

  	
   

  
	
  TRANSACTION
  DATE

  	
   

  	
  050

  	
   

  	
  057

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  BUSINESS
  LINE

  	
   

  	
  058

  	
   

  	
  059

  	
   

  	
  2

  	
   

  	
   

  
	
  ACKTBL
  TRANSACTION CODE

  	
   

  	
  060

  	
   

  	
  062

  	
   

  	
  3

  	
   

  	
   

  
	
  TRANSACTION
  AMOUNT

  	
   

  	
  063

  	
   

  	
  079

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  063

  	
   

  	
  063

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  064

  	
   

  	
  076

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  077

  	
   

  	
  077

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  078

  	
   

  	
  079

  	
   

  	
  2

  	
   

  	
   

  
	
  GL
  ACCOUNT NUMBER

  	
   

  	
  080

  	
   

  	
  093

  	
   

  	
  14

  	
   

  	
   

  
	
  ACCOUNT

  	
   

  	
  080

  	
   

  	
  089

  	
   

  	
  10

  	
   

  	
   

  
	
  SUB
  ACCOUNT NUMBER

  	
   

  	
  090

  	
   

  	
  093

  	
   

  	
  4

  	
   

  	
   

  
	
  VARIABLE
  RATE TYPE

  	
   

  	
  094

  	
   

  	
  095

  	
   

  	
  2

  	
   

  	
   

  
	
  FILLER

  	
   

  	
  094

  	
   

  	
  100

  	
   

  	
  5

  	
   

  	
   

  

 

	
  Record
  length = 3775

  	
   

  	
  SS01

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DESCRIPTION

  	
   

  	
  START

  	
   

  	
  END

  	
   

  	
  POS.

  	
   

  	
  ANNOTATIONS

  
	
  ACCOUNT
  #

  	
   

  	
  0001

  	
   

  	
  0026

  	
   

  	
  26

  	
   

  	
   

  
	
  BANK
  CODE

  	
   

  	
  0001

  	
   

  	
  0002

  	
   

  	
  2

  	
   

  	
   

  
	
  BRANCH
  CODE

  	
   

  	
  0003

  	
   

  	
  0005

  	
   

  	
  3

  	
   

  	
   

  
	
  RETAIL/LEASE
  CODE

  	
   

  	
  0006

  	
   

  	
  0008

  	
   

  	
  3

  	
   

  	
   

  
	
  CUSTOMER
  #

  	
   

  	
  0009

  	
   

  	
  0018

  	
   

  	
  10

  	
   

  	
   

  
	
  NOTE
  #

  	
   

  	
  0019

  	
   

  	
  0026

  	
   

  	
  8

  	
   

  	
   

  
	
  POOL
  IDENTIFIER

  	
   

  	
  0027

  	
   

  	
  0029

  	
   

  	
  3

  	
   

  	
   

  
	
  SUB
  POOL IDENTIFIER

  	
   

  	
  0030

  	
   

  	
  0039

  	
   

  	
  10

  	
   

  	
   

  
	
  CONTRACT
  DATE

  	
   

  	
  0040

  	
   

  	
  0047

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  ORIGINAL
  MATURITY DATE

  	
   

  	
  0048

  	
   

  	
  0055

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  CURRENT
  MATURITY DATE

  	
   

  	
  0056

  	
   

  	
  0063

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  ORIGINAL
  AMOUNT FINANCED

  	
   

  	
  0064

  	
   

  	
  0080

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0064

  	
   

  	
  0064

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  0065

  	
   

  	
  0077

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0078

  	
   

  	
  0078

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  0079

  	
   

  	
  0080

  	
   

  	
  2

  	
   

  	
   

  
	
  CURRENT
  OBLIGOR BALANCE

  	
   

  	
  0081

  	
   

  	
  0097

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0081

  	
   

  	
  0081

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  0082

  	
   

  	
  0094

  	
   

  	
  13

  	
   

  	
   

  

 

Appendix B-1

 

	
  DECIMAL

  	
   

  	
  0095

  	
   

  	
  0095

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  0096

  	
   

  	
  0097

  	
   

  	
  2

  	
   

  	
   

  
	
  CURRENT
  HOLDER BALANCE

  	
   

  	
  0098

  	
   

  	
  0114

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0098

  	
   

  	
  0098

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  0099

  	
   

  	
  0111

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0112

  	
   

  	
  0112

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  0113

  	
   

  	
  0114

  	
   

  	
  2

  	
   

  	
   

  
	
  FIRST
  DUE DATE

  	
   

  	
  0115

  	
   

  	
  0122

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  NEXT
  DUE DATE

  	
   

  	
  0123

  	
   

  	
  0130

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  NEXT
  PAYMENT AMOUNT

  	
   

  	
  0131

  	
   

  	
  0147

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0131

  	
   

  	
  0131

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  0132

  	
   

  	
  0144

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0145

  	
   

  	
  0145

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  0146

  	
   

  	
  0147

  	
   

  	
  2

  	
   

  	
   

  
	
  CURRENT
  INTEREST RATE (APR)

  	
   

  	
  0148

  	
   

  	
  0155

  	
   

  	
  8

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0148

  	
   

  	
  0148

  	
   

  	
  1

  	
   

  	
   

  
	
  LEFT
  OF DECIMAL

  	
   

  	
  0149

  	
   

  	
  0149

  	
   

  	
  1

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0150

  	
   

  	
  0150

  	
   

  	
  1

  	
   

  	
   

  
	
  RIGHT
  OF DECIMAL

  	
   

  	
  0151

  	
   

  	
  0155

  	
   

  	
  5

  	
   

  	
   

  
	
  ORIGINAL
  TERMS

  	
   

  	
  0156

  	
   

  	
  0158

  	
   

  	
  3

  	
   

  	
   

  
	
  PAYMENT
  METHOD

  	
   

  	
  0159

  	
   

  	
  0159

  	
   

  	
  1

  	
   

  	
  C=COUPON

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  A=ACH

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  B=BILL

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  N=NO
  BILL

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INTEREST
  TYPE

  	
   

  	
  0160

  	
   

  	
  0161

  	
   

  	
  2

  	
   

  	
  00 =
  SIMPLE INTEREST

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  01=SIMPLE
  INTEREST

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  02=78’S
  INTEREST

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  03=STRIGHT
  LINE INTEREST

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  04=SIMPLE
  INTEREST (ON  SCHEDULED
  PRIN. BAL.)  FOR LOANS
  W/AMORTIZED  PAYMENT SCHEDULE.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  05=SIMPLE
  INT. AVERAGE BAL.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  07=SIMPLE
  INT. W/BALANCE

  

 

	
  DESCRIPTION

  	
   

  	
  START

  	
   

  	
  END

  	
   

  	
  POS.

  	
   

  	
  ANNOTATIONS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  SPREAD
  RATE ADJ.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  08=ACTURIAL

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  09=SUM
  OF BALANCE

  
	
  # OF
  DAYS LATE TO ASSESS LATE FEES

  	
   

  	
  0162

  	
   

  	
  0164

  	
   

  	
  3

  	
   

  	
   

  
	
  LATE
  FEE AMOUNT

  	
   

  	
  0165

  	
   

  	
  0181

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0165

  	
   

  	
  0165

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  0166

  	
   

  	
  0178

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0179

  	
   

  	
  0179

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  0180

  	
   

  	
  0181

  	
   

  	
  2

  	
   

  	
   

  
	
  LATE
  FEE PERCENT

  	
   

  	
  0182

  	
   

  	
  0189

  	
   

  	
  8

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0182

  	
   

  	
  0182

  	
   

  	
  1

  	
   

  	
   

  
	
  LEFT
  OF DECIMAL

  	
   

  	
  0183

  	
   

  	
  0183

  	
   

  	
  1

  	
   

  	
   

  

 

Appendix B-2

 

	
  DECIMAL

  	
   

  	
  0184

  	
   

  	
  0184

  	
   

  	
  1

  	
   

  	
   

  	
   

  
	
  RIGHT
  OF DECIMAL

  	
   

  	
  0185

  	
   

  	
  0189

  	
   

  	
  5

  	
   

  	
   

  	
   

  
	
  INTEREST
  PAID THROUGH DATE

  	
   

  	
  0190

  	
   

  	
  0197

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  	
   

  
	
  INTEREST
  ACCRUED/UNPAID AT TRANSFER

  	
   

  	
  0198

  	
   

  	
  0214

  	
   

  	
  17

  	
   

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0198

  	
   

  	
  0198

  	
   

  	
  1

  	
   

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  0199

  	
   

  	
  0211

  	
   

  	
  13

  	
   

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0212

  	
   

  	
  0212

  	
   

  	
  1

  	
   

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  0213

  	
   

  	
  0214

  	
   

  	
  2

  	
   

  	
   

  	
   

  
	
  LATE
  FEES DUE

  	
   

  	
  0215

  	
   

  	
  0231

  	
   

  	
  17

  	
   

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0215

  	
   

  	
  0215

  	
   

  	
  1

  	
   

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  0216

  	
   

  	
  0228

  	
   

  	
  13

  	
   

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0229

  	
   

  	
  0229

  	
   

  	
  1

  	
   

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  0230

  	
   

  	
  0231

  	
   

  	
  2

  	
   

  	
   

  	
   

  
	
  OTHER
  AMOUNT DUE

  	
   

  	
  0232

  	
   

  	
  0248

  	
   

  	
  17

  	
   

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0232

  	
   

  	
  0232

  	
   

  	
  1

  	
   

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  0233

  	
   

  	
  0245

  	
   

  	
  13

  	
   

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0246

  	
   

  	
  0246

  	
   

  	
  1

  	
   

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  0247

  	
   

  	
  0248

  	
   

  	
  2

  	
   

  	
   

  	
   

  
	
  REMAINING
  TERM

  	
   

  	
  0249

  	
   

  	
  0251

  	
   

  	
  3

  	
   

  	
   

  	
   

  
	
  CHARGE
  OFF DATE

  	
   

  	
  0252

  	
   

  	
  0259

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  	
   

  
	
  CHARGE
  OFF AMOUNT

  	
   

  	
  0260

  	
   

  	
  0276

  	
   

  	
  17

  	
   

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0260

  	
   

  	
  0260

  	
   

  	
  1

  	
   

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  0261

  	
   

  	
  0273

  	
   

  	
  13

  	
   

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0274

  	
   

  	
  0274

  	
   

  	
  1

  	
   

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  0275

  	
   

  	
  0276

  	
   

  	
  2

  	
   

  	
   

  	
   

  
	
  CONTRACT
  STATE (DEALER)

  	
   

  	
  0277

  	
   

  	
  0278

  	
   

  	
  2

  	
   

  	
   

  	
   

  
	
  LAST
  PAYMENT DATE

  	
   

  	
  0279

  	
   

  	
  0286

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TIMES
  PAST DUE DATA (1st occ. Info. Below)

  	
   

  	
  0287

  	
   

  	
  0306

  	
   

  	
  20

  	
   

  	
  OCCURS
  5 TIMES

  	
   

  
	
  SIGN

  	
   

  	
  0287

  	
   

  	
  0287

  	
   

  	
  1

  	
   

  	
  OCC 1
  = 10 DAYS PAST DUE

  	
   

  
	
  DAYS

  	
   

  	
  0288

  	
   

  	
  0290

  	
   

  	
  3

  	
   

  	
  OCC 2
  = 30 DAYS PAST DUE

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  OCC 3
  = 60 DAYS PAST DUE

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  OCC 4
  = 90 DAYS PAST DUE

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  OCC 5
  = 120 DAYS PAST DUE

  	
   

  
	
  NUMBER
  OF NSF CHECKS

  	
   

  	
  0307

  	
   

  	
  0308

  	
   

  	
  2

  	
   

  	
   

  	
   

  
	
  BUY-BACK
  (CLOSEOUT FEE)

  	
   

  	
  0309

  	
   

  	
  0316

  	
   

  	
  8

  	
   

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0309

  	
   

  	
  0309

  	
   

  	
  1

  	
   

  	
   

  	
   

  
	
  LEFT
  OF DECIMAL

  	
   

  	
  0310

  	
   

  	
  0310

  	
   

  	
  1

  	
   

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0311

  	
   

  	
  0311

  	
   

  	
  1

  	
   

  	
   

  	
   

  
	
  RIGHT
  OF DECIMAL

  	
   

  	
  0312

  	
   

  	
  0316

  	
   

  	
  5

  	
   

  	
   

  	
   

  
	
  BRANCH/REGION/PROCESSING
  CENTER

  	
   

  	
  0317

  	
   

  	
  0319

  	
   

  	
  3

  	
   

  	
   

  	
   

  
	
  ORIGINATOR
  APPLICATION NUMBER

  	
   

  	
  0320

  	
   

  	
  0329

  	
   

  	
  10

  	
   

  	
   

  	
   

  
	
  ORIGINATOR
  FUNDING DATE

  	
   

  	
  0330

  	
   

  	
  0337

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  	
   

  
	
  PAY
  AHEAD BALANCE

  	
   

  	
  0338

  	
   

  	
  0354

  	
   

  	
  17

  	
   

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0338

  	
   

  	
  0338

  	
   

  	
  1

  	
   

  	
   

  	
   

  

 

Appendix B-3

 

	
  DESCRIPTION

  	
   

  	
  START

  	
   

  	
  END

  	
   

  	
  POS.

  	
   

  	
  ANNOTATIONS

  
	
  DOLLARS

  	
   

  	
  0339

  	
   

  	
  0351

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0352

  	
   

  	
  0352

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  0353

  	
   

  	
  0354

  	
   

  	
  2

  	
   

  	
   

  
	
  TITLE STATE

  	
   

  	
  0355

  	
   

  	
  0356

  	
   

  	
  2

  	
   

  	
   

  
	
  RECOURSE CODE

  	
   

  	
  0357

  	
   

  	
  0357

  	
   

  	
  1

  	
   

  	
   

  
	
  PDI INSURANCE

  	
   

  	
  0358

  	
   

  	
  0358

  	
   

  	
  1

  	
   

  	
  R=RAMSEY-KRUG

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  U=UNIVERSAL

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  F=FIREMANS’S
  FUND

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  G=EPG

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  O=OTHER

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  SPACE=NONE

  
	
  LIFE INSURANCE

  	
   

  	
  0359

  	
   

  	
  0359

  	
   

  	
  1

  	
   

  	
  M=AMERICAN
  MODERN (USA)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  P=PACIFIC
  LIFE (CANADA)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  SPACE=NONE

  
	
  LIABILITY INSURANCE

  	
   

  	
  0360

  	
   

  	
  0360

  	
   

  	
  1

  	
   

  	
  E=ELPA

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  SPACE=NONE

  
	
  DISABILITY INSURANCE

  	
   

  	
  0361

  	
   

  	
  0361

  	
   

  	
  1

  	
   

  	
  M=AMERICAN
  MODERN

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  SPACE=NONE

  
	
  ESPP INSURANCE

  	
   

  	
  0362

  	
   

  	
  0362

  	
   

  	
  1

  	
   

  	
  G=EPG

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  SPACE=NONE

  
	
  RESIDUAL INSURANCE

  	
   

  	
  0363

  	
   

  	
  0363

  	
   

  	
  1

  	
   

  	
  P=PACIFIC
  LIFE (CANADA)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  SPACE=NONE

  
	
  LOAN STATUS

  	
   

  	
  0364

  	
   

  	
  0364

  	
   

  	
  1

  	
   

  	
  A=ACTIVE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  C=CLOSED

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  D=ACCOUNT
  IN REPOESSION BUT NOT IN BANKRUPTCY.

  
	
  REPO BALANCE

  	
   

  	
  0365

  	
   

  	
  0381

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0365

  	
   

  	
  0365

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  0366

  	
   

  	
  0378

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0379

  	
   

  	
  0379

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  0380

  	
   

  	
  0381

  	
   

  	
  2

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REPO ESTIMATED LOSS

  	
   

  	
  0382

  	
   

  	
  0398

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0382

  	
   

  	
  0382

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  0383

  	
   

  	
  0395

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0396

  	
   

  	
  0396

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  0397

  	
   

  	
  0398

  	
   

  	
  2

  	
   

  	
   

  
	
  INTEREST START DATE

  	
   

  	
  0399

  	
   

  	
  0406

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FIXED OR VARIABLE

  	
   

  	
  0407

  	
   

  	
  0407

  	
   

  	
  1

  	
   

  	
  F=FIXED

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  V=VARIABLE

  
	
  VARIABLE INDEX ADDITION

  	
   

  	
  0408

  	
   

  	
  0415

  	
   

  	
  8

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0408

  	
   

  	
  0408

  	
   

  	
  1

  	
   

  	
   

  
	
  LEFT
  OF DECIMAL

  	
   

  	
  0409

  	
   

  	
  0409

  	
   

  	
  1

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0410

  	
   

  	
  0410

  	
   

  	
  1

  	
   

  	
   

  
	
  RIGHT
  OF DECIMAL

  	
   

  	
  0411

  	
   

  	
  0415

  	
   

  	
  5

  	
   

  	
   

  

 

Appendix B-4

 

	
  VARIABLE FLOOR

  	
   

  	
  0416

  	
   

  	
  0423

  	
   

  	
  8

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0416

  	
   

  	
  0416

  	
   

  	
  1

  	
   

  	
   

  
	
  LEFT
  OF DECIMAL

  	
   

  	
  0417

  	
   

  	
  0417

  	
   

  	
  1

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0418

  	
   

  	
  0418

  	
   

  	
  1

  	
   

  	
   

  
	
  RIGHT
  OF DECIMAL

  	
   

  	
  0419

  	
   

  	
  0423

  	
   

  	
  5

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VARIABLE CEILING

  	
   

  	
  0424

  	
   

  	
  0431

  	
   

  	
  8

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0424

  	
   

  	
  0424

  	
   

  	
  1

  	
   

  	
   

  
	
  LEFT
  OF DECIMAL

  	
   

  	
  0425

  	
   

  	
  0425

  	
   

  	
  1

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0426

  	
   

  	
  0426

  	
   

  	
  1

  	
   

  	
   

  
	
  RIGHT
  OF DECIMAL

  	
   

  	
  0427

  	
   

  	
  0431

  	
   

  	
  5

  	
   

  	
   

  
	
  STOP ACCRUAL INTEREST

  	
   

  	
  0432

  	
   

  	
  0448

  	
   

  	
  17

  	
   

  	
   

  

 

	
  DESCRIPTION

  	
   

  	
  START

  	
   

  	
  END

  	
   

  	
  POS.

  	
   

  	
  ANNOTATIONS

  
	
  SIGN

  	
   

  	
  0432

  	
   

  	
  0432

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  0433

  	
   

  	
  0445

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0446

  	
   

  	
  0446

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  0447

  	
   

  	
  0448

  	
   

  	
  2

  	
   

  	
   

  
	
  STOP ACCRUAL DATE

  	
   

  	
  0449

  	
   

  	
  0456

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  PAYMENT SCHEDULE REVIEW

  	
   

  	
  0457

  	
   

  	
  0457

  	
   

  	
  1

  	
   

  	
   

  
	
  RESIDUAL AMOUNT (FINANCE LEASES)

  	
   

  	
  0458

  	
   

  	
  0474

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0458

  	
   

  	
  0458

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  0459

  	
   

  	
  0471

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0472

  	
   

  	
  0472

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  0473

  	
   

  	
  0474

  	
   

  	
  2

  	
   

  	
   

  
	
  FINANCE CHARGE (PRE COMPUTED)

  	
   

  	
  0475

  	
   

  	
  0491

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0475

  	
   

  	
  0475

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  0476

  	
   

  	
  0488

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0489

  	
   

  	
  0489

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  0490

  	
   

  	
  0491

  	
   

  	
  2

  	
   

  	
   

  
	
  DUE
  DATE/PAYMENT AMT. INFO. (1st occ. Info. Below)

  	
   

  	
  0492

  	
   

  	
  2991

  	
   

  	
  2500

  	
   

  	
  OCCURS
  100 TIMES

  
	
  DUE
  DATE

  	
   

  	
  0492

  	
   

  	
  0499

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  DUE
  AMOUNT

  	
   

  	
  0500

  	
   

  	
  0514

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  0500

  	
   

  	
  0500

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  0501

  	
   

  	
  0513

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  0514

  	
   

  	
  0514

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  0515

  	
   

  	
  0516

  	
   

  	
  2

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BILL
  DATE/PAYMENT INFO. (1st occ. info. below)

  	
   

  	
  2992

  	
   

  	
  3447

  	
   

  	
  456

  	
   

  	
  OCCURS
  6 TIMES

  
	
  BILLED
  DUE DATE

  	
   

  	
  2992

  	
   

  	
  2999

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  BILLED
  PRINCIPAL

  	
   

  	
  3000

  	
   

  	
  3016

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  3000

  	
   

  	
  3000

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  3001

  	
   

  	
  3013

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  3014

  	
   

  	
  3014

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  3015

  	
   

  	
  3016

  	
   

  	
  2

  	
   

  	
   

  
	
  BILLED
  INTEREST

  	
   

  	
  3017

  	
   

  	
  3033

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  3017

  	
   

  	
  3017

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  3018

  	
   

  	
  3030

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  3031

  	
   

  	
  3031

  	
   

  	
  1

  	
   

  	
   

  

 

Appendix B-5

 

	
  CENTS

  	
   

  	
  3032

  	
   

  	
  3033

  	
   

  	
  2

  	
   

  	
   

  
	
  BILLED
  LATE CHARGES

  	
   

  	
  3034

  	
   

  	
  3050

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  3034

  	
   

  	
  3034

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  3035

  	
   

  	
  3047

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  3048

  	
   

  	
  3048

  	
   

  	
  1

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  3049

  	
   

  	
  3050

  	
   

  	
  2

  	
   

  	
   

  
	
  BILLED
  OTHER FEES

  	
   

  	
  3051

  	
   

  	
  3067

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  3051

  	
   

  	
  3051

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  3052

  	
   

  	
  3064

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  3065

  	
   

  	
  3065

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  3066

  	
   

  	
  3067

  	
   

  	
  2

  	
   

  	
   

  
	
  BILLED THROUGH DATE

  	
   

  	
  3448

  	
   

  	
  3455

  	
   

  	
  8

  	
   

  	
  CCYYMMDD

  
	
  ACCRUAL BASIS YEAR

  	
   

  	
  3456

  	
   

  	
  3456

  	
   

  	
  1

  	
   

  	
  0=365-DAY
  YEAR

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1=360-DAY
  YEAR

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2=365/366-DAY
  YEAR

  
	
  ACCRUAL BASIS MONTH

  	
   

  	
  3457

  	
   

  	
  3457

  	
   

  	
  1

  	
   

  	
  0=ACTUAL-DAYMONTH

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1=30-DAY
  MONTH

  
	
  PAYMENT
  SCHEDULE INFO. (1st occ. Info. below)

  	
   

  	
  3458

  	
   

  	
  3637

  	
   

  	
  180

  	
   

  	
  OCCURS
  5 TIMES

  
	
  PAYMENT
  SCHEDULE STATUS

  	
   

  	
  3458

  	
   

  	
  3458

  	
   

  	
  1

  	
   

  	
   

  
	
  PAYMENT
  SCHEDULE TYPE

  	
   

  	
  3459

  	
   

  	
  3459

  	
   

  	
  1

  	
   

  	
   

  
	
  PAYMENT
  SCHEDULE INTERVAL

  	
   

  	
  3460

  	
   

  	
  3462

  	
   

  	
  3

  	
   

  	
   

  

 

	
  DESCRIPTION

  	
   

  	
  START

  	
   

  	
  END

  	
   

  	
  POS.

  	
   

  	
  ANNOTATIONS

  
	
  PAYMENT
  SCHEDULE TIMES BILLED

  	
   

  	
  3474

  	
   

  	
  3476

  	
   

  	
  3

  	
   

  	
   

  
	
  PAYMENT
  SCHEDULE AMOUNT

  	
   

  	
  3477

  	
   

  	
  3493

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  3477

  	
   

  	
  3477

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  3478

  	
   

  	
  3490

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  3491

  	
   

  	
  3491

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  3492

  	
   

  	
  3493

  	
   

  	
  2

  	
   

  	
   

  
	
  CURRENT PAYOFF AMOUNT

  	
   

  	
  3638

  	
   

  	
  3654

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  3638

  	
   

  	
  3638

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  3639

  	
   

  	
  3651

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  3652

  	
   

  	
  3652

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  3653

  	
   

  	
  3654

  	
   

  	
  2

  	
   

  	
   

  
	
  NON RECOGNIZED ACCRUED INTEREST

  	
   

  	
  3655

  	
   

  	
  3671

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  3655

  	
   

  	
  3655

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  3656

  	
   

  	
  3668

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  3669

  	
   

  	
  3669

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  3670

  	
   

  	
  3671

  	
   

  	
  2

  	
   

  	
   

  
	
  VARIABLE RATE TYPE

  	
   

  	
  3672

  	
   

  	
  3673

  	
   

  	
  2

  	
   

  	
  11 =
  CHANGES ON 15TH (USA)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  12 =
  CHANGES ON 20TH (USA)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  22 =
  CHANGES ON 15TH (CAN.)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  23 =
  CHANGES ON 20TH (CAN.)

  
	
  RSS MONTHLY CASH FLOW

  	
   

  	
  3674

  	
   

  	
  3690

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  3674

  	
   

  	
  3674

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  3675

  	
   

  	
  3687

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  3688

  	
   

  	
  3688

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  3689

  	
   

  	
  3690

  	
   

  	
  2

  	
   

  	
   

  

 

Appendix B-6

 

	
  PRINCIPAL WRITE OFF AMOUNT

  	
   

  	
  3691

  	
   

  	
  3707

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  3691

  	
   

  	
  3691

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  3692

  	
   

  	
  3704

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  3705

  	
   

  	
  3705

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  3706

  	
   

  	
  3707

  	
   

  	
  2

  	
   

  	
   

  
	
  PAST DUE DAYS

  	
   

  	
  3708

  	
   

  	
  3713

  	
   

  	
  6

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  3708

  	
   

  	
  3708

  	
   

  	
  1

  	
   

  	
   

  
	
  DAYS

  	
   

  	
  3709

  	
   

  	
  3713

  	
   

  	
  5

  	
   

  	
   

  
	
  PAST DUE ALTERNATE

  	
   

  	
  3714

  	
   

  	
  3719

  	
   

  	
  6

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  3714

  	
   

  	
  3714

  	
   

  	
  1

  	
   

  	
   

  
	
  DAYS

  	
   

  	
  3715

  	
   

  	
  3719

  	
   

  	
  3

  	
   

  	
   

  
	
  RECOVERIES

  	
   

  	
  3720

  	
   

  	
  3736

  	
   

  	
  17

  	
   

  	
   

  
	
  SIGN

  	
   

  	
  3720

  	
   

  	
  3720

  	
   

  	
  1

  	
   

  	
   

  
	
  DOLLARS

  	
   

  	
  3721

  	
   

  	
  3733

  	
   

  	
  13

  	
   

  	
   

  
	
  DECIMAL

  	
   

  	
  3734

  	
   

  	
  3734

  	
   

  	
  1

  	
   

  	
   

  
	
  CENTS

  	
   

  	
  3735

  	
   

  	
  3736

  	
   

  	
  2

  	
   

  	
   

  
	
  FILLER

  	
   

  	
  3737

  	
   

  	
  3775

  	
   

  	
  39

  	
   

  	
   

  

 

Appendix B-7Exhibit 10.1

 

FOURTH
AMENDED AND RESTATED SENIOR SECURED, SUPER-PRIORITY

DEBTOR-IN-POSSESSION
CREDIT AGREEMENT

 

Dated as of April 1, 2009

 

Among

 

THE FINANCIAL INSTITUTIONS NAMED HEREIN,

 

as the Lenders;

 

BANK OF AMERICA, N.A.,

 

as the Agent;

 

FLEETWOOD ENTERPRISES, INC.,

 

as a Guarantor;

 

and

 

FLEETWOOD HOLDINGS INC., and certain of its
Subsidiaries,

 

as the Borrowers.

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1
  LOANS AND LETTERS OF CREDIT

  	
  3

  
	
   

  	
   

  
	
  1.1

  	
  Total Facility

  	
  3

  
	
  1.2

  	
  Revolving Loans

  	
  4

  
	
  1.3

  	
  [RESERVED]

  	
  7

  
	
  1.4

  	
  Letters of
  Credit

  	
  7

  
	
  1.5

  	
  Bank
  Products

  	
  12

  
	
  1.6

  	
  Joint and
  Several Obligations; Contribution Rights

  	
  12

  
	
  1.7

  	
  Borrowing
  Agency Provisions

  	
  17

  
	
  1.8

  	
  Senior
  Indebtedness

  	
  19

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2
  INTEREST AND FEES

  	
  19

  
	
   

  	
   

  
	
  2.1

  	
  Interest

  	
  19

  
	
  2.2

  	
  [RESERVED]

  	
  20

  
	
  2.3

  	
  Maximum Interest Rate

  	
  20

  
	
  2.4

  	
  Closing Fee

  	
  20

  
	
  2.5

  	
  Unused
  Line Fee

  	
  20

  
	
  2.6

  	
  Letter of Credit Fee

  	
  20

  
	
  2.7

  	
  Agency Fee

  	
  21

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3
  PAYMENTS AND PREPAYMENTS

  	
  21

  
	
   

  	
   

  
	
  3.1

  	
  [RESERVED]

  	
  21

  
	
  3.2

  	
  Termination of Facility

  	
  21

  
	
  3.3

  	
  Reduction or
  Termination of Revolving Loan Commitments

  	
  21

  
	
  3.4

  	
  Repayment
  and Prepayment of the Revolving Loans

  	
  21

  
	
  3.5

  	
  [RESERVED]

  	
  23

  
	
  3.6

  	
  Payments by
  the Borrowers

  	
  23

  
	
  3.7

  	
  Payments as
  Revolving Loans

  	
  24

  
	
  3.8

  	
  Apportionment,
  Application and Reversal of Payments

  	
  24

  
	
  3.9

  	
  Indemnity
  for Returned Payments

  	
  24

  
	
  3.10

  	
  The Agent’s
  and Lenders’ Books and Records; Monthly Statements

  	
  25

  
	
   

  	
   

  
	
  ARTICLE 4
  TAXES, YIELD PROTECTION, ILLEGALITY AND SUPER-PRIORITY

  	
  25

  
	
   

  	
   

  
	
  4.1

  	
  Taxes

  	
  25

  
	
  4.2

  	
  [RESERVED]

  	
  26

  
	
  4.3

  	
  Increased
  Costs and Reduction of Return

  	
  27

  
	
  4.4

  	
  Funding
  Losses

  	
  27

  
	
  4.5

  	
  [RESERVED]

  	
  27

  
	
  4.6

  	
  Certificates
  of the Agent

  	
  27

  
	
  4.7

  	
  Super Priority Nature of Obligations and
  Lenders’ Liens

  	
  28

  
	
  4.8

  	
  Payment of Obligations

  	
  30

  
	
  4.9

  	
  No Discharge; Survival of Claims

  	
  30

  

 

i

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  4.10

  	
  Release

  	
  30

  
	
  4.11

  	
  Waiver of any Priming Rights

  	
  31

  
	
  4.12

  	
  Survival

  	
  31

  
	
   

  	
   

  
	
  ARTICLE 5
  BOOKS AND RECORDS; FINANCIAL INFORMATION; NOTICES

  	
  31

  
	
   

  	
   

  
	
  5.1

  	
  Books and Records

  	
  31

  
	
  5.2

  	
  Financial Information

  	
  31

  
	
  5.3

  	
  Notices to the Lenders

  	
  35

  
	
   

  	
   

  
	
  ARTICLE 6
  GENERAL WARRANTIES AND REPRESENTATIONS

  	
  38

  
	
   

  	
   

  
	
  6.1

  	
  Authorization,
  Validity, and Enforceability of this Agreement and the Loan Documents

  	
  38

  
	
  6.2

  	
  Validity and
  Priority of Security Interest

  	
  39

  
	
  6.3

  	
  Organization
  and Qualification

  	
  39

  
	
  6.4

  	
  Corporate
  Name; Prior Transactions

  	
  39

  
	
  6.5

  	
  Subsidiaries
  and Affiliates

  	
  40

  
	
  6.6

  	
  Financial
  Statements and Projections

  	
  40

  
	
  6.7

  	
  Capitalization

  	
  41

  
	
  6.8

  	
  [RESERVED]

  	
  41

  
	
  6.9

  	
  Debt

  	
  41

  
	
  6.10

  	
  Distributions

  	
  41

  
	
  6.11

  	
  Real Estate;
  Leases

  	
  41

  
	
  6.12

  	
  Proprietary
  Rights

  	
  41

  
	
  6.13

  	
  Trade Names

  	
  42

  
	
  6.14

  	
  Litigation

  	
  42

  
	
  6.15

  	
  Labor
  Disputes

  	
  42

  
	
  6.16

  	
  Environmental
  Laws

  	
  42

  
	
  6.17

  	
  No Violation
  of Law

  	
  44

  
	
  6.18

  	
  No Default

  	
  44

  
	
  6.19

  	
  ERISA
  Compliance

  	
  44

  
	
  6.20

  	
  Taxes

  	
  45

  
	
  6.21

  	
  Regulated
  Entities

  	
  45

  
	
  6.22

  	
  Use of
  Proceeds; Margin Regulations

  	
  45

  
	
  6.23

  	
  Copyrights,
  Patents, Trademarks and Licenses, etc.

  	
  46

  
	
  6.24

  	
  No Material
  Adverse Change

  	
  46

  
	
  6.25

  	
  Full
  Disclosure

  	
  47

  
	
  6.26

  	
  Material
  Agreements

  	
  47

  
	
  6.27

  	
  Bank
  Accounts

  	
  47

  
	
  6.28

  	
  Governmental
  Authorization

  	
  47

  
	
  6.29

  	
  Senior
  Indebtedness

  	
  47

  
	
  6.30

  	
  Reorganization
  Matters

  	
  48

  
	
   

  	
   

  
	
  ARTICLE 7
  AFFIRMATIVE AND NEGATIVE COVENANTS

  	
  48

  
	
   

  	
   

  
	
  7.1

  	
  Taxes and
  Other Obligations

  	
  49

  

 

ii

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  7.2

  	
  Legal
  Existence and Good Standing

  	
  49

  
	
  7.3

  	
  Compliance
  with Law and Agreements; Maintenance of Licenses

  	
  49

  
	
  7.4

  	
  Maintenance
  of Property; Inspection of Property

  	
  50

  
	
  7.5

  	
  Insurance

  	
  50

  
	
  7.6

  	
  Insurance
  and Condemnation Proceeds

  	
  51

  
	
  7.7

  	
  Environmental
  Laws

  	
  52

  
	
  7.8

  	
  Compliance
  with ERISA

  	
  53

  
	
  7.9

  	
  Mergers,
  Consolidations or Sales

  	
  53

  
	
  7.10

  	
  Distributions;
  Capital Change; Restricted Investments

  	
  55

  
	
  7.11

  	
  Transactions
  Affecting Collateral or Obligations

  	
  56

  
	
  7.12

  	
  Guaranties

  	
  56

  
	
  7.13

  	
  Debt

  	
  57

  
	
  7.14

  	
  Prepayment;
  Repayment

  	
  59

  
	
  7.15

  	
  Transactions
  with Affiliates

  	
  60

  
	
  7.16

  	
  Investment
  Banking and Finder’s Fees

  	
  60

  
	
  7.17

  	
  Business
  Conducted

  	
  60

  
	
  7.18

  	
  Liens

  	
  60

  
	
  7.19

  	
  Sale and
  Leaseback Transactions

  	
  61

  
	
  7.20

  	
  New
  Subsidiaries

  	
  61

  
	
  7.21

  	
  Fiscal Year

  	
  61

  
	
  7.22

  	
  Budget
  Covenants

  	
  61

  
	
  7.23

  	
  Closing Date Encumbered Real Estate Asset

  	
  62

  
	
  7.24

  	
  [RESERVED]

  	
  62

  
	
  7.25

  	
  Bank Accounts

  	
  62

  
	
  7.26

  	
  Contribution of Management Fees

  	
  64

  
	
  7.27

  	
  Use of Proceeds

  	
  64

  
	
  7.28

  	
  Further Assurances

  	
  64

  
	
  7.29

  	
  2008 Senior
  Secured Debentures; Subordinated Debt; Trust Securities

  	
  65

  
	
  7.30

  	
  Inventory
  Appraisal

  	
  65

  
	
  7.31

  	
  Reclamation Claims

  	
  66

  
	
  7.32

  	
  Chapter 11 Claims

  	
  66

  
	
   

  	
   

  
	
  ARTICLE 8 CONDITIONS OF LENDING

  	
  66

  
	
   

  	
   

  
	
  8.1

  	
  Conditions Precedent to Making of Loans on the Closing Date

  	
  66

  
	
  8.2

  	
  Conditions Precedent to Each Loan

  	
  70

  
	
   

  	
   

  
	
  ARTICLE 9 DEFAULT; REMEDIES

  	
  71

  
	
   

  	
   

  
	
  9.1

  	
  Events of Default

  	
  71

  
	
  9.2

  	
  Remedies

  	
  77

  
	
   

  	
   

  
	
  ARTICLE 10 TERM AND TERMINATION

  	
  79

  
	
   

  	
   

  
	
  10.1

  	
  Term and Termination

  	
  79

  

 

iii

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE 11 AMENDMENTS; WAIVERS; PARTICIPATIONS; ASSIGNMENTS;
  SUCCESSORS

  	
  79

  
	
   

  	
   

  
	
  11.1

  	
  Amendments and Waivers

  	
  79

  
	
  11.2

  	
  Assignments; Participations

  	
  82

  
	
   

  	
   

  
	
  ARTICLE 12 THE AGENT

  	
  84

  
	
   

  	
   

  
	
  12.1

  	
  Appointment and Authorization

  	
  84

  
	
  12.2

  	
  Delegation of Duties

  	
  85

  
	
  12.3

  	
  Liability of the Agent

  	
  85

  
	
  12.4

  	
  Reliance by the Agent

  	
  85

  
	
  12.5

  	
  Notice of Default

  	
  85

  
	
  12.6

  	
  Credit Decision

  	
  86

  
	
  12.7

  	
  Indemnification

  	
  86

  
	
  12.8

  	
  The Agent in Individual Capacity

  	
  87

  
	
  12.9

  	
  Successor Agent

  	
  87

  
	
  12.10

  	
  Withholding Tax

  	
  87

  
	
  12.11

  	
  Collateral Matters

  	
  89

  
	
  12.12

  	
  Restrictions on Actions by Lenders; Sharing of Payments

  	
  90

  
	
  12.13

  	
  Agency for Perfection

  	
  91

  
	
  12.14

  	
  Payments by the Agent to Lenders

  	
  91

  
	
  12.15

  	
  Settlement

  	
  92

  
	
  12.16

  	
  Letters of Credit; Intra-Lender Issues

  	
  96

  
	
  12.17

  	
  Concerning the Collateral and the Related Loan Documents

  	
  98

  
	
  12.18

  	
  Field Audit and Examination Reports; Disclaimer by Lenders

  	
  98

  
	
  12.19

  	
  Relation Among Lenders

  	
  99

  
	
  12.20

  	
  Co-Agents

  	
  99

  
	
  12.21

  	
  [RESERVED]

  	
  99

  
	
  12.22

  	
  Foreclosure/Environmental Reports

  	
  99

  
	
   

  	
   

  	
   

  
	
  ARTICLE 13 MISCELLANEOUS

  	
  99

  
	
   

  	
   

  
	
  13.1

  	
  No Waivers; Cumulative Remedies

  	
  99

  
	
  13.2

  	
  Severability

  	
  100

  
	
  13.3

  	
  Governing Law; Choice of Forum; Service of Process

  	
  100

  
	
  13.4

  	
  WAIVER OF JURY TRIAL

  	
  101

  
	
  13.5

  	
  Survival of Representations and Warranties

  	
  101

  
	
  13.6

  	
  Other Security and Guaranties

  	
  101

  
	
  13.7

  	
  Fees and Expenses

  	
  102

  
	
  13.8

  	
  Notices

  	
  103

  
	
  13.9

  	
  Waiver of Notices

  	
  104

  
	
  13.10

  	
  Binding Effect

  	
  104

  
	
  13.11

  	
  Indemnity of the Agent and the Lenders by the Borrower

  	
  104

  
	
  13.12

  	
  Limitation of Liability

  	
  105

  
	
  13.13

  	
  Final Agreement

  	
  105

  
	
  13.14

  	
  Counterparts

  	
  105

  

 

iv

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  13.15

  	
  Captions

  	
  105

  
	
  13.16

  	
  Right of Setoff

  	
  105

  
	
  13.17

  	
  Confidentiality

  	
  106

  
	
  13.18

  	
  Conflicts with Other Loan Documents

  	
  107

  
	
  13.19

  	
  Reinstatement

  	
  107

  
	
  13.20

  	
  Parties Including Trustees; Bankruptcy Court
  Proceedings

  	
  107

  
	
   

  	
   

  
	
  ARTICLE 14
  GUARANTY

  	
  108

  
	
   

  	
   

  
	
  14.1

  	
  Guaranty

  	
  108

  

 

v

 

ANNEXES, EXHIBITS AND SCHEDULES

 

	
  ANNEX A

  	
  -

  	
  DEFINED TERMS

  
	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
  -

  	
  FORM OF REVOLVING LOAN NOTE

  
	
   

  	
   

  	
   

  
	
  EXHIBIT B

  	
  -

  	
  FINANCIAL STATEMENTS

  
	
   

  	
   

  	
   

  
	
  EXHIBIT C

  	
  -

  	
  FORM OF NOTICE OF BORROWING

  
	
   

  	
   

  	
   

  
	
  EXHIBIT D

  	
  -

  	
  FORM OF ASSIGNMENT AND ACCEPTANCE AGREEMENT

  
	
   

  	
   

  	
   

  
	
  EXHIBIT E

  	
  -

  	
  FORM OF INTERIM ORDER

  

 

	
  SCHEDULE 1.1 — ASSIGNED CONTRACTS (ANNEX A — DEFINED TERMS)

  
	
   

  
	
  SCHEDULE 1.2 — LENDERS’ COMMITMENTS (ANNEX A — DEFINED TERMS)

  
	
   

  
	
  SCHEDULE 6.3 — ORGANIZATIONS AND QUALIFICATIONS

  
	
   

  
	
  SCHEDULE 6.4 — CORPORATE NAMES; PRIOR TRANSACTIONS

  
	
   

  
	
  SCHEDULE 6.5 — SUBSIDIARIES AND AFFILIATES

  
	
   

  
	
  SCHEDULE 6.6 — PROJECTIONS

  
	
   

  
	
  SCHEDULE 6.7 — CAPITALIZATION

  
	
   

  
	
  SCHEDULE 6.9 — DEBT

  
	
   

  
	
  SCHEDULE 6.11— REAL ESTATE(MORTGAGES); LEASES

  
	
   

  
	
  SCHEDULE 6.12 — PROPRIETARY RIGHTS

  
	
   

  
	
  SCHEDULE 6.13 — TRADE NAMES

  
	
   

  
	
  SCHEDULE 6.14 — LITIGATION

  

 

vi

 

	
  SCHEDULE 6.15 — UNION CONTRACTS

  
	
   

  
	
  SCHEDULE 6.16 — ENVIRONMENTAL LAW

  
	
   

  
	
  SCHEDULE 6.18 — SPECIFIED DEFAULTS

  
	
   

  
	
  SCHEDULE 6.19 — ERISA COMPLIANCE

  
	
   

  
	
  SCHEDULE 6.27 — BANK ACCOUNTS

  
	
   

  
	
  SCHEDULE 7.12 — GUARANTIES

  
	
   

  
	
  SCHEDULE 7.13(u) — LIFE INSURANCE POLICIES

  
	
   

  
	
  SCHEDULE 8.1(u) — FIRST DAY ORDERS

  
	
   

  
	
  SCHEDULE A — COLI POLICIES

  

 

vii

 

FOURTH
AMENDED AND RESTATED SENIOR SECURED, SUPER-PRIORITY

DEBTOR-IN-POSSESSION
CREDIT AGREEMENT

 

This FOURTH
AMENDED AND RESTATED SENIOR SECURED, SUPER-PRIORITY DEBTOR-IN-POSSESSION CREDIT
AGREEMENT, dated as of April 1, 2009 (this “Agreement”), among the
financial institutions from time to time parties hereto (such financial
institutions, together with their respective successors and assigns, are
referred to hereinafter each individually as a “Lender” and collectively
as the “Lenders”); BANK OF AMERICA, N.A., with an office at 55 South
Lake Avenue, Suite 900, Pasadena, California 91101, as the administrative
agent for the Lenders (in its capacity as administrative agent, the “Agent”);
FLEETWOOD ENTERPRISES, INC., a Delaware corporation (“Fleetwood”), as debtor
and debtor-in-possession, as a Guarantor; FLEETWOOD HOLDINGS INC., a Delaware
corporation (“Holdings”), as debtor and debtor-in-possession; and those
Subsidiaries of Holdings and Fleetwood set forth on the signature pages hereto
or which become parties hereto hereafter in accordance with the requirements of
this Agreement, as debtors and debtors-in-possession (each of Holdings and each
such Subsidiary individually, a “Borrower” and, collectively, the “Borrowers”).  Capitalized terms used in this Agreement and
not otherwise defined herein shall have the meanings ascribed thereto in Annex
A, which is attached hereto and incorporated herein; the rules of
construction contained therein shall govern the interpretation of this
Agreement, and all Annexes, Exhibits and Schedules attached hereto are
incorporated herein by reference.

 

W I T N E S S E T H:

 

WHEREAS, the
First Amended and Restated Credit Agreement amended and restated the Original
Credit Agreement in its entirety on May 14, 2004;

 

WHEREAS, the
Second Amended and Restated Credit Agreement amended and restated the First
Amended and Restated Credit Agreement in its entirety on July 1, 2005;

 

WHEREAS, the
Third Amended and Restated Credit Agreement amended and restated the Second
Amended and Restated Credit Agreement in its entirety on January 5, 2007;

 

WHEREAS, on March 10,
2009 (the “Petition Date”), each of the Borrowers commenced a Chapter 11
Case, as administratively consolidated with other affiliates of Fleetwood that
are not Loan Parties at Chapter 11 Case No. 09-14254-MJ (each, a “Chapter
11 Case” and, collectively, the “Chapter 11 Cases”), by filing
separate voluntary petitions for reorganization under Chapter 11, 11 U.S.C. 101
et seq. (the “Bankruptcy Code”), with the United States Bankruptcy Court
for the Central District of California, Riverside Division (the “Bankruptcy
Court”), and Fleetwood, Fleetwood International Inc., a California
corporation (“Fleetwood International”), and the Borrowers continue to
operate their businesses and manage their properties as debtors-in-possession
pursuant to Section 1107(b) and 1108 of the Bankruptcy Code;

 

WHEREAS, prior
to the Petition Date, pursuant to the Third Amended and Restated Credit
Agreement, the Letter of Credit Issuer has extended credit in the form of the
Existing Letters of Credit but as of the Petition Date there are no Revolving
Loans outstanding thereunder;

 

 

WHEREAS, the
Borrowers have requested the Lenders continue to make available to the
Borrowers a revolving line of credit for loans and letters of credit in an
aggregate amount not to exceed eighty million Dollars ($80,000,000) (with
respect to Letters of Credit, further subject to an Unused Letter of Credit Subfacility maximum of sixty-five million Dollars
($65,000,000)) pursuant to a senior secured, super-priority
revolving credit facility which may be available from time to time on a
revolving basis after the date of entry of the Interim Order as provided
herein, which extension of credit the Borrowers will use for the purposes permitted
hereunder and the Lenders are willing to extend such credit to the Borrowers in
accordance with and on the term and conditions set forth herein;

 

WHEREAS, all
of the Borrowers are direct or indirect wholly-owned Subsidiaries of Fleetwood
and all of the Borrowers are engaged in an inter-related business enterprise
with an identity of interests, and accordingly the financing provided hereunder
will directly and indirectly benefit each of the Borrowers and facilitate the
administration of the Chapter 11 Cases and their loan relationship with the
Agent and the Lenders, all to the mutual benefit of the Borrowers;

 

WHEREAS, none
of the Borrowers would be able to obtain sufficient working capital financing
for their respective businesses unless the individual Borrowers were jointly
and severally liable for the obligations of all Borrowers, and unless Fleetwood
guarantees the obligations of all Borrowers;

 

WHEREAS, each
Loan Party acknowledges that it will receive substantial direct and indirect
benefits by reason of the making of the Loans and other financial
accommodations to the Borrowers as provided in this Agreement;

 

WHEREAS, the
Agent’s and the Lenders’ willingness to extend financial accommodations to the
Borrowers, and to administer the Loan Parties’ collateral security therefore,
on a combined basis as more fully set forth in this Agreement, is done solely
as an accommodation to the Loan Parties and at the Loan Parties’ request and in
furtherance of the Loan Parties’ mutual and collective enterprise;

 

WHEREAS, the
Loan Parties desire that (a) the Letter of Credit Issuer continue to honor
its obligations under the Existing Letters of Credit, (b) the Lenders
continue the Existing Commitments as modified into the Revolving Credit
Commitments hereunder and (c) the Lenders agree to amend and restate the
Original Credit Agreement (as the same has been previously amended and restated
by the First Amended and Restated Credit Agreement, the Second Amended and
Restated Credit Agreement and the Third Amended and Restated Credit Agreement)
in its entirety for the purpose of making the amendments reflected herein,
which amendment and restatement shall become effective on the Closing Date upon
satisfaction of the conditions precedent set forth herein and the Lenders and Letter
of Credit Issuer have agreed to the foregoing;

 

2

 

WHEREAS, the
Borrowers desire to continue to guarantee and secure all of the Obligations
hereunder and under the other Loan Documents to the extent so guaranteed and
secured under the Third Amended and Restated Credit Agreement and the Loan
Documents, as in effect prior to the date hereof, and as further provided
herein;

 

WHEREAS, all
of the claims of the Agent and the Lenders against the Borrowers and Guarantors
hereunder and pursuant to the Applicable Order shall be subject to the
Carve-Out and the Exceptions, but in each case only to the extent provided in Section 4.7
hereof and the Applicable Order; and

 

WHEREAS, the
Guarantors have agreed to continue to guarantee and secure the Obligations
hereunder and under the other Loan Documents to the extent so guaranteed and
secured under the Third Amended and Restated Credit Agreement and the Loan
Documents, as in effect prior to the date hereof, and as further provided
herein.

 

NOW,
THEREFORE, in consideration of the mutual conditions and agreements set forth
in this Agreement, and for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Lenders, the Agent, Fleetwood
and the Borrowers hereby agree as follows:

 

ARTICLE 1

LOANS AND LETTERS OF CREDIT

 

1.1         Total Facility.  Subject to all of the terms and conditions of
this Agreement, the Lenders agree to make available a total credit facility of
up to eighty million Dollars ($80,000,000) (the “Total Facility”) to the
Borrowers from time to time during the term of this Agreement.  The Total Facility shall be composed of a
revolving line of credit consisting of Revolving Loans and Letters of Credit.  On the Closing Date (and effective as of the
execution hereof by each Lender), the Lenders (directly or through funding and
settlement by the Agent) shall purchase and assume the Existing Commitments at
par, free and clear of adverse claims, participations or other encumbrances,
which Existing Commitments and the Third Amended and Restated Credit Agreement
shall be (immediately upon such purchase and assumption by the Lenders) amended
and restated in their entirety as the Revolving Credit Commitments and this
Agreement, respectively, as more particularly described herein, and neither the
Loan Parties nor the Lenders shall be subject to or bound by any of the terms
or provisions of the Third Amended and Restated Credit Agreement (other than
such terms or provisions that are to survive termination of the Third Amended
and Restated Credit Agreement or the payment of the Obligations as provided by
the express terms of the Third Amended and Restated Credit Agreement) and shall
only be subject to or bound by the terms and provisions of this Agreement in
respect of the Revolving Credit Commitments, Loans, other Obligations and the
transactions contemplated hereby, as set forth herein.  The parties acknowledge and agree that the
Letter of Credit Issuer shall continue to honor its obligations under the
Existing Letters of Credit as if such Existing Letters of Credit had been
requested under and issued pursuant to the terms of this Agreement.  The parties acknowledge and agree that this
Agreement and the other Loan Documents do not constitute a novation, payment
and reborrowing or termination of the obligations under the Third Amended and
Restated Credit Agreement and that all such obligations are in all respects
continued and outstanding as obligations under this Agreement and

 

3

 

the Revolving Loan Notes with only the terms
being modified from and after the Closing Date as provided in this Agreement,
the Revolving Loan Notes and the other Loan Documents.  All
references in the Revolving Loan Notes and the other Loan Documents to (i) the
“Credit Agreement” shall be deemed to include references to this Agreement and (ii) the
“Lenders” or a “Lender” or to the “Agent” shall mean such terms as defined in
this Agreement.  By its execution hereof,
each Lender consents to the amendment, amendment and restatement, replacement
or other modification to any other Loan Document being so amended, amended and
restated, replaced or otherwise modified on the date hereof or on or prior to
the Closing Date in the form approved by the Agent.

 

1.2            Revolving Loans.

 

(a)           (i)              Amounts. 
Subject to the satisfaction of the conditions precedent set forth in Article 8,
and except for Non-Ratable Loans and Agent Advances, each Revolving Credit
Lender severally, but not jointly, agrees, upon a Borrower’s request from time
to time on any Business Day during the period from the Closing Date to the
Termination Date, to make revolving loans (the “Revolving Loans”) to the
Borrowers (x) in an aggregate amount not to exceed the disbursements set
forth in the Approved Budget for the applicable Measurement Period plus
the excess in cash expenditures that would be permitted without violating the
budget covenant set forth in Section 7.22(b) (for the
avoidance of doubt, it being understood and agreed that the presence of any “basket” or “carve-out” set forth
in any negative covenant contained in Section 7 shall not be, and
shall not be deemed to be, an approval or acceptance by the Agent or any Lender
of any Line Item in any Approved Budget, or portion thereof, related to cash
expenditures of the type described in such “basket” or “carve-out,” which shall
remain subject to the approval rights of Agent and the Required Lenders with
respect to each Approved Budget as set forth herein and in the Applicable
Order) and (y) in aggregate principal amounts such that after
giving effect to such Revolving Loans, such Lender’s Pro Rata Share of the
Aggregate Revolver Outstandings shall not exceed such Lender’s Pro Rata Share
of the Availability.  Subject to the
terms of the Interim Order, the Revolving Credit Lenders, however, in their
unanimous discretion, may elect to make Revolving Loans or issue or arrange to
have issued Letters of Credit in excess of the Borrowing Base on one or more
occasions, but if they do so, neither the Agent nor the Revolving Credit
Lenders shall be deemed thereby to have changed the limits of the Borrowing
Base, or to be obligated to exceed such limits on any other occasion.

 

(ii)             At the request of any Revolving Credit Lender, each of
the Borrowers shall execute and deliver to such Lender a single note to
evidence the Revolving Loans of that Lender. 
Each note shall be in the principal amount of the Revolving Credit
Lender’s Pro Rata Share of the Revolving Credit Commitments, dated the date
hereof and substantially in the form of Exhibit A (each such note,
together with any new note issued pursuant to Section 11.2 upon the
assignment of any portion of any Revolving Credit Lender’s Revolving Loans and
Revolving Credit Commitment a “Revolving Loan Note” and, collectively,
the “Revolving

 

4

 

Loan
Notes”).  Each Revolving Loan Note shall represent the
obligation of FMC to pay the amount of such Revolving Credit Lender’s Pro Rata
Share of the Revolving Credit Commitments, or, if less, such Revolving Credit
Lender’s Pro Rata Share of the aggregate unpaid principal amount of all
Revolving Loans to FMC together with interest thereon as prescribed in Section 2.1.  The entire unpaid balance of the Revolving
Loans and all other non-contingent Obligations shall be immediately due and
payable in full in immediately available funds on the Termination Date.

 

(b)           Procedure for Borrowing.

 

(i)            Subject to Section 1.1, each Borrowing
shall be made upon a Borrower’s irrevocable written notice delivered to the
Agent in the form of a notice of borrowing (“Notice of Borrowing”),
which must be received by the Agent prior to 10:00 a.m. (Los Angeles time)
on the requested Funding Date, in the case of Base Rate Loans, specifying:

 

(1)           the amount of the Borrowing; and

 

(2)           the requested Funding Date, which must be a Business
Day.

 

(ii)           In lieu of delivering a Notice of Borrowing, a
Borrower may give the Agent telephonic notice of such request for advances to
its Designated Account on or before the deadline set forth above.  The Agent at all times shall be entitled to
rely on such telephonic notice in making such Revolving Loans, regardless of
whether any written confirmation is received.

 

(c)           Reliance upon Authority. 
Prior to the Closing Date, the Borrowers shall deliver to the Agent a
notice setting forth the accounts of FMC (each, a “Designated Account”)
to which the Agent is authorized to transfer the proceeds of the Revolving
Loans requested hereunder by the Borrowers. 
The Borrowers may designate a replacement account from time to time by
written notice.  All such Designated
Accounts must be reasonably satisfactory to the Agent.  The Agent is entitled to rely conclusively on
any person’s request for Revolving Loans on behalf of any Borrower, so long as
the proceeds thereof are to be transferred to the applicable Designated
Account.  The Agent has no duty to verify
the identity of any individual representing himself or herself as a person
authorized by any Borrower to make such requests on its behalf.

 

(d)           No Liability.  The Agent
shall not incur any liability to the Borrowers as a result of acting upon any
notice referred to in Sections 1.2(b) and (c), which the
Agent believes in good faith to have been given by an officer or other person
duly authorized by the applicable Borrower to request Revolving Loans on its
behalf.  The crediting of Revolving Loans
to the applicable Designated Account conclusively establishes the obligation of
the applicable Borrowers to repay such Revolving Loans as provided herein.

 

5

 

(e)           Notice Irrevocable.  Any Notice of
Borrowing (or telephonic notice in lieu thereof) made pursuant to Section 1.2(b) shall
be irrevocable.  A Borrower shall be
bound to borrow the funds requested therein in accordance therewith.

 

(f)            The Agent’s Election. 
Promptly after receipt of a Notice of Borrowing (or telephonic notice in
lieu thereof), the Agent shall elect to have the terms of Section 1.2(g) or
the terms of Section 1.2(h) apply to such requested
Borrowing.  If the Bank declines in its
sole discretion to make a Non-Ratable Loan pursuant to Section 1.2(h),
the terms of Section 1.2(g) shall apply to the requested
Borrowing.

 

(g)           Making of Revolving Loans. 
If the Agent elects to have the terms of this Section 1.2(g) apply
to a requested Borrowing, then promptly after receipt of a Notice of Borrowing
(or telephonic notice in lieu thereof), the Agent shall notify the Revolving
Credit Lenders by telecopy, telephone or e-mail of the requested
Borrowing.  Each Revolving Credit Lender
shall transfer its Pro Rata Share of the requested Borrowing to the Agent in
immediately available funds, to the account from time to time designated by the
Agent, not later than 12:00 noon (Los Angeles time) on the applicable Funding
Date.  After the Agent’s receipt of all
proceeds of such Revolving Loans, the Agent shall make the proceeds of such
Revolving Loans available to the applicable Borrower on the applicable Funding
Date by transferring same day funds to the Designated Account of the applicable
Borrower; provided, however, that the amount of Revolving Loans
so made on any date shall not exceed Availability on such date, unless all of
the Revolving Credit Lenders otherwise agree.

 

(h)           Making of Non-Ratable Loans.

 

(i)            If the Agent elects, with the consent of the Bank, to
have the terms of this Section 1.2(h) apply to a requested
Borrowing, the Bank shall make a Revolving Loan in the amount of that Borrowing
available to the applicable Borrower on the applicable Funding Date by
transferring same day funds to such Borrower’s Designated Account.  Each Revolving Loan made solely by the Bank
pursuant to this Section 1.2(h) is herein referred to as a “Non-Ratable
Loan,” and such Revolving Loans are collectively referred to as the “Non-Ratable
Loans.”  Each Non-Ratable Loan shall
be subject to all the terms and conditions applicable to other Revolving Loans
except that all payments thereon shall be payable to the Bank solely for its own
account.  The aggregate amount of
Non-Ratable Loans outstanding at any time shall not exceed two million Dollars
($2,000,000).  The Agent shall not
request the Bank to make any Non-Ratable Loan if (1) the Agent has
received written notice from any Revolving Credit Lender that one or more of
the applicable conditions precedent set forth in Article 8 will not
be satisfied on the requested Funding Date for the applicable Borrowing, and
such conditions have not been waived in accordance with this Agreement or (2) the
requested Borrowing would exceed Availability on that Funding Date.

 

6

 

(ii)           The Non-Ratable Loans shall be
secured by the Agent’s Liens in and to the Collateral and shall constitute
Revolving Loans and Obligations hereunder.

 

(i)             The Agent Advances.

 

(i)            Subject to the limitations set forth
below and with the consent of the Required Lenders, the Agent is authorized by
the Borrowers and the Revolving Credit Lenders, from time to time in the Agent’s
sole discretion, (A) after the occurrence of a Default or an Event of
Default, or (B) at any time that any of the other conditions precedent set
forth in Article 8 have not been satisfied, to make Revolving Loans
to the Borrowers on behalf of the Revolving Credit Lenders in an aggregate
amount outstanding at any time not to exceed five million Dollars ($5,000,000)
which the Agent, in its reasonable business judgment, deems necessary or
desirable (1) to preserve or protect the Collateral, or any portion
thereof, (2) to enhance the likelihood of, or maximize the amount of,
repayment of the Loans and other Obligations, or (3) to pay any other
amount chargeable to the Borrowers pursuant to the terms of this Agreement,
including costs, fees and expenses as described in Section 13.7
(any of such advances are herein referred to as “Agent Advances”); provided,
that (x) in no event shall the Aggregate Revolver Outstandings (which
shall include, for the avoidance of doubt, the Agent Advances) at any time
exceed the Maximum Amount and (y) the Required Lenders may at any time
revoke the Agent’s authorization to make Agent Advances.  Any such revocation must be in writing and
shall become effective prospectively upon the Agent’s receipt thereof.

 

(ii)           Agent Advances shall be secured by
the Agent’s Liens in and to the Collateral and shall constitute Revolving Loans
and Obligations hereunder.

 

1.3           [RESERVED].

 

1.4           Letters of Credit.

 

(a)            Agreement to Issue or Cause to Issue. 
Subject to the terms and conditions of this Agreement and, in any event,
subject to Section 1.4(b) (including, without limitation, the
requirement that the maximum face amount of the requested Letter of Credit is
not greater than the Unused Letter of Credit Subfacility at such time), the
Agent agrees (i) to cause the Letter of Credit Issuer to continue to honor
its obligations under the Existing Letters of Credit and to issue for the
account of a Borrower one or more additional commercial/documentary and standby
letters of credit (each a “Letter of Credit”) unless otherwise agreed to
by the Agent and the Required Lenders, limited to (x) Existing Letters of
Credit, as the same may be extended, amended or modified from time to time in
accordance with the terms hereof so long as the face amount thereof is not
increased other than in connection with subclause (i)(y) or the
proviso below and (y) an additional amount of $150,000 of additional
Letters of Credit and/or increases in the face

 

7

 

amount of Existing
Letters of Credit solely for the purpose of supporting manufacturing licensing
in connection with the commencement of shipping activities into a state in
which Fleetwood and the Borrowers do not presently ship and (ii) to
provide credit support or other enhancement to a Letter of Credit Issuer
acceptable to the Agent, which issues a Letter of Credit that complies with clause
(i) above for the account of a Borrower (any such credit support or
enhancement being herein referred to as a “Credit Support”) from time to
time during the term of this Agreement; provided that, notwithstanding
the foregoing, amendments, modifications and/or increases in the face amount of
Existing Letters of Credit shall be permitted to the extent mandated by a state
in order to continue with workers’ compensation self insurance programs.   With respect to each Existing Letter of
Credit, each shall be deemed to have been requested and issued pursuant to this
Agreement, and the obligations of Section 1.4(b) through (d) of
this Agreement shall be been deemed to have been satisfied with respect to each
such Existing Letters of Credit.

 

(b)           Amounts; Outside
Expiration Date.  The Agent shall not
have any obligation to issue or cause to be issued any Letter of Credit or to
provide Credit Support for any Letter of Credit at any time if: (i) the
maximum face amount of the requested Letter of Credit is greater than the
Unused Letter of Credit Subfacility at such time; (ii) the maximum undrawn
amount of the requested Letter of Credit and all commissions, fees, and charges
due from the Borrowers in connection with the opening thereof would exceed the
Availability at such time; or (iii) the requested Letter of Credit has an
expiration date less than thirty (30) days prior to the Stated Termination Date
or more than twelve (12) months from the date of issuance for standby letters
of credit and one hundred and eighty (180) days for documentary letters of
credit.  With respect to any Letter of
Credit which contains any “evergreen” or automatic renewal provision, each
Lender shall be deemed to have consented to any such extension or renewal
unless any Revolving Credit Lender shall have provided to the Agent written
notice that it declines to consent to any such extension or renewal at least
thirty (30) days (the “Letter of Credit Lender Indication Date”) prior
to the date on which the Letter of Credit Issuer is entitled to decline to extend
or renew the Letter of Credit (the “Letter of Credit Issuer Indication Date”).  Regardless of whether the requirements of this Section 1.4
are met and regardless of whether a Default or Event of Default has occurred
and is continuing, a Lender may decline, in its sole judgment, to consent to
any extension or renewal of any Letter of Credit, including, without
limitation, with respect to any Letter of Credit containing “evergreen” or
automatic renewal provisions.  With
respect to any Letter of Credit with “evergreen” or automatic renewal
provisions, upon the receipt of an instruction by the Required Lenders to not
grant any extension or renewal with respect to such Letter of Credit (which
instruction must be provided to the Letter of Credit Issuer at least five (5) Business
Days in advance of the Letter of Credit
Issuer Date and a copy of such instruction must be promptly delivered to the
Borrowers), the Agent shall cause the Letter of Credit Issuer to exercise any
rights to terminate such Letter of Credit, as set forth therein.

 

8

 

(c)            Other Conditions.  In addition
to conditions precedent contained in Article 8, the obligation of
the Agent to cause to be issued any Letter of Credit or to provide Credit Support
for any Letter of Credit is subject to the following conditions precedent
having been satisfied in a manner reasonably satisfactory to the Agent:

 

(i)            The applicable Borrower shall have
delivered to the Letter of Credit Issuer, at such times and in such manner as
such Letter of Credit Issuer may prescribe, an application in form and
substance satisfactory to such Letter of Credit Issuer and reasonably
satisfactory to the Agent for the issuance of the Letter of Credit and such
other documents as may be required pursuant to the terms thereof, and the form,
terms and purpose of the requested Letter of Credit shall be reasonably
satisfactory to the Agent and the Letter of Credit Issuer; and

 

(ii)           As of the date of issuance, no order
of any court, arbitrator or Governmental Authority shall purport by its terms
to enjoin or restrain money center banks generally from issuing letters of
credit of the type and in the amount of the proposed Letter of Credit, and no
law, rule or regulation applicable to money center banks generally and no
request or directive (whether or not having the force of law) from any
Governmental Authority with jurisdiction over money center banks generally
shall prohibit, or request that the proposed Letter of Credit Issuer refrain
from, the issuance of letters of credit generally or the issuance of the
requested Letter of Credit.

 

(d)           Issuance of Letters of Credit.

 

(i)            Request for Issuance. 
A Borrower must notify the Agent of a requested Letter of Credit at
least three (3) Business Days prior to the proposed issuance date.  Such notice shall be irrevocable and must
specify (A) the original face amount of the Letter of Credit requested, (B) the
Business Day of issuance of such requested Letter of Credit, (C) whether
such Letter of Credit may be drawn in a single or in partial draws, (D) the
Business Day on which the requested Letter of Credit is to expire, (E) the
purpose for which such Letter of Credit is to be issued, and (F) the
beneficiary of the requested Letter of Credit. 
The Borrower shall attach to such notice the proposed form of the Letter
of Credit.

 

(ii)           Responsibilities of the Agent;
Issuance.  As of the Business Day immediately preceding
the requested issuance date of the Letter of Credit, the Agent shall determine
the amount of the applicable Unused Letter of Credit Subfacility and the
Availability.  If (A) the face
amount of the requested Letter of Credit is less than the Unused Letter of
Credit Subfacility and (B) the amount of such requested Letter of Credit
and all commissions, fees, and charges due from the Borrower in connection with
the opening thereof would not exceed the Availability, the Agent shall cause
the Letter of Credit Issuer to issue the requested Letter of Credit on the
requested issuance date so long as the other conditions hereof are met.

 

9

 

(iii)          No Extensions or Amendment. 
The Agent shall not be obligated to cause the Letter of Credit Issuer to
extend or amend any Letter of Credit issued pursuant hereto unless the
requirements of this Section 1.4 are met as though a new Letter of
Credit were being requested and issued.

 

(e)            Payments Pursuant to Letters of Credit. 
FMC agrees to reimburse immediately the Letter of Credit Issuer for any
draw under any Letter of Credit issued for its benefit and the Agent for the
account of the Revolving Credit Lenders upon any payment pursuant to any Credit
Support, and to pay the Letter of Credit Issuer the amount of all other charges
and fees payable to the Letter of Credit Issuer in connection with any Letter
of Credit immediately when due, irrespective of any claim, setoff, defense or
other right which any Borrower may have at any time against the Letter of
Credit Issuer or any other Person.  Each
drawing under any Letter of Credit shall constitute a request by the applicable
Borrower to the Agent for a Borrowing of a Revolving Loan in the amount of such
drawing.  The Funding Date with respect
to such borrowing shall be the date of such drawing.

 

(f)            Indemnification; Exoneration; Power
of Attorney.

 

(i)            Indemnification. 
In addition to amounts payable as elsewhere provided in this Section 1.4,
each of FMC and Fleetwood agrees to protect, indemnify, pay and save the
Lenders and the Agent harmless from and against any and all claims, demands,
liabilities, damages, losses, costs, charges and expenses (including reasonable
attorneys’ fees) which any Lender or the Agent (other than a Lender in its
capacity as Letter of Credit Issuer) may incur or be subject to as a
consequence, direct or indirect, of the issuance of any Letter of Credit or the
provision of any Credit Support or enhancement in connection therewith.  The Borrowers’ obligations under this Section 1.4
shall survive payment of all other Obligations.

 

(ii)           Assumption of Risk by the Borrowers. 
As among the Borrowers, the Lenders, and the Agent but subject to
subsection (iv) below, the Borrowers assume all risks of the acts and
omissions of, or misuse of any of the Letters of Credit by, the respective
beneficiaries of such Letters of Credit. 
In furtherance and not in limitation of the foregoing, subject to subsection
(iv) below, the Lenders and the Agent shall not be responsible
for:  (A) the form, validity,
sufficiency, accuracy, genuineness or legal effect of any document submitted by
any Person in connection with the application for and issuance of and
presentation of drafts with respect to any Letter of Credit, even if it should
prove to be in any or all respects invalid, insufficient, inaccurate,
fraudulent or forged; (B) the validity or sufficiency of any instrument
transferring or assigning or purporting to transfer or assign any Letter of
Credit or the rights or benefits thereunder or proceeds thereof, in whole or in
part, which may prove to be invalid or ineffective for any reason; (C) the
failure of the beneficiary of any Letter of Credit to comply duly with
conditions required in order to draw upon such Letter of Credit; (D) errors,
omissions, interruptions, or delays in transmission or

 

10

 

delivery of any
messages, by mail, cable, telegraph, telex or otherwise, whether or not they be
in cipher; (E) errors in interpretation of technical terms; (F) any
loss or delay in the transmission or otherwise of any document required in
order to make a drawing under any Letter of Credit or of the proceeds thereof; (G) the
misapplication by the beneficiary of any Letter of Credit of the proceeds of
any drawing under such Letter of Credit; (H) any consequences arising from
causes beyond the control of the Lenders or the Agent, including any act or
omission, whether rightful or wrongful, of any present or future de  jure
or de  facto Governmental Authority; or (I) the Letter of
Credit Issuer’s honor of a draw for which the draw or any certificate fails to
comply in any respect with the terms of the Letter of Credit.  None of the foregoing shall affect, impair or
prevent the vesting of any rights or powers of the Agent or any Lender under
this Section 1.4(f).

 

(iii)          Exoneration. 
Without limiting the foregoing, no action or omission whatsoever by the
Agent or any Lender with respect to any Letter of Credit issued hereunder
(excluding any Lender in its capacity as a Letter of Credit Issuer) shall
result in any liability of the Agent and/or Lender to any Borrower, or relieve
any Borrower of any of its obligations hereunder to any such Person.

 

(iv)          Rights Against Letter of Credit
Issuer.  Nothing contained in this Agreement is
intended to limit a Borrower’s rights, if any, with respect to the Letter of
Credit Issuer which arise as a result of the letter of credit application and
related documents executed by and between such Borrower and the Letter of
Credit.

 

(v)           Account Party. 
Each Borrower hereby authorizes and directs any Letter of Credit Issuer
to name such Borrower as the “Account Party” therein and to deliver to the
Agent all instruments, documents and other writings and property received by
the Letter of Credit Issuer pursuant to the Letter of Credit, and to accept and
rely upon the Agent’s instructions and agreements with respect to all matters
arising in connection with the Letter of Credit or the application therefor.

 

(g)           Supporting Letter of Credit; Cash Collateral. 
If, notwithstanding the provisions of Section 1.4(b) and
Section 10.1, any Letter of Credit or Credit Support is outstanding
upon the termination of this Agreement, then upon such termination FMC shall
deposit with the Agent, for the ratable benefit of the Agent and the Revolving
Credit Lenders, with respect to each Letter of Credit or Credit Support then
outstanding, cash (“Cash Collateral”) or a standby letter of credit (a “Supporting
Letter of Credit”) in form and substance satisfactory to the Agent, issued
by an issuer satisfactory to the Agent, in each case in an amount equal to the
greatest amount for which such Letter of Credit or such Credit Support may be
drawn plus any fees and expenses associated with such Letter of Credit or such
Credit Support, under which Supporting Letter of Credit the Agent is entitled
to draw amounts necessary to reimburse the Agent and the Revolving Credit
Lenders for payments to be made by the Agent and the Revolving Credit Lenders
under

 

11

 

such Letter of Credit
or Credit Support and any fees and expenses associated with such Letter of
Credit or Credit Support.  Such
Supporting Letter of Credit and/or Cash Collateral shall be held by the Agent,
for the ratable benefit of the Agent and the Revolving Credit Lenders, as
security for, and to provide for the payment of, the aggregate undrawn amount
of such Letters of Credit or such Credit Support remaining outstanding.

 

1.5           Bank Products.  A Borrower may request and the Agent may, in
its sole and absolute discretion, arrange for a Borrower to obtain from the
Bank or the Bank’s Affiliates Bank Products although no Borrower is required to
do so.  If Bank Products so requested by
a Borrower are provided by an Affiliate of the Bank, each Borrower agrees to
indemnify and hold the Agent, the Bank and the Lenders harmless from any and
all costs and obligations now or hereafter incurred by the Agent, the Bank or
any of the Lenders which arise from any indemnity given by the Agent to its
Affiliates related to such Bank Products; provided, however,
nothing contained herein is intended to limit the Borrower’s rights, with
respect to the Bank or its Affiliates, if any, which arise as a result of the
execution of documents by and between such Borrower and the Bank which relate
to Bank Products.  The agreement contained
in this Section 1.5 shall survive termination of this
Agreement.  Each Borrower acknowledges
and agrees that the obtaining of Bank Products from the Bank or the Bank’s
Affiliates (a) is in the sole and absolute discretion of the Bank or the
Bank’s Affiliates, and (b) is subject to all rules and regulations of
the Bank or the Bank’s Affiliates.

 

1.6           Joint and Several
Obligations; Contribution Rights.

 

(a)           All Obligations of FMC shall be the
joint and several Obligations of the Loan Parties, regardless of (i) which
Loan Party actually receives any Loans or other extensions of credit under the
Loan Documents, (ii) the amount received by any Loan Party or (iii) the
manner in which any Loan Party, the Agent or any Lender accounts for such Loans
and other extensions of credit.

 

(b)           To the extent that any Loan Party is
a guarantor or a surety as a result of the joint and several obligations
hereunder, such Obligations and the Liens securing such Obligations shall not
be released or impaired by any action or inaction on the part of the Agent or
any Lender which would otherwise constitute the release of a surety.  Without limiting the generality of the
foregoing, the liability of any Loan Party under this Agreement shall not be
affected or impaired in any manner by (i) the failure of any Person to
become or remain a Loan Party or guarantor or the failure of the Agent or any
Lender to preserve, protect or enforce any right to require any Person to
become or remain a Loan Party or guarantor, (ii) any taking, failure to
take, failure to create, perfect or ensure the priority of, or exchange,
release or termination or lapse of any Lien securing any Obligations, or any
taking, failure to take, release or amendment or waiver of or consent to
departure from any other guaranty of, any of the Obligations, (iii) any
manner or order of sale or other enforcement of any Lien securing any of the
Obligations or any manner or order of application of the proceeds of any such
Lien to the payment of the Obligations or any failure to enforce any Lien or to
apply any proceeds thereof, (iv) any furnishing, exchange, substitution or
release of any

 

12

 

collateral securing
the Obligations, or any failure to perfect any Lien in any of the collateral
securing the Obligations, or (v) any other circumstance which might
otherwise constitute a defense (except the final payment in full) available to,
or a discharge of, a surety or guarantor.

 

(c)           To the extent that any Loan Party is
a guarantor or a surety as a result of the joint and several obligations
hereunder, the liability of each such Loan Party under this Agreement shall
remain valid and enforceable and shall not be subject to any reduction,
limitation, impairment, discharge or termination for any reason (other than
final payment in full of the Obligations), including the occurrence of any of
the following, whether or not such Loan Party shall have had notice or
knowledge of any of them:  (i) any
failure or omission to assert or enforce or agreement or election not to assert
or enforce, or the stay or enjoining, by order of court, by operation of law or
otherwise, of the exercise or enforcement of, any claim or demand or any right,
power or remedy (whether arising under the Loan Documents, at law, in equity or
otherwise) with respect to the Obligations or any agreement relating thereto,
or with respect to any other guaranty of or security for the payment of the
Obligations; (ii) any rescission, waiver, amendment or modification of, or
any consent to departure from, any of the terms or provisions (including
provisions relating to Events of Default) of this Agreement, any of the other
Loan Documents or any agreement or instrument executed pursuant thereto, or of
any other guaranty or security for the Obligations, in each case whether or not
in accordance with the terms of this Agreement, such Loan Document or any
agreement relating to such other guaranty or security; (iii) the
Obligations, or any agreement relating thereto, at any time being found to be
illegal, invalid or unenforceable in any respect; (iv) the application of
payments received from any source to the payment of any liability other than
the Obligations, even though the Lenders might have elected to apply such
payment to any part or all of the Obligations; (v) any consent by any
Lender or the Agent to the change, reorganization or termination of the
corporate structure or existence of any other Loan Party, or any other Person
and to any corresponding restructuring of the Obligations; (vi) any
failure to perfect or continue perfection of a security interest in any
collateral which secures any of the Obligations; (vii) any defenses
(except the defense of final payment in full), set-offs or counterclaims which
any Loan Party, any guarantor or any other Person may allege or assert against
the Agent or any Lender in respect of the Obligations, including, for example,
failure of consideration, breach of warranty, statute of frauds, statute of
limitations, accord and satisfaction and usury; and (viii) any other act
or thing or omission, or delay to do any other act or thing, which may or might
in any manner or to any extent vary the risk of any Loan Party as an obligor in
respect of the Obligations.

 

(d)           To the extent that any Loan Party is
a guarantor or a surety as a result of the joint and several obligations
hereunder, to the maximum extent permitted by law, each such Loan Party hereby
waives and agrees not to assert or take advantage of:  (i) any defense now existing or
hereafter arising based upon any legal disability or other defense of any other
Loan Party or any guarantor or other Person, or by reason of the cessation or
limitation of the liability of any other

 

13

 

Loan Party or any
guarantor or other Person from any cause other than full payment and
performance of all obligations due under this Agreement or any of the other
Loan Documents; (ii) any defense based upon any lack of authority of the
officers, directors, partners or agents acting or purporting to act on behalf
of any other Loan Party or any guarantor or other Person, or any defect in the
formation of any other Loan Party or any guarantor or other Person; (iii) the
unenforceability or invalidity of any security or guaranty or the lack of
perfection or continuing perfection, or failure of priority of any security for
the Obligations; (iv) any and all rights and defenses arising out of an
election of remedies by the Agent or any Lender, even though that election of
remedies, such as a nonjudicial foreclosure with respect to security for an
Obligation, has destroyed such Loan Party’s rights of subrogation and
reimbursement against the principal by the operation of Section 580d of
the California Code of Civil Procedure or otherwise; (v) any defense based
upon any failure to disclose to such Loan Party any information concerning the
financial condition of any other Loan Party or any guarantor or other Person or
any other circumstances bearing on the ability of any other Loan Party or any
guarantor or other Person to pay and perform all obligations due under this
Agreement or any of the other Loan Documents; (vi) any failure by the
Agent or any Lender to give notice to any Loan Party or any guarantor or other
Person of the sale or other disposition of security, and any defect in notice
given by the Agent or any Lender in connection with any such sale or
disposition of security; (vii) any failure of the Agent or any Lender to
comply with applicable laws in connection with the sale or disposition of
security, including, without limitation, any failure by the Lender to conduct a
commercially reasonable sale or other disposition of such security; (viii) any
defense based upon any statute or rule of law which provides that the
obligation of a surety must be neither larger in amount nor in any other
respects more burdensome than that of a principal, or that reduces a surety’s
or guarantor’s obligations in proportion to the principal’s obligation; (ix) any
use of Cash Collateral under Section 363 of the Bankruptcy Code; (x) any
defense based upon an election by the Agent or any Lender, in any proceeding
instituted under the Bankruptcy Code, of the application of Section 1111(b)(2) of
the Bankruptcy Code or any successor statute; (xi) any defense based upon
any borrowing or any grant of a security interest under Section 364 of the
Bankruptcy Code; (xii) any right of subrogation, any right to enforce any
remedy which the Agent or any Lender may have against any other Loan Party or
any guarantor or other Person and any right to participate in, or benefit from,
any security now or hereafter held by the Agent or any Lender for the
Obligations; (xiii) presentment, demand, protest and notice of any kind,
including notice of acceptance of this Agreement and of the existence, creation
or incurring of new or additional Obligations; (xiv) the benefit of any
statute of limitations affecting the liability of any other Loan Party or any
guarantor or other Person, enforcement of this Agreement or any other Loan
Documents, the liability of any Loan Party hereunder or the enforcement hereof;
(xv) all notices of intention to accelerate and/or notice of acceleration
of the Obligations; (xvi) relief from any applicable valuation or
appraisement laws; (xvii) any other action by the Agent or any Lender,
whether authorized by this Agreement or otherwise, or any omission by the Agent
or any Lender or other

 

14

 

failure of the Agent
or any Lender to pursue, or delay in pursuing, any other remedy in its power;
(xviii) any and all claims and/or rights of counterclaim, recoupment, setoff or
offset; and (xix) any defense based upon the application of the proceeds
of a Loan for purposes other than the purposes represented by the Loan Parties
or intended or understood by the Agent or any Lender or any Loan Party.  Each Loan Party agrees that the payment and
performance of all Obligations or any part thereof or other act which tolls any
statute of limitations applicable to this Agreement or the other Loan Documents
shall similarly operate to toll the statute of limitations applicable to such
Loan Party’s liability hereunder. 
Without limiting the generality of the foregoing or any other provision
hereof, each Loan Party further waives any and all rights and defenses that
such Loan Party may have because the debt of the Loan Parties is secured by
real property of other Loan Parties; this means, among other things, that:  (1) the Lenders may collect from such
Loan Party without first foreclosing on any real or personal property
collateral pledged by any other Loan Party, (2) if the Agent or any Lender
forecloses on any real property collateral pledged by any other Loan Party,
then (A) the amount of the debt may be reduced only by the price for which
that collateral is sold at the foreclosure sale, even if the collateral is
worth more than the sale price, and (B) the Agent or any Lender may
collect from such Loan Party even if the Agent or any Lender, by foreclosing on
the real property collateral, has destroyed any right such Loan Party may have
to collect from any other Loan Party. 
The foregoing sentence is an unconditional and irrevocable waiver of any
rights and defenses each Loan Party may have because the Obligations are
secured by real property of any other Loan Party.  Each Loan Party acknowledges and agrees that
California Civil Code Section 2856 authorizes and validates waivers of a
guarantor’s rights of subrogation and reimbursement and waivers of certain
other rights and defenses available to a guarantor under California law.  Based on the preceding sentence and without
limiting the generality of the foregoing waivers contained in this subparagraph
or any other provision hereof, each Loan Party expressly waives to the extent
permitted by law any and all rights and defenses (except the defense of
indefeasible final payment in full), including without limitation any rights of
subrogation, reimbursement, indemnification and contribution (except
contribution pursuant to this Agreement), which might otherwise be available to
such Loan Party under California Civil Code Sections 2787 to 2855, inclusive,
2899 and 3433 and under California Code of Civil Procedure Sections 580a, 580b,
580d and 726 (or any of such sections), or any other jurisdiction to the extent
the same are applicable to this Agreement or the agreements, covenants or
obligations of any Loan Party hereunder.

 

(e)           Each Loan Party is fully aware of
the financial condition of the Loan Parties, and is executing and delivering
this Agreement based solely upon such Loan Party’s own independent
investigation of all matters pertinent hereto and is not relying in any manner
upon any representation or statement by the Agent or any Lender.  Each Loan Party hereby assumes full
responsibility for obtaining any additional information concerning the
financial condition of the Loan Parties or any other guarantor or their
respective properties, financial condition and prospects and any other matter
pertinent hereto as such Loan Party

 

15

 

may desire, and such
Loan Party is not relying upon or expecting the Agent or any Lender to furnish
to such Loan Party any information now or hereafter in the possession of the
Agent or any Lender concerning the same or any other matter.  By executing this Agreement, each Loan Party
knowingly accepts the full range of risks encompassed within a contract of this
type, which risks such Loan Party acknowledges. 
No Loan Party shall have the right to require the Agent or any Lender to
obtain or disclose any information with respect to the Obligations, the
financial condition or prospects of any Loan Party, the ability of any Loan
Party to pay or perform the Obligations, the existence, perfection, priority or
enforceability of any collateral security for any or all of the Obligations,
the existence or enforceability of any other guaranties of all or any part of
the Obligations, any action or non-action on the part of the Agent or any
Lender, any Loan Party or any other Person, or any other event, occurrence,
condition or circumstance whatsoever.

 

(f)            To the extent that any Loan Party is
a guarantor or a surety as a result of the joint and several obligations
hereunder, the Obligations of each such Loan Party shall be limited in amount to
an amount not to exceed the maximum amount of such obligations and liabilities
that can be made or assumed by such Loan Party without rendering such
obligation or liability void or voidable under applicable laws relating to
fraudulent conveyance, fraudulent transfer or similar laws affecting the rights
of creditors generally, in each case giving effect to all liabilities of such
Loan Party other than any liabilities in respect of intercompany indebtedness
to the extent that it would be discharged in the amount paid by such Loan Party
hereunder and giving effect to all rights of subrogation, contribution,
reimbursement, indemnity or similar rights pursuant to applicable law or any
agreement (the “Maximum Liability”).

 

(g)           Each
Loan Party hereby agrees that to the extent that a Loan Party makes any payment
on behalf of FMC, such Loan Party shall be entitled to seek and receive
contribution and indemnification from and to be reimbursed by each other Loan
Party in an amount equal to a fraction of such payment, the numerator of which
is the Maximum Liability of the Loan Party making the payment and the
denominator of which is the Maximum Liability of all Loan Parties as of the
date of determination.  Each Loan Party’s
right of contribution shall be subject to the terms and conditions of Section 1.6(h).  The provisions of this Section 1.6(g) shall
in no respect limit the obligations and liabilities of any Loan Party to the
Lenders and each Loan Party shall remain liable to the Lenders for the full
amount of its liabilities hereunder.

 

(h)           No
Loan Party shall be entitled to be subrogated to any of the rights of the Agent
or any Lender against or any other Loan Party or any collateral security or
guarantee or right to offset held by the Agent or any Lender for the payment of
the Obligations, nor shall any Loan Party seek or be entitled to seek any
contribution or reimbursement from or any other Loan Party in respect of
payments made by such Loan Party hereunder, until all amounts owing to the
Agent or any Lender on account of the Obligations are paid in full, no Letter
of

 

16

 

Credit shall
be outstanding and the Revolving Credit Commitments are terminated or have
expired.  If any amount shall be paid to
any Loan Party on account of such subrogation rights at any time not permitted
hereunder, such amount shall be held by such Loan Party in trust for the Agent
and the Lenders, segregated from other funds of such Loan Party, and shall,
forthwith upon receipt, be turned over to the Agent in the exact form received
(duly endorsed to the Agent, if required), to be applied against the
Obligations, whether matured or unmatured, in such order as the Agent may
determine.

 

(i)            In the event that all
or any part of the Obligations at any time are secured by any one or more deeds
of trust, security deeds or mortgages creating or granting Liens on any
interests in Real Estate, each of the Loan Parties authorizes the Agent and the
Lenders, upon the occurrence of and during the continuance of any Event of
Default, at their sole option, without notice or demand and without affecting
any Obligations, the enforceability of the Obligations under the Loan
Documents, or the validity or enforceability of any Liens of the Agent or the
Lenders on any collateral securing the Obligations, to foreclose any or all of
such deeds of trust, security deeds or mortgages by judicial or nonjudicial
sale, subject to compliance with the notice provisions hereof.  Insofar as the Liens created by the Loan
Documents secure the Obligations of other Persons, each of the Loan Parties
expressly waives, to the maximum extent permitted by applicable law, any
defenses to the enforcement of the Loan Documents or any Liens created or
granted by the Loan Documents or to the recovery by the Agent or the Lenders
against the Borrowers, any other Loan Party or any other Person liable therefor
of any deficiency after a judicial or nonjudicial foreclosure or sale, even
though such a foreclosure or sale may impair the subrogation rights of such
Loan Party and may preclude any of them from obtaining reimbursement or
contribution from any other Person.

 

1.7           Borrowing Agency
Provisions.

 

(a)           At the request of, and solely as an
accommodation to, the Borrowers, the Lenders have agreed to make the Loans to,
and to issue Letters of Credit for the Borrowers on a joint and several basis
as co-borrowers.  In order to facilitate
the co-borrowing arrangement, each Borrower hereby irrevocably designates
Holdings to be its agent and attorney-in-fact for purposes of the Loan
Documents, and each of them hereby irrevocably authorizes such agent in such
capacity to take such actions on behalf of the applicable Borrower and to
exercise such powers under this Agreement and the other Loan Documents on such
Borrower’s behalf as may otherwise be exercised by such Borrower, together with
such powers as are incidental thereto, including without limitation to borrow
Loans, to execute and deliver Notices of Borrowing, requests for Letters of
Credit, Borrowing Base Certificates and such other documents, instruments and
certificates required by the Loan Documents in connection with any Borrowing or
repayment of the Loans, to borrow, repay and reborrow Loans and to receive
proceeds of Loans and to give all other notices and consents hereunder.  Each Borrower further irrevocably authorizes
the Agent to act on all such documents,

 

17

 

instruments and
certificates delivered by Holdings as agent and attorney-in-fact, and to pay over
and credit the proceeds of any Loans so requested to the Designated Account of
Holdings and hereby accepts the appointment of Holdings to act as agent and
attorney-in-fact for the Borrowers.  The
Agent and each Lender shall be entitled to rely absolutely on the appointment
and authorization of Holdings to act on behalf of the Borrowers with respect to
all matters relating to this Agreement and the other Loan Documents, whether or
not any provision of this Agreement or any other Loan Documents specifically
provides that action may or shall be taken by Holdings on behalf of the
Borrowers.  The Agent and the Lenders may
give all notices to any Borrower to Holdings. 
Each Borrower agrees that each notice, election, representation and
warranty, covenant, agreement and undertaking made on its behalf by Holdings
shall be deemed for all purposes to have been made by such Borrower and shall
be binding upon and enforceable against such Borrower to the same extent as if
the same had been made directly by such Borrower.

 

(b)           All Borrowers acknowledge and agree
that the Borrowers are engaged in an integrated operation that requires
financing on the basis of credit availability to each Borrower, that the
co-borrowing arrangement has been established at the request of the Borrowers,
and that each Borrower expects to derive, directly or indirectly, benefit from
such credit availability to the other Borrowers.  Neither the Agent nor the Letter of Credit
Issuer nor any Lender shall incur any liability to Borrowers or any other Loan
Party as a result of the co-borrowing arrangement established by this Agreement
and shall not have any liability or responsibility to the Borrowers to inquire
into the allocation, apportionment or use of the proceeds of any Loans or
extensions of credit hereunder.  To
induce the Agent, the Letter of Credit Issuer and the Lenders to establish this
co-borrowing arrangement and in consideration thereof, each Borrower hereby
indemnifies the Agent, the Letter of Credit Issuer and the Lenders, and their respective
successors and assigns, and agrees to hold each of them harmless from any and
all liabilities, expenses, losses, damages and claims asserted against them by
any Person arising from or incurred by reason of the handling of the financing
arrangements of the Borrowers as provided in this Agreement, any reliance by
the Agent, the Letter of Credit Issuer or any Lender on any document, request
or instruction given by the agents designated by the Borrowers herein to act on
their behalf or any other action taken by the Agent, the Letter of Credit
Issuer or the Lenders with respect to the co-borrowing arrangement; provided,
however, that no Borrower shall have an obligation to indemnify any of
the Agent, the Letter of Credit Issuer or any Lender under this Section 1.7
with respect to any liabilities finally determined by a court of competent
jurisdiction to have resulted primarily from the gross negligence or willful
misconduct of such indemnified party. 
The agreements of the Borrowers contained in this Section 1.7
shall survive payment of all other Obligations.

 

18

 

1.8           Senior Indebtedness.  All Obligations of Fleetwood under this
Agreement and the other Loan Documents, and all rights of contribution,
indemnity, subrogation and reimbursement relating to the Obligations of any
Loan Party with respect to Fleetwood, are “Senior Indebtedness” under the 2003
Subordinated Debentures.  All Obligations
of Fleetwood under this Agreement and the other Loan Documents to the extent
such Obligations are (A) liabilities of Fleetwood for borrowed money or
under any reimbursement obligation relating to a letter of credit, surety bond
or similar instrument, or (B) liabilities of Fleetwood evidenced by a
bond, note, debenture or similar instrument, or (C) liabilities of others
described in the preceding clauses (A) and (B) that
Fleetwood has guaranteed or that are otherwise its legal liability, or (D) deferrals
renewals, extensions or refundings of any liability of the types referred to in
clauses (A), (B) and (C) above, are “Senior
Indebtedness” under the 1998 Subordinated Debentures and Fleetwood’s guaranty
of the Trust Securities.  All Obligations
of Fleetwood and its Subsidiaries under this Agreement and the other Loan
Documents, and all rights of contribution, indemnity, subrogation and
reimbursement relating to the Obligations of any Loan Party with respect to
Fleetwood and any other Obligations of Fleetwood and its Subsidiaries secured
by any Loan Documents (including, without limitation, all debts, liabilities and obligations now or hereafter arising from or in
connection with Bank Products), (i) are “Senior Debt” and “Designated
Senior Debt” under the 2008 Senior Secured Debentures and “Priority Lien Debt”
under the 2008 Intercreditor Agreement and (ii) were permitted by the
indenture governing the 2008 Senior Secured Debentures and the 2008
Intercreditor Agreement to be incurred and secured under and pursuant to the
Loan Documents.

 

ARTICLE 2

INTEREST AND FEES

 

2.1           Interest.

 

(a)           Interest Rates. 
All outstanding Revolving Loans shall bear interest on the unpaid
principal amount thereof (including, to the extent permitted by law, on
interest thereon not paid when due) from the date made until paid in full in
cash at a rate determined by reference to the Base Rate plus the Applicable
Margin, but not to exceed the Maximum Rate. 
Except as otherwise provided herein, the principal amount of all other
outstanding Obligations shall bear interest from the due date thereof until
paid in full at a fluctuating per annum rate equal to the Base Rate plus the
Applicable Margin.  Each change in the
Base Rate shall be reflected in the interest rate applicable to Base Rate Loans
as of the effective date of such change. 
All interest charges shall be computed on the basis of a year of three
hundred and sixty (360) days and actual days elapsed (which results in more
interest being paid than if computed on the basis of a three hundred and
sixty-five (365)-day year).  The
applicable Borrowers shall pay to the Agent, for the ratable benefit of the
applicable Lenders, interest accrued on all Base Rate Loans in arrears on the
first day of each month hereafter and on the Termination Date.

 

(b)           Default Rate. 
If any Default or Event of Default occurs and is continuing and the
Agent or the Required Lenders in their discretion so elect, then, without
further notice, motion or application to, hearing before, or order from the
Bankruptcy Court, from the date that the Agent gives written notice to Holdings
of the Agents’ or the Required Lenders’ election and so long as such Default or
Event of Default is continuing, all of the Obligations shall bear interest at
the Default Rate applicable thereto to the fullest extent permitted by
applicable law.

 

19

 

2.2           [RESERVED].

 

2.3           Maximum Interest Rate.  In no event shall any interest rate provided
for hereunder exceed the maximum rate legally chargeable by any Lender under
applicable law for such Lender with respect to loans of the type provided for
hereunder (the “Maximum Rate”). 
If, in any month, any interest rate, absent such limitation, would have
exceeded the Maximum Rate, then the interest rate for that month shall be the
Maximum Rate, and, if in future months, that interest rate would otherwise be
less than the Maximum Rate, then that interest rate shall remain at the Maximum
Rate until such time as the amount of interest paid hereunder equals the amount
of interest which would have been paid if the same had not been limited by the
Maximum Rate.  In the event that, upon
payment in full of the Obligations, the total amount of interest paid or
accrued under the terms of this Agreement is less than the total amount of
interest which would, but for this Section 2.3, have been paid or
accrued if the interest rate otherwise set forth in this Agreement had at all
times been in effect, then the Borrowers shall, to the extent permitted by
applicable law, pay the Agent, for the account of the Lenders, an amount equal
to the excess of (a) the lesser of (i) the amount of interest which
would have been charged if the Maximum Rate had, at all times, been in effect
or (ii) the amount of interest which would have accrued had the interest
rate otherwise set forth in this Agreement, at all times, been in effect over (b) the
amount of interest actually paid or accrued under this Agreement.  If a court of competent jurisdiction
determines that the Agent and/or any Lender has received interest and other
charges hereunder in excess of the Maximum Rate, such excess shall be deemed
received on account of, and shall automatically be applied to reduce, the
Obligations other than interest, in the inverse order of maturity, and if there
are no Obligations outstanding, the Agent and/or such Lender shall refund to
the applicable Borrower(s) such excess.

 

2.4           Closing Fee.  The Borrowers, jointly and severally, agree
to pay the Agent on the Closing Date a closing fee (the “Closing Fee”)
as set forth in the Fee Letter.  The
Borrowers hereby authorize the Agent to charge the Loan Account in an amount
equal to the Closing Fee set forth in such Fee Letter.

 

2.5           Unused Line Fee.  On the first day of each month and on the
Termination Date the Borrowers, jointly and severally, agree to pay to the
Agent, for the account of the Revolving Credit Lenders, in accordance with
their respective Pro Rata Shares, an unused line fee (the “Unused Line Fee”)
equal to one half of one percent (0.5%) per annum times the amount by which the
Maximum Amount exceeded the sum of the average daily outstanding amount of
Revolving Loans and the average daily undrawn face amount of outstanding
Letters of Credit, during the immediately preceding month or shorter period if
calculated for the first month hereafter or on the Termination Date.  The Unused Line Fee shall be computed on the
basis of a 360-day year for the actual number of days elapsed.  All principal payments received by the Agent
shall be deemed to be credited to the applicable Borrowers’ Loan Account
immediately upon receipt for purposes of calculating the Unused Line Fee
pursuant to this Section 2.5.

 

2.6           Letter of Credit Fee.  FMC agrees to pay (a) to the Agent, for
the account of the Revolving Credit Lenders, in accordance with their
respective Pro Rata Shares, for each Letter of Credit, a fee (the “Letter of
Credit Fee”) equal to six percent (6.0%) per annum times the undrawn face
amount of each Letter of Credit, (b) to the Agent for the benefit of the
Letter of Credit Issuer a fronting fee of one-eighth of one percent (0.125%)
per annum of the undrawn

 

20

 

face amount of each Letter of Credit, and (c) to the Letter of
Credit Issuer, all out-of-pocket costs, fees and expenses incurred by the
Letter of Credit Issuer in connection with the application for, processing of,
issuance of, or amendment to any Letter of Credit.  The Letter of Credit Fee shall be payable
monthly in arrears on the first day of each month following any month in which
a Letter of Credit is outstanding and on the Termination Date.  The Letter of Credit Fee shall be computed on
the basis of a three hundred and sixty (360)-day year for the actual number of
days elapsed.

 

2.7           Agency Fee.  The Borrowers, jointly and severally, agree
to pay the Agent an administrative agency fee (the “Agency Fee”) as set
forth in the Fee Letter.  The Borrowers
hereby authorize the Agent to charge the Loan Account in an amount equal to the
Agency Fee set forth in such Fee Letter.

 

ARTICLE 3

PAYMENTS AND PREPAYMENTS

 

3.1           [RESERVED].

 

3.2           Termination of Facility.  The Borrowers may terminate this Agreement
upon at least thirty (30) days’ notice to the Agent and the Lenders, upon (a) the
payment in full in cash of all outstanding Revolving Loans, together with
accrued interest thereon, and the cancellation and return of all outstanding
Letters of Credit (or the provision of Cash Collateral or a Supporting Letter
of Credit in accordance with Section 1.4(g) above), and (b) the
payment in full in cash of all reimbursable expenses and other Obligations.

 

3.3           Reduction or
Termination of Revolving Loan Commitments.

 

(a)           The Borrowers shall have the right,
upon not less than three (3) Business Days’ prior written notice to the
Agent, to terminate in whole or from time to time permanently reduce in part
the unused portion of the Revolving Loan Commitments; provided, that
after giving effect thereto and to any prepayments of the Revolving Loans made
on the effective date thereof, the Aggregate Revolver Outstandings would not
exceed the aggregate Revolving Loan Commitments then in effect.  Any notice of termination given by Borrowers
shall be irrevocable.

 

(b)           The Agent will promptly notify the
Revolving Credit Lenders of any reduction in the Revolving Loan Commitments
under this Section 3.3.  Upon
any reduction of the Revolving Loan Commitments, the Revolving Loan Commitment
of each Revolving Credit Lender shall be reduced by such Revolving Credit
Lender’s Pro Rata Share of such reduction amount.

 

3.4           Repayment
and Prepayment of the Revolving Loans; Reduction of Maximum Real
Estate Loan Amount; Reduction of Maximum Amount.

 

(a)           FMC shall repay the outstanding
principal balance of the Revolving Loans made to it, plus all accrued but
unpaid interest thereon, on the Termination Date.  Any Borrower may prepay Revolving Loans at
any time and from time to time in whole or in part, and reborrow subject to the
terms of this Agreement.  In

 

21

 

addition, and without
limiting the generality of the foregoing, upon demand FMC shall pay to the
Agent, for account of the Revolving Credit Lenders, the amount, without
duplication, by which the Aggregate Revolver Outstanding exceeds the lesser of
the Borrowing Base or the Maximum Amount.

 

(b)           Immediately upon receipt by any Loan
Party of proceeds of any disposition of Mortgaged Property, (i) FMC shall
repay the Revolving Loans in an amount equal to the lesser of (x) the
Modified Net Proceeds of the sale of such Mortgaged Property and (y) the
aggregate principal amount of the then outstanding Revolving Loans and (ii) the
Maximum Real Estate Loan Amount (for the avoidance of doubt, the amount
applicable both prior to or following the entry by the Bankruptcy Court of the
Bidding Procedures Order) shall be permanently reduced by an amount equal to
the sum of (X) the amount, if any, attributed to such Mortgaged Property
in the calculation of the Borrowing Base at the time of its sale and (Y) twenty
five percent (25%) of the excess of (I) the Modified Net Proceeds of the
sale of such Mortgaged Property (or, in the case of a disposition of any
Mortgaged Property as a portion of the assets disposed of in a disposition made
in accordance with the Bidding Procedures Order, the appraised value (used in
calculation of the most recent Borrowing Base) of such Mortgaged Property),
over (II) the amount attributed to such Mortgaged Property in the calculation
of the Borrowing Base.

 

(c)           Immediately upon any receipt by any
Loan Party of proceeds of any disposition of any assets (excluding with respect
to (i) Mortgaged Property, (ii) assets or other property received in
exchange for any Equipment sold, traded-in or exchanged pursuant to Section 7.9(b) hereof
and (iii) Inventory sold in the ordinary course of business), the
Borrowers shall repay the Revolving Loans in an amount equal to all proceeds of
such dispositions, net of (A) commissions and other customary transaction
costs, fees and expenses properly attributable to such transaction and payable
by a Loan Party in connection therewith (other than any amounts payable to any
Affiliate), (B) transfer taxes, (C) amounts payable to holders of
senior Liens (to the extent that such Liens are Permitted Liens), if any and (D) an
appropriate reserve for income taxes in accordance with GAAP in connection
therewith (the “Net Proceeds”), but without reduction of the Revolving
Credit Commitments.

 

(d)           Following the sale of any Mortgaged
Property or at any other time, in the event that the maximum amount of Debt
that may be incurred hereunder from time to time that is permitted by the 2008
Senior Secured Debentures (without regard to that portion of any maximum amount
calculated by reference to the Borrowing Base and without regard to any
separate “carve-outs” or “caps” on Obligations under Bank Products or Hedge
Agreements set forth therein) is reduced in accordance with the terms of the
2008 Senior Secured Debentures and, thereafter, such maximum amount does not
exceed the Maximum Amount by seven million five hundred thousand Dollars
($7,500,000) (the amount of such deficiency, the “Senior Cap Deficiency
Amount”), the Borrowers shall immediately repay the Revolving Loans (and
the Maximum Amount shall be permanently reduced) in an amount equal to the
Senior Cap Deficiency Amount.

 

22

 

(e)           In addition to the requirements of Sections 3.4(b) and
3.4(c) above, in the event that all or substantially all of either the
Manufactured Homes Division or the Motor Homes Division (but not, for the
avoidance of doubt, the Fleetwood Travel Trailers Division) is disposed of,
then, immediately upon receipt by any Loan Party of proceeds of any such
disposition, (a) the Maximum Amount shall be permanently reduced by an
amount equal to (i) the aggregate amount attributed to the Eligible
Accounts, Eligible Inventory and Real Estate Subfacility Assets included in the
calculation of the Borrowing Base at the time of such sale which were disposed
of in connection with such disposition less (ii) the face amount of all
Letters of Credit mandated by a state with respect to such division’s
workers’ compensation self insurance programs which remain outstanding as Obligations of the remaining Loan Parties under this
Credit Agreement after giving effect to such disposition, but only if and for
so long as such Letters of Credit remain outstanding and are cash
collateralized with the proceeds of such disposition in an amount equal to one
hundred five percent (105%) of the undrawn face amount thereof (it being
understood and agreed that the Maximum Amount will be further reduced from time
to time to extent such Letters of Credit no longer remain outstanding or are no
longer so cash collateralized), and (b) the Unused Letter of
Credit Subfacility shall be permanently reduced by any amount equal to the
aggregate face amount of Letters of Credit that no longer remain outstanding
under this Credit Agreement after giving effect to such disposition.

 

(f)            No provision contained in this Section 3.4
shall constitute a consent to an asset disposition that is otherwise not
permitted by the terms of this Agreement.

 

3.5           [RESERVED].

 

3.6           Payments by the
Borrowers.

 

(a)           All payments to be made by the
Borrowers shall be made without set-off, recoupment or counterclaim.  Except as otherwise expressly provided
herein, all payments by the Borrowers shall be made to the Agent for the
account of the Revolving Credit Lenders at the account designated by the Agent
and shall be made in Dollars and in immediately available funds, no later than
12:00 noon (Los Angeles time) on the date specified herein.  Any payment received by the Agent after such time
shall be deemed (for purposes of calculating interest only) to have been
received on the following Business Day and any applicable interest shall
continue to accrue during such extension.

 

(b)           Whenever any payment is due on a day
other than a Business Day, such payment shall be due on the following Business
Day, and such extension of time shall in such case be included in the
computation of interest or fees, as the case may be.

 

23

 

3.7           Payments as
Revolving Loans.  At the election of
the Agent, all payments of principal of or interest on the Revolving Loans,
reimbursement obligations in connection with Letters of Credit and Credit
Support for Letters of Credit, fees, premiums, reimbursable expenses and other
sums and Obligations payable hereunder may be paid from the proceeds of
Revolving Loans made hereunder.  Each
Loan Party hereby irrevocably authorizes the Agent to charge the applicable
Loan Account for the purpose of paying all amounts from time to time due from
FMC or any Loan Party hereunder, under any other Loan Document or under the
Applicable Order and agrees that all such amounts charged shall constitute
Revolving Loans (including Non-Ratable Loans and Agent Advances).

 

3.8           Apportionment,
Application and Reversal of Payments. 
Principal and interest payments shall be apportioned ratably among the
Lenders (according to the unpaid principal balance of the Loans to which such
payments relate held by each Lender). 
All payments shall be remitted to the Agent and all such payments not
relating to principal or interest of specific Loans, or not constituting
payment of specific fees, and all proceeds of Accounts, or other Collateral
received by the Agent, shall be applied, ratably, subject to the provisions of
this Agreement, first, to pay any fees, indemnities, or expense
reimbursements (other than amounts related to Bank Products) then due to the
Agent or the Lenders from the Borrowers; second, to pay interest due
from such Borrower in respect of all Loans, including Non-Ratable Loans and
Agent Advances; third, to pay or prepay principal of the Non-Ratable
Loans and Agent Advances owed by the Borrowers; fourth, to pay or prepay
principal of the Revolving Loans (other than Non-Ratable Loans and Agent
Advances) and unpaid reimbursement obligations in respect of Letters of Credit;
fifth, if an Event of Default has occurred and is continuing to pay an
amount to the Agent equal to all outstanding Letter of Credit Obligations of
the Borrowers to be held as Cash Collateral for such Obligations; sixth,
to the payment of any other Obligation (other than amounts related to Bank
Products) due to the Agent or any Lender by the Borrowers and seventh,
to pay any fees, indemnities or expense reimbursements related to Bank Products
due to the Agent from the Borrowers. 
Upon the occurrence and during the continuation of an Event of Default
and, prior thereto in order to correct any error, the Agent and the Lenders
shall have the continuing and exclusive right to apply and reverse and reapply
any and all such proceeds and payments to any portion of the Obligations.  Notwithstanding any provision contained in
this Section 3.8, in the event of any conflict between this
Agreement and the Applicable Order, the terms and provisions of the Applicable
Order shall control and govern.

 

3.9           Indemnity for
Returned Payments.  If after receipt
of any payment which is applied to the payment of all or any part of the
Obligations, the Agent, any Lender, the Bank or any Affiliate of the Bank is
for any reason compelled to surrender such payment or proceeds to any Person
because such payment or application of proceeds is invalidated, declared
fraudulent, set aside, determined to be void or voidable as a preference,
impermissible setoff, or a diversion of trust funds, or for any other reason,
then the Obligations or part thereof intended to be satisfied shall be revived
and continued and this Agreement shall continue in full force as if such
payment or proceeds had not been received by the Agent, such Lender, the Bank
or any Affiliate of the Bank and the Borrowers shall be liable to pay to the
Agent and the Lenders, and hereby indemnify the Agent and the Lenders and hold
the Agent and the Lenders harmless for the amount of such payment or proceeds
surrendered.  The provisions of this Section 3.9
shall be and remain effective notwithstanding any contrary action which may
have been taken by the Agent or any Lender, the Bank or any Affiliate of the
Bank in reliance upon such payment or

 

24

 

application of proceeds, and any such contrary action so taken shall be
without prejudice to the Agent’s and the Lenders’ rights under this Agreement
and shall be deemed to have been conditioned upon such payment or application
of proceeds having become final and irrevocable.  The provisions of this Section 3.9
shall survive the termination of this Agreement.

 

3.10         The Agent’s and
Lenders’ Books and Records; Monthly Statements.  The Agent shall record the principal amount
of the Loans owing to each Lender, the undrawn face amount of all outstanding
Letters of Credit and the aggregate amount of unpaid reimbursement obligations
outstanding with respect to the Letters of Credit from time to time on its
books.  In addition, each Lender may note
the date and amount of each payment or prepayment of principal of such Lender’s
Loans in its books and records.  Failure
by the Agent or any Lender to make such notation shall not affect the
obligations of the applicable Borrower with respect to the Loans or the Letters
of Credit.  Each Borrower agrees that the
Agent’s and each Lender’s books and records showing the Obligations and the
transactions pursuant to this Agreement and the other Loan Documents shall be
admissible in any action or proceeding arising therefrom, and shall constitute
rebuttably presumptive proof thereof, irrespective of whether any Obligation is
also evidenced by a promissory note or other instrument.  The Agent will provide to the Borrowers a
monthly statement of Loans, payments, and other transactions pursuant to this
Agreement.  Such statement shall be
deemed correct, accurate, and binding on the Borrowers and an account stated
(except for reversals and reapplications of payments made as provided in Section 3.8
and corrections of errors discovered by the Agent), unless the Borrowers notify
the Agent in writing to the contrary within thirty (30) days after such
statement is rendered.  In the event a
timely written notice of objections is given by the Borrowers, only the items
to which exception is expressly made will be considered to be disputed by the
Borrowers.

 

ARTICLE 4

TAXES,
YIELD PROTECTION, ILLEGALITY AND SUPER-PRIORITY

 

4.1           Taxes.

 

(a)           Any and all payments by the
Borrowers to each Lender or the Agent under this Agreement and any other Loan
Document shall be made free and clear of, and without deduction or withholding
for any Taxes.  In addition, the
Borrowers shall pay all Other Taxes in accordance with applicable law.

 

(b)           Each Borrower agrees to indemnify
and hold harmless each Lender and the Agent for the full amount of Taxes or
Other Taxes (including any Taxes or Other Taxes imposed by any jurisdiction on
amounts payable under this Section 4.1) paid by any Lender or the
Agent and any liability (including penalties, interest, additions to tax and expenses)
arising therefrom or with respect thereto, whether or not such Taxes or Other
Taxes were correctly or legally asserted. 
Payment under this indemnification shall be made within thirty (30) days
after the date such Lender or the Agent makes written demand therefor.

 

(c)           If a Borrower shall be required by
law to deduct or withhold any Taxes or Other Taxes from or in respect of any
sum payable hereunder to any Lender or the Agent, then:

 

25

 

(i)            the sum payable shall be increased
as necessary so that after making all required deductions and withholdings
(including deductions and withholdings applicable to additional sums payable
under this Section 4.1) such Lender or the Agent, as the case may
be, receives an amount equal to the sum it would have received had no such
deductions or withholdings been made;

 

(ii)           such Borrower shall make such
deductions and withholdings;

 

(iii)          such Borrower shall pay the full
amount deducted or withheld to the relevant taxing authority or other authority
in accordance with applicable law; and

 

(iv)          such Borrower shall also pay to each
Lender or the Agent for the account of such Lender, at the time interest is
paid, all additional amounts which the respective Lender specifies as necessary
to preserve the after-tax yield such Lender would have received if such Taxes
or Other Taxes had not been imposed.

 

(d)           At the Agent’s request, within
thirty (30) days after the date of any payment by a Borrower of Taxes or Other
Taxes, such Borrower shall furnish the Agent the original or a certified copy
of a receipt evidencing payment thereof, or other evidence of payment
satisfactory to the Agent.  If any
Borrower determines in good faith that a reasonable basis exists for contesting
any Taxes or Other Taxes, at the request of such Borrower, the relevant Lender
shall cooperate with such Borrower in challenging such Tax or Other Tax at such
Borrower’s expense (but shall have no obligation to disclose any confidential
information with respect to such Lender). 
No Lender shall have any obligation to contest any Tax or Other Tax,
except to cooperate with the Borrowers in any contest requested by a Borrower
as provided herein.  If any Lender
becomes aware that it has received a refund for any Tax or Other Tax for which
a payment has been made to it by the Borrowers under this Section 4.1,
which in the good faith judgment of such Lender is allocable to such payment,
the amount of such refund shall be paid to the applicable Borrower(s) to
the extent that such Borrower(s) have paid in full the payments required
by this Section 4.1.

 

(e)           If a Borrower is required to pay
additional amounts to any Lender or the Agent pursuant to subsection (c) of
this Section 4.1, then such Lender shall use reasonable efforts
(consistent with legal and regulatory restrictions) to change the jurisdiction
of its lending office so as to eliminate any such additional payment by such
Borrower which may thereafter accrue, if such change in the judgment of such
Lender is not otherwise disadvantageous to such Lender.

 

4.2           [RESERVED].

 

26

 

4.3           Increased Costs and
Reduction of Return.  If any Lender
shall have determined that (i) the introduction of any Capital Adequacy
Regulation, (ii) any change in any Capital Adequacy Regulation, (iii) any
change in the interpretation or administration of any Capital Adequacy
Regulation by any central bank or other Governmental Authority charged with the
interpretation or administration thereof, or (iv) compliance by such
Lender or any corporation or other entity controlling such Lender with any
Capital Adequacy Regulation, affects or would affect the amount of capital
required or expected to be maintained by such Lender or any corporation or
other entity controlling such Lender and (taking into consideration such Lender’s
or such corporation’s or other entity’s policies with respect to capital
adequacy and such Lender’s desired return on capital) determines that the
amount of such capital is increased as a consequence of its Revolving Credit
Commitments, Loans, credits or obligations under this Agreement, then, promptly
upon demand of such Lender to the Borrowers through the Agent, the Borrowers
shall pay to such Lender, from time to time as specified by such Lender,
additional amounts sufficient to compensate such Lender for such increase.

 

4.4           Funding Losses.  FMC shall reimburse each Revolving Credit
Lender and hold each Revolving Credit Lender harmless from any loss or expense
which such Lender may sustain or incur as a consequence of the failure of the
applicable Borrower(s) to borrow a Loan after such Borrower has given (or
is deemed to have given) a Notice of Borrowing. 
The Borrowers shall also pay any customary administrative fees charged
by any Lender in connection with the foregoing.

 

4.5           [RESERVED].

 

4.6           Certificates of the
Agent.

 

(a)           If any Lender claims
reimbursement or compensation under this Article 4 (an “Affected
Lender”), the Agent shall determine the amount thereof and shall deliver to
the Borrowers (with a copy to the Affected Lender) a certificate setting forth
in reasonable detail the amount payable to the Affected Lender, and such
certificate shall be conclusive and binding on the Borrowers in the absence of
manifest or demonstrable error.

 

(b)           Without limiting its
obligations to reimburse an Affected Lender for compensation theretofore
claimed by an Affected Lender pursuant to this Article 4, Borrowers
may, within sixty (60) days following any demand by an Affected Lender, request
that one or more Persons that are Eligible Assignees and that are approved by
the Agent (which approval shall not be unreasonably withheld) purchase all (but
not part) of the Affected Lender’s then outstanding Loans, and assume its Pro
Rata Share of the Revolving Credit Commitments and its obligations hereunder; provided
that such request may not be made, and the Agent and the Lenders shall have no
obligations under this Section 4.6(b), if and to the extent that
the basis for any such reimbursement or compensation with respect to such
Affected Lender is, in the judgment of the Agent, applicable to the Required
Lenders or has resulted or could reasonably be expected to result in any claim
for reimbursement or compensation under this Article 4 by the
Required Lenders.  If one or more such
Eligible Assignees so agree in writing (each, an “Assuming Lender,” and
collectively, the “Assuming Lenders”), the Affected Lender shall assign
its Pro Rata Share of the Revolving Credit Commitments, together with the

 

27

 

outstanding
Revolving Loans, to the Assuming Lender or Assuming Lenders in accordance with Section 11.2.  On the date of any such assignment, the
Affected Lender which is being so replaced shall cease to be a “Lender” for all
purposes of this Agreement and shall receive (x) from the Assuming Lender
or Assuming Lenders the principal amount of its outstanding Loans and (y) from
Borrowers all interest and fees accrued and then unpaid with respect to such
Loans, together with any other amounts then payable to such Lender by
Borrowers.

 

4.7           Super Priority Nature of
Obligations and Lenders’ Liens.

 

(a)           All Obligations shall constitute administrative expenses of the
Loan Parties in the Chapter 11 Cases, with administrative priority and
senior secured status under Sections 364(c) and 364(d) of the
Bankruptcy Code as set forth in the Interim Order and the Final Order.  The adequate protection Liens granted to the
Bank on behalf of itself and the Existing Lenders under the Third Amended and
Restated Credit Agreement shall be rolled up and replaced with the Liens
granted in connection with this Agreement and in each case such Liens shall be
subject to the Carve-Out and the Exceptions as provided herein.

 

(b)           Subject to the Carve-Out and any other amounts expressly provided
for in the Interim Order and the Final Order, the administrative claim in
connection with the Obligations shall have priority over all other costs and
expenses of the kinds specified in, or ordered pursuant to, Sections 105, 326,
328, 330, 331, 503(b), 506(c), 507(a), 507(b), 546(c), 726, 1114 or any other
provision of the Bankruptcy Code or otherwise, and shall at all times be senior
to the rights of the Loan Parties, the Loan Parties’ estates, and any successor
trustee or estate representative in the Chapter 11 Cases or any subsequent
proceeding or case under the Bankruptcy Code. 
The Liens granted to the Lenders on the Collateral owned by the Loan
Parties, and the priorities accorded to the Obligations shall have the priority
and senior secured status afforded by Sections 364(c) and 364(d)(l) of
the Bankruptcy Code (all as more fully set forth in the Interim Order and Final
Order) senior to all claims and interests (including, without limitation, the
Trust Estate Liens) other than the Exceptions. 
All of the Liens granted to the Agent on behalf of itself and on behalf
of the Existing Lenders with respect to the Third Amended and Restated Credit
Agreement (including, without limitation, the adequate protection liens granted
to the Agent on behalf of itself and on behalf of the Existing Lenders
(together with all Obligations (as defined in the Third Amended and Restated
Credit Agreement), including, without limitation, all indemnity, reimbursement
and other contingent obligations under the Third Amended and Restated Credit
Agreement that may or may not yet have been identified or asserted)) shall be
rolled up and replaced with the Liens granted in connection with this Agreement
and, in each case, such Liens and contingent obligations shall be subject to
the Carve-Out and the Exceptions.

 

28

 

(c)           The Agent’s Liens on the Collateral owned by the Loan
Parties and the Agent’s and the Lenders’ respective administrative claims under
Sections 364(c)(l) and 364(d) of the Bankruptcy Code afforded the
Obligations shall also have priority over any claims arising under Section 506(c) of
the Bankruptcy Code subject and subordinate only to (i) the Carve-Out and (ii) the
Exceptions; provided, that the Carve-Out shall not include any fees and
disbursements for the investigation of, preparation for, or commencement or
prosecution of, any claims or proceedings against (x) the Agent or the
Lenders or their claims or security interests in or Liens on, the Collateral
whether under this Agreement or any other Loan Document and (y) any agent
or lender under the Third Amended and Restated Credit Agreement or their claims
or security interests in connection with the Third Amended and Restated Credit
Agreement or any of the loan documents or instruments entered into in
connection therewith other than fees or disbursements of the Committee in
connection with such an investigation in an amount not to exceed ten thousand
Dollars $(10,000).  Any payment or
reimbursement made either directly by the Agent or any Lender at any time, or
by or on behalf of the Debtors on or after the occurrence of an Event of
Default or the Termination Date, in respect of any Post-Trigger Claims shall
permanently reduce the Carve-Out Cap on a dollar-for-dollar basis.  The Agent’s and the Lenders’ obligation to
fund or otherwise pay any fees or expenses under the Carve-Out shall be added
to and made a part of the Obligations, secured by the Collateral, and entitle
the Agent and the Lenders to all of the rights, claims, liens, priorities and
protections under this Applicable Order, the Loan Documents, the Bankruptcy
Code or applicable law.  Payment of any
fees or expenses under the Carve-Out, whether by or on behalf of the Agent or
any Lender, shall not and shall not be deemed to reduce the Obligations, and
shall not and shall not be deemed to subordinate any of the Agent’s and the
Lenders’ liens and security interests in the Collateral or their Superpriority
Claims (as defined in the Applicable Order) to any junior pre- or post-petition
lien, interest or claim in favor of any other party.  Except as otherwise provided herein with
respect to the Carve-Out, the Agent and the Lenders shall not, under any
circumstance, be responsible for the direct payment or reimbursement of any
fees or disbursements of any professionals incurred in connection with the Chapter
11 Cases under any chapter of the Bankruptcy Code, and nothing in this Interim
Order shall be construed to obligate the Agent or any Lender in any way, to pay
compensation to or to reimburse expenses of any professional, or to ensure that
the Borrowers have sufficient funds to pay such compensation or reimbursement.

 

(d)           Except as set forth herein or in the Final Order, no other
claim having a priority superior or pari  passu to that granted to
the Agent and the Lenders by the Final Order shall be granted or approved while
any Obligations under this Agreement remain outstanding.  Except for the Carve-Out, no costs or
expenses of administration shall be imposed against the Agent, the Lenders or
any of the Collateral or the Agent and any of the Lenders under the Third
Amended and Restated Credit Agreement or the Collateral (as defined in the
Third Amended and Restated Credit Agreement) under Sections 105, 506(c) or
552 of the Bankruptcy Code, or otherwise, and each of the Borrowers hereby
waives for itself and on behalf of its estate in bankruptcy, any and all rights
under Sections 105, 506(c) or 552, or otherwise, to assert or impose or
seek to assert or impose, any such costs or expenses of administration against
the Agent or the Lenders or the Agent or the Lenders under the Third Amended
and Restated Credit Agreement.

 

29

 

4.8         Payment of Obligations.  Upon the maturity (whether by acceleration or
otherwise) of any of the Obligations under this Agreement or any of the other
Loan Documents, the Lenders shall be entitled to immediate payment of such
Obligations without further application to or order of the Bankruptcy Court.

 

4.9         No Discharge; Survival of Claims.  Each Loan Party agrees that (a) the
Obligations (and all liens securing such Obligations) hereunder shall not be
discharged or released by the entry of an order confirming a plan of
reorganization in any Chapter 11 Case (and each Loan Party pursuant to Section 1141(d)(4) of
the Bankruptcy Code, hereby waives any such discharge or release) and (ii) the
super-priority administrative claim granted to the Agent and the Lenders
pursuant to the Interim Order and Final Order and described in Section 4.7,
and the Liens granted to the Agent pursuant to the Interim Order and Final
Order and described in Section 4.7, shall not be affected in any
manner by the entry of an order confirming a plan of reorganization in any
Chapter 11 Case, upon any conversion to a case under Chapter 7 of the
Bankruptcy Code, or upon dismissal of any bankruptcy case.

 

4.10       Release.  Each Loan Party hereby acknowledges,
effective upon entry of the Final Order, that the Loan Parties and any of their
Subsidiaries have no defense, counterclaim, offset, recoupment,
cross-complaint, claim or demand of any kind or nature whatsoever that can be
asserted to reduce or eliminate all or any part of the Loan Parties’ or their
Subsidiaries’ liability to repay the Agent or any Lender as provided in this
Agreement or in the Third Amended and Restated Credit Agreement or to seek
affirmative relief or damages of any kind or nature from the Agent or any
Lender.  The Loan Parties, on behalf of
their bankruptcy estates, and on behalf of all their successors, assigns, Subsidiaries
and any Affiliates and any Person acting for and on behalf of, or claiming
through them, hereby fully, finally and forever releases and discharges the
Agent and the Lenders and all of the Agent’s and the Lenders’ past and present
officers, directors, servants, agents, attorneys, other professionals, assigns,
heirs, parents, subsidiaries, and each Person acting for or on behalf of any of
them (collectively, the “Released Parties”) of and from any and all
actions, causes of action, demands, suits, claims, liabilities, Liens,
lawsuits, adverse consequences, amounts paid in settlement, costs, damages,
debts, deficiencies, diminution in value, disbursements, expenses, losses and
other obligations of any kind or nature whatsoever, whether in law, equity or
otherwise (including, without limitation, those arising under Sections 541
through 550 of the Bankruptcy Code and interest or other carrying costs,
penalties, legal, accounting and other professional fees and expenses, and
incidental, consequential and punitive damages payable to third parties),
whether known or unknown, fixed or contingent, direct, indirect, or derivative,
asserted or unasserted, foreseen or unforeseen, suspected or unsuspected,
existing on or prior to the Closing Date against any of the Released Parties,
whether held in a personal or representative capacity, and which are based on
any act, fact, event or omission or other matter, cause or thing occurring at
or from any time prior to and including the date hereof in any way, directly or
indirectly arising out of, connected with or relating to this Agreement, the
Interim Order, the Final Order, the transactions contemplated thereby, the
Third Amended and Restated Credit Agreement and the transactions contemplated
thereby, the parties’ Prepetition and Postpetition relationship, and all other
agreements, certificates, instruments and other documents and statements
(whether written or oral) related to any of the foregoing.

 

30

 

4.11       Waiver of any Priming Rights.  Upon the Closing Date, and on behalf of
themselves and their estates, and for so long as any Obligations shall be
outstanding, each Loan Party hereby irrevocably waives any right, pursuant to
Sections 364(c) or 364(d) of the Bankruptcy Code or otherwise, to
grant any Lien of equal or greater priority than the Liens securing the
Obligations, or to approve a claim of equal or greater priority than the
Obligations.

 

4.12       Survival.  The agreements and obligations of the
Borrowers in this Article 4 shall survive the payment of all other
Obligations.

 

ARTICLE 5

BOOKS AND RECORDS; FINANCIAL INFORMATION;
NOTICES

 

5.1         Books and Records.  Fleetwood shall, and shall cause each of its
Subsidiaries to maintain, at all times, correct and complete books, records and
accounts in which complete, correct and timely entries are made of its
transactions in accordance with GAAP applied consistently with the audited
Financial Statements required to be delivered pursuant to Section 5.2(a).  Fleetwood shall, and shall cause each of its
Subsidiaries to, by means of appropriate entries, reflect in such accounts and
in all Financial Statements proper liabilities and reserves for all taxes and
proper provision for depreciation and amortization of property and bad debts,
all in accordance with GAAP.  Fleetwood
shall, and shall cause each Loan Party to maintain at all times books and
records pertaining to the Collateral in such detail, form and scope as the
Agent or any Lender shall reasonably require, including, but not limited to,
records of (a) all payments received and all credits and extensions
granted with respect to the Accounts; (b) the return, rejection,
repossession, stoppage in transit, loss, damage, or destruction of any
Inventory; and (c) all other dealings affecting the Collateral in any
material respect.

 

5.2         Financial Information.  Fleetwood shall, and shall cause each of its
Subsidiaries to promptly furnish to each Lender, all such financial information
as the Agent shall reasonably request. 
Without limiting the foregoing, Fleetwood and the Borrowers will furnish
to the Agent, in sufficient copies for distribution by the Agent to each
Lender, in such detail as the Agent or the Lenders shall request, the
following:

 

(a)         As
soon as available, but in any event not later than ninety (90) days after the
close of each Fiscal Year, consolidated audited balance sheets, and income
statements, cash flow statements and changes in stockholders’ equity for
Fleetwood and its Subsidiaries for such Fiscal Year, and the accompanying notes
thereto, setting forth in each case in comparative form figures for the
previous Fiscal Year, all in reasonable detail, fairly presenting the financial
position and the results of operations of Fleetwood and its consolidated
Subsidiaries as at the date thereof and for the Fiscal Year then ended, and
prepared in accordance with GAAP.  Such
statements shall be examined in accordance with generally accepted auditing
standards by and, in the case of such statements performed on a consolidated basis,
accompanied by a report thereon unqualified in any respect of independent
certified public accountants selected by Fleetwood and reasonably 

 

31

 

satisfactory
to the Agent.  Fleetwood and the
Borrowers hereby authorize the Agent to communicate directly with their
certified public accountants and, by this provision, authorize those
accountants to disclose to the Agent any and all financial statements and other
supporting financial documents and schedules relating to Fleetwood and its
Subsidiaries and to discuss directly with the Agent, in the presence of
Fleetwood, the finances and affairs of Fleetwood and its Subsidiaries.

 

(b)         As
soon as available, but in any event not later than forty-five (45) days after
the end of the first three Fiscal Quarters of any Fiscal Year, consolidated
unaudited balance sheets of Fleetwood and its consolidated Subsidiaries as at
the end of such Fiscal Quarter, and consolidated unaudited income statements
and cash flow statements for Fleetwood and its consolidated Subsidiaries for
such Fiscal Quarter and for the period from the beginning of the Fiscal Year to
the end of such Fiscal Quarter, all in reasonable detail, fairly presenting the
financial position and results of operations of Fleetwood and its consolidated
Subsidiaries as at the date thereof and for such periods, and, in each case, in
comparable form, figures for the corresponding period in the prior Fiscal Year,
and prepared in accordance with GAAP applied consistently with the audited
Financial Statements required to be delivered pursuant to Section 5.2(a).  Fleetwood shall certify by a certificate
signed by its chief financial officer or chief accounting officer that all such
statements have been prepared in accordance with GAAP and present fairly the
financial position of Fleetwood and its Subsidiaries as at the dates thereof
and its results of operations for the periods then ended, subject to normal
year-end adjustments and to the absence of footnotes required by GAAP.

 

(c)         As
soon as available, but in any event no later than thirty (30) days (or, in the
case of the first fiscal month after the end of each Fiscal Year, sixty (60)
days) after the end of each fiscal month (other than any month which is also
the end of a Fiscal Quarter) after the Closing Date beginning with fiscal month
ending April 30, 2009, consolidated unaudited balance sheets of Fleetwood
and its consolidated Subsidiaries as at the end of such fiscal month, and
consolidated unaudited income statements and consolidated unaudited cash flow
statements for Fleetwood and its consolidated Subsidiaries for such fiscal
month and for the period from the beginning of the Fiscal Year to the end of
such fiscal month, all in reasonable detail, fairly presenting the financial
position and results of operations of Fleetwood and its consolidated
Subsidiaries as at the date thereof and for such periods, and, in each case, in
comparable form, figures for the corresponding period in the prior Fiscal Year,
and prepared in accordance with GAAP applied consistently with the audited
Financial Statements required to be delivered pursuant to Section 5.2(a);
provided that for fiscal month ending April 30, 2009, such
financial statements shall be for the period beginning March 10, 2009 and
ending April 30, 2009.  Fleetwood
shall certify by a certificate signed by its chief financial officer or chief
accounting officer that all such statements have been prepared in accordance
with GAAP and present fairly the financial position of Fleetwood and its
Subsidiaries as at the dates thereof and its results of operations for the
periods then ended, subject to normal year-end adjustments and the absence of
footnotes required by GAAP.

 

32

 

(d)         With
each of the audited Financial Statements delivered pursuant to Section 5.2(a),
a certificate of the independent certified public accountants that examined
such statement to the effect that they have reviewed and are familiar with this
Agreement and that, in examining such Financial Statements, they did not become
aware of any fact or condition which then constituted a Default or Event of
Default with respect to any covenant, except for those, if any, described in
reasonable detail in such certificate.

 

(e)         Within
forty-five (45) days after the end of each Fiscal Quarter, a certificate of the
chief financial officer, chief accounting officer, vice president-treasurer or
vice president-controller of Fleetwood stating that, except as explained in
reasonable detail in such certificate, (A) all of the representations and
warranties of the Loan Parties contained in this Agreement and the other Loan
Documents are correct and complete in all material respects as at the date of
such certificate as if made at such time, except for those that speak as of a particular
date, which shall have been true and correct as of such date, (B) the Loan
Parties are, at the date of such certificate, in compliance in all material
respects with all of their respective covenants and agreements in this
Agreement and the other Loan Documents, (C) no Default or Event of Default
then exists or existed during the period covered by the Financial Statements
for such Fiscal Quarter, (D) describing and analyzing in reasonable detail
all material trends, changes, and developments in each and all Financial
Statements; and (E) explaining the variances of the figures in the
corresponding Projections and prior Fiscal Year financial statements.  If any such certificate discloses that a
representation or warranty is not correct or complete, or that a covenant has
not been complied with, or that a Default or Event of Default existed or
exists, such certificate shall set forth what action Loan Parties have taken or
propose to take with respect thereto.

 

(f)          No
sooner than sixty (60) days prior to and not more than thirty (30) days after
the beginning of each Fiscal Year, annual forecasts (to include forecasted
consolidated balance sheets, income statements and consolidated cash flow
statements) for Fleetwood and its Subsidiaries as at the end of and for each
quarter of such Fiscal Year.

 

(g)         A
copy of each annual report or other filing filed with the PBGC or the IRS with
respect to each Plan of Fleetwood and its Subsidiaries (A) upon the
request of the Agent or (B) in the event such filing reflects a
significant change with respect to the matters covered thereby, within three (3) Business
Days after the filing thereof.

 

(h)         If
requested by the Agent, promptly upon the filing thereof, copies of all
reports, if any, to or other documents filed by Fleetwood or any of its
Subsidiaries with the Securities and Exchange Commission under the Exchange
Act, and all reports, notices, or statements sent or received by Fleetwood or
any of 

 

33

 

its
Subsidiaries to or from the holders of any equity interests of Fleetwood or any
of its Subsidiaries (other than routine non-material correspondence sent by
shareholders of Fleetwood to Fleetwood) or any such Subsidiary or of any Debt
of Fleetwood or any of its Subsidiaries registered under the Securities Act or
to or from the trustee under any indenture under which the same is issued.

 

(i)          As
soon as available, but in any event not later than fifteen (15) days after any
Loan Party’s receipt thereof, a copy of all management reports and management
letters prepared for any Loan Party by any independent certified public
accountants.

 

(j)          If
requested by the Agent, promptly after their preparation, copies of any and all
proxy statements, financial statements, and reports which Fleetwood makes
available to its shareholders.

 

(k)         If
requested by the Agent, promptly after filing with the IRS, a copy of each tax
return filed by Fleetwood or by any of its Subsidiaries.

 

(l)          No
later than Wednesday of each week, a schedule of the Borrowers’ Accounts
created, credits given, cash collected and other adjustments to Accounts since
the last schedule, together with a Borrowing Base Certificate as of the end of
the preceding week (a “Weekly Borrowing Base Certificate”) and all
supporting information in accordance with Section 9 of the Security
Agreement.

 

(m)        Not
later than fifteen (15) days after each Fiscal Quarter, a report, in form and
substance satisfactory to the Agent, with respect to the Repurchase
Obligations.

 

(n)         [RESERVED].

 

(o)         Such
additional information as any Agent and/or any Lender may from time to time
reasonably request regarding the financial and business affairs of Fleetwood or
any Subsidiary.

 

(p)         Concurrent
with the delivery of each Weekly Borrowing Base Certificate delivered
immediately prior the commencement of each fiscal month in accordance with Section 5.2(l), a
report listing forecasted Availability for such fiscal month and each
of the next two subsequent fiscal months thereafter in a form reasonably
satisfactory to the Agent.

 

(q)         Promptly following delivery or service
thereof, copies of all
monthly reports, projections, or other information respecting the Borrowers’ or
any Subsidiary of any Borrower’s business or financial condition or prospects
as well as all pleadings, motions, applications and judicial information filed
by or on behalf of the Borrowers with the Bankruptcy Court or provided
by or to the U.S. Trustee (or any monitor or interim receiver, if any,
appointed in any Chapter 11 Case) or the Committee, at the time such
document is filed with the Bankruptcy Court, or provided by or, to the U.S.
Trustee (or any monitor or interim receiver, if any, appointed in any
Chapter 11 Case) or the Committee.

 

34

 

(r)          On the date of this Agreement and no
later than by Thursday of the first Measurement Period and each subsequent
Measurement Period thereafter, a thirteen week cash flow budget covering such
week and the immediately following twelve weeks in form and substance satisfactory
to the Agent and the Required Lenders.

 

(s)         By
the end of the day four (4) Business Days following the last day of each
Measurement Period, a report stating whether the Borrowers are in
compliance with the conditions set forth in Section 7.22  together with supporting detail reasonably acceptable to
the Agent, which supporting detail shall include, without limitation,
statements of weekly and cumulative variances for the applicable six (6) Measurement
Period testing period in any Line Item for expenditures.

 

(t)          By
the end of the day four (4) Business Days following the Closing Date and,
thereafter, concurrent with the delivery of each Weekly Borrowing Base
Certificate delivered immediately prior the commencement of each fiscal month
in accordance with Section 5.2(l), a current report listing (i) the
date of expiration for all then
outstanding Letters of Credit, (ii) with respect to each such Letter of
Credit that contains “evergreen” or automatic renewal provisions, the Letter of
Credit Lender Indication Date and the Letter of Credit Issuer Indication Date
(in each case as defined in Section 1.4(b)), (iii) the status
of completion (including approximate percentage of completion) of each
underlying project (and phases thereof) in respect of which the beneficiary of
any Letter of Credit has issued of a letter of credit, surety bond, indemnity,
performance or other similar bond or instrument for the benefit of any Loan
Party, (iv) the estimated date of completion each such underlying project
(and phase thereof), (v) a description of anticipated additional projects
(and phases thereof) the effect of which is to increase the exposure of
the Letter of Credit Issuer under outstanding Letters
of Credit in respect of which the beneficiary thereof has issued of a letter of
credit, surety bond indemnity, performance or other similar bond or instrument
for the benefit of any Loan Party and (vi) the Borrowers’ calculation of
the face amount of any Letter of Credit in excess of the amount necessary to
cause the beneficiary thereof to issue the letters of credit, surety bonds,
indemnity, performance or other similar bonds or instrument for the benefit of
any Loan Party then outstanding or otherwise anticipated to be necessary in
connection with the existing and anticipated additional projects (and phases
thereof) described in clauses (iii), (iv) and (v) above.

 

5.3          Notices to the Lenders.  Fleetwood or the Borrowers shall notify the
Agent and the Lenders in writing of the following matters at the following
times:

 

(a)         Promptly,
and, in any event, within two (2) Business Days, after becoming aware of
any Default or Event of Default;

 

35

 

(b)         Promptly,
and, in any event, within two (2) Business Days, after becoming aware of
the assertion by the holder of any Capital Stock of Fleetwood or of any
Subsidiary or the holder of any Debt of Fleetwood or any Subsidiary in a face
amount in excess of one million Dollars ($1,000,000) that a default exists with
respect thereto or that Fleetwood or such Subsidiary is not in compliance with
the terms thereof, or the threat or commencement by such holder of any
enforcement action because of such asserted default or non-compliance; and
promptly, but, in any event within two (2) Business Days, after becoming
aware of the assertion that any Repurchase Obligations of five hundred thousand
Dollars ($500,000) or more payable in cash shall have become due and payable;

 

(c)         Promptly,
and, in any event, within two (2) Business Days, after becoming aware of
any event or circumstance (other than general economic trends) which could
reasonably be expected to have a Material Adverse Effect;

 

(d)         Promptly,
and, in any event, within two (2) Business Days, after becoming aware of
any pending or threatened action, suit, or proceeding, by any Person, or any
pending or threatened investigation by a Governmental Authority, other than in
connection with the Chapter 11 Cases, which if adversely determined would
reasonably be expected to have a Material Adverse Effect;

 

(e)         Promptly,
and, in any event, within two (2) Business Days, after becoming aware of
any pending or threatened strike, work stoppage, unfair labor practice claim,
or other labor dispute affecting Fleetwood or any of its Subsidiaries in a
manner which could reasonably be expected to have a Material Adverse Effect;

 

(f)          Promptly,
and, in any event, within two (2) Business Days, after becoming aware of
any violation of any law, statute, regulation, or ordinance of a Governmental
Authority affecting Fleetwood or any Subsidiary which could reasonably be
expected to have a Material Adverse Effect;

 

(g)         Promptly,
and, in any event, within two (2) Business Days, after receipt of any
notice of any violation by Fleetwood or any of its Subsidiaries of any Environmental
Law which could reasonably be expected to have a Material Adverse Effect or
that any Governmental Authority has asserted in writing that Fleetwood or any
Subsidiary is not in compliance in any material respect with any Environmental
Law or is investigating Fleetwood’s or such Subsidiary’s compliance therewith;

 

(h)         Promptly, and, in any
event, within two (2) Business Days, after receipt of any written notice
that Fleetwood or any of its Subsidiaries is or may be liable to any Person as
a result of the Release or threatened Release of any Contaminant or that
Fleetwood or any Subsidiary is subject to investigation by any Governmental
Authority evaluating whether any remedial action is needed to respond to the
Release or threatened Release of any Contaminant which, in either case, is reasonably likely to give
rise to liability in excess of one million Dollars ($1,000,000);

 

36

 

(i)          Promptly,
and, in any event, within two (2) Business Days, after receipt of any
written notice of the imposition of any Environmental Lien against any property
of Fleetwood or any of its Subsidiaries;

 

(j)          Any
change in any Loan Party’s name, state of organization, locations of
Collateral, or form of organization, trade names under which it will sell
Inventory or create Accounts, or to which instruments in payment of Accounts
may be made payable, in each case at least thirty (30) days prior thereto;

 

(k)         Within
ten (10) Business Days after Fleetwood or any ERISA Affiliate knows or has
reason to know, that an ERISA Event or a prohibited transaction (as defined in
Sections 406 of ERISA and 4975 of the Code) has occurred, and, when known, any
action taken or threatened by the IRS, the DOL or the PBGC with respect
thereto;

 

(l)          Upon
request, or, in the event that such filing reflects a significant change with
respect to the matters covered thereby, within three (3) Business Days
after the filing thereof with the PBGC, the DOL or the IRS, as applicable,
copies of the following:  (i) each
annual report (form 5500 series), including Schedule B thereto, filed with the
PBGC, the DOL or the IRS with respect to each Plan, (ii) a copy of each
funding waiver request filed with the PBGC, the DOL or the IRS with respect to
any Plan and all communications received by Fleetwood or any ERISA Affiliate
from the PBGC, the DOL or the IRS with respect to such request, and (iii) a
copy of each other filing or notice filed with the PBGC, the DOL or the IRS,
with respect to each Plan by either Fleetwood or any ERISA Affiliate;

 

(m)        Upon
request, copies of each actuarial report for any Plan or Multi-employer Plan
and annual report for any Multi-employer Plan; and within three (3) Business
Days after receipt thereof by Fleetwood or any ERISA Affiliate, copies of the
following:  (i) any notices of the
PBGC’s intention to terminate a Plan or to have a trustee appointed to
administer such Plan; (ii) any favorable or unfavorable determination
letter from the IRS regarding the qualification of a Plan under Section 401(a) of
the Code; or (iii) any notice from a Multi-employer Plan regarding the
imposition of withdrawal liability;

 

(n)         Within
three (3) Business Days after the occurrence thereof: (i) any changes
in the benefits of any existing Plan which increase the annual costs of
Fleetwood and its Subsidiaries with respect thereto by an amount in excess of
one million Dollars ($1,000,000) or the establishment of any new Plan or the
commencement of contributions to any Plan to which Fleetwood or any ERISA
Affiliate was not previously contributing; or (ii) any failure by
Fleetwood or any ERISA Affiliate to make a required installment or any other
required payment under Section 412 of the Code on or before the due date
for such installment or payment;

 

37

 

(o)         Within
three (3) Business Days after Fleetwood or any ERISA Affiliate knows or
has reason to know that any of the following events has or will occur:  (i) a Multi-employer Plan has been or
will be terminated; (ii) the administrator or plan sponsor of a
Multi-employer Plan intends to terminate a Multi-employer Plan; or (iii) the
PBGC has instituted or will institute proceedings under Section 4042 of
ERISA to terminate a Multi-employer Plan; or

 

(p)         On
or prior to the date that is five (5) Business Days prior to the date any
Loan Party is intended to enter into (i) any reimbursement obligation
relating to a letter of credit, surety
bond or similar instrument  in
respect of which (A) such Loan Party is to be an “obligor” and any third
party is to be an “obligee” and (B) such obligee is intended to be the
beneficiary under an existing or newly requested Letter of Credit; or (ii) any
other transaction or series of related transactions the effect of which is to
increase the exposure of the Letter of Credit Issuer or any Lender hereunder
under any existing or newly requested Letter of Credit (for the avoidance of
doubt, regardless of whether the Borrowers intend to seek an increase in the
face amount of any existing Letter of Credit otherwise in accordance with the
terms hereof).

 

Each notice
given under this Section 5.3 shall describe the subject matter
thereof in reasonable detail, and shall set forth the action that Fleetwood,
its Subsidiary, or any ERISA Affiliate, as applicable, has taken or proposes to
take with respect thereto.

 

ARTICLE 6

GENERAL WARRANTIES AND REPRESENTATIONS

 

Fleetwood and
the Borrowers warrant and represent to the Agent and the Lenders that except as
hereafter disclosed to and accepted by the Agent and the Required Lenders in
writing:

 

6.1         Authorization,
Validity, and Enforceability of this Agreement and the Loan Documents.  Upon the entry by the Bankruptcy Court of the
Interim Order (or the Final Order, when applicable), each Loan Party has the
power and authority to execute, deliver and perform this Agreement and the
other Loan Documents to which it is a party, to incur the Obligations, and to
grant to the Agent Liens upon and security interests in the Collateral.  Each Loan Party has taken all necessary action
(including obtaining approval of its stockholders if necessary) to authorize
its execution, delivery, and performance of this Agreement and the other Loan
Documents to which it is a party. 
Subject to the entry of the Interim Order (or the Final Order, when
applicable) by the Bankruptcy Court, this Agreement and the other Loan
Documents to which it is a party have been duly executed and delivered by each
Loan Party which is a party thereto, and constitutes the legal, valid and
binding obligations of such Loan Party, enforceable against it in accordance
with their respective terms, subject to the effect of bankruptcy, insolvency,
moratorium and other laws affecting the rights of creditors generally and to
the effect of general principles of equity. 
Upon entry by the Bankruptcy Court of the Interim Order (or the Final
Order, when applicable), each Loan Party’s execution, delivery, and performance
of this Agreement and the other Loan Documents to which it is a party do not
and will not conflict with, or constitute a violation or breach of, or result
in the imposition of any Lien upon the property of 

 

38

 

Fleetwood or any of its Subsidiaries, by
reason of the terms of (a) except as prohibited or excused by the Applicable
Order or by reason of commencement of the Chapter 11 Cases, any material
contract, mortgage, lease, agreement, indenture, or instrument to which
Fleetwood or any of its Subsidiaries is a party or which is binding upon it,
the breach of which could reasonably be expected to result in a Material
Adverse Effect, (b) any Requirement of Law applicable to Fleetwood or any
of its Subsidiaries, the violation of which could reasonably be expected to
result in a Material Adverse Effect or (c) the certificate or
articles of incorporation or by-laws or the limited liability company or
limited partnership agreement (or other organizational documents) of Fleetwood
or any of its Subsidiaries.

 

6.2         Validity and
Priority of Security Interest.  Upon
the entry by the Bankruptcy Court of the Interim Order (or the Final Order,
when applicable), the provisions of this Agreement, the Mortgages, and the
other Loan Documents (upon recordation thereof) create legal and valid Liens on
all the Collateral in favor of the Agent for the ratable benefit of the Agent
and the Revolving Credit Lenders and such Liens constitute perfected and
continuing Liens on all the Collateral, having priority over all other Liens on
the Collateral (subject to the Carve-Out and the Exceptions) securing all the
Obligations, and enforceable against the Loan Parties and all third
parties.  Upon the entry by the
Bankruptcy Court of the Interim Order (or the Final Order, when applicable),
the Liens on the Collateral shall constitute super-priority perfected Liens in
favor of the Agent, for the ratable benefit of the Agent and the Lenders,
except, in each case, (i) subject to the Exceptions, (ii) subject to
the Carve-Out and (iii) to the extent permitted by the Security
Agreement.  All of the Liens granted to
the Agent on behalf of itself and on behalf of the Existing Lenders with
respect to the Third Amended and Restated Credit Agreement (including, without
limitation, the adequate protection liens granted to the Agent on behalf of
itself and on behalf of the Existing Lenders (together with all Obligations (as
defined in the Third Amended and Restated Credit Agreement), including, without
limitation, all indemnity, reimbursement and other contingent obligations under
the Third Amended and Restated Credit Agreement that may or may not yet have
been identified or asserted)) shall be rolled up and replaced with the Liens
granted in connection with this Agreement and, in each case, such Liens and
contingent obligations shall be subject to the Carve-Out and the Exceptions.

 

6.3         Organization and
Qualification.  Each Loan Party (a) is
duly organized or incorporated and validly existing in good standing (except by
reason of the commencement of the Chapter 11 Cases) under the laws of the state
of its organization or incorporation, (b) is qualified to do business and
is in good standing (except by reason of the commencement of the Chapter 11
Cases) in the jurisdictions set forth on Schedule 6.3 hereto which are the only jurisdictions in
which qualification is material to the conduct of its business and (c) subject
to the entry of the Interim Order (or the Final Order, when applicable) by the
Bankruptcy Court and compliance with any applicable conditions of the
Bankruptcy Code, has all requisite power and authority to conduct its business
and to own its property.

 

6.4         Corporate Name;
Prior Transactions.  Except as set
forth on Schedule 6.4 hereto no
Loan Party has, during the five (5) years prior to the Closing Date, been
known by or used any other corporate or fictitious name, or been a party to any
merger or consolidation, or acquired all or substantially all of the assets of
any Person, or acquired any of its property outside of the ordinary course of
business.

 

39

 

6.5         Subsidiaries and Affiliates.  Schedule 6.5 hereto, and as the same may be amended after the Closing Date with
the consent of the Agent (such consent not to be unreasonably withheld,
conditioned or delayed), is a correct and complete list of the name and
relationship to Fleetwood of each and all of its Subsidiaries and, to the
knowledge of Fleetwood and the Borrowers, their other Affiliates.  Each Subsidiary which is not a Loan Party is (a) duly
incorporated or organized and validly existing in good standing (except by
reason of the commencement of the Chapter 11 Cases) under the laws of its state
of incorporation or organization set forth on Schedule 6.5 hereto, and as the same may be amended after
the Closing Date with the consent of the Agent (such consent not to be
unreasonably withheld, conditioned or delayed), and (b) qualified to do
business and in good standing in each jurisdiction in which the failure to so
qualify or be in good standing (except by reason of the commencement of the
Chapter 11 Cases) would reasonably be expected to have a material adverse
effect on any such Subsidiary’s business, operations, property, or condition
(financial or otherwise) and (c) has all requisite power and authority to
conduct its business and own its property. 
The aggregate amount of assets owned by the Subsidiaries of Fleetwood
that are identified as Inactive Subsidiaries as of the Closing Date on Schedule
6.5 is less than two hundred and fifty thousand Dollars ($250,000), the
revenues of each Subsidiary of Fleetwood that is identified as an Inactive
Subsidiary as of the Closing Date on Schedule 6.5 is less than one
million Dollars ($1,000,000) and none of the assets owned by the Subsidiaries
of Fleetwood that are identified as Inactive Subsidiaries or Excluded Subsidiaries
on Schedule 6.5 are included in the calculation of the Borrowing Base
pursuant to this Agreement.

 

6.6         Financial Statements and Projections.

 

(a)           Fleetwood
has delivered to the Agent and the Lenders the audited balance sheet and
related statements of income, retained earnings, cash flows, and changes in
stockholders equity for Fleetwood and its consolidated Subsidiaries as of April 28,
2008, accompanied by the report thereon of its independent certified public
accountants, Ernst & Young. 
Fleetwood has also delivered to the Agent and the Lenders the unaudited
balance sheet and related statements of income and cash flows for Fleetwood and
its consolidated Subsidiaries as of the fiscal month ending January 31,
2009.  Such financial statements are attached
hereto as Exhibit B.  All
such financial statements have been prepared in accordance with GAAP and
present accurately and fairly in all material respects the financial position
of Fleetwood and its consolidated Subsidiaries as at the dates thereof and
their results of operations for the periods then ended, subject in the case of
the unaudited statements to normal year end audit adjustments and to the
omission of footnotes required by GAAP.

 

(b)           The
Projections submitted to the Lenders on the date hereof and attached hereto as Schedule
6.6 represent the good faith estimate by the Borrowers of the future
financial performance of Fleetwood and its consolidated Subsidiaries for the
periods set forth therein.  Such
Projections have been prepared on the basis of the assumptions set forth
therein, which the Borrowers believe are fair and reasonable in light of
current and reasonably foreseeable business conditions at the time submitted to
the Lenders but include future payments of known contingent liabilities
disclosed to the Lenders.

 

40

 

6.7         Capitalization.  Schedule 6.7 hereto sets forth the capitalization of Fleetwood and its
Subsidiaries and all of the authorized and issued Capital Stock of each such Person.  All outstanding Capital Stock has been
validly issued, and is fully paid and non-assessable.  All of the Capital Stock of Subsidiaries is
owned, beneficially and of record, by the Person set forth on such Schedule
6.7.

 

6.8         [RESERVED].

 

6.9         Debt.  Fleetwood and its Subsidiaries have no Debt
on the Closing Date, except (a) the Obligations, (b) the Subordinated
Debt and the 2008 Senior Secured Debentures, in an aggregate original principal
amount outstanding on the Closing Date of not more than two hundred and
forty-two million six hundred thousand Dollars ($242,600,000), and the Trust
Securities also outstanding on the Closing Date, (c) the 2008 Mortgage
Debt, (d) Debt described on Schedule 6.9 hereto (which includes
Permitted Life Insurance Policy Debt), (e) Guaranties entered into in
accordance with Section 7.12 and (f) other Debt in an
aggregate amount of not more than five million Dollars ($5,000,000).

 

6.10       Distributions.  Since June 12, 2001, no Distribution has
been declared, paid, or made upon or in respect of any Capital Stock or other
securities of Fleetwood or any of its Subsidiaries, except as permitted by Section 7.10.

 

6.11       Real Estate; Leases.  Schedule 6.11 (i) sets forth, as
of the Closing Date, a correct and complete list of all Real Estate owned in
fee simple by Fleetwood or any of its Subsidiaries, all leases and subleases of
real or personal property held by Fleetwood or any of its Subsidiaries as
lessee or sublessee (other than leases of personal property as to which
Fleetwood or any of its Subsidiaries is lessee or sublessee for which the value
of such personal property covered by such lease in the aggregate is less than
five hundred thousand Dollars ($500,000)), and all leases and subleases of real
or personal property held by Fleetwood or any of its Subsidiaries as lessor, or
sublessor and (ii) accurately identifies all idle and non-idle Existing
Real Estate Subfacility Assets, all idle and non-idle Additional Real Estate
Subfacility Assets, the Closing Date Encumbered Real Estate Asset, Real Estate
assets owned by the entities constituting the Fleetwood Travel Trailers
Division, Real Estate assets owned by the entities constituting the
Manufactured Homes Division and Real Estate assets owned by the entities
constituting the Motor Homes Division. 
Each of such leases and subleases is valid and enforceable in accordance
with its terms and is in full force and effect, and to the knowledge of
Fleetwood and the Borrowers no material default by any party to any such lease
or sublease exists.  Fleetwood and its
Subsidiaries have good and marketable title in fee simple to the Real Estate
identified on Schedule 6.11 as owned by Fleetwood or any of its
Subsidiaries, or valid leasehold interests in all Real Estate designated
therein as “leased” by Fleetwood or any of its Subsidiaries and Fleetwood and
its Subsidiaries have good, indefeasible, and merchantable title to all of its
other property reflected on the most recent Financial Statements delivered to
the Agent and the Lenders, except as disposed of in the ordinary course of
business or as otherwise permitted by Section 7.9 since the date
thereof, free of all Liens except Permitted Liens.

 

6.12       Proprietary Rights.  Schedule 6.12 hereto and as the same may be amended after the Closing Date with
the consent of the Agent (such consent not to be unreasonably withheld,
conditioned or delayed), sets forth a correct and complete list of all of the
Proprietary 

 

41

 

Rights of the Loan Parties that are material to the conduct of the
businesses of the Loan Parties (other than commercially available third party
software).  As of the Closing Date, none
of such Proprietary Rights is subject to any licensing agreement or similar
arrangement except as set forth on Schedule 6.12 and as the same may be
amended after the Closing Date with the consent of the Agent (such consent not
to be unreasonably withheld).  To the
knowledge of Fleetwood and the Borrowers, none of the Proprietary Rights infringes
on or conflicts with any other Person’s property, and, to the knowledge of
Fleetwood and the Borrowers no other Person’s property infringes on or
conflicts with such Proprietary Rights, except in each case where such
infringement or conflict could not reasonably be expected to result in a
Material Adverse Effect.  The Proprietary
Rights described on Schedule 6.12 and as the same may be amended after
the Closing Date with the consent of the Agent (such consent not to be
unreasonably withheld), constitute all of the property of such type material to
the current and anticipated future conduct of the business of the Loan Parties.

 

6.13       Trade Names.  All material trade names or styles under
which any Loan Party will sell Inventory or create Accounts, or to which
instruments in payment of Accounts may be made payable, are listed on Schedule 6.13 hereto.

 

6.14       Litigation.  Other than the Chapter 11 Cases and except as
set forth on Schedule 6.14 and as
the same may be amended after the Closing Date with the consent of the Agent
(such consent not to be unreasonably withheld), there is no pending, or to the
best knowledge of Fleetwood and the Borrowers threatened, action, suit,
proceeding, or counterclaim by any Person, or to the best knowledge of
Fleetwood and the Borrowers, investigation by any Governmental Authority, which
could reasonably be expected to have a Material Adverse Effect.

 

6.15       Labor Disputes.  Except as set forth on Schedule 6.15 hereto (a) there is no collective
bargaining agreement or other labor contract covering employees of Fleetwood or
any of its Subsidiaries, (b) no such collective bargaining agreement or
other labor contract is scheduled to expire during the term of this Agreement, (c) no
union or other labor organization is seeking to organize, or to be recognized
as, a collective bargaining unit of employees of Fleetwood or any of its
Subsidiaries or for any similar purpose, and (d) there is no pending or
(to the best knowledge of the Borrowers) threatened, strike, work stoppage,
material unfair labor practice claim, or other material labor dispute against
or affecting Fleetwood or its Subsidiaries or their employees.

 

6.16       Environmental Laws.  Except as otherwise disclosed on Schedule
6.16 hereto:

 

(a)           Fleetwood
and its Subsidiaries have complied in all material respects with all
Environmental Laws and neither Fleetwood nor any Subsidiary nor any of its
presently owned real property or presently conducted operations, nor its
previously owned real property or prior operations, is subject to any
enforcement order from or liability agreement with any Governmental Authority
or private Person respecting (i) compliance with any Environmental Law or (ii) any
potential liabilities and costs or remedial action arising from the Release or
threatened Release of a Contaminant.

 

42

 

(b)         Fleetwood
and its Subsidiaries have obtained all permits necessary for their current
operations under Environmental Laws, the absence of which could reasonably be
expected to have a Material Adverse Effect, and all such permits are in good
standing and Fleetwood and its Subsidiaries are in compliance with all material
terms and conditions of such permits.

 

(c)         Neither
Fleetwood nor any of its Subsidiaries, nor, to the best knowledge of Fleetwood
and the Borrowers, any of its predecessors in interest, has stored, treated or
disposed of any hazardous waste in violation of applicable law, except for any
such violation as could not reasonably be expected to have a Material Adverse
Effect.

 

(d)         Neither Fleetwood
nor any of its Subsidiaries has, as of the Closing Date, received any summons,
complaint, order or similar written notice indicating that it is not currently
in compliance with, or that any Governmental Authority is investigating its
compliance with, any Environmental Laws or that it is or may be liable to any
other Person as a result of a Release or threatened Release of a Contaminant.

 

(e)         To the best
knowledge of Fleetwood and the Borrowers, as of the Closing Date, none of the
present or past operations of Fleetwood and its Subsidiaries is the subject of
any investigation by any Governmental Authority evaluating whether any remedial
action is needed to respond to a Release or threatened Release of a
Contaminant.

 

(f)          There
is not now, nor to the best knowledge of Fleetwood and the Borrowers has there
ever been on or in the Real Estate currently owned or leased by Fleetwood and
its Subsidiaries:

 

(i)              any
underground storage tanks or other than those maintained and/or closed in
compliance in all material respects with applicable laws or surface
impoundments,

 

(ii)             any
asbestos-containing material that is friable, except such as has been removed
in compliance in all material respects with Environmental Laws, or

 

(iii)            any
polychlorinated biphenyls (PCBs) used in hydraulic oils, electrical
transformers or other equipment, other than those maintained in compliance in
all material respects with Environmental Laws.

 

(g)         Neither
Fleetwood nor any of its Subsidiaries has filed any notice under any
requirement of Environmental Law reporting a spill or accidental and
unpermitted Release or discharge of a Contaminant into the environment.

 

(h)         Neither
Fleetwood nor any of its Subsidiaries has entered into any negotiations or
settlement agreements with any Person (including the prior owner of its
property) imposing material obligations or liabilities on Fleetwood or any of
its Subsidiaries with respect to any remedial action in response to the Release
of a Contaminant or environmentally related claim.

 

43

 

(i)          None
of the products currently manufactured, distributed or sold by Fleetwood or any
of its Subsidiaries contain asbestos containing material.

 

(j)          No
Environmental Lien has attached to the Real Estate owned or leased by Fleetwood
and its Subsidiaries.

 

6.17         No Violation of Law.  Neither Fleetwood nor any of its Subsidiaries
is in violation of any law, statute, regulation, ordinance, judgment, order, or
decree applicable to it which violation could reasonably be expected to have a
Material Adverse Effect.

 

6.18         No Default.  Except for defaults and cross-defaults
arising solely by reason of filing the Chapter 11 Cases, and defaults and
cross-defaults set forth on Schedule 6.18, neither Fleetwood nor any of
its Subsidiaries is in default with respect to any note, indenture, loan
agreement, mortgage, lease, deed, or other agreement to which Fleetwood or such
Subsidiary is a party or by which it is bound, which default could reasonably
be expected to have a Material Adverse Effect (other than merely a Material
Adverse Effect on the financial condition of the Fleetwood or its Subsidiary
arising solely by reason of the creation of an unsecured prepetition claim).

 

6.19           ERISA Compliance.  Except as specifically disclosed in Schedule
6.19 hereto:

 

(a)         Each Plan
is in compliance in all material respects with the applicable provisions of
ERISA, the Code and other federal or state law. 
Each Plan which is intended to qualify under Section 401(a) of
the Code has received a favorable determination letter from the IRS and to the
best knowledge of Fleetwood and the Borrowers, nothing has occurred which would
cause the loss of such qualification. 
Fleetwood and each ERISA Affiliate has made all required contributions
to any Plan subject to Section 412 of the Code, and no application for a
funding waiver or an extension of any amortization period pursuant to Section 412
of the Code has been made with respect to any Plan.

 

(b)         There are
no pending or, to the best knowledge of Fleetwood and Borrowers, threatened
claims, actions or lawsuits, or action by any Governmental Authority, with
respect to any Plan which has resulted or could reasonably be expected to
result in a Material Adverse Effect. 
There has been no prohibited transaction or violation of the fiduciary
responsibility rules with respect to any Plan which has resulted or could
reasonably be expected to result in a Material Adverse Effect.

 

(c)         (i) Other
than an ERISA Event consisting of either the filing of the Chapter 11 Cases or
the liquidation of any Loan Party subject to the Chapter 11 Cases, no ERISA
Event has occurred or is reasonably expected to occur; (ii) no Pension
Plan has any Unfunded Pension Liability; (iii) neither Fleetwood nor any
ERISA Affiliate has incurred, or reasonably expects to incur, any liability
under 

 

44

 

Title IV of
ERISA with respect to any Pension Plan (other than premiums due and not
delinquent under Section 4007 of ERISA); (iv) neither Fleetwood nor
any ERISA Affiliate has incurred, or reasonably expects to incur, any liability
(and no event has occurred which, with the giving of notice under Section 4219
of ERISA, would result in such liability) under Section 4201 or 4243 of
ERISA with respect to a Multi-employer Plan; and (v) neither Fleetwood nor
any ERISA Affiliate has engaged in a transaction that could be subject to Section 4069
or 4212(c) of ERISA.

 

6.20       Taxes.  Fleetwood and its Subsidiaries have filed all
federal income and other material federal, provincial, state and other tax
returns required by law to be filed, and have paid all federal income and other
material taxes, assessments, fees and other governmental charges levied or
imposed upon them or their properties, income or assets otherwise due and
payable unless such unpaid taxes and assessments would constitute a Permitted
Lien or are being contested in good faith by appropriate proceedings.  Fleetwood and its Subsidiaries have withheld
and paid over all taxes required to have been withheld and paid over, and
complied in all material respects with all information reporting requirements
in connection with amounts paid or owing, to any employee, creditor,
independent contractor or other third party.

 

6.21       Regulated Entities.  None of Fleetwood, any Person controlling
Fleetwood, or any Subsidiary, is an “Investment Company” within the meaning of
the Investment Company Act of 1940.  No
Loan Party is subject to regulation under the Public Utility Holding Company
Act of 1935, the Federal Power Act, the Interstate Commerce Act, any state
public utilities code or law, or any other federal or state statute or
regulation limiting its ability to incur indebtedness.

 

6.22       Use of Proceeds; Margin
Regulations.  The
proceeds of the Loans are to be used solely to (i) pay fees in connection
with the senior secured, super-priority revolving credit facility set forth in
this Agreement, (ii) issue and/or maintain Letters of Credit in accordance
with Section 1.4, (iii) provide Credit Support in connection
with such Letters of Credit, (iv) fund the ongoing post-petition working
capital needs and other general corporate purposes of the Borrowers, (v) pay
expenses constituting the Carve-Out and (vi) fund the payment of such
pre-petition and other out of the ordinary course of business expenses of the
Borrowers as may be approved by the Bankruptcy Court, including permitted
capital expenditures, priority employee wage claims, and expenses associated
with the assumption of executory contracts and unexpired leases, in each case
in amounts not to exceed in any weekly period the amounts in the Approved
Budget subject to any variances permitted by Section 7.22(b) of
this Agreement (for the avoidance of doubt, it being understood and agreed that
the
presence of any “basket” or “carve-out” set forth in any negative covenant
contained in Section 7 shall not be, and shall not be deemed to be,
an approval or acceptance by the Agent or any Lender of any Line Item in any
Approved Budget, or portion thereof, related to cash expenditures of the type
described in such “basket” or “carve-out,” which shall remain subject to the
approval rights of Agent and the Required Lenders with respect to each Approved
Budget as set forth herein and in the Applicable Order).  The proceeds of the Loans are not to be used
for: (a) the payment of
interest and principal with respect to any Debt (other than Debt incurred under
this Agreement), including, without limitation, the Subordinated Debt, the 2008
Senior Secured Debentures or the 2008 Mortgage Debt, (b) to finance in any
way any adversary action, suit, arbitration, proceeding, application, motion or
other litigation of any type relating to or in connection with the Third 

 

45

 

Amended and Restated Credit Agreement
or any of the loan documents or in instruments entered into in connection
therewith, including, without limitation, any challenges to the Obligations (as
defined in the Third Amended and Restated Credit Agreement) under the Third
Amended and Restated Credit Agreement, or the validity, perfection, priority,
or enforceability of any Lien securing such claims or any payment made
thereunder, (c) to finance in any way any action, suit, arbitration,
proceeding, application, motion or other litigation of any type adverse to the
interests of the Agent and the Lenders or their rights and remedies under this
Agreement, the other Loan Documents, the Interim Order or the Final Order, (d) to
make any distribution under a plan of reorganization in any of the Chapter 11
Cases without the prior written consent of the Agent and the Required Lenders
and (e) to make any payment (in the aggregate, together with all other
such payments) in excess of three hundred thousand Dollars ($300,000) in
settlement of any claim, action or proceeding, before any court, arbitrator or
other governmental body without the prior written consent of the Agent and the
Required Lenders; provided that nothing in this subclause (e) shall
prevent the Borrowers from assuming or curing executory contracts and unexpired
leases subject to an order of the Bankruptcy Court if otherwise permitted
hereunder.  Neither Fleetwood nor any
Subsidiary is engaged in the business of purchasing or selling Margin Stock or
extending credit for the purpose of purchasing or carrying Margin Stock.

 

6.23       Copyrights, Patents,
Trademarks and Licenses, etc.  Each Loan Party owns or is licensed or
otherwise has the right to use all of the patents, trademarks, service marks,
trade names, copyrights, contractual franchises, licenses, rights of way,
authorizations and other rights that are reasonably necessary for the operation
of its businesses, without known conflict in any material respect with the
rights of any other Person.  To the knowledge
of Fleetwood and the Borrowers, no slogan or other advertising device, product,
process, method, substance, part or other material now employed, or now
contemplated to be employed, by Fleetwood or any Subsidiary infringes upon any
rights held by any other Person in any manner that could reasonably be expected
to result in a Material Adverse Effect. 
No claim or litigation regarding any of the foregoing is pending or, to
the knowledge of Fleetwood and the Borrowers, threatened, and to the knowledge
of Fleetwood and the Borrowers no patent, invention, device, application,
principle or any statute, law, rule, regulation, standard or code is pending
or, to the knowledge of Fleetwood and the Borrowers, proposed, which, in either
case, could reasonably be expected to have a Material Adverse Effect.

 

6.24       No Material Adverse Change.  Other than the commencement of the Chapter 11
Cases and other than the cessation of existence or operations of, the winding
up of or the dissolution of or sale of assets of the Fleetwood Travel Trailers
Division, no Material Adverse Effect has occurred since January 31, 2008; provided that it is understood and agreed that for purposes
solely of this Section 6.24 and the delivery of any certificate
signed by a Responsible Officer to the effect, or substantially to the effect,
that (i) the representations and warranties contained in this Agreement
are correct in all material respects, (ii) no event has occurred and is
continuing which constitutes a Default or an Event of Default, or (iii) no
event has occurred and is continuing which has had or would have a Material
Adverse Effect (and not, for the avoidance of doubt any other provisions
hereunder, including without limitation, Section 9.1(m) and
whether or not the Agent or Lenders can assert a Default or Event of Default
has occurred or is continuing thereunder).

 

46

 

6.25       Full Disclosure.  None of the representations or warranties
made by Fleetwood or any Subsidiary in the Loan Documents as of the date such
representations and warranties are made or deemed made, and none of the
statements contained in any exhibit, report, written statement or certificate
furnished by or on behalf of Fleetwood or any Subsidiary in connection with the
Loan Documents (including the offering and disclosure materials delivered by or
on behalf of Fleetwood or any of its Subsidiaries to the Lenders prior to the
Closing Date), contains any untrue statement of a material fact or, when
considered as a whole, omits any material fact required to be stated therein or
necessary to make the statements made therein, in light of the circumstances
under which they are made, not misleading as of the time when made or
delivered.

 

6.26       Material Agreements.  There are no agreements, contracts and other
documents that are material to Fleetwood and its Subsidiaries other than the
Material Contracts.

 

6.27       Bank Accounts.  Schedule 6.27 hereto contains a complete and accurate list of all bank accounts
maintained by any Loan Party with any bank or other financial institution.  The Borrowers acknowledge and agree that Schedule
6.27 is substantially the same as the Borrowers’ Prepetition cash
management system as approved by the Cash Management Order and that such
system, including all accounts established thereto, shall continue to govern
the rights of the respective parties thereto, and shall be applicable under
this Agreement, subject to any modifications contemplated in the Cash
Management Order.

 

6.28       Governmental Authorization.  Upon the entry of the Interim Order (or the
Final Order, when applicable) and except for filings expressly contemplated by
the Loan Documents, no approval, consent, exemption, authorization, or other
action by, or notice to, or filing with, any Governmental Authority or other
Person is necessary or required in connection with the execution, delivery or
performance by, or enforcement against, Fleetwood or any of its Subsidiaries of
this Agreement or any other Loan Document.

 

6.29       Senior Indebtedness.  All Obligations of Fleetwood under the Loan Documents
are “Senior Indebtedness” under the 2003 Subordinated Debentures.  All Obligations of Fleetwood under this
Agreement and the other Loan Documents to the extent such Obligations are (A) liabilities
of Fleetwood for borrowed money or under any reimbursement obligation relating
to a letter of credit, surety bond or similar instrument, or (B) liabilities
of Fleetwood evidenced by a bond, note, debenture or similar instrument, or (C) liabilities
of others described in the preceding clauses (A) and (B) that
Fleetwood has guaranteed or that are otherwise its legal liability, or (D) deferrals
renewals, extensions or refundings of any liability of the types referred to in
clauses (A), (B) and (C) above, are “Senior
Indebtedness” under the 1998 Subordinated Debentures and Fleetwood’s guaranty
of the Trust Securities.  All Obligations
of Fleetwood and its Subsidiaries under this Agreement and the other Loan
Documents, and all rights of contribution, indemnity, subrogation and
reimbursement relating to the Obligations of any Loan Party with respect to
Fleetwood and any other Obligations of Fleetwood and its Subsidiaries secured
by any Loan Documents (including, without limitation, all debts, liabilities and obligations now or hereafter arising from or in
connection with Bank Products), (i) are “Senior Debt” and “Designated
Senior Debt” under the 2008 Senior Secured Debentures and “Priority Lien Debt”
under the 2008 Intercreditor Agreement and (ii) were permitted by the
indenture 

 

47

 

governing the 2008 Senior Secured Debentures and the 2008 Intercreditor
Agreement to be incurred and secured under and pursuant to the Loan Documents.

 

6.30       Reorganization Matters.

 

(a)           The Chapter 11 Cases were commenced on the Petition Date in
accordance with applicable law and proper notice thereof and the hearings for
the approval of the Interim Order and Final Order has been given.  The Loan Parties shall give, on a timely
basis as specified in the Interim Order or the Final Order, as applicable, all
notices required to be given to all parties specified in the Interim Order or
Final Order, as applicable.

 

(b)           After the entry of the Interim Order, and pursuant to and to
the extent permitted in the Interim Order and the Final Order, the Obligations
will constitute allowed administrative expense claims in the Chapter 11 Cases
having priority over all administrative expense claims and unsecured claims
against the Loan Parties now existing or hereafter arising, of any kind
whatsoever, including, without limitation, all Trust Estate Liens, all
administrative expense claims of the kind specified in Sections 105, 326, 330,
331, 503(b), 506(c), 507(a), 507(b), 546(c), 726, 1114 or any other provision
of the Bankruptcy Code or otherwise, as provided under Section 364(c)(l) of
the Bankruptcy Code, subject, as to priority only, to (i) the Carve-Out
and (ii) the Exceptions.

 

(c)           After the entry of the Interim Order and pursuant to and to
the extent provided in the Interim Order and the Final Order, the Obligations
will be secured by a valid and perfected first priority Lien on all of the
Collateral at all times senior to the Trust Estate Liens and subject, as to
priority only, to (i) the Carve-Out and (ii) the Exceptions.

 

(d)           The Interim Order (with respect to the period prior to entry
of the Final Order) or the Final Order (with respect to the period on and after
entry of the Final Order), as the case may be, will be in full force and effect
has not been reversed, stayed, modified or amended without the consent of the
Agent.

 

(e)           Notwithstanding the provisions of Section 362
of the Bankruptcy Code, and subject to the applicable provisions of the
Applicable Order upon the maturity (whether by acceleration or otherwise) of
any of the Obligations, the Agent and the Lenders shall be entitled to
immediate payment of such Obligations and, upon five (5) Business Days’
prior written notice to the Borrowers, to enforce the remedies provided for
hereunder or under applicable law, without further application to or order by
the Bankruptcy Court.

 

ARTICLE 7

AFFIRMATIVE AND NEGATIVE COVENANTS

 

Fleetwood and the Borrowers
covenant to the Agent and each Lender that until the payment in full in cash of
all of the Obligations:

 

48

 

7.1           Taxes and Other Obligations.  Except as prohibited or excused by the
Interim Order with respect to the period prior to the entry of the Final Order
and the Final Order with respect to the period on and after entry of the Final
Order, the Bankruptcy Code or by reason of commencement of the Chapter 11
Cases, Fleetwood shall, and shall cause each of its Subsidiaries to, (a) file
when due (subject to any extensions thereof) all tax returns and other reports
which it is required to file; (b) pay, or provide for the payment, when
due (subject to permitted extensions), of all material taxes, fees, assessments
and other governmental charges against it or upon its property, income and
franchises, make all required withholding and other tax deposits, and establish
adequate reserves for the payment of all such items, and provide to the Agent
and the Lenders, upon request, satisfactory evidence of its timely compliance
with the foregoing; and (c) pay when due all Debt owed by it and all
claims of materialmen, mechanics, carriers, warehousemen, landlords, processors
and other like Persons, and all other indebtedness owed by it if failure to pay
such Debt or such claims would otherwise result in an Event of Default and
perform and discharge in a timely manner all other obligations undertaken by
it; provided, however, so long as Fleetwood has notified the
Agent in writing, neither Fleetwood nor any of its Subsidiaries need pay any
amount pursuant to clauses (b) or (c) above (i) it
is contesting in good faith by appropriate proceedings diligently pursued, (ii) as
to which Fleetwood or its Subsidiary, as the case may be, has established
proper reserves as required under GAAP, and (iii) the nonpayment of which
does not result in the imposition of a Lien (other than a Permitted Lien).

 

7.2           Legal Existence and Good
Standing.  Except as
occasioned by the Chapter 11 Cases, Fleetwood shall, and shall cause each other
Loan Party to, maintain its legal existence (except as permitted by Section 7.9)
and, except during the pendancy of the Chapter 11 Cases, its qualification and
good standing in all jurisdictions in which the failure to maintain such
existence and qualification or good standing would reasonably be expected to
have a Material Adverse Effect.

 

7.3           Compliance with Law and
Agreements; Maintenance of Licenses.  Except as prohibited or excused by the
Interim Order with respect to the period prior to the entry of the Final Order
and the Final Order with respect to the period on and after entry of the Final
Order, the Bankruptcy Code or by reason of commencement of the Chapter 11
Cases, Fleetwood shall comply, and shall cause each Subsidiary to comply, in
all material respects with all Requirements of Law of any Governmental
Authority having jurisdiction over it or its business (including the Federal
Fair Labor Standards Act and all Environmental Laws).  Except as prohibited or excused by the
Interim Order with respect to the period prior to the entry of the Final Order
and the Final Order with respect to the period on and after entry of the Final
Order, the Bankruptcy Code or by reason of commencement of the Chapter 11
Cases, Fleetwood shall, and shall cause each of its Subsidiaries to, obtain and
maintain all licenses, permits, franchises, and governmental authorizations necessary
to own its property and to conduct its business as conducted on the Closing
Date, except where the failure to obtain or maintain such licenses, franchises
and governmental authorizations could not reasonably be expected to have a
Material Adverse Effect.  Fleetwood shall
not, and shall not permit any of its Subsidiaries to, modify, amend or alter
its certificate or articles of incorporation, or its limited liability company
operating agreement, limited partnership agreement or other organizational
documents, as applicable, other than in a manner which does not adversely
affect the rights of the Lenders or the Agent.

 

49

 

7.4                                 Maintenance of Property; Inspection of
Property.

 

(a)                                  Fleetwood shall, and shall cause each of its Subsidiaries to,
maintain all of its property necessary and useful in the conduct of its
business, in good operating condition and repair, ordinary wear and tear
excepted and except where the failure to maintain any such property would not
reasonably be expected to have a Material Adverse Effect.

 

(b)                                 Fleetwood shall, and shall cause each of the Loan Parties to,
permit representatives and independent contractors of the Agent (at the expense
of the Borrowers and not to exceed two (2) times per year unless an Event
of Default has occurred and is continuing) to visit and inspect any of its
properties, to examine its corporate, financial and operating records, and make
copies thereof or abstracts therefrom and to discuss its affairs, finances and
accounts with its directors, officers and independent public accountants (and,
in the case of discussions with the Borrowers’ accountants, with the Borrowers
present), at such reasonable times during normal business hours and as soon as
may be reasonably desired, upon reasonable advance; provided, however,
that representatives and independent contractors of each Lender may, at such
Lender’s own expense, accompany the Agent’s representatives and independent
contractors on such visits and inspections. 
Notwithstanding the foregoing, when an Event of Default exists, the
Agent or any Lender may do any of the foregoing at the expense of the Borrowers
at any time during normal business hours and without advance notice.

 

7.5                                 Insurance.

 

(a)                                  Fleetwood shall maintain, and shall cause each of its
Subsidiaries to maintain, with financially sound and reputable insurers having
a rating of at least A+ or better by Best Rating Guide, insurance against loss
or damage by fire with extended coverage; theft, burglary, pilferage and loss
in transit; public liability and third party property damage; larceny,
embezzlement or other criminal liability; business interruption; public
liability and third party property damage; and such other hazards or of such
other types as is customary for Persons engaged in the same or similar
business, in amounts customary for Persons engaged in the same or similar
business, and under policies acceptable to the Agent and the Required
Lenders.  Without limiting the foregoing,
in the event that any improved Real Estate covered by the Mortgages is
determined to be located within an area that has been identified by the
Director of the Federal Emergency Management Agency as a Special Flood Hazard
Area (“SFHA”), the applicable Loan Party shall purchase and maintain
flood insurance on the improved Real Estate and any Equipment and Inventory
located on such Real Estate to the extent required by applicable law.  The amount of said flood insurance will be
reasonably determined by the Agent, and shall, at a minimum, comply with
applicable federal regulations as required by the Flood Disaster Protection Act
of 1973, as amended.  Except as otherwise
approved by the Agent, the Loan Parties shall also maintain flood insurance for
all Inventory and Equipment which is, at any time, located in a SFHA.

 

50

 

(b)                                 Fleetwood shall cause the Agent, for the ratable benefit of
the Agent and the Lenders, to be named as secured party or mortgagee and sole
loss payee or additional insured (subject to a provision, in form and substance
reasonably acceptable to the Agent, that as to Mortgaged Property, the trustee
or agent for the 2008 Senior Secured Debentures may be named as a subordinate
secured party or mortgagee and loss payee or additional insured), with respect
to insurance policies to the extent of their coverage of Collateral, in a
manner acceptable to the Agent.  Each
policy of insurance shall contain a clause or endorsement requiring the insurer
to give not less than thirty (30) days’ prior written notice to the Agent in
the event of cancellation of the policy for any reason whatsoever and a clause
or endorsement stating that the interest of the Agent shall not be impaired or
invalidated by any act or neglect of Fleetwood or any of its Subsidiaries or
the owner of any Real Estate for purposes more hazardous than are permitted by
such policy.  All premiums for such
insurance shall be paid by Fleetwood and its Subsidiaries when due, and
certificates of insurance and, if requested by the Agent or any Lender,
photocopies of the policies, shall be delivered to the Agent, in each case in
sufficient quantity for distribution by the Agent to each of the Lenders.  If Fleetwood and its Subsidiaries fail to
procure such insurance or to pay the premiums therefor when due, the Agent may,
and at the direction of the Required Lenders shall, do so from the proceeds of
Revolving Loans.

 

7.6                                 Insurance and
Condemnation Proceeds.  The
Borrowers shall promptly notify the Agent and the Lenders of any material loss,
damage, or destruction to the Collateral, whether or not covered by
insurance.  The Agent is hereby
authorized to collect all insurance and condemnation proceeds in respect of
Collateral directly and to apply or remit them as follows:

 

(a)                                  With respect to insurance and condemnation proceeds relating
to Collateral other than Fixed Assets, after deducting from such proceeds the
reasonable expenses, if any, incurred by the Agent in the collection or
handling thereof, the Agent shall apply such proceeds to the Revolving Loans.

 

(b)                                 With respect to insurance and condemnation proceeds relating
to Collateral consisting of Fixed Assets, the Agent shall permit or require the
Loan Parties to use such proceeds, or any part thereof, to replace, repair,
restore or rebuild the relevant Fixed Assets in a diligent and expeditious
manner with materials and workmanship of substantially the same quality as
existed before the loss, damage or destruction so long as (1) no Default
or Event of Default has occurred and is continuing and (2) the Loan
Parties first (i) provide the Agent and the Required Lenders with plans
and specifications for any such repair or restoration which shall be reasonably
satisfactory to the Required Lenders (such satisfaction not to be unreasonably
withheld or delayed) and (ii) demonstrate to the reasonable satisfaction
of the Required Lenders (such satisfaction not to be unreasonably withheld or
delayed) that the funds available to it will be sufficient to complete such
project in the manner provided therein. 
In all other circumstances, the Agent shall hold all such insurance and
condemnation proceeds as Collateral or, if directed by the Required Lenders,
apply such insurance and condemnation to the Revolving Loans.

 

51

 

7.7                                 Environmental Laws.

 

(a)                                  Fleetwood shall, and shall cause each of its Subsidiaries to,
conduct its business in compliance in all material respects with all
Environmental Laws applicable to it, including those relating to the
generation, handling, use, storage, and disposal of any Contaminant.  Fleetwood shall, and shall cause each of its
Subsidiaries to, take prompt and appropriate action to respond to any
non-compliance with Environmental Laws and shall regularly report to the Agent
on such responses to any material non-compliance with Environmental Laws.

 

(b)                                 Without limiting the generality of the foregoing, Fleetwood
shall submit to the Agent and the Lenders annually, commencing on the first
Anniversary Date, and on each Anniversary Date thereafter, an update of the
status of each environmental compliance or liability issue.  The Agent or any Lender may request copies of
technical reports prepared by Fleetwood or any of its Subsidiaries and its
communications with any Governmental Authority to determine whether Fleetwood
or any of its Subsidiaries is proceeding reasonably to correct, cure or contest
in good faith any alleged non-compliance or environmental liability.  Fleetwood shall, at the Agent’s or the
Required Lenders’ request and at the Borrowers’ expense, (i) retain an
independent environmental engineer acceptable to the Agent to evaluate the
site, including tests if appropriate, where the non-compliance or alleged
non-compliance with Environmental Laws has occurred and prepare and deliver to
the Agent, in sufficient quantity for distribution by the Agent to the Lenders,
a report setting forth the results of such evaluation, a proposed plan for
responding to any environmental problems described therein, and an estimate of
the costs thereof, and (ii) provide to the Agent and the Lenders a
supplemental report of such engineer whenever the scope of the environmental
problems, or the response thereto or the estimated costs thereof, shall
increase in any material respect.

 

(c)                                  The Agent and its representatives will have the right at any
reasonable time to enter and visit the Real Estate and any other place where
any property of any Loan Party is located (such right limited to twice within
any twelve (12) month period or any time following notice of any notice of any
non-compliance with Environmental Law) for the purposes of observing the Real
Estate, taking and removing soil or groundwater samples, and conducting tests
on any part of the Real Estate.  The
Agent is under no duty, however, to visit or observe the Real Estate or to
conduct tests, and any such acts by the Agent will be solely for the purposes
of protecting the Agent’s Liens and preserving the Agent and the Lenders’
rights under the Loan Documents.  No site
visit, observation or testing by the Agent and the Lenders will result in a
waiver of any default or impose any liability on the Agent or the Lenders.  In no event will any site visit, observation
or testing by the Agent be a representation that hazardous substances are or
are not present in, on or under the Real Estate, or that there has been or will

 

52

 

be compliance with any Environmental
Law.  Neither Fleetwood nor any of its
Subsidiaries nor any other party is entitled to rely on any site visit,
observation or testing by the Agent.  The
Agent and the Lenders owe no duty of care to protect Fleetwood or any of its
Subsidiaries or any other party against, or to inform Fleetwood or any of its
Subsidiaries or any other party of, any hazardous substances or any other
adverse condition affecting the Real Estate. 
The Agent may in its discretion disclose to Fleetwood or to any other party
if so required by law any report or findings made as a result of, or in
connection with, any site visit, observation or testing by the Agent.  Fleetwood and the Borrowers understand and
agree that the Agent makes no warranty or representation to any Loan Party or
any other party regarding the truth, accuracy or completeness of any such
report or findings that may be disclosed. 
Fleetwood and the Borrowers also understands that depending on the
results of any site visit, observation or testing by the Agent and disclosed to
Fleetwood, Fleetwood or its Subsidiary may have a legal obligation to notify
one or more environmental agencies of the results, that such reporting
requirements are site-specific, and are to be evaluated by or its Subsidiary
without advice or assistance from the Agent. 
In each instance, the Agent will give Fleetwood reasonable notice before
entering the Real Estate or any other place the Agent is permitted to enter
under this Section 7.7(c). 
The Agent will make reasonable efforts to avoid interfering with the use
of the Real Estate or any other property in exercising any rights provided
hereunder.

 

7.8                                 Compliance with
ERISA.  Fleetwood shall, and shall
cause each of its ERISA Affiliates to:  (a) maintain
each Plan in compliance in all material respects with the applicable provisions
of ERISA, the Code and other federal or state law; (b) cause each Plan
which is qualified under Section 401(a) of the Code to maintain such
qualification; (c) make all required contributions to any Plan subject to Section 412
of the Code; (d) not engage in a prohibited transaction or violation of
the fiduciary responsibility rules which prohibited transaction or
violation of fiduciary responsibility rules, together with all other prohibited
transactions and violations of fiduciary responsibility rules, has resulted or
could reasonably be expected to result in a Material Adverse Effect; and (e) not
engage in a transaction that could be subject to Section 4069 or 4212(c) of
ERISA.

 

7.9                                 Mergers,
Consolidations or Sales. 
Neither Fleetwood nor any of its Subsidiaries shall enter into any
transaction of merger, reorganization, or consolidation, or transfer, sell,
assign, lease, or otherwise dispose of all or any part of its property, or wind
up, liquidate or dissolve, or agree to do any of the foregoing, except

 

(a)                                  sales of Inventory in the ordinary course of its business;

 

(b)                                 sales, trade-ins, exchanges or other dispositions of
Equipment in the ordinary course of business that are obsolete or no longer
used or useable by the applicable Person in its business with an orderly
liquidation value not to exceed five million Dollars ($5,000,000) in any Fiscal
Year;

 

53

 

(c)                                  on no less than ten (10) days’ prior notice to the Agent
(unless a shorter period is acceptable to the Agent in its sole discretion),
any Borrower may merge with and into any other Borrower, provided, however,
that all Liens of the Agent shall remain unimpaired, and the surviving Borrower
shall execute and deliver to the Agent such documents and agreements as the
Agent may reasonably request to evidence the continued liability for the
Obligations of the disappearing Borrower and the Liens securing such
Obligations;

 

(d)                                 sales, trade-ins, exchanges or other dispositions of assets
by Fleetwood or any of its Subsidiaries (other than real property Collateral)
with an orderly liquidation value not to exceed five million Dollars
($5,000,000) in the aggregate for the period commencing on the Closing Date
through and including the Termination Date;

 

(e)                                  the sale of any item of Mortgaged Property that is either (i) non-idle
(as described and identified as such on Schedule 6.11), the sale of
which is consented to by the Required Lenders or (ii) idle (as described
and identified as such on Schedule 6.11), provided that, in each case, (A) the
Modified Net Proceeds of the sale of such item of Mortgaged Property shall
exceed the amount, if any, attributed to such item of Mortgaged Property in the
calculation of the Borrowing Base at the time of its sale, (B) an amount
equal to the amount, if any, attributed to such item of Mortgaged Property in
the calculation of the Borrowing Base at the time of the sale shall be
immediately removed from the Borrowing Base, (C) the Borrowers shall
immediately repay the Loans and the Maximum Real Estate Loan Amount shall be
permanently reduced, in each case, in accordance with Section 3.4(b),
(D) pro forma for such sale of such item of Mortgaged Property (and all
other sales of Mortgaged Property completed prior to such calculation), and
giving pro forma effect to the application of the Net Proceeds thereof to, and
all other payments then being made of, the Aggregate Revolver Outstandings, the
Aggregate Revolver Outstandings shall not exceed the lesser of (1) the
Borrowing Base or (2) the Maximum Amount, and (E) no Lien shall exist
on such item of Mortgaged Property for the benefit of the holders of the 2008
Senior Secured Debentures or such Lien shall have been discharged
contemporaneously with the discharge of the Lenders’ Lien on such Mortgaged
Property;

 

(f)                                    dispositions constituting the grant of Permitted Liens;

 

(g)                                 (i) any Excluded Subsidiary, any Inactive Subsidiary and
any other Subsidiaries the cessation of the existence or operations of which
Fleetwood has determined is in the best interest of the overall estates of
Fleetwood and its Subsidiaries (as certified to the Agent and only so long as
such other Subsidiaries, in the aggregate together with the Inactive
Subsidiaries as of the Closing Date (but not including the Subsidiaries of
Fleetwood making up the Fleetwood Travel Trailers Division discussed in subclause
(ii) below, as to which this test shall not apply), own assets as
shown on the balance sheets of Fleetwood and its consolidated Subsidiaries of
less than two hundred and fifty thousand Dollars ($250,000) and have annual
revenues of less than one million Dollars ($1,000,000), in each case excluding
intercompany business, receivables and balances and deferred tax items) and (ii) in
the event of the cessation of operations

 

54

 

of the same, the Subsidiaries
making up the Fleetwood Travel Trailers Division, may, in the case of each
entity set forth in clauses (i) and (ii), cease its existence
or operations, be wound up and dissolved or sell any of their respective assets
(or agree to do any of the foregoing); provided that (A) an amount equal
to the Modified Net Proceeds from any such sales shall be applied in accordance
with Section 3.4 of this Agreement and (B) any Mortgaged
Property so sold shall be deemed to be “idle” Mortgaged Property available for
sale only in accordance with the provisions of Section 7.9(e);

 

(h)                                 [RESERVED];

 

(i)                                     [RESERVED];

 

(j)                                     the sale or disposition of Permitted Life Insurance Policy
Debt;

 

(k)                                  any loss, damage, or destruction to Fleetwood’s assets, in so
far as the insurance and/or condemnation proceeds received by Fleetwood in
connection thereof are applied in accordance with Section 7.6; and

 

(l)                                     the rejection of unexpired leases or executory contracts
pursuant to Section 365 of the Bankruptcy Code in connection with the
Chapter 11 Cases, which such rejection, individually or in the aggregate, would
not reasonably be expected to result in a Material Adverse Effect.

 

All Equipment purchased
under this paragraph shall be free and clear of all Liens except Liens under clauses
(a) and (b) of the definition of Permitted Liens.  For the avoidance of doubt, the cessation of
operations of the Fleetwood Travel Trailers Division or any agreement with
respect thereto is not conditioned on a sale of any or all of the assets
associated therewith.  In addition, any
Loan Party or Subsidiary thereof (including any member of the Fleetwood Travel
Trailers Division) may shut down a plant or cease part of its operations, and
terminate associated contracts, leases and dealer agreements among other
things, without winding up, liquidating or dissolving if Fleetwood determines
that such action is in the best interest of the overall estates of Fleetwood
and its Subsidiaries.

 

7.10                           Distributions;
Capital Change; Restricted Investments.  Neither Fleetwood nor any of its Subsidiaries
shall:

 

(a)                                  directly or indirectly declare or make, or incur any
liability to make, any Distribution, except (i) Distributions to
Holdings by any of its Subsidiaries, or Distributions by any Borrower to
another Borrower which is its direct or indirect parent; (ii) Subsidiaries
of Fleetwood may make Distributions to Fleetwood (or make intercompany loans
permitted to be paid pursuant to Section 7.13(h) or retain
management fees to the extent permitted pursuant to Section 7.26)
to pay when due (x) consolidated taxes, employee related expenses
(including salaries, wages, bonuses, fringe benefits, health benefits, workers
compensation insurance premiums and claims, retirement plan contributions and
related expenses (including payments with respect to the COLI Policies), and
manager’s in training reimbursements), marketing and product development,
capital expenditures and 

 

55

 

products’ liability payments, in a
manner consistent with past practices and (y) an additional aggregate
amount in any Fiscal Year not to exceed six million Dollars ($6,000,000) to
fund other general corporate overhead and operating expenses; and (iii) Subsidiaries
of Fleetwood may pay management fees to Fleetwood consistent with those
agreements in existence on the Closing Date;

 

(b)                                 make any change in its capital structure which could
reasonably be expected to have a Material Adverse Effect; or

 

(c)                                  make any Restricted Investment other than Hedge Agreements
with a Lender, except  that (i) Fleetwood may make capital
contributions to Holdings; (ii) any Borrower may make contributions, loans
or advances to any other Borrower; (iii) any Borrower may make loans or
advances to Fleetwood or any Subsidiary only to the extent permitted by Section 7.13;
(iv) any Excluded Subsidiary may make contributions, loans or advances to
any other Excluded Subsidiary; (v) Fleetwood may make capital
contributions, loans or advances to the Excluded Subsidiaries; provided,
that the aggregate amount of all such capital contributions, loans and advances
does not exceed an amount equal to two million Dollars ($2,000,000) (less the
aggregate amount of prepayments of Debt made in accordance with Section 7.14(e))
for the period commencing on the Closing Date and ending on the Termination
Date; and (vi) Fleetwood may make advances to any Borrower after the
Closing Date.

 

7.11                           Transactions
Affecting Collateral or Obligations.  Neither Fleetwood nor any of its Subsidiaries
shall enter into any transaction which would be reasonably expected to have a
Material Adverse Effect.

 

7.12                           Guaranties.  Neither Fleetwood nor any of its Subsidiaries
shall make, issue, or become liable on any Guaranty, except (a) Guaranties
of the Obligations in favor of the Agent; (b) Repurchase Obligations of
Fleetwood incurred in the ordinary course of business consistent with past
practices and customary in the industry; (c) Guaranties existing on the
date hereof and described on Schedule 7.12 hereto; (d) Fleetwood’s
unsecured Guaranty of the Trust Securities; (e) Letters of Credit issued
for the account of a Borrower to support obligations of Fleetwood and its Subsidiaries
for worker’s compensation and similar claims and insurance liabilities; (f) endorsements
for collection or deposits in the ordinary course of business; (g) Fleetwood’s
unsecured guaranty of up to one million Dollars ($1,000,000) of the RCI Obligations,
provided that Fleetwood shall give notice of any claim by RCI upon such
guaranty (and any payment thereon) if the amount of any such past or present
claim or claims, in the aggregate, exceeds five hundred thousand Dollars
($500,000) for the period commencing on the Closing Date and ending on the
Termination Date; (h) Guaranties by Fleetwood of mortgage Debt permitted
to be incurred pursuant to Section 7.13(s), provided that
such Guaranty shall not be secured by any property other than the property pledged
by the primary obligor securing the underlying mortgage Debt; (i) the 2008
Senior Secured Debenture Guaranties; (j) the 2008 Senior Secured Debenture
Hazardous Substances Indemnity Agreements; and (k) other Guaranties in an
aggregate amount not to exceed ten million Dollars ($10,000,000) at any time in
effect.

 

56

 

7.13                           Debt.  Neither Fleetwood nor any of its Subsidiaries
shall incur or maintain any Debt, other than:

 

(a)                                  the Obligations;

 

(b)                                 the Subordinated Debt, the 2008 Senior Secured Debentures and
any Debt deemed to have been incurred by any Loan Party solely pursuant to clause
(b) of the definition of Debt pursuant to the grant by such Loan Party
of a Lien permitted by clause (j) of the definition of Permitted
Liens; provided that the 2008 Senior Secured Debentures shall have been
issued in connection with the refinancing of (or in exchange for) a portion of
the Debt outstanding under the 2003 Subordinated Debentures; and provided
further that all of the proceeds, if any, of the 2008 Senior Secured
Debentures shall have been applied to the payment of the principal amount of
(or satisfaction of any put, redemption or prepayment obligation in respect of)
the 2003 Subordinated Debentures; and provided still further that in no
event shall any Loan Party (other than Fleetwood) have assumed or become liable for the payment of any Subordinated Debt or
the 2008 Senior Secured Debentures other than, in the case of the 2008 Senior
Secured Debentures only, pursuant to the 2008 Senior Secured Debenture Guaranty
or the grant by such Loan Party of a Lien permitted by (and subject to
the limitations of) clause (j) of the definition of Permitted
Liens;

 

(c)                                  Debt existing on the Closing Date described on Schedule
6.9 hereto;

 

(d)                                 Capital Leases of Equipment and purchase money secured Debt
incurred to purchase Equipment provided that

 

(i)                                     Liens securing the same attach only to the Equipment acquired
by the incurrence of such Debt and proceeds thereof, and

 

(ii)                                  the aggregate amount of such Debt (including Capital Leases,
and including, without limitation, any such Capital Leases listed on Schedule
6.9 hereto) outstanding does not exceed the lesser of (x) the
aggregate amount of such Debt as of the Closing Date plus two million Dollars
($2,000,000) and (y) twenty million Dollars ($20,000,000) at any time;

 

(e)                                  [RESERVED];

 

(f)                                    Debt evidencing a refunding, renewal or extension of the Debt
permitted under Section 7.13(d), Section 7.13(s), or
described on Schedule 6.9 hereto; provided that:

 

(i)                                     the principal amount thereof is not increased,

 

(ii)                                  the
Liens, if any, securing such refunded, renewed or extended Debt do not attach
to any assets in addition to those assets, if any, securing the Debt to be
refunded, renewed or extended or otherwise permitted by this Agreement to
secure the Debt to be refunded, renewed or extended,

 

57

 

(iii)                               no Person that is not an obligor or guarantor of such Debt as
of the date of issuance thereof shall become an obligor or guarantor thereof or
of any Debt issued in refunding thereof except to the extent such Person was
permitted by this Agreement to be an obligor or guarantor of such original
Debt,

 

(iv)                              the terms of such refunding, renewal or extension are no less
favorable in any material respect to Fleetwood, its Subsidiary, the Agent or
the Lenders than the original Debt; and

 

(v)                                 in the case of such Debt incurred in connection with any  refunding, renewal or extension of Debt
originally incurred pursuant to Section 7.13(d) (and
irregardless of whether such Debt appears on Schedule 6.9 hereto), such
continuing Debt otherwise complies with the terms and conditions of Section 7.13(d) and
meets the requirements of any of the defined terms in such Sections.

 

(g)                                 Debt of any Borrower to another Borrower evidenced by a
master intercompany note pledged to the Agent;

 

(h)                                 Debt of Fleetwood to any Borrower provided, that
(i) on the date of the advance of the proceeds of such Debt, such Borrower
would be permitted to make a Distribution pursuant to Section 7.10(a)(ii) or
(iii); and (ii) such Debt is evidenced by a promissory note pledged to
the Agent;

 

(i)                                     Debt incurred in connection with the rejection of leases and
executory contracts in the Chapter 11 Cases; provided that the Obligations of
the Borrowers with respect to such Debt shall be deemed by an order of the
Bankruptcy Court to be a general, unsecured, non-priority claim in any of the
Chapter 11 Cases;

 

(j)                                     Debt that constitutes Debt solely under clause (b) of
the definition thereof for so long as the same remains secured by a Lien
permitted under clause (c), clause (d) or clause (r) of
the definition of “Permitted Liens”;

 

(k)                                  [RESERVED];

 

(l)                                     Debt of any Excluded Subsidiary to another Excluded Subsidiary;

 

(m)                               Debt of a Borrower to Fleetwood or any Subsidiary (other than
a Borrower or an Excluded Subsidiary) that is evidenced by a master
intercompany note pledged to the Agent, and subordinated to the payment in full
of the Obligations on terms satisfactory to the Required Lenders;

 

(n)                                 [RESERVED];

 

(o)                                 Guaranties permitted by Section 7.12 and any Debt
arising upon such contingent obligations becoming absolute and matured,
provided that except for the Carve-Out, no Guaranties under this Section 7.13(o) shall
be permitted to have an administrative expense claim status under the
Bankruptcy Code senior to or pari  passu with the super-priority
administrative expense claims of the Agent and the Lenders as set forth herein
and in the Interim Order and Final Order;

 

58

 

(p)                                 [RESERVED];

 

(q)                                 obligations under Hedge Agreements with any Lender;

 

(r)                                    Debt arising from rights of indemnity or contribution with
respect to payments under the Loan Documents;

 

(s)                                  the 2008 Mortgage Debt;

 

(t)                                    Debt of Fleetwood the proceeds of which are applied solely
for the purpose of paying benefits to employees or former employees who are
participants in non-qualified benefit plans of Fleetwood and its Subsidiaries
which are supported by the COLI Policies; provided that (x) such
Debt is secured solely by Liens which attach only to the COLI Policies; and (y) the
Flexibility Conditions are satisfied as of the date of and both before and
immediately after giving effect to the incurrence of such Debt;

 

(u)                                 [RESERVED]; and

 

(v)                                 other Debt (which may be unsecured Debt or Debt secured by a
Lien permitted under clause (i) of the definition of “Permitted
Liens”) not to exceed three million Dollars ($3,000,000) in the aggregate for
all Loan Parties.

 

7.14                           Prepayment;
Repayment.  Except
pursuant to a confirmed reorganization plan and except as specifically
permitted hereunder, neither Fleetwood nor any of its Subsidiaries shall, (i) without
the express prior written consent of the Agent and the Required Lenders or (ii) unless
pursuant to an order of the Bankruptcy Court after notice and hearing, make any
payment or transfer with respect to any Lien or Debt incurred or arising prior
to the filing of the Chapter 11 Cases (including, without limitation, the Subordinated
Debt, the 2008 Senior Secured Debentures and the 2008 Mortgage Debt) that is
subject to the automatic stay provisions of the Bankruptcy Code whether by way
of “adequate protection” under the Bankruptcy Code or otherwise; provided
that (a) any of Fleetwood or its Subsidiaries may prepay Debt incurred
pursuant to Sections 7.13(h), (b) the Borrowers may pay Prepetition
Debt arising in connection with the assumption of leases in the Chapter 11
Cases, (c) the Borrowers may make payments for administrative expenses
that are allowed and payable under Sections 330 and 331 of the Bankruptcy Code;
(d) the Borrowers may make any post Petition Date expense incurred in the
ordinary course of business including usual and customary post-Petition Date
employee salaries and benefits and (e) the Borrowers may make payments in respect of Debt to
Excluded Subsidiaries provided that the aggregate amount of such
payments made pursuant to this clause (e) does not exceed an amount
equal to five hundred fifty thousand Dollars ($550,000) (less the aggregate amount of capital contributions, loans or
advances to the Excluded Subsidiaries made in accordance with Section 7.10(c)) for the period
commencing on the Closing Date and ending on the Termination Date.

 

59

 

7.15         Transactions with Affiliates.  Except as set forth below or as otherwise
permitted in the Applicable Order, neither Fleetwood nor any of its
Subsidiaries shall sell, transfer, distribute, or pay any money or property,
including, but not limited to, any fees or expenses of any nature (including,
but not limited to, any fees or expenses for management services), to any
Affiliate, or lend or advance money or property to any Affiliate, or except as
permitted in Sections 7.10 and 7.14 invest in (by capital
contribution or otherwise) or purchase or repurchase any Capital Stock or
indebtedness, or any property, of any Affiliate, or except as permitted in Section 7.12,
become liable on any Guaranty of the indebtedness, dividends, or other
obligations of any Affiliate. 
Notwithstanding the foregoing but subject to the limitations set forth
in Sections 7.9, 7.10, 7.12, and 7.13, (i) any
Loan Party may engage in transactions with any other Loan Party in the ordinary
course of business consistent with past practices; and (ii) while no Event
of Default has occurred and is continuing, any Loan Party may engage in
transactions with any Affiliate (other than a Loan Party) in the ordinary
course of business consistent with past practices, and in the case of
transactions with Affiliates other than Excluded Subsidiaries, in amounts and
upon terms fully disclosed to the Agent and the Lenders, and no less favorable
to Loan Parties than would be obtained in a comparable arm’s-length transaction
with a third party who is not an Affiliate. 
The foregoing restrictions shall not apply to (a) reasonable and
customary fees paid to, and customary indemnification of, members of the board
of directors (or similar governing body) of Fleetwood and its Subsidiaries, (b) compensation
arrangements for officers and other employees of Fleetwood and its Subsidiaries
entered into in the ordinary course of business, (c) the incurrence of
obligations by Loan Parties under the 2008 Senior Subordinated Debenture
Guaranties and the grant by Loan Parties of a Lien permitted by clauses (j) or
(k) of the definition of Permitted Liens and (d) while no
Event of Default has occurred and is continuing, the payment of amounts owing
to any Affiliate pursuant to the 2008 Senior Secured Debentures if and to the extent
otherwise made in accordance with Sections 7.14 and 7.29 hereof
and if and to the extent that such payments are concurrently made to security
holders who include Persons that are not Affiliates.

 

7.16         Investment Banking and
Finder’s Fees.  Neither Fleetwood
nor any of its Subsidiaries shall pay or agree to pay, or reimburse any other
party with respect to, any investment banking or similar or related fee,
underwriter’s fee, finder’s fee, or broker’s fee to any Person in connection
with this Agreement.  The Borrowers shall
defend and indemnify the Agent and the Lenders against and hold them harmless
from all claims of any Person that the Borrower is obligated to pay for any
such fees, and all costs and expenses (including attorneys’ fees) incurred by
the Agent and/or any Lender in connection therewith.

 

7.17         Business Conducted.  Fleetwood shall not and shall not permit any
of its Subsidiaries to, engage directly or indirectly, in any line of business
other than the businesses in which it is engaged on the Closing Date and
businesses reasonably related thereto.

 

7.18         Liens.  Neither Fleetwood nor any of its Subsidiaries
shall create, incur, assume, or permit to exist any Lien on any property now
owned or hereafter acquired by any of them, except Permitted Liens.  Notwithstanding the foregoing, and subject to
applicable provisions of the Interim Order and the Final Order, Liens permitted
to be granted hereunder (including, without limitation, the Trust Estate Liens)
shall at all times be junior and subordinated to the Liens under the Loan
Documents and the Interim Order and the Final Order, other than (i) the
Carve-Out and (ii) the Exceptions.  All
of the Liens granted to the Agent on 

 

60

 

behalf of itself and on behalf of the
Existing Lenders with respect to the Third Amended and Restated Credit
Agreement (including, without limitation, the adequate protection liens granted
to the Agent on behalf of itself and on behalf of the Existing Lenders
(together with all Obligations (as defined in the Third Amended and Restated
Credit Agreement), including, without limitation, all indemnity, reimbursement
and other contingent obligations under the Third Amended and Restated Credit
Agreement that may or may not yet have been identified or asserted)) shall be
rolled up and replaced with the Liens granted in connection with this Agreement
and, in each case, such Liens and contingent obligations shall be subject to
the Carve-Out and the Exceptions.  The prohibition
provided for in this Section 7.18 specifically includes, without
limitation, any successful effort by the Borrowers, any Committee or any other
party-in-interest in any Chapter 11 Case to prime or create pari  passu
to any claims, Liens or interest of the Agent and the Lenders any Lien (other
than for the Carve-Out) irrespective of whether such claims, Liens or interests
may be “adequately protected”.

 

7.19         Sale and Leaseback
Transactions.  Neither
Fleetwood nor any of its Subsidiaries shall, directly or indirectly, enter into
any arrangement with any Person providing for Fleetwood or such Subsidiary to
lease or rent property that Fleetwood or such Subsidiary has sold or will sell
or otherwise transfer to such Person.

 

7.20         New Subsidiaries.  Without the prior written consent of the
Agent, Fleetwood shall not, directly or indirectly, organize, create, acquire
or permit to exist any subsidiary other (i) than those listed on Schedule
6.5 hereto as the same may be amended from time to time with the consent of
the Agent (not to be unreasonably withheld), (ii) Inactive Subsidiaries,
and (iii) the Mexican Subsidiary.

 

7.21         Fiscal Year.  Fleetwood shall not, and shall not permit any
of its Subsidiaries to, change its Fiscal Year.

 

7.22         Budget Covenants.

 

(a)           From and after the third Measurement Period after the
Petition Date, the aggregate actual cash
receipts for any six consecutive Measurement Periods shall not be less than
eighty-five percent (85)% of projected cash receipts as set forth in the
Approved Budget for such six consecutive Measurement Periods, in each case,
tested on a rolling six (6) consecutive Measurement Period basis; provided
that before the end of the  sixth (6th) Measurement Period after the Petition Date (the “Initial
Testing Period”), the test shall be for all lesser number of Measurement
Periods as shall have been completed through the end of the applicable
Measurement Period; provided further that there shall be no diminution
in the percentage of projected cash receipts in subclause (ii) for
any tests during the Initial Testing Period.

 

(b)           Subject to the provisos below, the Loan Parties’ (i) actual
cash expenditures under any Line Item for any Measurement Period shall not
exceed the greater of (A) an amount equal to (x) the projected cash
expenditures under such Line Item (solely for purposes of subclause (i),
excluding for purposes of Line Item F (Non-recurring Expenses) any amounts
relating to “other

 

61

 

expenses/repurchases”) for such
Measurement Period as set forth in the Approved Budget plus (y) three
hundred thousand Dollars ($300,000) and (B) one hundred and fifteen
percent (115%) of projected cash expenditures under such Line Item (solely for
purposes of subclause (i), excluding for purposes of Line Item F
(Non-recurring Expenses) any amounts relating to “other expenses/repurchases”)
for such Measurement Period as set forth in the Approved Budget, (ii) total
actual cash expenditures for any Measurement Period shall not exceed the
greater of (A) an amount equal to the projected aggregate cash
expenditures set forth in the Approved Budget for such Measurement Period plus
one and a half million Dollars ($1,500,000) and (B) one hundred and
fifteen percent (115)% of projected aggregate cash expenditures set forth in
the Approved Budget for such Measurement Period and (iii) total actual
cash expenditures for any six consecutive Measurement Periods shall not exceed
one hundred and ten percent (110%) of the projected aggregate cash expenditures
set forth in the Approved Budget for such six consecutive Measurement Periods,
in the case of this subclause (iii), as tested on a rolling six (6) consecutive
Measurement Period basis; provided that, with respect to subclause
(iii), during the Initial Testing Period, the test shall be for such lesser
number of Measurement Periods as shall have then been completed through the end
of the applicable Measurement Period; provided further that,
notwithstanding the foregoing subclauses (i), (ii) and (iii),
(A) any portion of any Measurement Period amounts relating to Line Items
specified in the Approved Budget for the three (3) Measurement Periods
immediately preceding such applicable Measurement Period shall also be
permitted to be paid during such applicable Measurement Period if and only to
the extent any such amounts were not utilized to make expenditures that were
scheduled to be paid as a Line Item, but were not paid, during such prior three
(3) Measurement Periods and (B) any portion of any Measurement Period
amounts relating to Line Items specified in the Approved Budget for the
Measurement Period immediately following such applicable Measurement Period
shall also be permitted to be paid during such applicable Measurement Period if
and only to the extent any such amounts are thereafter not utilized to make
expenditures scheduled to be paid as a Line Item during such upcoming
Measurement Period.

 

7.23         Closing Date Encumbered Real Estate Asset.  To the extent that the Permitted
Closing Date Encumbered Real Estate Asset Liens are released, the Borrowers
shall use commercially reasonable efforts to deliver the requisite deliverables
necessary to cause the Closing Date Encumbered Real Estate Asset to be included
as an Additional Real Estate Subfacility Asset and in the calculation of the
Borrowing Base.

 

7.24         [RESERVED].

 

7.25         Bank Accounts.

 

(a)           The Borrowers shall maintain a cash management system in
accordance with the Cash Management Order or otherwise as reasonably acceptable
to the Agent, including (i) arrangements satisfactory to the Agent to
transfer funds to the Agent for application to the Obligations on a daily
basis, or on 

 

62

 

such other basis as the Agent
agrees, and, (ii) Blocked Account Agreements satisfactory to the Agent in
respect of accounts over which the Agent shall have control (within the meaning
of the UCC).

 

(b)           Except as otherwise ordered by the Bankruptcy Court, all cash
of the Borrowers shall continue to be applied in accordance with the Cash
Management Order first to pay down any Revolving Loans then outstanding; provided
that in the event that no Revolving Loans are outstanding, such cash will next
be applied solely for deposit into a cash collateral account specified by the
Agent over which the Agent shall exercise sole dominion and control unless, at
the request of the Borrowers, the Agent agrees (and so directs the applicable
depositary bank) that such cash shall not be deposited into such a cash
collateral account but instead shall be transferred directly to an account
designated by the Borrowers for use in accordance with the Approved Budget
subject to any variances permitted by Section 7.22(b) of this
Agreement (for the avoidance of doubt, it being understood and agreed that the
presence of any “basket” or “carve-out” set forth in any negative covenant
contained in Section 7 shall not be, and shall not be deemed to be,
an approval or acceptance by the Agent or any Lender of any Line Item in any
Approved Budget, or portion thereof, related to cash expenditures of the type
described in such “basket” or “carve-out” which shall remain subject to the
approval rights of Agent and the Required Lenders with respect to each Approved
Budget as set forth herein and in the Applicable Order).  The Agent, on behalf
of itself and on behalf of the Lenders, shall be granted sole dominion and
control over such cash collateral account and all other deposit and securities
accounts subject to control agreements under the Third Amended and Restated
Credit Agreement (the “Postpetition Blocked Accounts”); provided,
however, that notwithstanding the foregoing, the Agent shall promptly
release funds, marketable securities, investments, deposits and proceeds
thereof from such Postpetition Blocked Accounts on request of the Borrowers in
accordance with the Approved Budget subject to any variances permitted by Section 7.22(b) of
this Agreement (for the avoidance of doubt, it being understood and agreed that
the presence of any “basket” or “carve-out” set forth
in any negative covenant contained in Section 7 shall not be, and
shall not be deemed to be, an approval or acceptance by the Agent or any Lender
of any Line Item in any Approved Budget, or portion thereof, related to cash
expenditures of the type described in such “basket” or “carve-out,” which shall
remain subject to the approval rights of Agent and the Required Lenders with
respect to each Approved Budget as set forth herein and in the Applicable
Order).

 

(c)           Except as otherwise ordered by the Bankruptcy Court, the
Borrowers shall be permitted to use their controlled disbursement accounts
consistent with the Cash Management Order, in a manner so that such controlled
disbursement accounts automatically draw from the Borrowers’ operating/main
accounts.

 

63

 

(d)           Except
as otherwise ordered by the Bankruptcy Court, the Borrowers shall be permitted
to cash collateralize the controlled disbursement accounts in an amount agreed
between the Borrowers and the Agent, subject to approval of such plan by the
Bankruptcy Court, to facilitate the satisfaction of checks and drafts as
presented.

 

7.26         Contribution of Management Fees.  On the date of receipt by Fleetwood of any
management fees from any of its Subsidiaries, Fleetwood shall make a capital
contribution to Holdings in the amount of such management fees so received.

 

7.27         Use of Proceeds. 
The Borrowers shall not, and shall not suffer or permit any of their
Subsidiaries to, use any portion of the Loan proceeds, directly or indirectly, (i) to
purchase or carry Margin Stock, (ii) to repay or otherwise refinance
indebtedness of Fleetwood or any of its Subsidiaries or others incurred to
purchase or carry Margin Stock, (iii) to extend credit for the purpose of
purchasing or carrying any Margin Stock, (iv) to acquire any security in
any transaction that is subject to Section 13 or 14 of the Exchange Act, (v) to pay interest and principal with respect to Subordinated Debt,
the 2008 Senior Secured Debentures and the 2008 Mortgage Debt, (vi) to
finance in any way any adversary action, suit, arbitration, proceeding,
application, motion or other litigation of any type relating to or in
connection with the Third Amended and Restated Credit Agreement or any of the
loan documents or in instruments entered into in connection therewith,
including, without limitation, any challenges to the Obligations (as defined in
the Third Amended and Restated Credit Agreement) under the Third Amended and
Restated Credit Agreement, or the validity, perfection, priority, or enforceability
of any Lien securing such claims or any payment made thereunder, (vii) to
finance in any way any action, suit, arbitration, proceeding, application,
motion or other litigation of any type adverse to the interests of the Agent
and the Lenders or their rights and remedies under this Agreement, the other
Loan Documents, the Interim Order or the Final Order, (viii) to make any
distribution under a plan of reorganization in any of the Chapter 11 Cases
without the prior written consent of the Agent and the Required Lenders and (ix) to
make any payment (in the aggregate, together with all other such payments) in
excess of three hundred thousand Dollars ($300,000) in settlement of any claim,
action or proceeding, before any court, arbitrator or other governmental body
without the prior written consent of the Agent and the Required Lenders;
provided that nothing in this subclause (ix) shall prevent the
Borrowers from assuming or curing executory contracts and unexpired leases
subject to an order of the Bankruptcy Court if otherwise permitted hereunder.

 

7.28         Further Assurances.

 

(a)           Fleetwood shall, and shall cause each of its Subsidiaries
to, execute and deliver, or cause to be executed and delivered, to the Agent
and/or the Lenders such documents and agreements, and shall take or cause to be
taken such actions, as the Agent or any Lender may, from time to time,
reasonably request to carry out the terms and conditions of this Agreement and
the other Loan Documents.

 

(b)           [RESERVED].

 

(c)           If Fleetwood forms any new Subsidiary that is not an
Excluded Subsidiary or if any Inactive Subsidiary becomes an active Subsidiary
which owns assets in excess of two hundred and fifty thousand Dollars
($250,000) or has 

 

64

 

revenues in
excess of one million Dollars ($1,000,000) in any Fiscal Year, the Borrowers
shall cause such Subsidiary to become a Borrower hereunder by delivering a
counterpart to this Agreement and to each other Loan Document to which a
Borrower is a party or become a Guarantor by delivering a counterpart to the
Subsidiary Guaranty and to each other Loan Document to which a Guarantor which
is a Subsidiary is a party, together with such evidences of authority, opinions
and other documents and instruments as the Agent may reasonably request; provided
that no such Subsidiary may become a Borrower without the prior written consent
of the Required Lenders.

 

7.29         2008 Senior Secured Debentures;
Subordinated Debt; Trust Securities.

 

(a)           (i) Fleetwood will not, and will not permit any of its
Subsidiaries to, amend, supplement or otherwise modify the terms of the 1998
Subordinated Debentures, the 2003 Subordinated Debentures, the 2008 Senior
Secured Debentures or any Guaranty thereof, or the Trust Securities or any Guaranty
thereof or add any Guaranty of any other Credit Party (other than a 2008 Senior
Secured Debenture Guaranty) in any manner adverse to any Loan Party, the Agent
or the Lenders and (ii) without prejudice to the foregoing, Fleetwood will
not, and will not permit any of its Subsidiaries to, amend or otherwise change
the terms of the 2008 Senior Secured Debentures if the effect of such amendment
or change is to modify (or have the effect of a modification of) the granting
clauses (and the exclusions therefrom) of any collateral documents governing
the 2008 Senior Secured Debentures (or the definitions of the terms contained
in any such  granting clauses), other
than, in the case of each of the foregoing clauses (i) and (ii),
(x) to release any Lien securing the 2008 Senior Secured Debentures, (y) to
reduce the amount of obligations secured by any Lien securing the 2008 Senior
Secured Debentures and (z) subject to the Agent’s prior written consent,
to conform such mortgage or other security document to the applicable Mortgages
granted in connection with this Agreement or to make changes otherwise
consistent with the terms of this Agreement and the 2008 Intercreditor
Agreement.

 

(b)           Fleetwood will not, and will not permit any of its
Subsidiaries to, make any payments or prepayments with respect to the 1998
Subordinated Debentures.

 

(c)           Fleetwood will not, and will not permit any of its
Subsidiaries to, make any payments or prepayments with respect to the 2003
Subordinated Debentures.

 

(d)           Fleetwood will not, and will not permit any of its
Subsidiaries to, make any payments or prepayments with respect to the 2008
Senior Secured Debentures.

 

65

 

7.30         Inventory
Appraisal.  The Loan Parties shall at
their expense, provide the Agent with a “desk top” appraisal of the Inventory,
within forty-five (45) days of the Closing Date, such appraisal to include,
without limitation, information required by applicable laws and regulations, by
the internal policies of the Lenders, and in order to calculate the Borrowing
Base.

 

7.31         Reclamation Claims.  No Loan Party shall enter into any agreement
to return any of its Inventory to any of its creditors for application against
any Prepetition Debt, Prepetition trade payables or other Prepetition claims
under Section 546(h) of the Bankruptcy Code or allow any creditor to
take any setoff or recoupment against any of its Prepetition Debt, Prepetition
trade payables or other Prepetition claims based upon any such return pursuant
to Section 553(b)(l) of the Bankruptcy Code or otherwise if, after
giving effect to any such agreement, setoff or recoupment, the aggregate amount
of Prepetition Debt, Prepetition trade payables and other Prepetition claims
subject to all such agreements, setoffs and recoupments since the Petition Date
would exceed five hundred thousand Dollars ($500,000).

 

7.32         Chapter 11 Claims.  No Loan Party shall incur, create, assume,
suffer to exist or permit any other super-priority administrative claim which
is pari  passu with or senior to the claims of the Agent and the
Lenders against the Borrowers or any other Loan Party, except as set forth in Section 4.7.

 

ARTICLE 8

CONDITIONS OF LENDING

 

8.1           Conditions Precedent to Making of Loans on the Closing Date.  The obligation of the Lenders to
make any Revolving Loans on the Closing Date, and the obligation of the Agent
to cause the Letter of Credit Issuer to issue any Letter of Credit, are subject
to the following conditions precedent having been satisfied in a manner
satisfactory to the Agent and each Lender:

 

(a)           This Agreement and the other Loan Documents, including,
without limitation, each Affirmation Agreement and each Mortgage to be
delivered on the Closing Date, shall have been executed by each party thereto
and the Loan Parties shall have performed and complied in all material respects
with all covenants, agreements and conditions contained herein and the other
Loan Documents which are required to be performed or complied with by the Loan
Parties before or on the Closing Date.

 

(b)           The
Agent and the Lenders shall have received and shall be satisfied with the
financial statements described in Section 6.6(a) and the
Projections described in Section 6.6(b).

 

(c)           All representations and warranties made hereunder and in the
other Loan Documents shall be true and correct as if made on such date.

 

(d)           No Default or Event of Default shall have occurred and be
continuing after giving effect to the Loans to be made and the Letters of
Credit to be issued on the Initial Funding Date.

 

66

 

(e)           The Agent and the Lenders shall have received such opinions
of counsel for Fleetwood and its Subsidiaries as the Agent or any Lender shall
reasonably request, each such opinion to be in a form, scope, and substance
reasonably satisfactory to the Agent, the Lenders, and their respective
counsel.

 

(f)            There shall have been no
material disruption of or material adverse change in conditions of the
financial, banking or capital markets, other than those that have occurred
prior to the Petition Date.

 

(g)           The Agent shall have received:

 

(i)            acknowledgment copies of proper financing statements, or
amendments thereof, duly filed on or before the Closing Date under the UCC of
all jurisdictions that the Agent may deem necessary or desirable in order to
perfect and/or continue the Agent’s Liens; or shall have received duly executed
financing statements from all Loan Parties for all such jurisdictions;

 

(ii)           duly executed UCC-3 Termination Statements or such other
instruments or evidence, in form and substance satisfactory to the Agent, as
shall be necessary to terminate and satisfy all Liens on the Property of
Fleetwood and its Subsidiaries except Permitted Liens;

 

(iii)          duly executed security agreements with respect to all
Proprietary Rights for recording in the United States Patent and Trademark
Office;

 

(iv)          certificates for the Capital Stock pledged pursuant to the
Pledge Agreement together with undated stock powers duly endorsed in blank; and

 

(v)           all intercompany notes payable to any Loan Party duly
endorsed in blank.

 

(h)           The Borrowers shall have paid all fees and expenses of the
Agent and the Attorney Costs incurred in connection with any of the Loan
Documents and the transactions contemplated thereby to the extent invoiced.

 

(i)            Fleetwood and the Borrowers shall have paid all fees due and
owing to the Agent and the Lenders on the Closing Date (including all fees
under the Fee Letter).

 

(j)            The Agent shall have received evidence, in form, scope, and
substance, reasonably satisfactory to the Agent, of all insurance coverage as
required by Section 7.5 of this Agreement, together with loss payee
and additional insured endorsements (or loss payee letter), as applicable,
naming the Agent, for the benefit of the Lenders, as loss payee or additional
insured, as applicable.

 

(k)           The Agent and the Lenders shall have had an opportunity, if
they so choose, to examine the books of account and other records and files of
Fleetwood and its Subsidiaries and to make copies thereof, and to conduct a
pre-closing audit 

 

67

 

which shall
include, without limitation, verification of Inventory, Accounts, and the
Borrowing Bases, and the results of such examination and audit shall have been
satisfactory to the Agent and the Lenders in all respects.

 

(l)            All proceedings taken in connection with the execution of
this Agreement, all other Loan Documents and all documents and papers relating
thereto shall be satisfactory in form, scope, and substance to the Agent and
the Lenders.

 

(m)          Other than the commencement of the Chapter 11 Cases and the
cessation of existence or operations of, the winding up of or the dissolution
of or sale of assets of the Fleetwood Travel Trailers Division, no event that,
in the opinion of the Lenders, constitutes a Material Adverse Effect shall have
occurred since January 31, 2009.

 

(n)           There shall exist no action, suit, investigation,
litigation, or proceeding pending or, to the knowledge of Fleetwood and the
Borrowers or any Lender, threatened in any court or before any arbitrator or
Governmental Authority that (i) could reasonably be expected to have a
Material Adverse Effect, or (ii) could reasonably be expected to
materially and adversely affect the Loan Documents or the transactions
contemplated thereby.  For the avoidance
of doubt, the Chapter 11 Cases shall not constitute a proceeding described in
the preceding sentence.

 

(o)           With respect to each parcel of Real Estate listed on Schedule
6.11 attached hereto and identified thereon as Mortgaged Property, (i) such Mortgaged Property that is subject to any Existing
Mortgage shall remain subject to such Existing
Mortgages and (ii) Fleetwood and/or the applicable Loan Party shall have
delivered to the Agent and the Collateral Agent (A) duly executed and
acknowledged amendments to or amendment and restatements of the Existing
Mortgages or in the case of any Mortgaged Property in which any such Mortgaged
Property was not subject to an Existing Mortgage, a new Mortgage (each a “Mortgage
Amendment” and, collectively, the “Mortgage Amendments”), in each
case to the extent necessary under applicable law, in the reasonable judgment
of the Agent, to continue and maintain the enforceability, perfection and
priority of the Existing Mortgages or such new Mortgages from and after the
Closing Date (or, in the case of any Mortgaged Property in which no Existing
Mortgage was in existence immediately prior to the Closing Date, to effect the
enforceability, perfection and priority of the Mortgage Amendment from and
after the Closing Date) in proper form for recording in all appropriate places
in all applicable jurisdictions, (B) title policies (or endorsements to
the Existing Mortgage Title Policies) as reasonably requested by the Agent,
assuring the Agent that such Existing Mortgages constitute first priority
mortgage liens subject only to Permitted Liens under clauses (a), (b),
(d) and (e) of the definition of Permitted Liens, and (C) if
requested by the Agent, opinions of counsel as to such matters as reasonably
requested by the Agent; provided that any opinions of local counsel or title
policies (or endorsements to the Existing Mortgage Title Policies) not 

 

68

 

delivered on the
Closing Date may, with the consent of the Agent, be delivered on or prior to
the date which is sixty (60) days following the Closing Date, unless such
period is extended by the Agent.

 

(p)           Fleetwood and its Subsidiaries shall have obtained all
governmental and third party consents and approvals as may be necessary or
appropriate in connection with the filing of the Chapter 11 Cases, the Loan
Documents and the transactions contemplated thereby.

 

(q)           The Lenders shall be satisfied with all environmental
aspects relating to Borrowers and their business, including all environmental
reports as may be required by the Lenders.

 

(r)            Review by the Agent of
the Interim Order, in form and substance satisfactory to the Agent in its sole
discretion.

 

(s)           The Agent and the applicable Loan Party shall have executed
and delivered notices of assignment of the Accounts of the Loan Parties to such
Persons designated by the Agent.

 

(t)            The Agent and the
Required Lenders, by execution of this Agreement, shall have received and
approved the Approved Budget.

 

(u)           The “first day” orders described on Schedule 8.1(u) in
form and substance satisfactory to the Agents and Lenders shall have been
entered in the Chapter 11 Case.

 

(v)           Without limiting the generality of the
items described above, the Agent shall have received any other documents or
other items reasonably requested by the Agent or any Lender.

 

The
acceptance by any Borrower of any Loans made or Letters of Credit issued on the
Initial Funding Date shall be deemed to be a representation and warranty made
by Fleetwood and the Borrowers to the effect that all of the conditions
precedent to the making of such Loans or the issuance of such Letters of Credit
set forth in clauses (a), (c), (d), (h), (i),
(m), (n) and (p) have been satisfied, and that,
other than the commencement of the Chapter 11 Cases and the cessation of
existence or operations of, the winding up of or the dissolution of or sale of
assets of the Fleetwood Travel Trailers Division, no material adverse change
has occurred since January 31, 2009, except as disclosed by Fleetwood
publicly in the assets, liabilities, business, financial condition or results
of operations of Fleetwood and its Subsidiaries, with the same effect as
delivery to the Agent and the Lenders of a certificate signed by a Responsible
Officer of the Borrowers, dated the Initial Funding Date, to such effect.

 

Execution
and delivery to the Agent by a Lender of a counterpart of this Agreement shall
be deemed confirmation by such Lender (including any such Lender in its capacity
as the Agent) that (i) all conditions precedent in this Section 8.1
have been fulfilled to the satisfaction of such Lender, (ii) the decision
of such Lender to execute and deliver to the Agent an executed counterpart of
this Agreement was made by such Lender independently and 

 

69

 

without reliance on the Agent or any other Lender as to the
satisfaction of any condition precedent set forth in this Section 8.1,
and (iii) all documents sent to such Lender for approval consent, or
satisfaction were acceptable to such Lender.

 

8.2           Conditions Precedent to Each Loan.  The obligation of the Lenders to
make each Loan, including any additional Revolving Loans on the Closing Date,
and the obligation of the Agent to cause the Letter of Credit Issuer to issue
any Letter of Credit shall be subject to the further conditions precedent that
on and as of the date of any such extension of credit:

 

(a)           The following statements shall be true, and the acceptance
by any Borrower of any extension of credit shall be deemed to be a statement to
the effect set forth in clauses (i), (ii) and (iii) with
the same effect as the delivery to the Agent and the Lenders of a certificate
signed by a Responsible Officer, dated the date of such extension of credit,
stating that:

 

(i)            The representations and warranties contained in this
Agreement and the other Loan Documents are correct in all material respects on
and as of the date of such extension of credit as though made on and as of such
date, other than any such representation or warranty which relates to a
specified prior date and except to the extent the Agent and the Lenders have
been notified in writing by the Borrowers that any representation or warranty
is not correct and the Required Lenders have explicitly waived in writing
compliance with such representation or warranty; and

 

(ii)           No event has occurred and is continuing, or would result
from such extension of credit, which constitutes a Default or an Event of
Default; and

 

(iii)          No event has occurred and is continuing, or would result
from such extension of credit, which has had or would have a Material Adverse
Effect.

 

(b)           No such Borrowing shall exceed Availability; provided,
however, that the foregoing conditions precedent are not conditions to
each Revolving Credit Lender participating in or reimbursing the Bank or the
Agent for such Lenders’ Pro Rata Share of any Non-Ratable Loan or Agent Advance
made in accordance with the provisions of Sections 1.2(h) and (i).

 

(c)           After giving effect to such extension
of credit (i) all Obligations of Fleetwood and its Subsidiaries
under this Agreement and the other Loan Documents, and all rights of
contribution, indemnity, subrogation and reimbursement relating to the
Obligations of any Loan Party with respect to Fleetwood and any other
Obligations of Fleetwood and its Subsidiaries secured by any Loan Documents
(including, without limitation, all debts,
liabilities and obligations now or hereafter arising from or in connection with
Bank Products), shall constitute “Senior Debt” and “Designated Senior
Debt” under the 2008 Senior Secured Debentures and “Priority Lien Debt” under
the 2008 Intercreditor 

 

70

 

Agreement, (ii)  such
Obligations shall permitted by the indenture governing the indenture governing
the 2008 Senior Secured Debentures and the 2008 Intercreditor Agreement to be
incurred and secured under and pursuant to the Loan Documents; and (iii) if
requested by the Agent in its sole discretion, the Agent shall have received
and an Officers’ Certificate (as defined in, and satisfying the requirements
of, each of the indenture governing the 2008 Senior Secured Debentures and the
2008 Intercreditor Agreement) to the effect of the forgoing.

 

(d)           The extensions of credit so requested shall not cause the
aggregate outstanding amount of the Loans and/or Letters of Credit to exceed
the amount then authorized by the Applicable Order or any order not in form or
substance satisfactory to the Agent modifying, reversing, staying or vacating
such order shall have been entered (other than with the consent of the Agent in
accordance with the definition thereof), or any appeal of such order shall have
been timely filed and not stayed.

 

(e)           (i) The Bankruptcy Court shall not have entered the Final Order on or before
the date that is forty-five (45) days after the Petition Date, (ii) the
Bankruptcy Court shall not have entered the Final Order following the
expiration of the Interim Order, (iii) the Interim Order or the Final
Order, as the case may be, shall have been vacated, stayed, reversed, modified
or amended without the Agent’s and the Required Lenders’ prior written consent
or shall otherwise not be in full force and effect, (iv) a motion for
reconsideration of any such order shall have been timely filed or (v) an
appeal of any such order shall have been timely filed and such order in any
respect is the subject of a stay pending appeal.

 

(f)            The Interim Order and all
other orders directly affecting the transactions contemplated by this Agreement
entered by the Bankruptcy Court on or prior to the entry of the Final Order
shall be satisfactory in form and substance to the Agent and Required Lenders
and their counsel in their sole discretion.

 

ARTICLE 9

DEFAULT; REMEDIES

 

9.1           Events of Default.  Notwithstanding the provisions of Section 363
of the Bankruptcy Code and without notice, application or motion to, hearing
before, or order of the Bankruptcy Court or any notice to any Loan Party, and
subject to Section 9.2(b), it shall constitute an event of default
(“Event of Default”) if any one or more of the following shall occur for
any reason:

 

(a)           any failure by any Borrower to pay (i) the principal of
or interest or premium on any of the Obligations when due, whether upon demand
or otherwise, or (ii) any fee or other amount owing hereunder within 3
Business Days after such amount is due;

 

71

 

(b)         any
representation or warranty made or deemed made by Fleetwood or the Borrowers in
this Agreement or by any Loan Party in any of the other Loan Documents, any
Financial Statement, or any certificate furnished by any Loan Party at any time
to the Agent or any Lender shall prove to be untrue in any material respect as
of the date on which made, deemed made, or furnished;

 

(c)         (i) any
default shall occur in the observance or performance of any of the covenants
and agreements contained in Sections 5.2(l), 7.2, 7.5
or 7.9 through 7.30, or Section 11 of the Security
Agreement, (ii) any default shall occur in the observance or performance
of any of the covenants and agreements contained in Section 5.2
(other than Section 5.2(l)) or Section 5.3 and such
default shall continue for five (5) Business Days or more; or (iii) any
default shall occur in the observance or performance of any of the other
covenants or agreements contained in any other Section of this Agreement
or any other Loan Document, or any other agreement entered into at any time
after the Petition Date to which Fleetwood or any Subsidiary and the Agent or
any Lender are party (including in respect of any Bank Products) and such
default shall continue for thirty (30) days or more or such longer grace period
provided in such other agreement;

 

(d)         except for defaults
occasioned by the filing of the Chapter 11 Cases and defaults resulting from obligations with
respect to which the Bankruptcy Code prohibits any Loan Party from complying or
permits any Loan Party not to comply, any failure to pay any principal of or premium or interest on any Debt
(other than the Obligations) of Fleetwood or any of its Subsidiaries or of
Fleetwood Trust in an outstanding principal amount which exceeds five million
Dollars ($5,000,000), or under any agreement or instrument under or pursuant to
which any such Debt may have been issued, created, assumed, or guaranteed by
Fleetwood or any of its Subsidiaries or of Fleetwood Trust, and such failure to
pay shall continue for more than the period of grace, if any, therein
specified; or any default shall occur with respect to any Debt (other than the
Obligations) of Fleetwood or any of its Subsidiaries or of Fleetwood Trust in
an outstanding principal amount which exceeds five million Dollars
($5,000,000), or under any agreement or instrument under or pursuant to which
any such Debt may have been issued, created, assumed, or guaranteed by
Fleetwood or any of its Subsidiaries or Fleetwood Trust, and such default shall
continue for more than the period of grace, if any, therein specified, if the
effect thereof (with or without the giving of notice or further lapse of time
or both) is to accelerate, or to permit the holders of any such Debt to
accelerate, the maturity of any such Debt; or any such Debt shall be declared
due and payable or be required to be prepaid (other than by a regularly
scheduled required prepayment or a customary due on sale clause set forth in any capital lease or other asset financing
permitted hereby provided that such sale is otherwise permitted by this
Agreement) prior to the stated maturity
thereof;

 

(e)         all
or any material part of the property of Fleetwood or any of its Subsidiaries
shall be nationalized, expropriated or condemned, seized or otherwise
appropriated, or custody or control of such property or of Fleetwood or such
Subsidiary shall be assumed by any Governmental Authority or any court of
competent jurisdiction at the instance of any Governmental Authority, except
where contested in good faith by proper proceedings diligently pursued where a
stay of enforcement is in effect;

 

72

 

(f)          any
Loan Document shall be terminated (except in accordance with its terms),
revoked or declared void or invalid or unenforceable or challenged by any Loan
Party;

 

(g)         one
or more judgments, orders, decrees or arbitration awards is entered against
Fleetwood or any of its Subsidiaries involving in the aggregate liability (to
the extent not covered by independent third-party insurance as to which the
insurer has not denied coverage) as to any single or related or unrelated
series of transactions, incidents or conditions, of five million Dollars
($5,000,000) or more, the same shall remain unsatisfied, unvacated or unstayed
pending appeal for a period of thirty (30) days after the entry thereof or any
enforcement proceedings shall have been commenced by a creditor or creditors
upon such judgments, orders, decrees or arbitration awards (other than the mere
obtaining of a judgment Lien);

 

(h)         any
loss, theft, damage or destruction of any item or items of Collateral or other
property of Fleetwood or any of its Subsidiaries occurs which could reasonably
be expected to cause a Material Adverse Effect and is not adequately covered by
insurance;

 

(i)          there
is filed against Fleetwood or any of its Subsidiaries any action, suit or
proceeding under any federal or state racketeering statute (including the
Racketeer Influenced and Corrupt Organization Act of 1970), which action, suit
or proceeding (i) is not dismissed within one hundred twenty (120) days,
and (ii) would reasonably be expected to result in the confiscation or
forfeiture of any material portion of the Collateral;

 

(j)          for
any reason other than the failure of the Agent to take any action available to
it to maintain perfection of the Agent’s Liens pursuant to the Loan Documents,
any Loan Document ceases to be in full force and effect in accordance with its
terms or, except for any Lien released in accordance with the Loan Documents,
any Lien with respect to any material portion of the Collateral intended to be
secured thereby ceases to be, or is not, valid, perfected and prior to all
other Liens (other than the Carve-Out and the Exceptions) or is terminated,
revoked or declared void;

 

(k)         other than an ERISA Event consisting of either the filing of
the Chapter 11 Cases or the liquidation of any Loan Party subject to the
Chapter 11 Cases, an ERISA Event shall occur
with respect to a Pension Plan or Multi-employer Plan which has resulted or
could reasonably be expected to result in liability of Fleetwood or any ERISA
Affiliate under Title IV of ERISA to the Pension Plan, Multi-employer Plan or
the PBGC in an aggregate amount in excess of ten million Dollars 

 

73

 

($10,000,000); (ii) the aggregate amount of Unfunded Pension Liability
among all Pension Plans at any time exceeds ten million Dollars ($10,000,000);
or (iii) Fleetwood or any ERISA Affiliate shall fail to pay when due,
after the expiration of any applicable grace period, any installment payment
with respect to its withdrawal liability under Section 4201 of ERISA under
a Multi-employer Plan in an aggregate amount in excess of ten million Dollars
($10,000,000);

 

(l)          there occurs a Change of
Control;

 

(m)        there occurs an event
having a Material Adverse Effect; or

 

(n)         The
occurrence of any of the following in any
Chapter 11 Case:

 

(i)            the bringing of a motion or taking of
any action by any Loan Party in any Chapter 11 Case: (w) to obtain
additional financing under Section 364(c) or (d) of the
Bankruptcy Code not otherwise permitted pursuant to this Agreement; (x) to
grant any Lien, other than Liens permitted under clause (g) of the definition of “Permitted
Liens” and Liens securing Debt permitted under Section 7.13(d), upon or affecting any
Collateral; (y) except as provided in the Applicable Order to use cash
collateral of the Agent under Section 363(c) of the Bankruptcy Code
without the prior written consent of the Agent and the Required Lenders; or (z) any
other action or actions adverse to the Agent and the Lenders (determined in
their sole discretion) or their rights and remedies hereunder or their interest
in the Collateral;

 

(ii)           the entry of an order in any
Chapter 11 Case confirming a plan or plans of reorganization that does not
contain a provision for termination of the Commitments and repayment in full in
cash of all of the Obligations under this Agreement on or before the effective
date of such plan or plans or (b) to which the Agent and the Required
Lenders do not consent or otherwise agree to the treatment of their claims, or
the filing of any plan of reorganization or disclosure statement attendant
thereto;

 

(iii)          the entry of an order amending,
supplementing, staying, vacating or otherwise modifying the Loan Documents or
the Interim Order or the Final Order without the written consent of the
Required Lenders or the filing of a motion for reconsideration with respect to
the Interim Order or the Final Order;

 

(iv)          the Final Order is not entered prior
to, or does not become effective immediately following, the expiration of the
Interim Order;

 

(v)           the payment of, or application for
authority to pay, any Prepetition claim without the Agent’s and the Required
Lenders’ prior written consent or pursuant to an order of the Bankruptcy Court
after notice and a hearing other than in connection with assuming or curing
executory contracts and unexpired leases that are approved by an order of the
Bankruptcy Court and unless otherwise permitted under this Agreement;

 

74

 

(vi)          the allowance of any claim or claims
under Section 506(c) of the Bankruptcy Code against the Agent, any
Lender or any of the Collateral or against the Agent, any Lender or any
Collateral (as each such term is defined in the Third Amended and Restated
Credit Agreement);

 

(vii)         the appointment of an interim or
permanent trustee in any Chapter 11 Case or the appointment of a receiver or an
examiner in any Chapter 11 Case with expanded powers to operate or manage the
financial affairs, the business, or reorganization of such Loan Party; or the
sale without the Agent’s and the Required Lenders’ consent, of all or
substantially all of such Loan Party’s assets either through a sale under Section 363
of the Bankruptcy Code, through a confirmed plan of reorganization in the
Chapter 11 Cases, or otherwise that does not provide for payment in full in
cash of the Obligations and termination of the Commitments;

 

(viii)        the dismissal of any Chapter 11 Case, or
the conversion of any Chapter 11 Case from one under Chapter 11 to one
under Chapter 7 of the Bankruptcy Code (or if any Loan Party or any other
party-in-interest shall otherwise apply for,
consent to, or acquiesce in such dismissal or conversion), or if any Loan Party,
the United States Trustee or the Committee, shall file a motion or other
pleading (or otherwise apply for,
consent to, or acquiesce in), seeking the dismissal or conversion of any Chapter 11 Case
under Section 1112 of the Bankruptcy Code or otherwise (and, in the case
of the United States Trustee, such motion or other pleading shall not have been
dismissed, withdrawn or denied within fifteen (15) days of filing) without the
consent of the Required Lenders;

 

(ix)           the
entry by the Bankruptcy Court of an order or orders granting relief from the
automatic stay imposed by Section 362 of the Bankruptcy Code to any entity
or entities, other than, in accordance with the Applicable Order, either the
Agent or any Lender, to exercise remedies with respect to any portion of the
Prepetition Credit Facility Collateral or the DIP Collateral (in each case as
defined in the Applicable Order) having a value, individually or in the
aggregate, of in excess of one hundred thousand Dollars ($100,000);

 

(x)            the commencement of a suit or action
against the Agent or any Lender and, as to any suit or action brought by any
person other than a Loan Party or a Subsidiary, officer or employee of a Loan
Party, the continuation thereof without dismissal for thirty (30) days after
service thereof on the Agent or such Lender, that asserts or seeks by or on
behalf of a Loan Party, the Environmental Protection Agency, any state
environmental protection or health and safety agency, any official

 

75

 

committee in any Chapter 11 Case  (including the Committee) or any other party
in interest in any Chapter 11 Case, (a) a claim in excess of five hundred
thousand Dollars ($500,000), (b) any legal or equitable remedy that would
have the effect of subordinating any or all of the Obligations or Liens of the
Agent or any Lender under the Loan Documents to any other claim or interest, (c) would
otherwise have a Material Adverse Effect, or (d) have a material adverse
effect on the rights and remedies of the Agent or any Lender under any Loan
Document or the collectability of all or any portion of the Obligations;

 

(xi)           the entry of an order in any Chapter
11 Case avoiding or requiring repayment of any portion of the payments made on
account of the Obligations, or avoiding or otherwise nullifying any Lien
securing any Obligation, owing under this Agreement or the other Loan
Documents;

 

(xii)          the failure of any Loan Party to
perform any of its obligations under the Interim Order or the Final Order;

 

(xiii)         the entry of an order in any Chapter 11
Case granting any other super priority administrative claim or Lien equal or
superior to that granted to the Agent, on behalf of itself and Lenders (other
than the Carve-Out);

 

(xiv)        the termination of the Borrowers’ or any
other Loan Party’s exclusive right to file a plan or plans of reorganization in
any Chapter 11 Case;

 

(xv)         the payment
of any Prepetition Debt of any Loan Party other than the Prepetition Debt or
payments on account of Prepetition amounts allowed and approved by the
Bankruptcy Court pursuant to any Loan Party’s first day motions and
specifically provided for in the Approved Budget, except as otherwise consented
to in writing by the Agent and the Required Lenders;

 

(xvi)        any motion
or application is filed by, on behalf of, or supported by any Loan Party
seeking the entry of an order, or an order is entered in any of the Chapter 11
Cases, approving any subsequent debtor-in-possession facility for borrowed
money or other extensions of credit unless such subsequent facility and such
order expressly provide for the indefeasible payment and complete satisfaction
in full in cash to the Agent of all Obligations (and termination of all
Commitments) hereunder prior to, or concurrently with, any initial borrowings
or other extensions of credit under such subsequent facility;

 

(xvii)       any motion
or pleading is filed by any of the Loan Parties seeking to grant, or the entry
of any order granting, to any party, (i) any Lien senior or equal to the
Liens described in the Applicable Order or the

 

76

 

Loan
Documents that are held by any of the Agent, Lenders, Prepetition Agent or
Prepetition Credit Facility Lenders in the Prepetition Credit Facility Collateral
or DIP Collateral (in each case, as defined in the Applicable Order and subject
to the
Carve-Out), or (ii) any claim or
expense senior or equal to the claims and expenses described in the Applicable
Order or the Loan Documents that are held by any of the Agent, Lenders,
Prepetition Agent or Prepetition Credit Facility Lenders (in each case, as
defined in the Applicable Order and subject to the Carve-Out)
against any of the Loan Parties; or

 

(xviii)      failure on
the part of the Borrowers on or prior to the dates separately disclosed to and
agreed by the Agent to have achieved certain benchmarks separately disclosed to
and agreed by the Agent indicating reasonable progress towards a sale of the
assets comprising either (i) the Manufactured Homes Division or (ii) substantially
all of the non-idle assets (including, without limitation, the Manufactured
Homes Division) of Fleetwood and its Subsidiaries.

 

9.2           Remedies.

 

(a)         If
a Default or an Event of Default exists, the Agent may, in its discretion, and
shall, at the direction of the Required Lenders, do one or more of the
following at any time or times and in any order, notwithstanding the provisions
of Section 362 of the Bankruptcy Code, without any application, motion or
notice to, hearing before, or order from, the Bankruptcy Court, without notice
to or demand on the Borrowers:  (i) reduce the Maximum Amount, or the advance rates against
Eligible Accounts and/or Eligible Inventory and/or Real Estate Subfacility
Assets used in computing the Borrowing Base, or reduce one or more of the other
elements used in computing the Borrowing Base; (ii) restrict
the amount of or refuse to make Revolving Loans; and (iii) restrict or
refuse to provide Letters of Credit or Credit Support.  If an Event of Default exists, the Agent
shall, at the direction of the Required Lenders, do one or more of the
following, in addition to the actions described in the preceding sentence, at
any time or times and in any order, notwithstanding the provisions of Section 362
of the Bankruptcy Code, without any application, motion or notice to, hearing
before, or order from, the Bankruptcy Court, without notice to or demand on the
Borrowers:  (A) terminate the
Revolving Credit Commitments and this Agreement; (B) declare any or all
Obligations to be immediately due and payable; provided, however,
that upon the occurrence of any Event of Default described in Sections 9.1(e),
9.1(f), 9.1(g), or 9.1(h), the Revolving Credit
Commitments shall automatically and immediately expire and all Obligations
shall automatically become immediately due and payable without notice or demand
of any kind; (C) require the Borrowers to cash collateralize all
outstanding Letter of Credit Obligations at one hundred five percent (105%) of
the face amount thereof; and (D) subject to any notice requirements with
respect to the exercise of particular remedies otherwise set forth in this
Agreement, pursue its other rights and remedies under the Loan Documents and
applicable law.

 

77

 

(b)         If
an Event of Default has occurred and is continuing, notwithstanding the
provisions of Section 362 of the Bankruptcy Code, without any application,
motion or notice to, hearing before, or order from, the Bankruptcy Court:  (i) the Agent shall have for the benefit
of the Lenders, in addition to all other rights of the Agent and the Lenders,
the rights and remedies of a secured party under the Loan Documents or at law
or equity, including all remedies provided under the UCC and pursuant to the Interim
Order and the Final Order, (ii) the Agent may, upon five (5) Business
Days’ prior written notice to the Borrowers, take possession of the Collateral
and keep it on any Loan Party’s premises, at no cost to the Agent or any
Lender, or remove any part of it to such other place or places as the Agent may
desire, or the Borrowers shall, upon the Agent’s demand, at the Borrowers’
cost, assemble the Collateral and make it available to the Agent at a place
reasonably convenient to the Agent; (iii) upon five (5) Business Days’
prior written notice to the Borrowers, the Agent may sell and deliver any
Collateral at public or private sales, for cash, upon credit or otherwise, at
such prices and upon such terms as the Agent deems advisable, in its sole
discretion, and may, if the Agent deems it reasonable, postpone or adjourn any
sale of the Collateral by an announcement at the time and place of sale or of
such postponed or adjourned sale without giving a new notice of sale; and (iv) upon
five (5) Business Days’ prior written notice to the Borrowers, the Agent
may require
any or all of the Loan Parties to sell or otherwise dispose of any or all of
the Collateral on terms and conditions acceptable to the Agent and the Lenders
pursuant to Sections 363, 365 and other applicable provisions of the Bankruptcy
Code (and, without limiting the foregoing, direct any Loan Party to assume and
assign any lease or executory contract included in the Collateral to the Agent’s
designees in accordance with and subject to Section 365 of the Bankruptcy
Code).  Without in any way requiring notice to be
given in the following manner, each Borrower agrees that any notice by the
Agent of sale, disposition or other intended action hereunder or in connection
herewith, whether required by the UCC or otherwise, shall constitute reasonable
notice to such Borrower if such notice is delivered personally or by overnight
courier against receipt, at least five (5) Business Days prior to such
action to the Borrowers’ address specified in or pursuant to Section 13.8.  If any Collateral is sold on terms other than
payment in full at the time of sale, no credit shall be given against the
Obligations until the Agent or the Lenders receive payment, and if the buyer
defaults in payment, the Agent may resell the Collateral without further notice
to the Borrowers.  In the event the Agent
seeks to take possession of all or any portion of the Collateral by judicial
process, each Borrower irrevocably waives: 
(A) the posting of any bond, surety or security with respect
thereto which might otherwise be required; (B) any demand for possession
prior to the commencement of any suit or action to recover the Collateral; and (C) any
requirement that the Agent retain possession and not dispose of any Collateral
until after trial or final judgment. 
Each Borrower agrees that the Agent has no obligation to preserve rights
to the Collateral or marshal any Collateral for the benefit of any Person.  The Agent is hereby granted a license or
other right to use, without charge, each Borrower’s and Fleetwood’s labels,
patents, copyrights, name, trade secrets, trade names, trademarks, and
advertising matter, or any

 

78

 

similar property, in completing production of, advertising or selling any
Collateral, and each Borrower’s and Fleetwood’s rights under all licenses and
all franchise agreements shall inure to the Agent’s benefit for such
purpose.  The proceeds of sale shall be
applied first to all expenses of sale, including attorneys’ fees, and then to
the Obligations.  The Agent will return
any excess to the Borrowers and the Borrowers shall remain liable for any
deficiency.  To the extent that any of
the foregoing rights and remedies would otherwise be in violation of the
automatic stay of Section 362 of the Bankruptcy Code, such stay shall be
deemed modified, as set forth in the Final Order, to the extent necessary to
permit the Agent to exercise such rights and remedies.

 

(c)         If
an Event of Default occurs, each Borrower hereby waives to the greatest extent
permitted by applicable law all rights to notice and hearing prior to the
exercise by the Agent of the Agent’s rights to repossess the Collateral without
judicial process or to reply, attach or levy upon the Collateral without notice
or hearing.

 

ARTICLE
10

TERM AND TERMINATION

 

10.1         Term
and Termination.  The term of this
Agreement shall end on the Stated Termination Date unless sooner terminated in
accordance with the terms hereof.  The
Agent upon direction from the Required Lenders may terminate this Agreement
without notice upon the occurrence of an Event of Default.  Upon the effective date of termination of
this Agreement for any reason whatsoever, all Obligations (including all unpaid
principal, accrued and unpaid interest and any accrued and unpaid fees) shall
become immediately due and payable and the Borrowers shall immediately arrange
for the cancellation and return of Letters of Credit then outstanding.  Notwithstanding the termination of this
Agreement, until all Obligations are indefeasibly paid and performed in full in
cash, the Borrowers shall remain bound by the terms of this Agreement and shall
not be relieved of any of their Obligations hereunder or under any other Loan
Document, and the Agent and the Lenders shall retain all their rights and
remedies hereunder (including the Agent’s Liens in and all rights and remedies
with respect to all then existing and after-arising Collateral).

 

ARTICLE
11

AMENDMENTS; WAIVERS; PARTICIPATIONS; ASSIGNMENTS; SUCCESSORS

 

11.1         Amendments
and Waivers.

 

(a)         No
amendment or waiver of any provision of this Agreement or any other Loan
Document, and no consent with respect to any departure by any Loan Party
therefrom, shall be effective unless the same shall be in writing and signed by
the Required Lenders (or by the Agent at the written request of the Required
Lenders), Fleetwood and the Borrowers and then any such waiver or consent shall
be effective only in the specific instance and for the specific purpose for
which given in accordance with this Section 11.1.  The Required Lenders or Agent with the
consent of the Required Lenders, and the Loan Parties may from time to time

 

79

 

(a) enter into written amendments, supplements or modifications hereto
or to the other Loan Documents, for the purpose of adding any provisions to
this Agreement or the other Loan Documents, as applicable, or changing in any
manner the rights of the Lenders or the Loan Parties hereunder or thereunder or
(b) waive, on such terms and conditions as the Required Lenders or the
Agent, as the case may be, may specify in such instrument, any of the
requirements of this Agreement or the other Loan Documents, as applicable, or
any Default or Event of Default and its consequences; provided, however,
that

 

(i)            no
such waiver, amendment, or consent shall, unless in writing and signed by all
the Lenders, Fleetwood and the Borrowers and acknowledged by the Agent, do any
of the following:

 

(A)            change
the percentage of the Revolving Credit Commitments (other than in accordance
with Section 3.3) or of the aggregate unpaid principal amount of
the Loans which is required for the Lenders or any of them to take any action
hereunder;

 

(B)             amend
this Section 11.1 or any provision of this Agreement providing for
consent or other action by all Lenders;

 

(C)             release
any Guaranties of the Obligations except in connection with the disposition of
the capital stock of a Loan Party or Subsidiary that is not prohibited hereby;

 

(D)            change
the definition of “Majority Lenders” or “Required Lenders”;

 

(E)             permit
the Agent to contractually subordinate its Lien on any Collateral to any other
Lien, except as permitted by this Agreement;

 

(F)             increase
the amount of Agent Advances permitted pursuant to Section 1.2(i); or

 

(G)             amend Section 3.8;

 

(ii)           no
such waiver, amendment, or consent shall, unless in writing and signed by all
the Revolving Credit Lenders, Fleetwood and the Borrowers and acknowledged by
the Agent, do any of the following:

 

(A)            increase
or extend the Revolving Credit Commitment of any Revolving Credit Lender;

 

(B)             postpone
or delay any date fixed by this Agreement or any other Loan Document for any
payment of principal, interest, fees or other amounts due to the Revolving
Credit Lenders (or any of them) hereunder or under any other Loan Document;

 

80

 

(C)             reduce
the principal of, or the rate of interest specified herein on any Loan, or any
fees or other amounts payable to the Revolving Credit Lenders hereunder or
under any other Loan Document;

 

(D)            increase
any of the percentages or other amounts or limits set forth in the definition
of the Borrowing Base (or introduce new categories of property as components of
the Borrowing Base),  provided
that, for the avoidance of doubt, the Agent may establish Reserves from time to
time in its reasonable credit judgment;

 

(E)             release
any Collateral, except as permitted by Section 7.9 or Section 12.11;
or

 

(F)             increase the Maximum Amount, the Maximum Inventory Loan Amount,
the Maximum Real Estate Loan Amount or the Unused Letter of Credit Subfacility;
and

 

(iii)          no
such waiver, amendment, or consent shall, unless in writing and signed by the
Required Lenders, Fleetwood and the Borrowers and acknowledged by the Agent,
amend Article 12;

 

provided, however, the Agent may, in its sole discretion and notwithstanding
the limitations contained in clauses (ii)(D) and (F) above
and any other terms of this Agreement, make Agent Advances in accordance with Section 1.2(i) or
Section 13.19 and, provided  further, that no
amendment, waiver or consent shall, unless in writing and signed by the Agent,
affect the rights or duties of the Agent under this Agreement or any other Loan
Document; and provided  further, that Schedule 1.2
hereto (Revolving Credit Commitments) may be amended from time to time by the
Agent alone to reflect assignments of Revolving Credit Commitments in
accordance herewith.

 

(b)         If,
in connection with any proposed amendment, waiver or consent requiring the
consent of all Lenders, the consent of Required Lenders is obtained, but the
consent of other Lenders is not obtained (any such Lender whose consent is not
obtained being referred to as a “Non-Consenting Lender”), then, so long
as the Agent is not a Non-Consenting Lender, at the Borrowers’ request, the
Agent or an Eligible Assignee shall have the right (but not the obligation)
with the Agent’s approval, to purchase from the Non-Consenting Lenders, and the
Non-Consenting Lenders agree that they shall sell, all the Non-Consenting
Lenders’ Revolving Credit Commitments and Loans for an amount equal to the
principal balances thereof and all accrued interest and fees with respect
thereto through the date of sale pursuant to Assignment and Acceptance
Agreement(s), without premium or discount.

 

81

 

11.2                           Assignments;
Participations.

 

(a)                            Any Lender may, with the written consent of
the Agent assign and delegate to one or more Eligible Assignees (provided
that no consent shall be required in connection with any assignment and
delegation by a Lender to an Affiliate of such Lender) (each an “Assignee”)
all, or any ratable part of all, of the Loans, the Commitments and the other
rights and obligations of such Lender hereunder, in a minimum amount of ten
million Dollars ($10,000,000) (or, if less, the entire amount of such Lender’s
Loan or Commitment or other rights and obligations, as applicable) for
Revolving Commitments (provided  that, unless either (I) an
assignor Lender has assigned and delegated all of its Loans and Commitments or (II) an
assignor’s Commitment as of the Closing Date was less than twenty million
Dollars ($20,000,000) for the Revolving Commitments, no such assignment and/or
delegation shall be permitted unless, after giving effect thereto, such
assignor Lender retains a Commitment in a minimum amount of ten million Dollars
($10,000,000) for Revolving Commitments); provided, however, that
the Borrowers and the Agent may continue to deal solely and directly with such
Lender in connection with the interest so assigned to an Assignee until (i) written
notice of such assignment, together with payment instructions, addresses and
related information with respect to the Assignee, shall have been given to the
Borrowers and the Agent by such Lender and the Assignee; (ii) such Lender
and its Assignee shall have delivered to the Borrowers and the Agent an
Assignment and Acceptance in the form of Exhibit D (“Assignment
and Acceptance”) together with any note or notes subject to such assignment
and (iii) the assignor Lender or Assignee has paid to the Agent a
processing fee in the amount of three thousand five hundred Dollars ($3,500);
and provided  further that no Lender may assign all, or any
ratable part of all, of the Loans, the Commitments and the other rights and
obligations of such Lender hereunder unless it shall simultaneously assign a
ratable portion of each of its Revolving Credit Commitments and Revolving Loans
hereunder.  The Borrowers agree to
promptly execute and deliver new promissory notes and replacement promissory
notes as reasonably requested by the Agent to evidence assignments of the
Revolving Credit Commitments in accordance herewith.

 

(b)                           From and after the date that the Agent
notifies the assignor Lender that it has received an executed Assignment and
Acceptance and payment of the above-referenced processing fee, (i) the
Assignee thereunder shall be a party hereto and, to the extent that rights and
obligations, including, but not limited to, the obligation to participate in
Letters of Credit and Credit Support have been assigned to it pursuant to such
Assignment and Acceptance, shall have the rights and obligations of a Lender
under the Loan Documents, and (ii) the assignor Lender shall, to the
extent that rights and obligations hereunder and under the other Loan Documents
have been assigned by it pursuant to such Assignment and Acceptance, relinquish
its rights and be released from its obligations under this Agreement (and in
the case of an Assignment and Acceptance covering all or the remaining portion
of an assigning Lender’s rights and obligations under this Agreement, such
Lender shall cease to be a party hereto).

 

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(c)                            By executing and delivering an Assignment
and Acceptance, the assigning Lender thereunder and the Assignee thereunder
confirm to and agree with each other and the other parties hereto as
follows:  (i) other than as provided
in such Assignment and Acceptance, such assigning Lender makes no
representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with this
Agreement or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of this Agreement or any other Loan Document furnished
pursuant hereto or the attachment, perfection, or priority of any Lien granted
by any Loan Party to the Agent or any Lender in the Collateral; (ii) such
assigning Lender makes no representation or warranty and assumes no
responsibility with respect to the financial condition of Fleetwood or any of
its Subsidiaries or the performance or observance by any Loan Party of any of
its obligations under this Agreement or any other Loan Document furnished
pursuant hereto; (iii) such Assignee confirms that it has received a copy
of this Agreement, together with such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into
such Assignment and Acceptance; (iv) such Assignee will, independently and
without reliance upon the Agent, such assigning Lender or any other Lender, and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under this Agreement; (v) such Assignee appoints and authorizes the Agent
to take such action as agent on its behalf and to exercise such powers under
this Agreement as are delegated to the Agent by the terms hereof, together with
such powers, including the discretionary rights and incidental power, as are reasonably
incidental thereto; and (vi) such Assignee agrees that it will perform in
accordance with their terms all of the obligations which by the terms of this
Agreement are required to be performed by it as a Lender.

 

(d)                           Immediately upon satisfaction of the
requirements of Section 11.2(a), this Agreement shall be deemed to
be amended to the extent, but only to the extent, necessary to reflect the
addition of the Assignee and the resulting adjustment of the Revolving Credit
Commitments arising therefrom.  The
Revolving Credit Commitment allocated to each Assignee shall reduce such
Revolving Credit Commitments of the assigning Lender pro  tanto.

 

(e)                            Any Lender may at any time sell to one or
more commercial banks, financial institutions, or other Persons not Affiliates
of any Loan Party (a “Participant”) participating interests in any
Loans, the Revolving Credit Commitment of that Lender and the other interests
of that Lender (the “originating Lender”) hereunder and under the other
Loan Documents; provided, however, that (i) the originating
Lender’s obligations under this Agreement shall remain unchanged, (ii) the
originating Lender shall remain solely responsible for the performance of such
obligations, (iii) the Borrowers and the Agent shall continue to deal solely
and directly with the originating Lender in connection with the originating
Lender’s rights and obligations under this Agreement and the other Loan
Documents, and (iv) no Lender shall transfer or grant any participating

 

83

 

interest under which the Participant has rights to approve any amendment
to, or any consent or waiver with respect to, this Agreement or any other Loan
Document except the matters set forth in Section 11.1(a) (i), (ii) and (iii) with respect to the
Loans in which such Participant has an interest, and all amounts payable by the
Borrowers hereunder shall be determined as if such Lender had not sold such
participation; except that, if amounts outstanding under this Agreement are due
and unpaid, or shall have become due and payable upon the occurrence of an
Event of Default, each Participant shall be deemed to have the right of set-off
in respect of its participating interest in amounts owing under this Agreement
to the same extent and subject to the same limitation as if the amount of its
participating interest were owing directly to it as a Lender under this
Agreement.

 

(f)                              Notwithstanding any other provision in this
Agreement, any Lender may at any time create a security interest in, or pledge,
all or any portion of its rights under and interest in this Agreement in favor
of any Federal Reserve Bank in accordance with Regulation A of the FRB or U.S.
Treasury Regulation 31 CFR §203.14, and such Federal Reserve Bank may enforce
such pledge or security interest in any manner permitted under applicable law.

 

ARTICLE
12

THE AGENT

 

12.1                           Appointment and
Authorization.  Each Lender hereby
designates and appoints Bank as its Agent under this Agreement and the other
Loan Documents and each Lender hereby irrevocably authorizes the Agent to take
such action on its behalf under the provisions of this Agreement and each other
Loan Document and to exercise such powers and perform such duties as are
expressly delegated to it by the terms of this Agreement or any other Loan
Document, together with such powers as are reasonably incidental thereto.  Without limiting the generality of the
foregoing, each Lender hereby authorizes the Agent to consent, on behalf of
each Lender, to an Interim Order substantially in the form attached as Exhibit E
hereto and a Final Order to be negotiated between the Loan Parties, the Agent
and any Committee.  The Agent agrees to
act as such on the express conditions contained in this Article 12.  The provisions of this Article 12
are solely for the benefit of the Agent and the Lenders and no Loan Party shall
have any rights as a third party beneficiary of any of the provisions contained
herein.  Notwithstanding any provision to
the contrary contained elsewhere in this Agreement or in any other Loan
Document, the Agent shall not have any duties or responsibilities, except those
expressly set forth herein, nor shall the Agent have or be deemed to have any
fiduciary relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Agreement or any other Loan Document or otherwise exist against the Agent.  Without limiting the generality of the
foregoing sentence, the use of the term “agent” in this Agreement with
reference to the Agent is not intended to connote any fiduciary or other
implied (or express) obligations arising under agency doctrine of any
applicable law.  Instead, such term is
used merely as a matter of market custom, and is intended to create or reflect
only an administrative relationship between independent contracting
parties.  Except as expressly otherwise
provided in this Agreement, the Agent shall have and may use its sole
discretion with respect to exercising or refraining from exercising any
discretionary rights or taking or refraining from taking any actions which the
Agent is expressly entitled to take or

 

84

 

assert under this Agreement and the other Loan
Documents, including (a) the determination of the applicability of
ineligibility criteria with respect to the calculation of the Borrowing Base, (b) the
making of Agent Advances pursuant to Section 1.2(i), and (c) the
exercise of remedies pursuant to Section 9.2, and any action so
taken or not taken shall be deemed consented to by the Lenders.

 

12.2                           Delegation of Duties.  The Agent may execute any of its duties under
this Agreement or any other Loan Document by or through agents, employees 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 agent or
attorney-in-fact that it selects as long as such selection was made without
gross negligence or willful misconduct.

 

12.3                           Liability of the Agent.  None of the Agent-Related Persons shall (i) be
liable for any action taken or omitted to be taken by any of them under or in
connection with this Agreement or any other Loan Document or the transactions
contemplated hereby (except for its own gross negligence or willful
misconduct), or (ii) be responsible in any manner to any of the Lenders
for any recital, statement, representation or warranty made by the Borrower or
any Subsidiary or Affiliate of Fleetwood, or any officer thereof, contained in
this Agreement or in any other Loan Document, or in any certificate, report,
statement or other document referred to or provided for in, or received by the
Agent under or in connection with, this Agreement or any other Loan Document,
or the validity, effectiveness, genuineness, enforceability or sufficiency of
this Agreement or any other Loan Document, or for any failure of any Loan Party
or any other party to any Loan Document to perform its obligations hereunder or
thereunder.  No Agent-Related Person
shall be under any obligation to any Lender to ascertain or to inquire as to
the observance or performance of any of the agreements contained in, or
conditions of, this Agreement or any other Loan Document, or to inspect the
properties, books or records of Fleetwood or any of its Subsidiaries or
Affiliates.

 

12.4                           Reliance by the Agent.  The Agent shall be entitled to rely, and
shall be fully protected in relying, upon any writing, resolution, notice,
consent, certificate, affidavit, letter, telegram, facsimile, telex or
telephone message, statement or other 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
counsel to the Borrowers), independent accountants and other experts selected
by the Agent. The Agent shall be fully justified in failing or refusing to take
any action under this Agreement or any other Loan Document unless it shall
first receive such advice or concurrence of the Required Lenders as it deems
appropriate and, if it so requests, it shall first be indemnified to its
satisfaction by the Lenders against any and all liability and expense which may
be incurred by it by reason of taking or continuing to take any such
action.  The Agent shall in all cases be
fully protected in acting, or in refraining from acting, under this Agreement
or any other Loan Document in accordance with a request or consent of the
Required Lenders (or all Lenders if so required by Section 11.1)
and such request and any action taken or failure to act pursuant thereto shall
be binding upon all of the Lenders.

 

12.5                           Notice of Default.  The Agent shall not be deemed to have
knowledge or notice of the occurrence of any Default or Event of Default,
unless the Agent shall have received written notice from a Lender or the
Borrowers referring to this Agreement, describing such

 

85

 

Default or Event of Default and stating that such
notice is a “notice of default.”  The
Agent will notify the Lenders of its receipt of any such notice.  The Agent shall take such action with respect
to such Default or Event of Default as may be requested by the Required Lenders
in accordance with Section 9; provided, however, that
unless and until the Agent has received any such request, the Agent may (but
shall not be obligated to) take such action, or refrain from taking such
action, with respect to such Default or Event of Default as it shall deem
advisable.

 

12.6                           Credit Decision.  Each Lender acknowledges that none of the
Agent-Related Persons has made any representation or warranty to it, and that
no act by the Agent hereinafter taken, including any review of the affairs of
Fleetwood, its Subsidiaries and its Affiliates, shall be deemed to constitute
any representation or warranty by any Agent-Related Person to any Lender.  Each Lender represents to the Agent that it
has, independently and without reliance upon any Agent-Related Person and based
on such documents and information as it has deemed appropriate, made its own
appraisal of and investigation into the business, prospects, operations,
property, financial and other condition and creditworthiness of Fleetwood, its
Subsidiaries and its Affiliates, and all applicable bank regulatory laws
relating to the transactions contemplated hereby, and made its own decision to
enter into this Agreement and to extend credit to the Borrowers.  Each Lender also represents that it will,
independently and without reliance upon any Agent-Related Person and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own credit analysis, appraisals and decisions in taking or
not taking action under this Agreement and the other Loan Documents, and to
make such investigations as it deems necessary to inform itself as to the
business, prospects, operations, property, financial and other condition and
creditworthiness of the Borrower.  Except
for notices, reports and other documents expressly herein required to be
furnished to the Lenders by the Agent, the Agent shall not have any duty or
responsibility to provide any Lender with any credit or other information
concerning the business, prospects, operations, property, financial and other
condition or creditworthiness of Fleetwood or any of its Subsidiaries which may
come into the possession of any of the Agent-Related Persons.

 

12.7                     Indemnification. 
Whether or not the transactions contemplated hereby are consummated, the
Lenders shall indemnify upon demand the Agent-Related Persons (to the extent
not reimbursed by or on behalf of the Borrowers and without limiting the
obligation of the Borrowers to do so), in accordance with their Pro Rata
Shares, from and against any and all Indemnified Liabilities as such term is
defined in Section 13.11; provided, however, that no
Lender shall be liable for the payment to the Agent-Related Persons of any
portion of such Indemnified Liabilities resulting solely from such Person’s
gross negligence or willful misconduct. 
Without limitation of the foregoing, each Lender shall reimburse the
Agent upon demand for its Pro Rata Share of any costs or out-of-pocket expenses
(including Attorney Costs) incurred by the Agent in connection with the preparation,
execution, delivery, administration, modification, amendment or enforcement
(whether through negotiations, legal proceedings or otherwise) of, or legal
advice in respect of rights or responsibilities under, this Agreement, any
other Loan Document, or any document contemplated by or referred to herein, to
the extent that the Agent is not reimbursed for such expenses by or on behalf
of the Borrowers.  The undertaking in
this Section 12.7 shall survive the payment of all Obligations
hereunder and the resignation or replacement of the Agent.

 

86

 

12.8                     The Agent in Individual Capacity.  The Bank and its Affiliates may make loans
to, issue letters of credit for the account of, accept deposits from, acquire
equity interests in and generally engage in any kind of banking, trust,
financial advisory, underwriting or other business with Fleetwood and its
Subsidiaries and Affiliates as though the Bank were not the Agent hereunder and
without notice to or consent of the Lenders. 
The Bank or its Affiliates may receive information regarding Fleetwood,
its Subsidiaries, its Affiliates and Account Debtors (including information
that may be subject to confidentiality obligations in favor of a Loan Party or
such Subsidiary) and acknowledge that the Agent and the Bank shall be under no
obligation to provide such information to them. 
With respect to its Loans, the Bank shall have the same rights and
powers under this Agreement as any other Lender and may exercise the same as though
it were not the Agent, and the terms “Lender” and “Lenders” include the Bank in
its individual capacity.

 

12.9                     Successor Agent. 
The Agent may resign as Agent upon at least 30 days’ prior notice to the
Lenders and the Borrowers, such resignation to be effective upon the acceptance
of a successor agent to its appointment as Agent.  In the event the Bank sells all of its
Revolving Credit Commitment and Revolving Loans as part of a sale, transfer or
other disposition by the Bank of substantially all of its loan portfolio, the
Bank shall resign as Agent and such purchaser or transferee shall become the
successor Agent hereunder.  Subject to
the foregoing, if the Agent resigns under this Agreement, the Required Lenders
shall appoint from among the Lenders a successor agent for the Lenders.  If no successor agent is appointed prior to
the effective date of the resignation of the Agent, the Agent may appoint,
after consulting with the Lenders and the Borrowers, a successor agent from
among the Lenders.  Upon the acceptance
of its appointment as successor agent hereunder, such successor agent shall
succeed to all the rights, powers and duties of the retiring Agent and the term
“Agent” shall mean such successor agent and the retiring Agent’s
appointment, powers and duties as the Agent shall be terminated.  After any retiring Agent’s resignation
hereunder as the Agent, the provisions of this Article 12 shall
continue to inure to its benefit as to any actions taken or omitted to be taken
by it while it was the Agent under this Agreement.

 

12.10                     Withholding Tax.

 

(a)                            If any Lender is a “foreign corporation,
partnership or trust” within the meaning of the Code and such Lender claims
exemption from, or a reduction of, U.S. withholding tax under Sections 1441 or
1442 of the Code, such Lender agrees with and in favor of the Borrowers or the
Agent, to deliver to the Borrowers, with a copy to the Agent:

 

(i)                                     if such Lender claims an exemption from, or
a reduction of, withholding tax under a United States of America tax treaty,
properly completed IRS Forms W-8BEN and W-8ECI before the payment of any
interest in the first calendar year and before the payment of any interest in
each third succeeding calendar year during which interest may be paid under
this Agreement;

 

(ii)                                  if such Lender claims that interest paid
under this Agreement is exempt from United States of America withholding tax
because it is effectively connected with a United States of America trade or
business of such

 

87

 

Lender, two properly completed and executed copies of IRS Form W-8ECI
before the payment of any interest is due in the first taxable year of such
Lender and in each succeeding taxable year of such Lender during which interest
may be paid under this Agreement, and IRS Form W-9; and

 

(iii)                               such other form or forms as may be required
under the Code or other laws of the United States of America as a condition to
exemption from, or reduction of, United States of America withholding tax.

 

Such Lender agrees to
promptly notify the Borrowers and the Agent of any change in circumstances
which would modify or render invalid any claimed exemption or reduction.

 

(b)                           If any Lender claims exemption from, or
reduction of, withholding tax under a United States of America tax treaty by
providing IRS Form FW-8BEN and such Lender sells, assigns, grants a
participation in, or otherwise transfers all or part of the Obligations owing
to such Lender, such Lender agrees to notify the Borrowers and the Agent of the
percentage amount in which it is no longer the beneficial owner of Obligations
of the Borrowers to such Lender.  To the
extent of such percentage amount, the Borrowers and the Agent will treat such
Lender’s IRS Form W-8BEN as no longer valid.

 

(c)                            If any Lender claiming exemption from
United States of America withholding tax by filing IRS Form W-8ECI with
the Agent sells, assigns, grants a participation in, or otherwise transfers all
or part of the Obligations owing to such Lender, such Lender agrees to
undertake sole responsibility for complying with the withholding tax
requirements imposed by Sections 1441 and 1442 of the Code.

 

(d)                           If any Lender is entitled to a reduction in
the applicable withholding tax, the Borrowers may withhold from any interest
payment to such Lender an amount equivalent to the applicable withholding tax
after taking into account such reduction. 
If the forms or other documentation required by subsection (a) of
this Section 12.10 are not delivered to the Borrowers, then the
Borrowers may withhold from any interest payment to such Lender not providing
such forms or other documentation an amount equivalent to the applicable
withholding tax.

 

(e)                            If the IRS or any other Governmental
Authority of the United States of America or other jurisdiction asserts a claim
that the Borrowers or the Agent did not properly withhold tax from amounts paid
to or for the account of any Lender (because the appropriate form was not
delivered, was not properly executed, or because such Lender failed to notify
the Borrowers or the Agent of a change in circumstances which rendered the
exemption from, or reduction of, withholding tax ineffective, or for any other
reason) such Lender shall indemnify the Borrowers or the Agent as the case may
be, fully for all amounts paid, directly or indirectly, by the Borrowers or the
Agent as tax or otherwise, including penalties and interest, and including any
taxes imposed by any jurisdiction on the amounts payable to the Borrowers or
the Agent under this Section 12.10, together with all costs and

 

88

 

expenses (including Attorney Costs). 
The obligation of the Lenders under this subsection (e) shall
survive the payment of all Obligations and the resignation or replacement of
the Agent.

 

12.11                     Collateral Matters.

 

(a)                            The Lenders hereby irrevocably authorize
the Agent, at its option and in its sole discretion, to release any Agent’s
Liens upon any Collateral (i) upon the termination of the Revolving Credit
Commitments and payment and satisfaction in full by the Borrowers of all Loans
and reimbursement obligations in respect of Letters of Credit and Credit
Support, and the termination of all outstanding Letters of Credit (whether or
not any of such obligations are due) and all other Obligations; (ii) constituting
property being sold or disposed of if the Borrowers certify to the Agent that
the sale or disposition is made in compliance with Section 7.9 (and
the Agent may rely conclusively on any such certificate, without further
inquiry) and the proceeds are applied to the Obligations to the extent required
by this Agreement; (iii) constituting property in which a Loan Party owned
no interest at the time the Lien was granted or at any time thereafter; (iv) constituting
property leased to a Loan Party under a lease which has expired or been
terminated in a transaction permitted under this Agreement; (v) constituting
property subject to a Capital Lease or purchase money Debt permitted by this
Agreement if required by the lender or lessor; (vi) [RESERVED]; or (vii) constituting Real Estate not set forth on the
Addendum to Schedule 6.11 (which sets forth the Real Estate intended to
be subject to Mortgages) as of the Closing Date.  In addition (a) any Guaranty
may be released if the Guarantor is sold in a transaction permitted under this
Agreement and (b) Liens on Collateral may be released with the consent of
the Lenders.  Except as provided above,
the Agent will not release any of the Agent’s Liens without the prior written
authorization of the Lenders; provided that the Agent may, in its
discretion, release the Agent’s Liens on Collateral valued in the aggregate not
in excess of three million Dollars ($3,000,000) during each Fiscal Year without
the prior written authorization of the Lenders and the Agent may release the
Agent’s Liens on Collateral valued in the aggregate not in excess of five
million Dollars ($5,000,000) during each Fiscal Year with the prior written
authorization of Required Lenders.  Upon
request by the Agent or the Borrowers at any time, the Lenders will confirm in
writing the Agent’s authority to release any Agent’s Liens upon particular
types or items of Collateral or any Guaranty pursuant to this Section 12.11.  Each Lender, by executing this Agreement,
hereby expressly consents to any sale made, and any Lien released by the Agent,
in compliance with Section 7.9 and this Section 12.11.

 

(b)                           Upon receipt by the Agent of an
authorization, if any, required pursuant to Section 12.11(a) from
the Lenders of the Agent’s authority to release Agent’s Liens upon particular
types or items of Collateral or any Guaranty, and upon at least 3 Business Days
prior written request by the Borrowers, the Agent shall (and is hereby
irrevocably authorized by the Lenders to) execute such documents as may be necessary
to evidence the release of the Agent’s Liens upon

 

89

 

such Collateral or any Guaranty; provided, however, that (i) the
Agent shall not be required to execute any such document on terms which, in the
Agent’s opinion, would expose the Agent to liability or create any obligation
or entail any consequence other than the release of such Liens without recourse
or warranty, and (ii) such release shall not in any manner discharge,
affect or impair the Obligations or any Liens (other than those expressly being
released) upon (or obligations of the Loan Parties in respect of) all interests
retained by the Loan Parties, including the proceeds of any sale, all of which
shall continue to constitute part of the Collateral.

 

(c)                            The Agent shall have no obligation
whatsoever to any of the Lenders to assure that the Collateral exists or is
owned by any Loan Party or is cared for, protected or insured or has been
encumbered, or that the Agent’s Liens have been properly or sufficiently or
lawfully created, perfected, protected or enforced or are entitled to any
particular priority, or to exercise at all or in any particular manner or under
any duty of care, disclosure or fidelity, or to continue exercising, any of the
rights, authorities and powers granted or available to the Agent pursuant to
any of the Loan Documents, it being understood and agreed that in respect of
the Collateral, or any act, omission or event related thereto, the Agent may
act in any manner it may deem appropriate, in its sole discretion given the
Agent’s own interest in the Collateral in its capacity as one of the Lenders
and that the Agent shall have no other duty or liability whatsoever to any
Lender as to any of the foregoing.

 

(d)                           Each Lender authorizes and directs the Agent and the
Collateral Agent to enter into the 2008 Intercreditor Agreement, and each
Lender agrees to be bound by the terms thereof that are applicable to it
thereunder.

 

(e)                            The
Lenders hereby irrevocably authorize the Agent, at its option and in its sole
discretion, to release from any account subject to the Agent’s control into
such other account of Fleetwood or its Subsidiaries as Fleetwood may direct any
(i) cash constituting Borrowing Base Cash Collateral and (ii) any
cash that has been deposited with the Agent to
be held as cash collateral for Letter of Credit Obligations in accordance with
clause “fifth” of Section 3.8 (including, without limitation, any
such cash so deposited after being paid by FMC to the Agent pursuant to the
second sentence of Section 3.1 to cash collateralize Aggregate
Revolver Outstandings constituting the undrawn face amount of outstanding
Letters of Credit in amount equal to one hundred five percent (105%) of such undrawn face amount) or
otherwise; provided that immediately upon such release the Aggregate Revolver Outstandings shall not exceed the
lesser of the Borrowing Base or the Maximum Amount and both immediately
prior to and immediately following such release no Default or Event of Default
shall exist and be continuing.

 

12.12                     Restrictions on Actions
by Lenders; Sharing of Payments.

 

(a)                            Each of the Lenders agrees that it shall
not, without the express consent of all Lenders, and that it shall, to the
extent it is lawfully entitled to do so,

 

90

 

upon the request of all Lenders (notwithstanding the provisions of Section 362
or the Bankruptcy Code, without any application, motion or notice to, hearing
before, or order from, the Bankruptcy Court but upon five (5) Business
Days’ prior written notice to the Borrowers), set off against the Obligations,
any amounts owing by such Lender to any Loan Party or any accounts of any Loan
Party now or hereafter maintained with such Lender.  Each of the Lenders further agrees that it
shall not, unless specifically requested to do so by the Agent, take or cause
to be taken any action to enforce its rights under this Agreement or against
any Loan Party, including the commencement of any legal or equitable
proceedings, to foreclose any Lien on, or otherwise enforce any security
interest in, any of the Collateral.

 

(b)                           If at any time or times any Lender shall
receive (i) by payment, foreclosure, setoff or otherwise, any proceeds of
Collateral or any payments with respect to the Obligations to such Lender
arising under, or relating to, this Agreement or the other Loan Documents,
except for any such proceeds or payments received by such Lender from the Agent
pursuant to the terms of this Agreement, or (ii) payments from the Agent
in excess of such Lender’s Pro Rata Share of all such distributions by the
Agent, such Lender shall (notwithstanding the provisions of Section 362 or
the Bankruptcy Code, without any application, motion or notice to, hearing
before, or order from, the Bankruptcy Court) promptly (1) turn the same
over to the Agent, in kind, and with such endorsements as may be required to
negotiate the same to the Agent, or in same day funds, as applicable, for the
account of all of the Lenders and for application to the Obligations in
accordance with the applicable provisions of this Agreement, or (2) purchase,
without recourse or warranty, an undivided interest and participation in the
Obligations owed to the other Lenders so that such excess payment received
shall be applied ratably as among the Lenders in accordance with their Pro Rata
Shares; provided, however, that if all or part of such excess
payment received by the purchasing party is thereafter recovered from it, those
purchases of participations shall be rescinded in whole or in part, as
applicable, and the applicable portion of the purchase price paid therefor
shall be returned to such purchasing party, but without interest except to the
extent that such purchasing party is required to pay interest in connection
with the recovery of the excess payment.

 

12.13                     Agency for Perfection.  Each Lender hereby appoints each other Lender
as agent for the purpose of perfecting the Lenders’ security interest in assets
which, in accordance with Article 9 of the UCC can be perfected by
possession.  Should any Lender (other
than the Agent) obtain possession of any such Collateral, such Lender shall
notify the Agent thereof, and, promptly upon the Agent’s request therefor shall
deliver such Collateral to the Agent or in accordance with the Agent’s
instructions.

 

12.14                     Payments by the Agent
to Lenders.  All payments to be
made by the Agent to the Lenders shall be made by bank wire transfer or
internal transfer of immediately available funds to each Lender pursuant to
wire transfer instructions delivered in writing to the Agent on or prior to the
Initial Funding Date (or if such Lender is an Assignee, on the applicable
Assignment and Acceptance), or pursuant to such other wire transfer
instructions as each party may designate for itself by written notice to the
Agent.  Concurrently with each such
payment, 

 

91

 

the Agent shall identify whether such payment (or any
portion thereof) represents principal, premium or interest on the Revolving
Loans or otherwise.  Unless the Agent
receives notice from the Borrowers prior to the date on which any payment is
due to the Lenders that the Borrowers will not make such payment in full as and
when required, the Agent may assume that the Borrowers have made such payment
in full to the Agent on such date in immediately available funds and the Agent
may (but shall not be so required), in reliance upon such assumption,
distribute to each Lender on such due date an amount equal to the amount then
due such Lender.  If and to the extent
the Borrowers have not made such payment in full to the Agent, each Lender
shall repay to the Agent on demand such amount distributed to such Lender,
together with interest thereon at the Federal Funds Rate for each day from the
date such amount is distributed to such Lender until the date repaid.

 

12.15                     Settlement.

 

(a)                            place holder — do not remove

 

(a)                                                                                  (i)                                     Each Lender’s funded portion of the Revolving Loans is intended by the
Lenders to be equal at all times to such Lender’s Pro Rata Share of the
outstanding Revolving Loans. 
Notwithstanding such agreement, the Agent, the Bank, and the other
Lenders agree (which agreement shall not be for the benefit of or enforceable
by the Borrowers) that in order to facilitate the administration of this
Agreement and the other Loan Documents, settlement among them as to the
Revolving Loans, the Non-Ratable Loans and Agent Advances shall take place on a
periodic basis in accordance with the following provisions:

 

(ii)                                            The Agent shall request settlement (“Settlement”)
with the Lenders on at least a weekly basis, or on a more frequent basis at the
Agent’s election, (A) on behalf of the Bank, with respect to each
outstanding Non-Ratable Loan, (B) for itself, with respect to each Agent
Advance, and (C) with respect to collections received, in each case, by
notifying the Lenders of such requested Settlement by telecopy, telephone or
other similar form of transmission, of such requested Settlement, no later than
11:00 a.m. (Los Angeles time) on the date of such requested Settlement
(the “Settlement Date”).  Each
Lender (other than the Bank, in the case of Non-Ratable Loans and the Agent in
the case of Agent Advances) shall transfer the amount of such Lender’s Pro Rata
Share of the outstanding principal amount of the Non-Ratable Loans and Agent
Advances with respect to each Settlement to the Agent, to Agent’s account, not
later than 1:00 p.m. (Los Angeles time), on the Settlement Date applicable
thereto.  Settlements may occur during
the continuation of a Default or an Event of Default and whether or not the
applicable conditions precedent set forth in Article 8 have then
been satisfied.  Such amounts made
available to the Agent shall be applied against the amounts of the applicable
Non-Ratable Loan or Agent Advance and, together with the portion of such
Non-Ratable Loan or Agent Advance representing the Bank’s Pro Rata Share
thereof, shall constitute Revolving Loans of such

 

92

 

Lenders.  If any such amount is not
transferred to the Agent by any Lender on the Settlement Date applicable
thereto, the Agent shall be entitled to recover such amount on demand from such
Lender together with interest thereon at the Federal Funds Rate for the first
three (3) days from and after the Settlement Date and thereafter at the
Interest Rate then applicable to the Revolving Loans (A) on behalf of the
Bank, with respect to each outstanding Non-Ratable Loan, and (B) for
itself, with respect to each Agent Advance.

 

(iii)                               Notwithstanding the foregoing, not more
than one (1) Business Day after demand is made by the Agent (whether
before or after the occurrence of a Default or an Event of Default and
regardless of whether the Agent has requested a Settlement with respect to a
Non-Ratable Loan or Agent Advance), each other Lender (A) shall
irrevocably and unconditionally purchase and receive from the Bank or the
Agent, as applicable, without recourse or warranty, an undivided interest and
participation in such Non-Ratable Loan or Agent Advance equal to such Lender’s
Pro Rata Share of such Non-Ratable Loan or Agent Advance and (B) if
Settlement has not previously occurred with respect to such Non-Ratable Loans
or Agent Advances, upon demand by Bank or the Agent, as applicable, shall pay
to Bank or the Agent, as applicable, as the purchase price of such
participation an amount equal to one-hundred percent (100%) of such Lender’s
Pro Rata Share of such Non-Ratable Loans or Agent Advances.  If such amount is not in fact made available
to the Agent by any Lender, the Agent shall be entitled to recover such amount
on demand from such Lender together with interest thereon at the Federal Funds
Rate for the first three (3) days from and after such demand and
thereafter at the Interest Rate then applicable to Revolving Loans.

 

(iv)                              From and after the date, if any, on which
any Lender purchases an undivided interest and participation in any Non-Ratable
Loan or Agent Advance pursuant to clause (iii) above, the Agent
shall promptly distribute to such Lender, such Lender’s Pro Rata Share of all
payments of principal and interest and all proceeds of Collateral received by
the Agent in respect of such Non-Ratable Loan or Agent Advance.

 

(v)                                 Between Settlement Dates, the Agent, to the
extent no Agent Advances are outstanding, may pay over to the Bank any payments
received by the Agent, which in accordance with the terms of this Agreement
would be applied to the reduction of the Revolving Loans, for application to
the Bank’s Revolving Loans including Non-Ratable Loans.  If, as of any Settlement Date, collections
received since the then immediately preceding Settlement Date have been applied
to the Bank’s Revolving Loans (other than to Non-Ratable Loans or Agent
Advances in which such Lender has not yet funded its purchase of a
participation pursuant to clause (iii) above), as provided for
in the previous sentence, the Bank shall pay to the Agent for the accounts of
the Lenders, to be

 

93

 

applied to the outstanding Revolving Loans of such Lenders, an amount such
that each Lender shall, upon receipt of such amount, have, as of such
Settlement Date, its Pro Rata Share of the Revolving Loans.  During the period between Settlement Dates,
the Bank with respect to Non-Ratable Loans, the Agent with respect to Agent
Advances, and each Lender with respect to the Revolving Loans other than
Non-Ratable Loans and Agent Advances, shall be entitled to interest at the
applicable rate or rates payable under this Agreement on the actual average
daily amount of funds employed by the Bank, the Agent and the other Lenders.

 

(vi)                              Unless the Agent has received written
notice from a Borrower or a Lender to the contrary, the Agent may assume that
the applicable conditions precedent set forth in Article 8 have
been satisfied and the requested Borrowing will not exceed Availability on any
Funding Date for a Revolving Loan or Non-Ratable Loan.

 

(b)                                 Lenders’ Failure to
Perform.  All Revolving Loans (other than
Non-Ratable Loans and Agent Advances) shall be made by the Lenders
simultaneously and in accordance with their Pro Rata Shares.  It is understood that (i) no Lender
shall be responsible for any failure by any other Lender to perform its
obligation to make any Revolving Loans hereunder, nor shall any Revolving
Credit Commitment of any Lender be increased or decreased as a result of any
failure by any other Lender to perform its obligation to make any Revolving
Loans hereunder, (ii) no failure by any Lender to perform its obligation
to make any Revolving Loans hereunder shall excuse any other Lender from its
obligation to make any Revolving Loans hereunder, and (iii) the
obligations of each Lender hereunder shall be several, not joint and several.

 

(c)                                  Defaulting Lenders.  Unless the Agent receives notice from a
Lender on or prior to the Initial Funding Date or, with respect to any
Borrowing after the Initial Funding Date, at least one (1) Business Day
prior to the date of such Borrowing, that such Lender will not make available
as and when required hereunder to the Agent that Lender’s Pro Rata Share of a
Borrowing, the Agent may assume that each Lender has made such amount available
to the Agent in immediately available funds on the Funding Date.  Furthermore, the Agent may, in reliance upon
such assumption, make available to the Borrower on such date a corresponding
amount.  If any Lender has not
transferred its full Pro Rata Share to the Agent in immediately available funds
and the Agent has transferred corresponding amount to the applicable Borrower
on the Business Day following such Funding Date that Lender shall make such
amount available to the Agent, together with interest at the Federal Funds Rate
for that day.  A notice by the Agent
submitted to any Lender with respect to amounts owing shall be conclusive,
absent manifest error.  If each Lender’s
full Pro Rata Share is transferred to the Agent as required, the amount
transferred to the Agent shall constitute that Lender’s Revolving Loan for all
purposes of this Agreement.  If that
amount is not transferred to the Agent on the Business Day following the
Funding Date, the Agent will notify the Borrowers of such failure to fund and,
upon demand by the

 

94

 

Agent, the Borrowers shall pay such
amount to the Agent for the Agent’s account, together with interest thereon for
each day elapsed since the date of such Borrowing, at a rate per annum equal to
the Interest Rate applicable at the time to the Revolving Loans comprising that
particular Borrowing.  The failure of any
Lender to make any Revolving Loan on any Funding Date (any such Lender, prior
to the cure of such failure, being hereinafter referred to as a “Defaulting
Lender”) shall not relieve any other Lender of its obligation hereunder to
make a Revolving Loan on that Funding Date. 
No Lender shall be responsible for any other Lender’s failure to advance
such other Lenders’ Pro Rata Share of any Borrowing.

 

(d)                                 Retention of Defaulting
Lender’s Payments.  The Agent shall not
be obligated to transfer to a Defaulting Lender any payments made by any
Borrower to the Agent for the Defaulting Lender’s benefit; nor shall a
Defaulting Lender be entitled to the sharing of any payments hereunder.  Amounts payable to a Defaulting Lender shall
instead be paid to or retained by the Agent. 
In its discretion, the Agent may loan any Borrower the amount of all
such payments received or retained by it for the account of such Defaulting
Lender.  Any amounts so loaned to any
Borrower shall bear interest at the rate applicable to Revolving Loans and for
all other purposes of this Agreement shall be treated as if they were Revolving
Loans, provided, however, that for purposes of voting or
consenting to matters with respect to the Loan Documents and determining Pro
Rata Shares, such Defaulting Lender shall be deemed not to be a “Lender”.  Until a Defaulting Lender cures its failure
to fund its Pro Rata Share of any Borrowing (A) such Defaulting Lender
shall not be entitled to any portion of the Unused Line Fee and (B) the
Unused Line Fee shall accrue in favor of the Lenders which have funded their
respective Pro Rata Shares of such requested Borrowing and shall be allocated
among such performing Lenders ratably based upon their relative Revolving
Credit Commitments.  This Section 12.15
shall remain effective with respect to such Lender until such time as the
Defaulting Lender shall no longer be in default of any of its obligations under
this Agreement.  The terms of this Section 12.15
shall not be construed to increase or otherwise affect the Revolving Credit
Commitment of any Lender, or relieve or excuse the performance by the Borrowers
of their duties and obligations hereunder.

 

(e)                                  Removal of Defaulting Lender.  At the Borrowers’ request, the Agent or an
Eligible Assignee reasonably acceptable to the Agent and the Borrowers shall
have the right (but not the obligation) to purchase from any Defaulting Lender,
and each Defaulting Lender shall, upon such request, sell and assign to the
Agent or such Eligible Assignee, all of the Defaulting Lender’s outstanding
Revolving Credit Commitments and/or Delayed Draw Commitments hereunder.  Such sale shall be consummated promptly after
the Agent has arranged for a purchase by the Agent or an Eligible Assignee
pursuant to an Assignment and Acceptance, and at a price equal to the
outstanding principal balance of the Defaulting Lender’s Loans, plus accrued
interest and fees, without premium or discount. 
Any such purchase from a Defaulting Lender shall not effect a release of
such Defaulting Lender from any claim suit or liability hereunder or under any
Loan Document.

 

95

 

12.16                   Letters of Credit; Intra-Lender Issues.

 

(a)                                  Notice of Letter
of Credit Balance.  On each Settlement
Date the Agent shall notify each Lender of the issuance of all Letters of
Credit since the prior Settlement Date.

 

(b)                                 Participations in
Letters of Credit.

 

(i)                                           Purchase of
Participations.  Immediately upon
issuance of any Letter of Credit in accordance with Section 1.4(d),
each Revolving Credit Lender shall be deemed to have irrevocably and
unconditionally purchased and received without recourse or warranty, an
undivided interest and participation equal to such Lender’s Pro Rata Share of
the face amount of such Letter of Credit or the Credit Support provided through
the Agent to the Letter of Credit Issuer, if not the Bank, in connection with
the issuance of such Letter of Credit (including all obligations of the
Borrowers with respect thereto, and any security therefor or guaranty
pertaining thereto).

 

(ii)                                        Sharing of
Reimbursement Obligation Payments. 
Whenever the Agent receives a payment from any Borrower on account of
reimbursement obligations in respect of a Letter of Credit or Credit Support as
to which the Agent has previously received for the account of the Letter of
Credit Issuer thereof payment from a Revolving Credit Lender, the Agent shall promptly
pay to such Revolving Credit Lender such Revolving Credit Lender’s Pro Rata
Share of such payment from such Borrower. 
Each such payment shall be made by the Agent on the next Settlement
Date.

 

(iii)                                     Documentation.  Upon the request of any Revolving Credit
Lender, the Agent shall furnish to such Revolving Credit Lender copies of any
Letter of Credit, Credit Support for any Letter of Credit, reimbursement
agreements executed in connection therewith, applications for any Letter of
Credit, and such other documentation as may reasonably be requested by such
Revolving Credit Lender.

 

(iv)                                    Obligations
Irrevocable.  The obligations of
each Revolving Credit Lender to make payments to the Agent with respect to any
Letter of Credit or with respect to their participation therein or with respect
to any Credit Support for any Letter of Credit or with respect to the Revolving
Loans made as a result of a drawing under a Letter of Credit and the
obligations of the Borrower for whose account the Letter of Credit or Credit
Support was issued to make payments to the Agent, for the account of the
Revolving Credit Lenders, shall be irrevocable and shall not be subject to any
qualification or exception whatsoever, including any of the following
circumstances:

 

(1)                                        any lack of
validity or enforceability of this Agreement or any of the other Loan
Documents;

 

96

 

(2)                                        the existence of
any claim, setoff, defense or other right which any Borrower may have at any
time against a beneficiary named in a Letter of Credit or any transferee of any
Letter of Credit (or any Person for whom any such transferee may be acting),
any Revolving Credit Lender, the Agent, the issuer of such Letter of Credit, or
any other Person, whether in connection with this Agreement, any Letter of
Credit, the transactions contemplated herein or any unrelated transactions
(including any underlying transactions between any Borrower or any other Person
and the beneficiary named in any Letter of Credit);

 

(3)                                        any draft,
certificate or any other document presented under the Letter of Credit proving
to be forged, fraudulent, invalid or insufficient in any respect or any
statement therein being untrue or inaccurate in any respect;

 

(4)                                        the surrender or
impairment of any security for the performance or observance of any of the
terms of any of the Loan Documents;

 

(5)                                        the occurrence of
any Default or Event of Default; or

 

(6)                                        the failure of any
Borrower to satisfy the applicable conditions precedent set forth in Article 8.

 

(c)                                  Recovery or
Avoidance of Payments; Refund of Payments In Error.  In the event any payment by or on behalf of
any Borrower received by the Agent with respect to any Letter of Credit or
Credit Support provided for any Letter of Credit and distributed by the Agent
to the Revolving Credit Lenders on account of their respective participations
therein is thereafter set aside, avoided or recovered from the Agent in
connection with any receivership, liquidation or bankruptcy proceeding, the
Revolving Credit Lenders shall, upon demand by the Agent, pay to the Agent
their respective Pro Rata Shares of such amount set aside, avoided or
recovered, together with interest at the rate required to be paid by the Agent
upon the amount required to be repaid by it. 
Unless the Agent receives notice from the Borrowers prior to the date on
which any payment is due to the Revolving Credit Lenders that the Borrowers
will not make such payment in full as and when required, the Agent may assume
that the Borrowers have made such payment in full to the Agent on such date in
immediately available funds and the Agent may (but shall not be so required),
in reliance upon such assumption, distribute to each Revolving Credit Lender on
such due date an amount equal to the amount then due such Revolving Credit
Lender.  If and to the extent the
Borrowers have not made such payment in full to the Agent, each Revolving
Credit Lender shall repay to the Agent on demand such amount distributed to
such Revolving Credit Lender, together with interest thereon at the Federal
Funds Rate for each day from the date such amount is distributed to such
Revolving Credit Lender until the date repaid.

 

97

 

(d)                                 Indemnification by
Lenders.  To the extent not
reimbursed by the Borrowers and without limiting the obligations of the
Borrowers hereunder, the Revolving Credit Lenders agree to indemnify the Letter
of Credit Issuer ratably in accordance with their respective Pro Rata Shares,
for any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses (including attorneys’ fees) or disbursements
of any kind and nature whatsoever that may be imposed on, incurred by or
asserted against the Letter of Credit Issuer in any way relating to or arising
out of any Letter of Credit or the transactions contemplated thereby or any
action taken or omitted by the Letter of Credit Issuer under any Letter of
Credit or any Loan Document in connection therewith; provided that no
Revolving Credit Lender shall be liable for any of the foregoing to the extent
it arises from the gross negligence or willful misconduct of the Person to be
indemnified.  Without limitation of the
foregoing, each Revolving Credit Lender agrees to reimburse the Letter of
Credit Issuer promptly upon demand for its Pro Rata Share of any costs or
expenses payable by the Borrowers to the Letter of Credit Issuer, to the extent
that the Letter of Credit Issuer is not promptly reimbursed for such costs and
expenses by the Borrowers.  The agreement
contained in this Section 12.16 shall survive payment in full of
all other Obligations.

 

12.17                   Concerning the Collateral and the Related Loan
Documents.  Each Lender authorizes and directs the Agent
to enter into the other Loan Documents for the ratable benefit and obligation
of the Agent and the Lenders.  Each
Lender agrees that any action taken by the Agent or the Required Lenders, as
applicable, in accordance with the terms of this Agreement or the other Loan
Documents, and the exercise by the Agent or the Required Lenders, as
applicable, of their respective powers set forth therein or herein, together
with such other powers that are reasonably incidental thereto, shall be binding
upon all of the Lenders.  The Lenders
acknowledge that the Revolving Loans, Agent Advances, Non-Ratable Loans, Hedge
Agreements, Bank Products and all interest, fees and expenses hereunder
constitute one Debt, secured pari  passu by all of the
Collateral.  Each Lender hereby
irrevocably authorizes the Agent to enter into the 2008 Intercreditor Agreement
on behalf of each such Lender.

 

12.18                   Field Audit and Examination Reports; Disclaimer by
Lenders.  By signing this Agreement, each Lender:

 

(a)                                  is deemed to have
requested that the Agent furnish such Lender, promptly after it becomes
available, a copy of each field audit or examination report (each a “Report”
and collectively, “Reports”) prepared by or on behalf of the Agent;

 

(b)                                 expressly agrees
and acknowledges that neither the Bank nor the Agent (i) makes any
representation or warranty as to the accuracy of any Report, or (ii) shall
be liable for any information contained in any Report;

 

(c)                                  expressly agrees
and acknowledges that the Reports are not comprehensive audits or examinations,
that the Agent or the Bank or other party performing any audit or examination
will inspect only specific information regarding the Borrowers and will rely
significantly upon the Borrowers’ books and records, as well as on
representations of the Borrowers’ personnel;

 

98

 

(d)                                 agrees to keep all
Reports confidential and strictly for its internal use, and not to distribute
except to its participants, or use any Report in any other manner in accordance
with the provisions of Section 13.17; and

 

(e)                                  without limiting
the generality of any other indemnification provision contained in this
Agreement, agrees:  (i) to hold the
Agent and any such other Lender preparing a Report harmless from any action the
indemnifying Lender may take or conclusion the indemnifying Lender may reach or
draw from any Report in connection with any loans or other credit
accommodations that the indemnifying Lender has made or may make to any
Borrower, or the indemnifying Lender’s participation in, or the indemnifying
Lender’s purchase of, a loan or loans of any Borrower; and (ii) to pay and
protect, and indemnify, defend and hold the Agent and any such other Lender
preparing a Report harmless from and against, the claims, actions, proceedings,
damages, costs, expenses and other amounts (including Attorney Costs) incurred
by the Agent and any such other Lender preparing a Report as the direct or
indirect result of any third parties who might obtain all or part of any Report
through the indemnifying Lender.

 

12.19                   Relation Among Lenders.  The Lenders
are not partners or co-venturers, and no Lender shall be liable for the acts or
omissions of, or (except as otherwise set forth herein in case of the Agent)
authorized to act for, any other Lender.

 

12.20                   Co-Agents.  None of the Lenders identified on the facing page or
signature pages of this Agreement as a “co-agent” shall have any right,
power, obligation, liability, responsibility or duty under this Agreement other
than those applicable to all Lenders as such. 
Without limiting the foregoing, none of the Lenders so identified as a “co-agent”
shall have or be deemed to have any fiduciary relationship with any
Lender.  Each Lender acknowledges that it
has not relied, and will not rely, on any of the Lenders so identified in
deciding to enter into this Agreement or in taking or not taking action
hereunder.

 

12.21                    [RESERVED].

 

12.22                   Foreclosure/Environmental Reports.  Unless
otherwise agreed by all Lenders, Agent will not foreclose on any real property
Collateral unless, prior to such foreclosure Agent and the Lenders have
received an environmental report, which report shall be reasonably acceptable
in form and substance to Agent and Required Lenders, from an environmental
consultant, selected by Agent.  Borrower
shall pay the costs of obtaining any such environmental report.

 

ARTICLE 13

MISCELLANEOUS

 

13.1                         No Waivers; Cumulative Remedies.  No failure
by the Agent or any Lender to exercise any right, remedy, or option under this
Agreement or any present or future supplement thereto, or in any other
agreement between or among the Borrowers (or any of them), the Loan Parties (or
any of

 

99

 

them) and the Agent and/or any
Lender, or delay by the Agent or any Lender in exercising the same, will
operate as a waiver thereof.  No waiver
by the Agent or any Lender will be effective unless it is in writing, and then
only to the extent specifically stated. 
No waiver by the Agent or the Lenders on any occasion shall affect or
diminish the Agent’s and each Lender’s rights thereafter to require strict
performance by the Borrowers of any provision of this Agreement or by any Loan
Party of any provision of any Loan Document. 
The Agent and the Lenders may proceed directly to collect the
Obligations without any prior recourse to the Collateral.  The Agent’s and each Lender’s rights under
this Agreement will be cumulative and not exclusive of any other right or
remedy which the Agent or any Lender may have.

 

13.2                         Severability.  The illegality or unenforceability
of any provision of this Agreement or any Loan Document or any instrument or
agreement required hereunder shall not in any way affect or impair the legality
or enforceability of the remaining provisions of this Agreement or any
instrument or agreement required hereunder.

 

13.3                         Governing Law; Choice of Forum; Service of Process.

 

(a)                                  THIS AGREEMENT
SHALL BE INTERPRETED AND THE RIGHTS AND LIABILITIES OF THE PARTIES HERETO
DETERMINED IN ACCORDANCE WITH THE INTERNAL LAWS (AS OPPOSED TO THE CONFLICT OF
LAWS PROVISIONS PROVIDED THAT ISSUES WITH RESPECT TO CREATION, PERFECTION OR
ENFORCEMENT OF LIENS UNDER ARTICLE 9 OF THE UCC MAY GIVE EFFECT TO
APPLICABLE CHOICE OR CONFLICT OF LAW RULES SET FORTH IN ARTICLE 9 OF THE UCC)
OF THE STATE OF CALIFORNIA; PROVIDED THAT THE AGENT AND THE LENDERS SHALL
RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW (INCLUDING THE BANKRUPTCY CODE).

 

(b)                                 ANY LEGAL ACTION
OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE
BROUGHT IN THE BANKRUPTCY COURT, AND BY EXECUTION AND DELIVERY OF THIS
AGREEMENT, EACH OF THE BORROWERS, THE AGENT AND THE LENDERS CONSENTS, FOR
ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE PERSONAL
JURISDICTION OF THE BANKRUPTCY COURT. 
EACH OF THE BORROWERS, THE AGENT AND THE LENDERS IRREVOCABLY WAIVES ANY
OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE
GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE
TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF
THIS AGREEMENT OR ANY DOCUMENT RELATED HERETO. 
NOTWITHSTANDING THE FOREGOING:  (1) THE
AGENT AND THE LENDERS SHALL HAVE THE RIGHT TO BRING ANY ACTION OR PROCEEDING
AGAINST ANY LOAN PARTY OR ITS PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION
THE AGENT OR THE LENDERS DEEM NECESSARY OR APPROPRIATE IN ORDER TO REALIZE ON
THE COLLATERAL OR OTHER SECURITY FOR THE OBLIGATIONS AND (2) EACH OF THE
PARTIES HERETO ACKNOWLEDGES THAT ANY APPEALS FROM THE COURTS DESCRIBED IN THE
IMMEDIATELY PRECEDING SENTENCE MAY HAVE TO BE HEARD BY A COURT LOCATED
OUTSIDE THOSE JURISDICTIONS.

 

100

 

(c)                                  FLEETWOOD AND EACH
BORROWER HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS UPON IT AND
CONSENTS THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE BY PERSONAL DELIVERY
OR OVERNIGHT COURIER DIRECTED TO FLEETWOOD AND EACH THE BORROWERS AT ITS
ADDRESS SET FORTH IN SECTION 13.8 AND SERVICE SO MADE SHALL BE
DEEMED TO BE COMPLETED FIVE (5) DAYS AFTER THE SAME SHALL HAVE BEEN SO
DEPOSITED IN THE U.S. MAILS POSTAGE PREPAID. 
NOTHING CONTAINED HEREIN SHALL AFFECT THE RIGHT OF AGENT OR THE LENDERS
TO SERVE LEGAL PROCESS BY ANY OTHER MANNER PERMITTED BY LAW.

 

13.4                         WAIVER OF JURY TRIAL.  FLEETWOOD,
EACH BORROWER, THE LENDERS AND THE AGENT EACH IRREVOCABLY WAIVE THEIR
RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON
OR ARISING OUT OF OR RELATED TO THIS AGREEMENT, THE OTHER LOAN DOCUMENTS, OR
THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, IN ANY ACTION, PROCEEDING OR
OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER
PARTY OR ANY AGENT-RELATED PERSON, PARTICIPANT OR ASSIGNEE, WHETHER WITH
RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE. FLEETWOOD, EACH
BORROWER, THE LENDERS AND THE AGENT EACH AGREE THAT ANY SUCH CLAIM OR CAUSE OF
ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY.  WITHOUT LIMITING THE FOREGOING, THE PARTIES
FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION
OF THIS SECTION 13.4 AS TO ANY ACTION, COUNTERCLAIM OR OTHER
PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR
ENFORCEABILITY OF THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS OR ANY PROVISION
HEREOF OR THEREOF.  THIS WAIVER SHALL
APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO
THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS.

 

13.5                         Survival of Representations and Warranties.  All of the
representations and warranties contained in this Agreement shall survive the
execution, delivery, and acceptance thereof by the parties, notwithstanding any
investigation by the Agent or the Lenders or their respective agents.

 

13.6                         Other Security and Guaranties.  The Agent,
may, without notice or demand and without affecting the Borrowers’ obligations
hereunder, from time to time:  (a) take
from any Person and hold collateral (other than the Collateral) for the payment
of all or any part of the Obligations and exchange, enforce or release such
collateral or any part thereof; and (b) accept and hold any endorsement or
guaranty of payment of all or any part of the Obligations and

 

101

 

release or substitute any such
endorser or guarantor, or any Person who has given any Lien in any other
collateral as security for the payment of all or any part of the Obligations,
or any other Person in any way obligated to pay all or any part of the
Obligations.

 

13.7                         Fees and Expenses.  The Borrowers agree jointly and
severally to pay to the Agent, for its benefit, on demand, all costs and
expenses that the Agent pays or incurs in connection with the negotiation,
preparation, syndication, consummation, administration, enforcement, and
termination of the Interim Order, the Final Order, this Agreement or any of the
other Loan Documents, including: (a) Attorney Costs; (b) reasonable
out-of-pocket costs and expenses (including reasonable attorneys’ and
paralegals’ fees and disbursements) for any amendment, supplement, waiver,
consent, or subsequent closing in connection with the Loan Documents and the
transactions contemplated thereby; (c) reasonable out-of-pocket costs and
expenses of lien and title searches and title insurance; (d) taxes, fees
and other charges for recording the Mortgages, filing financing statements and
continuations, and other actions to perfect, protect, and continue the Agent’s
Liens (including reasonable out-of-pocket costs and expenses paid or incurred
by the Agent in connection with the consummation of Agreement); (e) sums
paid or incurred to pay any amount or take any action required of any Loan
Party under the Loan Documents that it fails to pay or take; (f) reasonable
out-of-pocket costs of appraisals performed in accordance with the provisions
hereof, inspections, and verifications of the Collateral, including travel,
lodging, and meals for inspections of the Collateral and the Loan Parties’
operations by the Agent plus the Agent’s then customary charge for field
examinations and audits and the preparation of reports thereof (such charge is
currently seven hundred and fifty Dollars ($750) per day (or portion thereof)
for each Person retained or employed by the Agent with respect to each field
examination or audit); (g) reasonable out-of-pocket costs and expenses of
forwarding loan proceeds, collecting checks and other items of payment, and
establishing and maintaining Payment Accounts and lock boxes, and reasonable
out-of-pocket costs and expenses of preserving and protecting the Collateral; (h) the
obtaining of approval of the Loan Documents by the Bankruptcy Court; (i) the preparation and review of
pleadings, documents and reports related to the Chapter 11 Cases and any
subsequent case under Chapter 7 of the Bankruptcy Code, attendance at
meetings, court hearings or conferences related to the Chapter 11 Cases and any
subsequent case under Chapter 7 of the Bankruptcy Code, and general
monitoring of the Chapter 11 Cases and any subsequent case under Chapter 7
of the Bankruptcy Code; and (j) expenses of each Lender or each such
Lender’s own outside counsel, capped at each such Lender’s Pro Rata Share of
fifty thousand Dollars ($50,000).  In addition, the Borrowers jointly and
severally agree to pay costs and expenses incurred by the Agent (including
Attorneys’ Costs) to the Agent, for their benefit, on demand, and to the other
Lenders for their benefit, on demand, and all reasonable fees, expenses and
disbursements incurred by such other Lenders for one law firm retained by such
other Lenders as a group, in each case, paid or incurred to obtain payment of
the Obligations, enforce the Agent’s Liens, sell or otherwise realize upon the
Collateral, and otherwise enforce the provisions of the Loan Documents, or to
defend any claims made or threatened against the Agent or any Lender arising
out of the transactions contemplated hereby (including preparations for and
consultations concerning any such matters). 
The foregoing shall not be construed to limit any other provisions of
the Loan Documents regarding costs and expenses to be paid by the Borrowers or
any other Loan Party.  All of the
foregoing costs and expenses shall be charged to the Borrowers’ Loan Account as
Revolving Loans as described in Section 3.7.

 

102

 

13.8                         Notices.  Except as otherwise provided herein, all
notices, demands and requests that any party is required or elects to give to
any other shall be in writing, or by a telecommunications device capable of
creating a written record, and any such notice shall become effective (a) upon
personal delivery thereof, including, but not limited to, delivery by overnight
mail and courier service, (b) five (5) days after it shall have been
mailed by United States mail, first class, certified or registered, with
postage prepaid, or (c) in the case of notice by such a telecommunications
device, when receipt is confirmed, in each case addressed to the party to be
notified as follows:

 

If to the
Agent or to the Bank:

 

Bank of America, N.A.

55 South Lake Avenue, Suite 900

Pasadena, California  91101

Attention:  Todd R. Eggertsen

Telecopy No.:  (626) 397-1273/1274

 

with copies
to:

 

Latham & Watkins LLP

633 West Fifth Street, Suite 4000

Los Angeles, California  90071

Attention:  Andrew Fayé, Esq.

Telecopy No.:  (213) 891-8763

 

If to
Fleetwood or any Borrower:

 

Fleetwood Holdings Inc.

Fleetwood Enterprises, Inc.

3125 Myers Street

Riverside, California  92503

Attention:  Chief Financial Officer

Telecopy No.:  (951) 351-3373

Attention:  General Counsel

Telecopy No.:  (951) 977-2097

 

with copies
to:

 

Gibson, Dunn & Crutcher LLP

200 Park Avenue

New York, NY 10166-0193

Attention:  Robert L. Cunningham, Esq.

Telecopy No.:  (212) 351-5208

 

or to such other address as each party may designate for itself by like
notice.  Failure or delay in delivering
copies of any notice, demand, request, consent, approval, declaration or other
communication to the persons designated above to receive copies shall not
adversely affect the effectiveness of such notice, demand, request, consent,
approval, declaration or other communication.

 

103

 

13.9                         Waiver of Notices.  Unless
otherwise expressly provided herein, each Borrower waives presentment, and
notice of demand or dishonor and protest as to any instrument, notice of intent
to accelerate the Obligations and notice of acceleration of the Obligations, as
well as any and all other notices to which it might otherwise be entitled.  No notice to or demand on any Borrower which
the Agent or any Lender may elect to give shall entitle any Borrower to any or
further notice or demand in the same, similar or other circumstances.

 

13.10                   Binding Effect.  The provisions of this Agreement
shall be binding upon and inure to the benefit of the respective
representatives, successors, and assigns of the parties hereto; provided,
however, that no interest herein may be assigned by any Borrower without
prior written consent of the Agent and each Lender.  The rights and benefits of the Agent and the
Lenders hereunder shall, if such Persons so agree, inure to any party acquiring
any interest in the Obligations or any part thereof.

 

13.11                   Indemnity of the Agent and the Lenders by the
Borrower.

 

(a)                                  The Borrowers
jointly and severally agree to defend, indemnify and hold the Agent-Related
Persons, and each Lender and each of its respective officers, directors,
employees, counsel, representatives, agents and attorneys-in-fact (each, an “Indemnified
Person”) harmless from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, charges, expenses
and disbursements (including Attorney Costs) of any kind or nature whatsoever
which may at any time (including at any time following repayment of the Loans
and the termination, resignation or replacement of the Agent or replacement of
any Lender) be imposed on, incurred by or asserted against any such Person in
any way relating to or arising out of this Agreement or any document
contemplated by or referred to herein, or the transactions contemplated hereby,
or any action taken or omitted by any such Person under or in connection with
any of the foregoing, including with respect to any investigation, litigation
or proceeding (including any Insolvency Proceeding or appellate proceeding)
related to or arising out of this Agreement, any other Loan Document, or the
Loans or the use of the proceeds thereof, whether or not any Indemnified Person
is a party thereto (all the foregoing, collectively, the “Indemnified
Liabilities”); provided, that the Borrowers shall have no obligation
hereunder to any Indemnified Person with respect to Indemnified Liabilities to
the extent finally determined by a court of competent jurisdiction to have
resulted from the gross negligence or willful misconduct of such Indemnified
Person. The agreements in this Section 13.11 shall survive payment
of all other Obligations.

 

(b)                                 The Borrowers
agree to indemnify, defend and hold harmless the Agent and the Lenders from any
loss or liability directly or indirectly arising out of the use, generation,
manufacture, production, storage, release, threatened release, discharge,
disposal or presence of a hazardous substance relating to any Loan

 

104

 

Party’s operations, business or
property.  This indemnity will apply
whether the hazardous substance is on, under or about any Loan Party’s property
or operations or property leased to any Loan Party’s.  The indemnity includes but is not limited to
Attorneys Costs.  The indemnity extends
to the Agent and the Lenders, their parents, affiliates, subsidiaries and all
of their directors, officers, employees, agents, successors, attorneys and
assigns.  “Hazardous substances” means
any substance, material or waste that is or becomes designated or regulated as “toxic,”
“hazardous,” “pollutant,” or “contaminant” or a similar designation or
regulation under any federal, state or local law (whether under common law,
statute, regulation or otherwise) or judicial or administrative interpretation
of such, including petroleum or natural gas. 
This indemnity will survive repayment of all other Obligations.

 

13.12                   Limitation of Liability.  NO CLAIM MAY BE
MADE BY FLEETWOOD, ANY BORROWER, ANY LENDER OR OTHER PERSON AGAINST THE AGENT,
ANY LENDER, OR THE AFFILIATES, DIRECTORS, OFFICERS, EMPLOYEES, COUNSEL,
REPRESENTATIVES, AGENTS OR ATTORNEYS-IN-FACT OF ANY OF THEM 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 OTHER LOAN DOCUMENT, OR ANY
ACT, OMISSION OR EVENT OCCURRING IN CONNECTION THEREWITH, AND FLEETWOOD, EACH
BORROWER AND EACH LENDER HEREBY WAIVE, RELEASE AND AGREE NOT TO SUE UPON ANY
CLAIM FOR SUCH DAMAGES, WHETHER OR NOT ACCRUED AND WHETHER OR NOT KNOWN OR
SUSPECTED TO EXIST IN ITS FAVOR.

 

13.13                   Final Agreement.  This Agreement and the other Loan
Documents are intended by Fleetwood, each Borrower, the Agent and the Lenders
to be the final, complete, and exclusive expression of the agreement between
them.  This Agreement supersedes any and
all prior oral or written agreements relating to the subject matter hereof
except for the Fee Letter.  No
modification, rescission, waiver, release, or amendment of any provision of
this Agreement or any other Loan Document shall be made, except by a written
agreement signed by the Borrowers and a duly authorized officer of each of the
Agent and the Required Lenders.

 

13.14                   Counterparts.  This Agreement may be executed in
any number of counterparts, and by the Agent, each Lender, Fleetwood and the
Borrower in separate counterparts, each of which shall be an original, but all
of which shall together constitute one and the same agreement; signature pages may
be detached from multiple separate counterparts and attached to a single
counterpart so that all signature pages are physically attached to the
same document.

 

13.15                   Captions.  The captions contained in this Agreement are
for convenience of reference only, are without substantive meaning and should
not be construed to modify, enlarge, or restrict any provision.

 

105

 

13.16                  Right of Setoff.  In addition to any rights and
remedies of the Lenders provided by law, if an Event of Default exists or the
Loans have been accelerated, each Lender is authorized at any time and from
time to time, without prior notice to Fleetwood or the Borrowers, any such
notice being waived by Fleetwood and the Borrowers to the fullest extent
permitted by law, to set off and apply any and all deposits (general or
special, time or demand, provisional or final) at any time held by, and other
indebtedness at any time owing by, such Lender or any Affiliate of such Lender
to or for the credit or the account of Fleetwood and the Borrowers against any
and all Obligations owing to such Lender, now or hereafter existing,
irrespective of whether or not the Agent or such Lender shall have made demand
under this Agreement or any Loan Document and although such Obligations may be
contingent or unmatured.  Each Lender
agrees promptly to notify the Borrowers and the Agent after any such set-off
and application made by such Lender; provided, however, that the
failure to give such notice shall not affect the validity of such set-off and
application.  NOTWITHSTANDING THE
FOREGOING, NO LENDER SHALL EXERCISE ANY RIGHT OF SET-OFF, BANKER’S LIEN, OR THE
LIKE AGAINST ANY DEPOSIT ACCOUNT OR PROPERTY OF FLEETWOOD OR ANY LOAN PARTY
HELD OR MAINTAINED BY SUCH LENDER WITHOUT THE PRIOR WRITTEN UNANIMOUS CONSENT
OF THE LENDERS.

 

13.17                  Confidentiality.

 

(a)                                  Fleetwood and each
Borrower hereby consents that the Agent and each Lender may issue and
disseminate to the public general information describing the credit
accommodation entered into pursuant to this Agreement, including the name and
address of Fleetwood or the Borrowers and a general description of the business
of Fleetwood and its Subsidiaries and may use Fleetwood’s and the Borrowers’
names in advertising and other promotional material.

 

(b)                                 Each Lender
severally agrees to take normal and reasonable precautions and exercise due
care to maintain the confidentiality of all non-public financial information
provided to the Lenders and relating to Fleetwood or any Borrower, non-public
information relating to major transactions not in the ordinary course of
business and to be entered into by Fleetwood or any Borrower, and all other
information identified as “confidential” or “secret” by Fleetwood or the
Borrowers and provided to the Agent or such Lender by or on behalf of the
Borrowers, under this Agreement or any other Loan Document, except to the
extent that such information (i) was or becomes generally available to the
public other than as a result of disclosure by the Agent or such Lender, or (ii) was
or becomes available on a nonconfidential basis from a source other than
Fleetwood or the Borrowers, provided that such source is not bound by a
confidentiality agreement with Fleetwood or the Borrowers known to the Agent or
such Lender; provided, however, that the Agent and any Lender may
disclose such information (1) at the request or pursuant to any
requirement of any Governmental Authority to which the Agent or such Lender is
subject or in connection with an examination of the Agent or such Lender by any
such Governmental Authority; (2) pursuant to subpoena or other court
process; (3) when required to do so in accordance with the provisions of
any applicable Requirement of Law; (4) to the extent reasonably required
in connection with any litigation or proceeding (including, but not limited to,
any bankruptcy proceeding) to which the Agent, any Lender or their respective

 

106

 

Affiliates may be party involving any Loan
Document, any Loan Party or the use of the proceeds of the Loans; (5) to
the extent reasonably required in connection with the exercise of any remedy
hereunder or under any other Loan Document; (6) to the Agent’s or such
Lender’s independent auditors, accountants, attorneys and other professional
advisors; (7) to any prospective Participant or Assignee under any
Assignment and Acceptance, actual or potential, provided that such
prospective Participant or Assignee agrees to keep such information
confidential to the same extent required of the Agent and the Lenders
hereunder; (8) as expressly permitted under the terms of any other
document or agreement regarding confidentiality to which Fleetwood or any
Borrower is party or is deemed party with the Agent or such Lender, and (9) to
its Affiliates.

 

13.18                   Conflicts with Other Loan Documents.  Unless
otherwise expressly provided in this Agreement (or in another Loan Document by
specific reference to the applicable provision contained in this Agreement), if
any provision contained in this Agreement conflicts with any provision of any
other Loan Document, the provision contained in this Agreement shall govern and
control.  Notwithstanding the foregoing,
if any provision in this Agreement or any other Loan Document conflicts with
any provision in the Applicable Order, the provision in the Applicable Order
shall govern and control.

 

13.19                  Reinstatement.  To the maximum extent permitted by law, this
Agreement, and the Obligations, shall continue to be effective or be
reinstated, as the case may be, if at any time any amount received by any Agent
or Lender in respect of the Obligations is rescinded or must otherwise be
restored or returned by any such Person upon the insolvency, administration,
bankruptcy, dissolution, liquidation or reorganization of any Borrower or any
other Person or upon the appointment of any receiver, intervenor, conservator,
trustee or similar official for any Borrower or any other Person or any
substantial part of its assets, or otherwise, all as though such payments had
not been made.

 

13.20                  Parties Including Trustees; Bankruptcy Court
Proceedings.  This Agreement, the other Loan Documents, and
all Liens and other rights and privileges created hereby or pursuant hereto or
to any other Loan Document shall be binding upon each Loan Party, the estate of
each Loan Party, and any trustee, other estate representative or any successor
in interest of any Loan Party in any Chapter 11 Case or any subsequent case
commenced under Chapter 7 of the Bankruptcy Code, and shall not be subject
to Section 365 of the Bankruptcy Code. 
This Agreement and the other Loan Documents shall be binding upon, and
inure to the benefit of, the successors of the Agent and the Lenders and their
respective assigns, transferees and endorsees. 
The Liens created by this Agreement and the other Loan Documents shall
be and remain valid and perfected in the event of the substantive consolidation
or conversion of any Chapter 11 Case or any other bankruptcy case of any Loan
Party to a case under Chapter 7 of the Bankruptcy Code or in the event of
dismissal of any Chapter 11 Case or the release of any Collateral from the
jurisdiction of the Bankruptcy Court for any reason, without the necessity that
the Agent file financing statements or otherwise perfect its Liens under
applicable law.  No Loan Party may
assign, transfer, hypothecate or otherwise convey its rights, benefits,
obligations or duties hereunder or under any of the other Loan Documents
without the prior express written consent of the Agent

 

107

 

and the Lenders.  Any such purported assignment, transfer,
hypothecation or other conveyance by any Loan Party without the prior express
written consent of the Agent and the Lenders shall be void.  The terms and provisions of this Agreement
are for the purpose of defining the relative rights and obligations of each Loan
Party, the Agent and the Lenders with respect to the transactions contemplated
hereby and no Person shall be a third party beneficiary of any of the terms and
provisions of this Agreement or any of the other Loan Documents.

 

ARTICLE 14

GUARANTY

 

14.1                        Guaranty.  Each of Fleetwood and FMC hereby absolutely
and unconditionally guarantees the punctual payment when due, whether at stated
maturity, by acceleration or otherwise, of all Obligations of each Borrower,
now outstanding or hereafter arising under or in connection with this Agreement
or any other Loan Document, whether for principal of any Loan or the interest
thereon (including any interest which accrues after the filing of any
proceeding in bankruptcy, or would have accrued but for such filing) or Letters
of Credit or liabilities thereunder or for fees, taxes, additional
compensation, expense reimbursements, indemnification or otherwise as provided
in this Agreement and the other Loan Documents, pursuant to, subject to, and
limited by the terms and conditions of the Fleetwood Guaranty and the FMC
Guaranty, respectively, and the terms and conditions of each of the Fleetwood
Guaranty and the FMC Guaranty are hereby incorporated by reference.

 

[Signatures on Following Page]

 

108

 

IN WITNESS WHEREOF, the parties have entered into this Credit Agreement on the date first
above written.

 

 

	
   

  	
   

  	
  BORROWERS:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FLEETWOOD HOLDINGS INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FLEETWOOD HOMES OF ARIZONA,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FLEETWOOD HOMES OF CALIFORNIA,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FLEETWOOD HOMES OF FLORIDA,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FLEETWOOD HOMES OF GEORGIA,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FLEETWOOD HOMES OF IDAHO, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FLEETWOOD HOMES OF INDIANA,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FLEETWOOD HOMES OF KENTUCKY,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FLEETWOOD HOMES OF NORTH
  CAROLINA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FLEETWOOD HOMES OF OREGON, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FLEETWOOD HOMES OF
  PENNSYLVANIA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FLEETWOOD HOMES OF TENNESSEE,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FLEETWOOD HOMES OF TEXAS, L.P.

  
	
   

  	
   

  	
  By:

  	
  FLEETWOOD GENERAL PARTNER

  OF TEXAS, INC., its General Partner 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FLEETWOOD HOMES OF VIRGINIA,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FLEETWOOD HOMES OF WASHINGTON,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FLEETWOOD MOTOR HOMES OF
  CALIFORNIA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FLEETWOOD MOTOR HOMES OF
  INDIANA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FLEETWOOD MOTOR HOMES OF
  PENNSYLVANIA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FLEETWOOD TRAVEL TRAILERS OF
  CALIFORNIA, INC.

  

 

Credit
Agreement

 

 

	
   

  	
   

  	
  FLEETWOOD TRAVEL TRAILERS OF
  INDIANA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FLEETWOOD TRAVEL TRAILERS OF
  KENTUCKY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FLEETWOOD TRAVEL TRAILERS OF
  MARYLAND, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FLEETWOOD TRAVEL TRAILERS OF
  OHIO, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FLEETWOOD TRAVEL TRAILERS OF
  OREGON, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FLEETWOOD TRAVEL TRAILERS OF
  TEXAS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GOLD SHIELD, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GOLD SHIELD OF INDIANA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CONTINENTAL LUMBER PRODUCTS,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FLEETWOOD GENERAL PARTNER OF
  TEXAS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FLEETWOOD HOMES INVESTMENT,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Elden L. Smith

  
	
   

  	
   

  	
  Name:

  	
  Elden L. Smith

  
	
   

  	
   

  	
  Title:

  	
  President, Chief Executive Officer

  

 

Credit
Agreement

 

 

	
   

  	
   

  	
  GUARANTOR:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FLEETWOOD ENTERPRISES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Elden L. Smith

  
	
   

  	
   

  	
  Name:

  	
  Elden L. Smith

  
	
   

  	
   

  	
  Title:

  	
  President, Chief Executive Officer

  

 

Credit Agreement

 

 

	
   

  	
   

  	
  AGENT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BANK OF AMERICA, N.A.,
  as Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Todd
  Eggertsen

  
	
   

  	
   

  	
  Name:

  	
  Todd Eggertsen

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

Credit Agreement

 

 

	
   

  	
   

  	
  LENDERS:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BANK OF AMERICA, N.A.,
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Todd
  Eggertsen

  
	
   

  	
   

  	
  Name:

  	
  Todd Eggertsen

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

Credit Agreement

 

 

	
   

  	
   

  	
  WACHOVIA BANK, NATIONAL
  ASSOCIATION

  (formerly known as WACHOVIA CAPITAL
  FINANCE

  CORPORATION (WESTERN)), N.A.,  as
  a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ D. Bruce
  Laughton

  
	
   

  	
   

  	
  Name:

  	
  D. Bruce Laughton

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  

 

Credit Agreement

 

 

	
   

  	
   

  	
  TEXTRON FINANCIAL CORPORATION,
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Norbert
  Schmidt

  
	
   

  	
   

  	
  Name:

  	
  Norbert Schmidt

  
	
   

  	
   

  	
  Title:

  	
  Senior Account Exec

  

 

Credit Agreement

 

 

	
   

  	
   

  	
  PNC BANK, NATIONAL ASSOCIATION,
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Robin L.
  Amola

  
	
   

  	
   

  	
  Name:

  	
  Robin L. Amola

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

Credit Agreement

 

 

	
   

  	
   

  	
  WELLS FARGO FOOTHILL, INC.

  f/k/a FOOTHILL CAPITAL CORPORATION, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Juan Barrera

  
	
   

  	
   

  	
  Name:

  	
  JUAN BARRERA

  
	
   

  	
   

  	
  Title:

  	
  VICE PRESIDENT

  

 

Credit Agreement

 

 

ANNEX A

to

Credit Agreement

 

Definitions

 

Capitalized terms used in the Loan Documents shall have the following
respective meanings (unless otherwise defined therein), and all Section references
in the following definitions shall refer to Sections of the Agreement:

 

“1998 Subordinated Debentures” means Fleetwood’s 6% Convertible
Subordinated Debentures due February 15, 2028 issued in the original
principal amount of two hundred ninety-six million four hundred thousand
Dollars ($296,400,000).

 

“2003
Subordinated Debentures” means Fleetwood’s 5% Convertible Senior
Subordinated Debentures due 2023 issued in the original principal amount of one
hundred million Dollars ($100,000,000).

 

“2008
Intercreditor Agreement” means the intercreditor agreement entered into in
connection with the issuance of the 2008 Senior Secured Debentures, by and
among the Agent, on behalf of the Lenders, and the holders of such 2008 Senior
Secured Debentures (or their agent or trustee), dated December 12, 2008,
as it may be amended, supplemented or otherwise modified form time to time in
accordance with the terms thereof.

 

“2008
Mortgage Debt” means Debt incurred under that certain loan agreement dated
as of August 22, 2008 among Fleetwood Motor Homes of California, Inc.
and Fleetwood Homes of California, Inc., as borrowers, and ISIS Lending,
LLC, as lender.

 

“2008
Mortgage Debt Priority Assets” means the Real Estate described and identified as such on Schedule 6.11.

 

“2008
Senior Secured Debenture Guaranty” means any subordinated Guaranty of the
2008 Senior Secured Debentures by a Subsidiary of Fleetwood that is a Loan
Party; provided that such Guaranty shall be subordinated in right of
payment to the prior payment of the Obligations, and shall otherwise be in form
and substance and on terms reasonably acceptable to the Agent.

 

“2008
Senior Secured Debenture Hazardous Substances Indemnity Agreement” means
any hazardous substances indemnity agreement granted by any pledgor party to
any mortgage permitted by clause (j) of the definition of Permitted
Liens in favor of the holders of the 2008 Senior Secured Debenture Guaranties
or any agent or trustee acting on their behalf, provided that (a) the
form thereof is substantially consistent with the form of the Amended and
Restated Hazardous Substances Indemnity Agreement, dated January 5, 2007,
by each of the Loan Parties named therein as Indemnitors and the Agent, and (b) such
indemnity agreements, regardless of whether pertaining to Mortgaged Property or
Real Estate that does not constitute Collateral, shall be subordinated in right
of payment to the prior payment of the Obligations, and shall otherwise be in
form and substance and on terms reasonably acceptable to the Agent.

 

A-1

 

“2008
Senior Secured Debentures” means Fleetwood’s 14% Senior Secured Notes due
2011 issued in the original principal amount of approximately eighty-one
million four hundred thousand Dollars ($81,400,000).

 

“2008
Senior Secured Debentures Priority Assets” means the Real Estate described and identified as such on Schedule 6.11
and the assets subject to any Lien incurred in accordance with clause (k) of
the definition of Permitted Liens.

 

“Accounts” means, as to any Person, all of such Person’s now
owned or hereafter acquired or arising accounts, as defined in the UCC,
including any rights to payment for the sale or lease of goods or rendition of
services, whether or not they have been earned by performance.

 

“Account Debtor” means each Person obligated in any way on or in
connection with an Account.

 

“ACH Transactions” means any cash management or related services
including the automatic clearinghouse transfer of funds by the Bank for the
account of any Loan Party pursuant to agreement or overdrafts.

 

“Additional Real Estate Subfacility Assets” means the Real
Estate described and identified as such on Schedule 6.11 and, from and
after the date that the Loan Parties shall have complied with Section 7.23,
the Closing Date Encumbered Real Estate Asset.

 

“Affected
Lender” has the meaning specified in Section 4.6(a).

 

“Affiliate” means, as to any Person, any other Person which,
directly or indirectly, is in control of, is controlled by, or is under common
control with, such Person or which owns, directly or indirectly, ten percent (10%)
or more of the outstanding equity interest of such Person.  A Person shall be deemed to control another
Person if the controlling Person possesses, directly or indirectly, the power
to direct or cause the direction of the management and policies of the other
Person, whether through the ownership of voting securities, by contract, or
otherwise.

 

“Affirmation Agreements” means, collectively, the Affirmation of
Security Agreement, the Affirmation of Pledge Agreement, the Affirmation of
Fleetwood Guaranty, the Affirmation of FMC Guaranty, the Affirmation of
Subsidiary Guaranty, the Affirmation of Patent and Trademark Security
Agreement, the Affirmation of Copyright Security Agreement, the Confirmation
Agreement and the Third Amendment to Indemnity Agreement.

 

“Affirmation of Copyright Security Agreement” means that certain
Affirmation of Amended and Restated Copyright Security Agreement dated as of
the Closing Date among the Loan Parties and the Agent.

 

“Affirmation of Fleetwood Guaranty” means that certain
Affirmation of Third Amended and Restated Fleetwood Guaranty dated as of the
Closing Date between Fleetwood and the Agent.

 

A-2

 

“Affirmation of FMC Guaranty” means that certain Affirmation of
Third Amended and Restated FMC Guaranty dated as of the Closing Date between
FMC and the Agent.

 

“Affirmation of Patent and Trademark Security Agreement” means
that certain Affirmation of Amended and Restated Patent and Trademark Security
Agreement dated as of the Closing Date among the Loan Parties and the Agent.

 

“Affirmation of Pledge Agreement” means that certain Affirmation
of Amended and Restated Pledge Agreement dated as of the Closing Date among the
Loan Parties and the Agent.

 

“Affirmation of Security Agreement” means that certain
Affirmation of Second Amended and Restated Security Agreement dated as of the
Closing Date among the Borrowers, the Guarantors and the Agent.

 

“Affirmation of Subsidiary Guaranty” means that certain
Affirmation of Third Amended and Restated Subsidiary Guaranty dated as of the
Closing Date among the Subsidiary Guarantors and the Agent.

 

“Agent” has the meaning given such term in the preamble.

 

“Agent Advances” has the meaning specified in Section 1.2(i).

 

“Agent’s Liens” means the Liens in the Collateral granted to the
Agent, for the benefit of the Lenders, Bank, and the Agent pursuant to the Loan
Documents.

 

“Agent-Related Persons” means the Agent, together with its
Affiliates, and the officers, directors, employees, counsel, representatives,
agents and attorneys-in-fact of the Agent and such Affiliates.

 

“Aggregate Revolver Outstandings” means, at any date of
determination:  the sum of the following
for all Borrowers: (a) the unpaid balance of Revolving Loans, (b) the
aggregate amount of Pending Revolving Loans, (c) one hundred percent
(100%) of the aggregate undrawn face amount of all outstanding Letters of
Credit, and (d) the aggregate amount of any unpaid reimbursement
obligations in respect of Letters of Credit.

 

“Agreement” means the Fourth Amended and Restated Senior Secured
Super-Priority Debtor-In-Possession Credit Agreement to which this Annex A
is attached, as from time to time amended, supplemented, modified or restated.

 

“Anniversary Date” means each anniversary of the Closing Date.

 

“Applicable Margin” means with respect to the
Revolving Loans and all other Obligations a rate per annum of four and one half
percent (4.5%).

 

“Applicable
Order” means the Interim Order until such time as the Final Order shall
have been entered and, thereafter, the Final Order.

 

A-3

 

“Appraised Orderly Liquidation Value” means the orderly
liquidation value of any property set forth in any appraisal delivered in
connection with this Agreement or the Security Agreement.

 

“Approved Budget” means a weekly
delivered rolling 13-week post-petition budget that is acceptable to the Agent
and the Required Lenders, the initial version of which is approved by the
Bankruptcy Court and attached as an exhibit to the Interim Order; provided
that any Approved Budget may be subsequently amended, supplemented or replaced
by the Borrowers with the approval of the Agent and the Required Lenders and
without further approval of the Bankruptcy Court (with any such supplement that
solely adds an additional Measurement Period deemed acceptable if no objection
thereto is made by the Agent or the Required Lenders within two (2) Business
Days of receipt thereof).

 

“Assigned Contracts” means, collectively, all of the Loan
Parties’ rights and remedies under, and all moneys and claims for money due or
to become due to any Loan Party under those contracts set forth on Schedule
1.1 attached hereto, and any other material contracts, and any and all
amendments, supplements, extensions, and renewals thereof including all rights
and claims of any Loan Party now or hereafter existing:  (i) under any insurance, indemnities,
warranties, and guarantees provided for or arising out of or in connection with
any of the foregoing agreements; (ii) for any damages arising out of or
for breach or default under or in connection with any of the foregoing
contracts; (iii) to all other amounts from time to time paid or payable
under or in connection with any of the foregoing agreements; or (iv) to
exercise or enforce any and all covenants, remedies, powers and privileges
thereunder.

 

“Assignee” has the meaning specified in Section 11.2(a).

 

“Assignment and Acceptance” has the meaning specified in Section 11.2(a).

 

“Assuming
Lender” has the meaning specified in Section 4.6(b).

 

“Attorney Costs” means and includes all reasonable fees,
expenses and disbursements of any law firm or other counsel engaged by the
Agent and, without duplication, the reasonably allocated costs and expenses of
internal legal services of the Agent.

 

“Availability” means, at any time (a) the lesser of (i) the
Maximum Amount minus the Aggregate Revolver Outstandings or (ii) the
Borrowing Base minus the Aggregate Revolver Outstandings minus (b) Reserves
other than Reserves deducted in calculating the Borrowing Base.

 

“Bank” means Bank of America, N.A., a national banking
association, or any successor entity thereto.

 

“Bank Products” means any one or more of the following types of
services or facilities extended to Fleetwood or any of its Subsidiaries by the
Bank or any affiliate of the Bank in reliance on the Bank’s agreement to
indemnify such affiliate:  (i) credit
cards; (ii) ACH Transactions; (iii) cash management, including
controlled disbursement services; and (iv) Hedge Agreements.

 

A-4

 

“Bank Product Reserves” means all reserves which the Agent from
time to time establishes in its reasonable discretion for the Bank Products
then provided or outstanding.

 

“Bankruptcy Code” has the meaning given that term in the recitals to the Agreement.

 

“Bankruptcy Court” has the meaning given that term in the recitals to the Agreement.

 

“Bankruptcy Rules” shall mean the
Federal Rules of Bankruptcy Procedure, as the same may from time to time
be in effect and applicable to the Chapter 11 Cases.

 

“Base Rate” means, for any day, the rate of interest in effect
for such day as publicly announced from time to time by the Bank in Charlotte,
North Carolina as its “prime rate” (the “prime rate” being a rate set by the Bank
based upon various factors including the Bank’s costs and desired return,
general economic conditions and other factors, and is used as a reference point
for pricing some loans, which may be priced at, above, or below such announced
rate).  Any change in the prime rate
announced by the Bank shall take effect at the opening of business on the day
specified in the public announcement of such change.  Each Interest Rate based upon the Base Rate
shall be adjusted simultaneously with any change in the Base Rate.

 

“Bidding Procedures Order” means an order by the Bankruptcy
Court identifying a “stalking-horse bidder” and approving a bidding process and
procedures for a sale of the assets comprising either (i) the Manufactured
Homes Division or (ii) substantially all of the non-idle assets
(including, without limitation, the Manufactured Homes Division) of Fleetwood
and its Subsidiaries, in form and substance reasonably acceptable to the Agent.

 

“Blocked Account Agreement” means an agreement among a Borrower,
the Agent and a Clearing Bank, in form and substance reasonably satisfactory to
the Agent, concerning the collection of payments which represent the proceeds
of Accounts or of any other Collateral.

 

“Borrowers” has the meaning given that term in the preamble to
the Agreement.

 

“Borrowing” means a borrowing hereunder consisting of Revolving
Loans made on the same day by the Lenders to a Borrower or by Bank in the case
of a Borrowing funded by Non-Ratable Loans or by the Agent in the case of a
Borrowing consisting of an Agent Advance, or the issuance of Letters of Credit
hereunder.

 

 “Borrowing Base” means an amount equal
to (a) the sum of (i) eighty-five percent (85%) of the Net Amount of
its Eligible Accounts, plus (ii) the lesser of (A) the Maximum
Inventory Loan Amount and (B) the sum of (1) the lesser of (I) fifty-five
percent (55%) of its Eligible Inventory, valued at the lower of cost on a
first-in, first-out basis or market (other than motor home chassis) and (II) eighty-five
percent (85%) of the Appraised Orderly Liquidation Value of its Eligible
Inventory (other than motor home chassis) calculated in a manner consistent with the methodology used in such
appraisal and (2) the lesser of (I) eighty percent (80%) of
its Eligible Inventory, valued at the lower of cost on a first-in, first-out
basis or market (consisting of motor home chassis) and (II) ninety percent
(90%) of the Appraised 

 

A-5

 

Orderly Liquidation Value of its Eligible
Inventory (consisting of motor home chassis) calculated in a manner consistent with the methodology used in such
appraisal, plus (iii) the lesser of (1) thirty five
percent (35%) of the appraised fair market value (limited to a twelve (12)
month marketing timeframe) of its Real Estate Subfacility Assets subject to a
Mortgage and (2) the Maximum Real Estate Loan Amount; provided that
notwithstanding the foregoing in this subclause (iii), during the period
commencing on the Closing Date and terminating at the close of business of the
sixtieth (60th)
day after the Closing Date, this amount shall be or shall be deemed to be no
less than fifteen million Dollars ($15,000,000), plus (iv) ninety-five
percent (95%) of the amount of Borrowing Base Cash Collateral in an amount not
to exceed the lesser of (X) fifty million Dollars ($50,000,000) and (Y) the
aggregate undrawn face amount of all outstanding Letters of Credit issued
hereunder minus (b) Reserves from time to time established by the
Agent in its reasonable credit judgment (provided that following the
establishment or increase of any such Reserves by the Agent, such Reserves
shall not be removed or decreased by the Agent without the prior consent of the
Majority Lenders).  Notwithstanding
anything to the contrary in the Loan Documents, the amount advanced against
aggregate manufactured housing Inventory shall not exceed the lesser of (A) ten
million Dollars ($10,000,000) and (B) thirty percent (30%) of the
Borrowing Base attributable to aggregate Eligible Inventory.

 

“Borrowing Base Cash Collateral”
means the balance of cash held by such Person in the
United States on such date, which cash is held in a segregated account with the
Agent that is subject to a deposit account control agreement in form and
substance acceptable to the Agent  (it being
understood that such agreement shall provide that cash may not be released from
such account without the consent of the Agent), are subject to a first
priority, perfected Lien in favor of the Agent, and the use of which is not
otherwise restricted, by law or by agreement.

 

“Borrowing Base Certificate” means a certificate, in form and
substance reasonably satisfactory to Agent, by which Borrowers certify the
calculation of the Borrowing Base.  All
calculations of the Borrowing Base in connection with the preparation of any
Borrowing Base Certificate shall originally be made by FMC and certified to the
Agent; provided, that the Agent shall have the right to review and
adjust, in the exercise of its reasonable credit judgment, any such calculation
(1) to reflect its reasonable estimate of declines in value of any of the
Collateral described therein, and (2) to the extent that such calculation
is not in accordance with this Agreement.

 

“Business Day” means (a) any day that is not a Saturday,
Sunday, or a day on which banks in Los Angeles, California or Charlotte, North
Carolina are required or permitted to be closed.

 

“Business Unit” means (a) for purposes of Section 5.2(c),
Section 5.2(f) and Section 8.1(o),  the
Borrowers; and (b) for all other purposes, (i) the Borrowers, (ii) 
the Excluded Subsidiaries; (iii) the Inactive Subsidiaries; and (iv) Fleetwood.

 

“Canadian Security Agreement” means the Canadian Security
Agreement, dated as of the Original Closing Date between Fleetwood Canada and
the Agent for the benefit of the Agent and the Lenders.

 

A-6

 

“Capital Adequacy Regulation” means any guideline, request or
directive of any central bank or other Governmental Authority, or any other
law, rule or regulation, whether or not having the force of law, in each
case, regarding capital adequacy of any bank or of any corporation controlling
a bank.

 

“Capital Expenditures” means all payments due during any
relevant period (whether or not paid during any fiscal period) in respect of
the cost of any fixed asset or improvement, or replacement, substitution, or
addition thereto, which has a useful life of more than one year, including,
without limitation, those costs arising in connection with the direct or
indirect acquisition of such asset by way of increased product or service
charges or in connection with a Capital Lease.

 

“Capital Lease” of a Person means any lease of property by such
Person which, in accordance with GAAP, should be reflected as a capital lease
on the balance sheet of such Person.

 

“Capital Stock” means any and all shares, interests,
participations or other equivalents (however designated) of capital stock or
other equity interests, any and all equivalent ownership interests in a Person
(other than a corporation) and any and all warrants, rights, options to
purchase or other rights to acquire any of the foregoing.

 

“Carve-Out” means an exception to the Liens
granted under this Agreement or priority of claims granted hereunder for the
payment of: (a) all fees required to be paid to the Clerk of the
Bankruptcy Court and to the Office of the United States Trustee under 28 U.S.C.
§ 1930(a), (b) professional fees that are incurred and unpaid prior to the
earlier of the Termination Date and the date on which any Loan Party or any
Committee has received notice (or any member of senior management of any of the
Loan Parties (including, without limitation, any person described in the
definition of “Responsible Officer”) otherwise has knowledge) of an Event of
Default (as used herein, the “Cutoff Date”), and invoiced and payable or
become payable under Sections 330 and 331 of the Bankruptcy Code, whether prior
to or after the Cutoff Date (the “Pre-Trigger Pipeline Claims”) (but
only to the extent that such fees are payable pursuant to an order of the
Bankruptcy Court and such fees either (X) are payable or become payable in
accordance with the Approved Budget or permitted variances or waivers thereto
or (Y), without duplication, have actually been incurred but are not yet
payable but only to the extent that such fees fall within the maximum amount of
“Accrued Professional Fees Net of Retainers” as set forth in the Approved
Budget as of the Cutoff Date), and (c) without duplication of the amounts
described in clause (b) above, professional fees payable or that become
payable under Sections 330 and 331 of the Bankruptcy Code in an aggregate
amount not to exceed one million five hundred thousand dollars ($1,500,000)
(the “Carve-Out Cap”) incurred after the occurrence of the Cutoff
Date (but only to the extent such fees are payable or become payable
pursuant to an order of the Bankruptcy Court, and provided that, to the extent
any Pre-Trigger Pipeline Claims are unpaid because they are in excess of the
amounts set forth in the Approved Budget or permitted variances thereof, such
Pre-Trigger Pipeline Claims shall be entitled to be paid out of the Carve-Out,
and shall reduce, the Carve-Out Cap). Claims with respect to any fees entitled
to be paid in accordance with clause (c) of the Carve-Out are referred to
herein as the “Post-Trigger Claims.”

 

A-7

 

“Cash Collateral” has the meaning specified in Section 1.4(g).

 

“Cash Management Order” means the Interim Order Pursuant to 11
U.S.C. Sections 105, 361, 362, 363, and 364 and Rules 2002, 4001, and 9014
of the Federal Rules of Bankruptcy Procedure (1) Authorizing Use of
Cash Collateral by the Debtors and Providing for Adequate Protection, (2) Modifying
the Automatic Stay, and (3) Scheduling a Final Hearing entered by the
Bankruptcy Court on March 12, 2009.

 

“Change of
Control” means either (i) a change shall occur in the Board of
Directors of Fleetwood so that a majority of the Board of Directors of
Fleetwood ceases to consist of the individuals who constituted the Board of
Directors of Fleetwood on the Closing Date (or individuals whose election or
nomination for election was approved by a vote of more than fifty percent (50%)
of the directors then in office who either were directors of Fleetwood on the
Closing Date or whose election or nomination for election previously was so
approved); or (ii) any Person or Group (within the meaning of Rule 13d-3
of the Securities and Exchange Commission), shall become or be the owner,
directly or indirectly, beneficially or of record, of shares representing more
than twenty percent (20%) of the aggregate ordinary voting power represented by
the issued and outstanding Capital Stock of Fleetwood on a fully diluted basis;
or (iii) except as permitted hereunder, any Loan Party (other than
Fleetwood) ceases to be a direct or indirect wholly-owned Subsidiary of
Fleetwood.

 

“Chapter 11 Case” and “Chapter 11 Cases” have the
respective meanings assigned to them in the recitals to this Agreement.

 

“Chattel Paper” means, as to any Person, all of such Person’s
now owned or hereafter acquired chattel paper, as defined in the UCC, including
electronic chattel paper.

 

“Clearing Bank” means the Bank or any other banking institution
with which a Payment Account has been established pursuant to a Blocked Account
Agreement.

 

“Closing Date” means the date of the Agreement to occur
promptly following the entry of the Interim Order by the Bankruptcy Court
approving this Agreement on an interim basis.

 

“Closing
Date Encumbered Real Estate Asset” means that certain Real Estate asset
previously identified to the Agent as Plant 43-3 (with an approximate appraised
value of $300,000), until such time as, to the extent that the Liens on such
Real Estate asset are released, the Loan Parties shall have caused such
property to become an Additional Real Estate Subfacility Asset in accordance
with Section 7.23.

 

“Closing Fee” has the meaning specified in Section 2.4.

 

“Code” means the Internal Revenue Code of 1986.

 

“COLI Policies” means those insurance policies identified on Schedule
A attached hereto.

 

A-8

 

“Collateral” means all of the Loan Parties’ personal property,
any Mortgaged Property, and all other assets of any Person (including, without
limitation, but subject to approval of the Bankruptcy Court in the Final Order,
proceeds of any avoidance and recovery actions of Borrowers under Chapter 5 of
the Bankruptcy Code relating to, arising from or otherwise connected to the
Collateral) from time to time subject to the Agent’s Liens securing payment or
performance of the Obligations.

 

“Collateral Agent” means Bank of America, N.A., a national
banking association, in its capacity as collateral agent, or any successor
entity thereto.

 

“Commitment” means, at any time with respect to a Lender, the
principal amount set forth beside such Lender’s name under the heading “Commitment”
on Schedule 1.2 attached hereto or on the signature page of the
Assignment and Acceptance pursuant to which such Lender became a Lender
hereunder in accordance with the provisions of Section 11.2, as
such Commitment may be adjusted from time to time in accordance with the
provisions of Section 11.2, and “Commitments” means,
collectively the aggregate amount of the commitments of all of the Lenders.

 

“Committees” shall mean, collectively, any official committee of
unsecured creditors (and any other committee) appointed by the United States
Trustee or by order of the Bankruptcy Court in any Chapter 11 Case and each
such Committee shall be referred to herein as a Committee.

 

“Confirmation Agreement” means that certain Confirmation
Agreement re: Canadian Guaranty and Security Agreement dated as of the Closing
Date among Canadian Guarantor and the Agent.

 

“Contaminant” means any waste, pollutant, hazardous substance,
toxic substance, hazardous waste, special waste, petroleum or petroleum-derived
substance or waste, asbestos in any form or condition, polychlorinated
biphenyls (“PCBs”), or any constituent of any such substance or waste.

 

“Contribution Agreement” means the Contribution, Indemnity and
Subrogation Agreement, dated as of the Original Closing Date, among the Loan
Parties.

 

“Copyright” has the meaning specified in Copyright Security
Agreement.

 

“Copyright Security Agreement” means the Amended and Restated
Copyright Security Agreement, dated as of the Closing Date, executed and
delivered by a Loan Party to the Agent, for the benefit of the Agent and the
Lenders, to evidence and perfect the Agent’s security interest in such Loan
Party’s present and future copyrights and related licenses and rights.

 

“Credit Support” has the meaning specified in Section 1.4(a).

 

“Debt” means, with respect to any Person and without
duplication, all liabilities, obligations and indebtedness of such Person to
any other Person, of any kind or nature, now or hereafter owing, arising, due
or payable, howsoever evidenced, created, incurred, acquired or owing, whether
primary, secondary, direct, contingent, fixed or otherwise, consisting of 

 

A-9

 

indebtedness for borrowed money or the
deferred purchase price of property, excluding trade payables incurred in the
ordinary course of business, but including (a) all Obligations; (b) all
obligations and liabilities of any other Person secured by any Lien on the such
Person’s property, even though such Person shall not have assumed or become
liable for the payment thereof; provided, however, that all such
obligations and liabilities which are limited in recourse to such property
shall be included in Debt only to the extent of the book value of such property
as would be shown on a balance sheet of such Person prepared in accordance with
GAAP; (c) all obligations or liabilities created or arising under any
Capital Lease or conditional sale or other title retention agreement with
respect to property used or acquired by such Person, even if the rights and
remedies of the lessor, seller or lender thereunder are limited to repossession
of such property; provided, however, that all such obligations
and liabilities which are limited in recourse to such property shall be
included in Debt only to the extent of the book value of such property as would
be shown on a balance sheet of such Person prepared in accordance with GAAP; (d) all
obligations and liabilities under Guaranties; (e) the present value
(discounted at the Base Rate) of lease payments due under synthetic leases; and
(f) all obligations and liabilities under any preferred stock (including
the Trust Securities) or similar securities.

 

“Default” means any event or circumstance which, with the giving
of notice, the lapse of time, or both, would (if not cured, waived, or
otherwise remedied during such time) constitute an Event of Default.

 

“Default Rate” means a fluctuating per annum interest rate
at all times equal to the sum of (a) the otherwise applicable Interest
Rate plus (b) two percent (2%) per annum.  Each Default Rate shall be adjusted
simultaneously with any change in the applicable Interest Rate.  In addition, the Default Rate shall result in
an increase in the Letter of Credit Fee by two (2) percentage points per
annum during any period for which the Default Rate is applied.

 

“Defaulting Lender” has the meaning specified in Section 12.15(c).

 

“Designated Account” has the meaning specified in Section 1.2(c).

 

“Distribution” means, in respect of any Person: (a) the
payment or making of any dividend or other distribution of property in respect
of Capital Stock of such Person, other than distributions in Capital Stock of
the same class; or (b) the redemption or other acquisition by such Person
of its Capital Stock.

 

“Documents” means, with respect to any Person, all documents as
such term is defined in the UCC, including bills of lading, warehouse receipts
or other documents of title, now owned or hereafter acquired by such Person.

 

“DOL” means the United States Department of Labor or any
successor department or agency.

 

“Dollar” and “$” means dollars in the lawful currency of
the United States.  Unless otherwise
specified, all payments under the Agreements shall be made in Dollars.

 

A-10

 

“Eligible Accounts” means the Accounts of FMC (which for
purposes of this definition only shall include Fleetwood Canada) which the
Agent in the exercise of its reasonable commercial discretion determines to be
Eligible Accounts.  Without limiting the
discretion of the Agent to establish other criteria of ineligibility, Eligible
Accounts shall not, unless the Agent in its sole discretion elects (which
discretion cannot be exercised without the consent of all Lenders), include any
Account:

 

(a)           with respect to
which more than sixty (60) days have elapsed since the date of the original
invoice therefor;

 

(b)           with respect to
which any of the representations, warranties, covenants, and agreements
contained in the Security Agreement are incorrect or have been breached;

 

(c)           with respect to
which Account (or any other Account due from such Account Debtor), in whole or
in part, two or more checks, promissory notes, drafts, trade acceptances or
other instruments for the payment of money have been received, presented for
payment and returned uncollected for any reason within any six (6) month
period;

 

(d)           which represents a
progress billing (as hereinafter defined); for the purposes hereof, “progress
billing” means any invoice for goods sold or leased or services rendered under
a contract or agreement pursuant to which the Account Debtor’s obligation to
pay such invoice is conditioned upon a Borrower’s completion of any further
performance under the contract or agreement;

 

(e)           with respect to
which any one or more of the following events has occurred to the Account
Debtor on such Account:  death or
judicial declaration of incompetency of an Account Debtor who is an individual;
the filing by or against the Account Debtor of a request or petition for
liquidation, reorganization, arrangement, adjustment of debts, adjudication as
a bankrupt, winding-up, or other relief under the bankruptcy, insolvency, or
similar laws of the United States, any state or territory thereof, or any
foreign jurisdiction, now or hereafter in effect; the making of any general
assignment by the Account Debtor for the benefit of creditors; the appointment
of a receiver or trustee for the Account Debtor or for any of the assets of the
Account Debtor, including, without limitation, the appointment of or taking
possession by a “custodian,” as defined in the Bankruptcy Code; the institution
by or against the Account Debtor of any other type of insolvency proceeding
(under the bankruptcy laws of the United States or otherwise) or of any formal
or informal proceeding for the dissolution or liquidation of, settlement of
claims against, or winding up of affairs of, the Account Debtor; the sale,
assignment, or transfer of all or any material part of the assets of the
Account Debtor (unless the transferee is, in the Agent’s judgment, able to
pay); the nonpayment generally by the Account Debtor of its debts as they
become due; or the cessation of the business of the Account Debtor as a going
concern;

 

(f)            if fifty percent
(50%) or more of the aggregate Dollar amount of outstanding Accounts owed at
such time by the Account Debtor thereon is classified as ineligible under clause
(a) above;

 

(g)           owed by an Account
Debtor which: (i) does not maintain its chief executive office in the
United States of America or Canada (other than the Province of Newfoundland);
or (ii) is not organized under the laws of the United States of America or

 

A-11

 

Canada or any state or province thereof; or (iii) is
the government of any foreign country or sovereign state, or of any state,
province, municipality, or other political subdivision thereof, or of any
department, agency, public corporation, or other instrumentality thereof;
except to the extent that such Account is secured or payable by a letter of
credit satisfactory to the Agent in its discretion;

 

(h)           owed by an Account
Debtor which is an Affiliate or employee of Fleetwood or any of its
Subsidiaries;

 

(i)            except as provided
in clause (k) below, with respect to which either the perfection,
enforceability, or validity of the Agent’s Liens in such Account, or the Agent’s
right or ability to obtain direct payment to the Agent of the proceeds of such
Account, is governed by any federal, state, or local statutory requirements
other than those of the UCC;

 

(j)            owed by an Account
Debtor to which Fleetwood or any of its Subsidiaries, is indebted in any way,
or which is subject to any right of setoff or recoupment by the Account Debtor,
unless the Account Debtor has entered into an agreement acceptable to the Agent
to waive setoff rights; or if the Account Debtor thereon has disputed liability
or made any claim with respect to any other Account due from such Account
Debtor; but in each such case only to the extent of such indebtedness, setoff,
recoupment, dispute, or claim;

 

(k)           owed by the
government of the United States of America, or any department, agency, public
corporation, or other instrumentality thereof, unless the Federal Assignment of
Claims Act of 1940, as amended (31 U.S.C. § 3727 et  seq.),
and any other steps necessary or desirable to perfect the Agent’s Liens
therein, have been complied with to the Agent’s satisfaction with respect to
such Account;

 

(l)            owed by any state,
municipality, or other political subdivision of the United States of America,
or any department, agency, public corporation, or other instrumentality thereof
and as to which the Agent determines that its Lien therein is not or cannot be
perfected;

 

(m)          which represents a
sale on a bill-and-hold, guaranteed sale, sale and return, sale on approval,
consignment, or other repurchase or return basis;

 

(n)           which is evidenced
by a promissory note or other instrument or by chattel paper;

 

(o)           if the Agent
believes, in the exercise of its reasonable commercial judgment, that such
Account may not be collected for any reason;

 

(p)           with respect to
which the Account Debtor is located in any state requiring the filing of a
Notice of Business Activities Report or similar report in order to permit a
Borrower to seek judicial enforcement in such State of payment of such Account,
unless such Borrower has qualified to do business in such state or has filed a
Notice of Business Activities Report or equivalent report for the then current
year;

 

A-12

 

(q)           which arises out of
a sale not made in the ordinary course of a Borrower’s business;

 

(r)            with respect to
which the goods giving rise to such Account have not been shipped and delivered
to and accepted by the Account Debtor or the services giving rise to such
Account have not been performed by a Borrower, and, if applicable, accepted by
the Account Debtor, or the Account Debtor revokes its acceptance of such goods
or services;

 

(s)           owed by an Account
Debtor which is obligated to FMC or Fleetwood, as applicable respecting
Accounts the aggregate unpaid balance of which exceeds ten percent (10%) of the
aggregate unpaid balance of all Accounts owed to FMC or Fleetwood, as
applicable at such time by all of the Account Debtors, but only to the extent
of such excess;

 

(t)            which is not
subject to a first priority and perfected security interest securing the
Revolving Loans in favor of the Agent for the benefit of the Lenders; and

 

(u)           an Account
representing a dealer rebate or other sales program accrual.

 

If any Account at any time ceases to be an Eligible Account, then such
Account shall promptly be excluded from the calculation of Eligible Accounts.

 

“Eligible Additional Real Estate Subfacility Assets” means all
Additional Real Estate Subfacility Assets; provided that items of
Additional Real Estate Subfacility Assets shall be considered Eligible
Additional Real Estate Subfacility Assets for purposes of calculating the
Borrowing Base only if appraisals, title policies, boundary surveys, Phase I
site assessments, mortgages and customary legal opinions with respect to such
Additional Real Estate Subfacility Assets are delivered to the Agent, in each
case acceptable to the Agent; provided, however, that any title
policies, mortgages, Phase I site assessments and legal opinions previously
delivered with respect to the Specified Additional Real Estate Subfacility
Assets shall be deemed acceptable to the Agent (except to the extent advised by
local counsel that modifications, amendments or endorsements are required, and
the same shall have been requested by the Agent); provided further that
the appraisal requirement shall apply only to the extent that the Agent shall
have commissioned such appraisal prior to or within 15 days after the Closing
Date.

 

“Eligible Assignee” means (a) a commercial bank, commercial
finance company or other asset based lender, having total assets in excess of
one billion Dollars ($1,000,000,000); (b) any Lender listed on the
signature page of this Agreement; (c) any Affiliate of any Lender;
and (d) if an Event of Default has occurred and is continuing, any Person
reasonably acceptable to the Agent.

 

“Eligible Existing Real Estate Subfacility Assets” means all
Existing Real Estate Subfacility Assets; provided that items of Existing
Real Estate Subfacility Assets shall be considered Eligible Existing Real
Estate Subfacility Assets for purposes of calculating the Borrowing Base from
and after the date that is sixty (60) days after the Closing Date only if (A) local
counsel opinions, Mortgage Amendments and endorsements to the Existing Mortgage
Title Policies requested by the Agent in accordance with Section 8.1(o) hereof
have been delivered to the Agent, in each case in form acceptable to the Agent
and (B) appraisals applicable to such Existing Real Estate Subfacility
Assets in form acceptable to the Agent were 

 

A-13

 

completed during the one hundred and twenty
(120)-day period prior to the Closing Date (or at any point prior to such
sixtieth (60th) day after
the Closing Date) and delivered to the Agent; provided that, if an
acceptable appraisal was not completed during the one hundred and twenty
(120)-day period prior to the Closing Date, such requirement shall apply only
to the extent that the Agent shall have commissioned such appraisal prior to or
within fifteen (15) days after the Closing Date; provided further that,
if an item of Existing Real Estate Subfacility Assets has become ineligible for
inclusion in the Borrowing Base because of the lack of a sufficiently recent
appraisal, lack of local counsel opinion or lack of endorsements to Title
Policy such item of Existing Real Estate Subfacility Assets shall be available
for inclusion in the Borrowing Base upon provision of an acceptable appraisal
local counsel opinion or endorsements to the Title Policy, as applicable.

 

“Eligible Inventory” means Inventory, which the Agent, in its
reasonable commercial discretion, determines to be Eligible Inventory.  Without limiting the discretion of the Agent
to establish other criteria of ineligibility, Eligible Inventory shall not,
unless the Agent in its sole discretion elects (which discretion cannot be
exercised without the consent of all Lenders), include any Inventory:

 

(a)           that is not owned by
the applicable Borrower;

 

(b)           that is not subject
to the Agent’s Liens, which are perfected as to such Inventory, or that are
subject to any other Lien whatsoever (other than the Liens described in clauses
(a) or (d) of the definition of Permitted Liens provided
that such Permitted Liens (i) are junior in priority to the Agent’s Liens
or subject to Reserves and (ii) do not impair directly or indirectly the
ability of the Agent to realize on or obtain the full benefit of the
Collateral);

 

(c)           that does not consist
of finished goods or raw materials;

 

(d)           that consists of
work-in-process, chemicals, samples, prototypes, supplies, or packing and
shipping materials;

 

(e)           that is not in good
condition, is defective or unmerchantable, or does not meet all standards imposed
by any Governmental Authority having regulatory authority over such goods,
their use or sale;

 

(f)            that is obsolete;

 

(g)           that is located
outside the United States of America (or that is in-transit from vendors or
suppliers);

 

(h)           that is located in a
public warehouse or in possession of a bailee or in a facility leased by the
Borrower, if the warehouseman, the bailee or the lessor has not delivered to
the Agent, a subordination or landlord agreement in form and substance
satisfactory to the Agent or if a Reserve for rents or storage charges has not
been established for Inventory at that location;

 

(i)            that contains or
bears any Proprietary Rights licensed to a Borrower by any Person, if the Agent
is not satisfied that it may sell or otherwise dispose of such Inventory in
accordance with the terms of the Security Agreement and Section 9.2
without infringing the 

 

A-14

 

rights of the licensor of such Proprietary
Rights or violating any contract with such licensor (and without payment of any
royalties other than any royalties due with respect to the sale or disposition
of such Inventory pursuant to the existing license agreement), and as to which
the applicable Borrower has not delivered to the Agent a consent or sublicense
agreement from such licensor in form and substance acceptable to the Agent if
requested;

 

(j)            that is not
reflected in the details of a current inventory report delivered to the Agent;
or

 

(k)           that is Inventory
placed on consignment.

 

If any Inventory at any time ceases to be Eligible Inventory, such
Inventory shall promptly be excluded from the calculation of Eligible
Inventory.

 

“Environmental Claims” means all claims, however asserted, by
any Governmental Authority or other Person alleging potential liability or
responsibility for violation of any Environmental Law, or for a Release or
injury to the environment.

 

“Environmental Compliance Reserve” means any reserve
which the Agent establishes in its reasonable discretion after prior written
notice to the Borrowers from time to time for amounts that are reasonably
likely to be expended by Fleetwood or any of its Subsidiaries in order for such
Person and its operations and property (a) to comply with any notice from
a Governmental Authority asserting material non-compliance with Environmental
Laws, or (b) to correct any such material non-compliance identified in a
report delivered to the Agent and the Lenders pursuant to Section 7.7.

 

“Environmental Laws” means all federal, state or local laws,
statutes, common law duties, rules, regulations, ordinances and codes, together
with all administrative orders, directed duties, licenses, authorizations and
permits of, and agreements with, any Governmental Authority, in each case
relating to environmental, health, safety and land use matters.

 

“Environmental Lien” means a Lien in favor of any
Governmental Authority for (a) any liability under Environmental Laws, or (b) damages
arising from, or costs incurred by such Governmental Authority in response to,
a Release or threatened Release of a Contaminant into the environment.

 

“Equipment” means, with respect to any Person, all of such
Person’s now owned and hereafter acquired machinery, equipment, furniture,
furnishings, fixtures, and other tangible personal property (except Inventory),
including embedded software, motor vehicles with respect to which a certificate
of title has been issued, aircraft, dies, tools, jigs, molds and office
equipment, as well as all of such types of property leased by such Person and
all of such Person’s rights and interests with respect thereto under such
leases (including, without limitation, options to purchase); together with all
present and future additions and accessions thereto, replacements therefor,
component and auxiliary parts and supplies used or to be used in connection
therewith, and all substitutes for any of the foregoing, and all manuals,
drawings, instructions, warranties and rights with respect thereto; wherever
any of the foregoing is located.

 

A-15

 

“ERISA” means the Employee Retirement Income Security Act of
1974, and regulations promulgated thereunder.

 

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

 

“ERISA Event” means (a) a Reportable Event with respect to
a Pension Plan, (b) a withdrawal by Fleetwood or any ERISA Affiliate from
a Pension Plan subject to Section 4063 of ERISA during a plan year in
which it was a substantial employer (as defined in Section 4001(a)(2) of
ERISA) or a cessation of operations which is treated as such a withdrawal under
Section 4062(e) of ERISA, (c) a complete or partial withdrawal
by Fleetwood or any ERISA Affiliate from a Multi-employer Plan or notification
that a Multi-employer Plan is in reorganization, (d) the filing of a
notice of intent to terminate, the treatment of a Plan amendment as a
termination under Section 4041 or 4041A of ERISA, or the commencement of
proceedings by the PBGC to terminate a Pension Plan or Multi-employer Plan, (e) the
occurrence of an event or condition which might reasonably be expected to
constitute grounds under Section 4042 of ERISA for the termination of, or
the appointment of a trustee to administer, any Pension Plan or Multi-employer
Plan, or (f) the imposition of any material liability under Title IV of
ERISA, other than for PBGC premiums due but not delinquent under Section 4007
of ERISA, upon Fleetwood or any ERISA Affiliate.

 

“Event of Default” has the meaning specified in Section 9.1.

 

“Exceptions” means Liens that were perfected prior to the Petition Date if (and only
if) and only for so long as they are not avoided, disallowed or subordinated
pursuant to the Bankruptcy Code or applicable non-bankruptcy law or otherwise
set aside or held unenforceable by the Bankruptcy Court with respect to (a) the
first priority Liens on the 2008 Senior Secured Debentures Priority Assets,
securing the 2008 Senior Secured Debentures, (b) the first priority Liens
on the 2008 Mortgage Debt Priority Assets, securing the 2008 Mortgage Debt, (c) Liens
in respect of Permitted Life Insurance Policy Debt incurred on or prior to the
Closing Date by the Borrowers in accordance with clause (g) of the
definition of Permitted Liens, (d) Permitted Priority Liens and (e) the
Permitted Closing Date Encumbered Real Estate Asset Liens.

 

“Exchange Act” means the Securities Exchange Act of 1934 and the
rules and regulations promulgated thereunder.

 

“Excluded Subsidiaries” means, collectively, all Subsidiaries
identified on Schedule 6.5 attached hereto as an “Excluded Subsidiary”.

 

“Existing
Commitments” means the “Revolving Credit Commitments” of the
Existing Lenders as defined in the Third Amended and Restated Credit Agreement
which are outstanding on the Closing Date immediately prior to the
effectiveness of this Agreement.

 

“Existing
Lenders” means Wells Fargo Foothill, Inc. f/k/a Foothill Capital
Corporation, Textron Financial Corporation, PNC Bank, National Association,
Wachovia Bank, National Association (formerly known as Wachovia Finance
Corporation (Western)) and Bank of America, N.A., each of which were “Lenders”
as under the Third Amended and Restated Credit Agreement.

 

A-16

 

“Existing
Letters of Credit” means approximately sixty two million Dollars
($62,000,000) in extensions of credit consisting entirely of
commercial/documentary and standby letters of credit issued in accordance with
the Third Amended and Restated Credit Agreement and which are outstanding on
the Closing Date immediately prior to the effectiveness of this Agreement.

 

“Existing Mortgages” means “Existing Mortgages” as defined in
the Third Amended and Restated Credit
Agreement which were filed in connection with the Third Amended and
Restated Credit Agreement.

 

“Existing Mortgage Title Policies” means the existing mortgage
title policies insuring that the Existing Mortgages constitute first priority
mortgage liens subject only to Permitted Liens under clauses (a), (b),
(d) and (e) of the definition of “Permitted Liens”
under the Third Amended and Restated Credit Agreement.

 

“Existing Real Estate Subfacility Assets” means the Real Estate
described and identified as such on Schedule 6.11.

 

“FDIC” means the Federal Deposit Insurance Corporation, and any
Governmental Authority succeeding to any of its principal functions.

 

“Federal Funds Rate” means, for any day, the rate per annum
(rounded upwards, if necessary, to the nearest 1/100 of 1%) equal to the
weighted average of the rates on overnight Federal funds transactions with
members of the Federal Reserve System arranged by Federal funds brokers on such
day, as published by the Federal Reserve Bank of New York on the Business Day
next succeeding such day; provided that (a) if such day is not a
Business Day, the Federal Funds Rate for such day shall be such rate on such transactions
on the next preceding Business Day as so published on the next succeeding
Business Day, and (b) if no such rate is so published on such next
succeeding Business Day, the Federal Funds Rate for such day shall be the
average rate charged to the Bank on such day on such transactions as determined
by the Agent.

 

“Federal Reserve Board” means the Board of Governors of the
Federal Reserve System or any successor thereto.

 

“Fee Letter” means that certain fee letter dated March 9,
2009, between the Agent and Fleetwood.

 

“Final Order” means, collectively, the
order of the Bankruptcy Court entered in the Chapter 11 Cases after a final
hearing under Bankruptcy Rule 4001(c)(2) or such other procedures as
approved by the Bankruptcy Court which order shall be satisfactory in form and
substance to the Agent and the Required Lenders, and from which no appeal or
motion to reconsider has been timely filed, or if timely filed, such appeal or
motion to reconsider has been dismissed or denied unless the Agent and the Required
Lenders waive such requirement, together with all extensions, modifications and
amendments thereto, in each such case, in form and 

 

A-17

 

substance satisfactory to
the Agent and the Required Lenders, which, among other matters but not by way
of limitation, authorizes the Loan Parties to obtain credit, incur (or
guaranty) Debt, and grant Liens under this Agreement and the other Loan
Documents, as the case may be, and provides for the super-priority of the Agent’s
and the Lenders’ claims as set forth in this Agreement.

 

“Financial Statements” means, according to the context in which
it is used, the financial statements referred to in Sections 5.2 and
6.6 or any other financial statements required to be given to the Lenders
pursuant to this Agreement.

 

“First
Amended and Restated Credit Agreement” means that certain Amended and
Restated Credit Agreement dated as of the First Amendment and Restatement Date,
by and among Fleetwood, the Borrowers, the Lenders, and the Agent, and the
other parties thereto, as amended by that certain First Amendment to Amended
and Restated Credit Agreement and Consent of Guarantors dated as of June 4,
2004, as amended by that certain Second Amendment to Amended and Restated Credit
Agreement and Consent of Guarantors dated as of November 29, 2004, and as
amended by that certain Third Amendment to Amended and Restated Credit
Agreement and Consent of Guarantors dated as of March 2, 2005.

 

“First
Amendment and Restatement Date” means May 14, 2004.

 

“Fiscal Quarter” means any fiscal quarter of any Fiscal Year.

 

“Fiscal Year” means Fleetwood’s fiscal year for financial
accounting purposes, which currently ends on the last Sunday in April.

 

“Fixed Assets” means, as to any Person, the Equipment and Real
Estate of such Person.

 

“Fleetwood” has the meaning given such term in the preamble.

 

“Fleetwood Canada” means Fleetwood Canada Ltd., an Ontario
corporation.

 

“Fleetwood Guaranty” means the Third Amended and Restated
Guaranty dated as of the Third Amendment and Restatement Date from Fleetwood to
the Agent, for its benefit and the benefit of the Lenders.

 

“Fleetwood International” has the meaning given such term in the
recitals.

 

“Fleetwood
Liquidity” means, for any calendar month, thirty day period or single day,
as applicable, the sum of (a) the average daily Availability during such
calendar month, thirty day period or single day, as applicable, plus (b) the
average daily Qualified Cash Equivalents held by the Loan Parties, during such
calendar month, thirty day period or single day.

 

“Fleetwood
Travel Trailers Division” means Fleetwood
Travel Trailers of California, Inc., Fleetwood Travel Trailers of Indiana, Inc.,
Fleetwood Travel Trailers of Kentucky, Inc., Fleetwood Travel Trailers of
Maryland, Inc., Fleetwood Travel Trailers of Ohio, 

 

A-18

 

Inc., Fleetwood Travel Trailers of Oregon, Inc.,
Fleetwood Travel Trailers of Texas, Inc., Fleetwood Travel Trailers of
Virginia, Inc. and Fleetwood Travel Trailers of Nebraska, Inc. and
all assets of such entities, including, without limitation, the Real Estate
Subfacility Assets that are described and identified as such on Schedule
6.11.

 

“Fleetwood
Trust” means Fleetwood Capital Trust, a business trust organized under the
laws of the State of Delaware, whose sole assets consist of the 1998
Subordinated Debentures.

 

“Flexibility
Conditions” means as of any date and with respect to any transaction, (a) no
Default or Event of Default has occurred and is continuing as of such date both
before and after giving effect to such transaction, and (b) Fleetwood
Liquidity (i) for the thirty day period ending as of the date of the
applicable transaction, is greater than forty-five million Dollars
($45,000,000) both before and after giving effect to such transaction and (ii) on
the date of the applicable transaction, is greater than twenty five million
Dollars ($25,000,000) both before and after giving effect to such transaction.

 

“FMC” means, collectively and jointly and severally, the
Borrowers.

 

“FMC Guaranty” means the Third Amended and Restated FMC Guaranty
dated as of the Third Amendment and Restatement Date from FMC to the Agent, for
its benefit and the benefit of the Lenders.

 

“Funding Date” means the date on which a Borrowing occurs.

 

“FVC” means FVC, Inc.

 

“GAAP” means generally accepted accounting principles and
practices set forth from time to time in the opinions and pronouncements of the
Accounting Principles Board and the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting
Standards Board (or agencies with similar functions of comparable stature and
authority within the U.S. accounting profession), which, in the case of Section 7.24,
shall be as are applicable to the circumstances as of the Closing Date.

 

“General Intangibles” means, with respect to any Person, all of
such Person’s now owned or hereafter acquired general intangibles, choses in
action and causes of action and all other intangible personal property of such
Person of every kind and nature (other than Accounts), including, without
limitation, all contract rights, payment intangibles, Proprietary Rights,
corporate or other business records, inventions, designs, blueprints, plans,
specifications, patents, patent applications, trademarks, service marks, trade
names, trade secrets, goodwill, copyrights, computer software, customer lists,
registrations, licenses, franchises, tax refund claims, any funds which may
become due to such Person in connection with the termination of any Plan or
other employee benefit plan or any rights thereto and any other amounts payable
to such Person from any Plan or other employee benefit plan, rights and claims
against carriers and shippers, rights to indemnification, business interruption
insurance and proceeds thereof, property, casualty or any similar type of
insurance and any proceeds thereof, proceeds of insurance covering the lives of
key employees on which such Person is beneficiary, rights to receive dividends,
distributions, cash, Instruments and other property in respect of or in
exchange for pledged equity interests or Investment Property and any letter of
credit, guarantee, claim, security interest or other security held by or
granted to such Person.

 

A-19

 

“Governmental Authority” means any nation or government, any
state or other political subdivision thereof, any central bank (or similar
monetary or regulatory authority) thereof, any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to government, and any corporation or other entity owned or controlled, through
stock or capital ownership or otherwise, by any of the foregoing.

 

“Guarantors” means, collectively, Fleetwood, Fleetwood Canada
and Fleetwood International, and any Subsidiary of Fleetwood which becomes a
Guarantor in accordance with the requirements of this Agreement.

 

“Guaranty” means, with respect to any Person, all obligations of
such Person which in any manner directly or indirectly guarantee or assure, or
in effect guarantee or assure, the payment or performance of any indebtedness,
dividend or other obligations of any other Person (the “guaranteed
obligations”), or assure or in effect assure the holder of the guaranteed
obligations against loss in respect thereof, including any such obligations
incurred through an agreement, contingent or otherwise: (a) to purchase
the guaranteed obligations or any property constituting security therefor; (b) to
advance or supply funds for the purchase or payment of the guaranteed
obligations or to maintain a working capital or other balance sheet condition;
or (c) to lease property or to purchase any debt or equity securities or
other property or services.

 

“Hedge Agreement” means, with respect to any Person, any and all
transactions, agreements or documents now existing or hereafter entered into,
which provide for an interest rate, credit, commodity or equity swap, cap,
floor, collar, forward foreign exchange transaction, currency swap, cross
currency rate swap, currency option, or any combination of, or option with
respect to, these or similar transactions, for the purpose of hedging such
Person’s exposure to fluctuations in interest or exchange rates, loan, credit
exchange, security or currency valuations or commodity prices.

 

“Holdings” has the meaning given such term in the preamble.

 

“Inactive Subsidiaries” means, collectively, all Subsidiaries
identified on Schedule 6.5 attached hereto as an “Inactive Subsidiary” and any other Subsidiary
formed from time to time after the Closing Date and so designated by the
Borrowers, so long as such other Subsidiaries, in the aggregate own assets of
less than two hundred and fifty thousand Dollars ($250,000) and have revenues
of less than one million Dollars ($1,000,000).

 

“Initial Funding Date” means the date of the funding of the
initial Revolving Loans under this Agreement, amended and restated as of the
date hereof.

 

“Initial Testing Period” has the meaning specified in Section 7.22(a).

 

“Instruments” means, with respect to any Person, all instruments
as such term is defined in the UCC, now owned or hereafter acquired by such
Person.

 

A-20

 

“Interest Rate” means each or any of the interest rates,
including the Default Rate, set forth in Section 2.1.

 

“Interim Order” means, collectively, the order of the Bankruptcy
Court entered in the Chapter 11 Cases after an interim hearing (assuming satisfaction
of the standards prescribed in Section 364 of the Bankruptcy Code and
Bankruptcy Rule 4001 and other applicable law), together with all
extension, modifications, and amendments thereto, in each such case in form and
substance satisfactory to the Agent and the Lenders, which, among other matters
but not by way of limitation, authorizes, on an interim basis, the Loan Parties
to execute and perform under the terms of this Agreement and the other Loan
Documents, substantially in the form of Exhibit E, which order
shall be in full force and effect, shall not have been revised, modified or
amended, and no stay shall have been granted with respect thereto.

 

“Inventory” means, with respect to any Person, all of such
Person’s now owned and hereafter acquired inventory, goods and merchandise,
wherever located, to be furnished under any contract of service or held for
sale or lease, all returned goods, raw materials, work-in-process, finished
goods (including embedded software), other materials and supplies of any kind,
nature or description which are used or consumed in such Person’s business or
used in connection with the packing, shipping, advertising, selling or
finishing of such goods, merchandise, and all documents of title or other
Documents representing them.

 

“Investment Property” means, with respect to any Person, all of
such Person’s right title and interest in and to any and all: (a) securities
whether certificated or uncertificated; (b) securities entitlements; (c) securities
accounts; (d) commodity contracts; or (e) commodity accounts.

 

“IRS” means the Internal Revenue Service and any Governmental
Authority succeeding to any of its principal functions under the Code.

 

“Lender” and “Lenders” have the meanings specified in the
introductory paragraph hereof and shall include any Revolving Credit Lender and
the Agent to the extent of any Agent Advance outstanding and the Bank to the
extent of any Non-Ratable Loan outstanding; provided that no such Agent
Advance or Non-Ratable Loan shall be taken into account in determining any
Lender’s Pro Rata Share.

 

“Letter of Credit” has the meaning specified in Section 1.4(a).

 

“Letter of Credit Fee” has the meaning specified in Section 2.6.

 

“Letter of Credit Issuer” means the Bank, any Affiliate of the
Bank or any other financial institution that issues any Letter of Credit
pursuant to this Agreement.

 

“Lien” means:  (a) any
interest in property securing an obligation owed to, or a claim by, a Person
other than the owner of the property, whether such interest is based on the
common law, statute, or contract, and including a security interest, charge,
claim, or lien arising from a mortgage, deed of trust, encumbrance, pledge,
hypothecation, assignment, deposit arrangement, agreement, security agreement,
conditional sale or trust receipt or a lease, consignment or bailment for
security purposes; (b) to the extent not included under clause (a),

 

A-21

 

any reservation, exception, encroachment, easement, right-of-way, covenant,
condition, restriction, lease or other title exception or encumbrance affecting
property; and (c) any contingent or other agreement to provide any of the
foregoing.

 

“Line Item”
means any line item specified in the Approved Budget denoted by a capital
letter (with the items designated as (A) through (H), the Line Items in
the initial Approved Budget).

 

“Loan Account” means the loan account of FMC, which account
shall be maintained by the Agent.

 

“Loan Documents” means this Agreement, the Applicable Order, the
2008 Intercreditor Agreement, the Revolving Loan Notes, the Affirmation
Agreements, the Patent and Trademark Security Agreement, the Copyright Security
Agreement, the Security Agreement, the Canadian Security Agreement, the Pledge
Agreement, the Mortgages, the Parent Guaranty, the FMC Guaranty, the Subsidiary
Guaranty, the Contribution Agreement, any Hedge Agreement entered into with a
Lender and any other agreements, instruments, and documents heretofore, now or
hereafter evidencing, securing, guaranteeing or otherwise relating to the
Obligations, the Collateral, or any other aspect of the transactions
contemplated by this Agreement.

 

“Loan Parties” means collectively, the Borrowers and the
Guarantors.

 

“Loans” means, collectively, all loans and advances provided for
in Article 1.

 

“Majority Lenders” means at any date of determination Lenders
whose Pro Rata Shares aggregate more than fifty percent (50%).

 

“Manufactured Homes Division” means
Fleetwood General Partner of Texas, Inc., Fleetwood Homes Investment, Inc.,
Fleetwood Homes of Texas L.P., Fleetwood Homes of Arizona, Inc., Fleetwood
Homes of California, Inc., Fleetwood Homes of Florida, Inc.,
Fleetwood Homes of Georgia, Inc., Fleetwood Homes of Idaho, Inc.,
Fleetwood Homes of Indiana, Inc., Fleetwood Homes of Kentucky, Inc.,
Fleetwood Homes of North Carolina, Inc., Fleetwood Homes of Oregon, Inc.,
Fleetwood Homes of Pennsylvania, Inc., Fleetwood Homes of Tennessee, Inc.,
Fleetwood Homes of Virginia, Inc., Fleetwood Homes of Washington, Inc.,
Fleetwood Homes of Mississippi, Inc. and Fleetwood Homes of Oklahoma, Inc.
and all assets of such entities, including, without limitation, the Real Estate
Subfacility Assets that are described and identified as such on Schedule
6.11.

 

“Margin Stock” means “margin stock” as such term is defined in
Regulation T, U or X of the Federal Reserve Board.

 

“Material Adverse Effect” means (a) other than the filing
of the Chapter 11 Cases, a material adverse change in, or a material adverse
effect upon, the operations, business, properties, or condition (financial or
otherwise) of Fleetwood and its Subsidiaries, taken as a whole, (b) a
material impairment of the ability of a Borrower or any Affiliate of a Borrower
to perform under any Loan Document to which it is a party, (c) a material
adverse effect upon the legality, validity, binding effect or enforceability
against any Loan Party of any Loan Document to which it is a party, (d) a
material impairment of the Collateral or the Agent’s Liens thereon, on behalf
of the Lenders, or the priority of such Liens, or (e) a material
impairment of the Agent’s or any Lender’s right and remedies under this
Agreement or the other Loan Documents.

 

A-22

 

“Material Contracts” means the agreements, contracts and other
documents as filed with the Securities Exchange Commission as exhibits to
Fleetwood’s Form 10-K for the Fiscal Year ended April 27, 2008, Form 10-Q
for the quarterly period ended October 27, 2008, and any of Fleetwood’s
Forms 10-K or Forms 10-Q filed after the date hereof, in each case, in
accordance with Item 601(b)(4) and Item 601(b)(10) (or their
equivalents) of Regulation S-K, as promulgated under the Securities Exchange
Act of 1934 as amended, and any Form 8-K, Form S-3 or Form S-4
filed after the date of the
filing of Fleetwood’s Form 10-Q for the quarterly period ended October 26,
2008.

 

“Maximum Amount” means, as of any date of determination, the
lesser of (i) an amount equal to the Revolving Loan Commitment of all
Revolving Lenders as of that date, or (ii) prior to the entry of the Final
Order, the maximum amount of Revolving Loans and Letter of Credit Obligations
permitted by the Interim Order, in each case, as reduced in
accordance with Section 3.4(e).

 

“Maximum Inventory Loan Amount” means (i) from
and including May 1 through and including November 30 of each
calendar year, one hundred and ten million Dollars ($110,000,000) and (ii) from
and including December 1 through and including April 30 of each
calendar year, one hundred and thirty-five million Dollars ($135,000,000).

 

“Maximum Rate” has the meaning specified in Section 2.3.

 

“Maximum
Real Estate Loan Amount” means twenty-two million five hundred thousand
Dollars ($22,500,000) or, upon the occurrence of the entry of the Bidding
Procedures Order by the Bankruptcy Court in form and substance reasonably
acceptable to the Agent, thirty million Dollars ($30,000,000), in each case, as
reduced in accordance with Section 3.4(b).

 

“Measurement Period” means the initial period commencing on the
Petition Date and ending on the Sunday following the full business week after
the Petition Date and each full calendar week ending on Sunday thereafter.

 

“Mexican Subsidiary” means a Fleetwood de Mexico,
S.A. de C.V. formed under the laws of Mexico
which shall be (i) a Subsidiary of Fleetwood International Inc., (ii) a
Subsidiary of one or more additional Subsidiaries of Fleetwood, and (iii) formed
pursuant to organizational documents reasonably satisfactory to the Agent.

 

“Modified Net Proceeds” means Net Proceeds as defined in this
Agreement excluding clause (C) thereof.

 

“Mortgages” means and includes any and all of the mortgages,
deeds of trust, deeds to secure debt, assignments and other instruments
executed and delivered by any Loan Party to or for the benefit of the Agent by
which the Agent, on behalf of the Lenders, acquires a Lien on the Real Estate
or a collateral assignment of a Loan Party’s interest under leases of Real
Estate, and all amendments, modifications and supplements thereto.

 

A-23

 

“Mortgage Amendment” has the meaning provided in Section 8.
1(o).

 

“Mortgaged
Property” means, collectively, the Existing Real Estate Subfacility Assets
and the Additional Real Estate Subfacility Assets.

 

“Motor
Homes Division” means Fleetwood Motor Homes
of Pennsylvania, Inc. Fleetwood Motor Homes of California, Inc., and
Fleetwood Motor Homes of Indiana, Inc., and all assets of such entities,
including, without limitation, the Real Estate Subfacility Assets that are
described and identified as such on Schedule 6.11.

 

“Multi-employer Plan” means a “multi-employer plan” as defined
in Section 4001(a)(3) of ERISA which is or was at any time during the
current year or the immediately preceding six (6) years contributed to by
Fleetwood or any ERISA Affiliate.

 

“Net Amount of Eligible Accounts” means, at any time, the gross
amount of Eligible Accounts less sales, excise or similar taxes, and less
returns, discounts, claims, credits allowances, accrued rebates, offsets,
deductions, counterclaims, disputes and other defenses of any nature at any
time issued, owing, granted, outstanding, available or claimed.

 

“Net Proceeds” has the meaning specified in Section 3.4(c).

 

“Non-Consenting Lender” has the meaning specified in Section 11.1(b).

 

“Non-Ratable Loan” and “Non-Ratable Loans” have the
meanings specified in Section 1.2(h).

 

“Notice of Borrowing” has the meaning specified in Section 1.2(b).

 

“Obligations” means, with respect to any Loan Party, all present
and future loans, advances, liabilities, obligations, covenants, duties, and
debts owing by such Loan Party to the Agent and/or any Lender, arising under or
pursuant to this Agreement or any of the other Loan Documents, whether or not
evidenced by any note, or other instrument or document, whether arising from an
extension of credit, opening of a letter of credit, acceptance, loan, guaranty,
indemnification or otherwise, whether direct or indirect, absolute or
contingent, due or to become due, primary or secondary, as principal or
guarantor, and including all principal, interest, (including any interest which
accrues after the filing of a proceeding under the Bankruptcy Code or which
would have accrued but for such filing) charges, expenses, fees, attorneys’
fees, filing fees and any other sums chargeable to the Borrowers hereunder or
under any of the other Loan Documents.  “Obligations”
includes, without limitation, (a) all debts, liabilities, and obligations
now or hereafter arising from or in connection with the Letters of Credit and (b) all
debts, liabilities and obligations now or hereafter arising from or in
connection with Bank Products.

 

“Original Closing Date” means July 27, 2001.

 

“Original Credit Agreement” means that certain Credit Agreement
dated as of the Original Closing Date, by and among Fleetwood, the Borrowers,
the Lenders, the Agent and the other parties thereto, as amended.

 

A-24

 

“Other Taxes” means any with respect to any Lender or the Agent
present or future stamp or 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 or any other Loan Documents but excluding, in the case of each
Lender and the Agent, such taxes (including income, franchise or branch profits
taxes) as are imposed on or measured by the Agent’s or each Lender’s net income
in any jurisdiction (whether federal, state or local and including any
political subdivision thereof) under the laws of which such Lender or the
Agent, as the case may be, is organized or maintains a lending office.

 

“Parent Guaranty” means the Third Amended and Restated Parent
Guaranty dated as of the Third Amendment and Restatement Date from Fleetwood to
the Agent, for its benefit and the benefit of the Lenders.

 

“Participant” means any Person who shall have been granted the
right by any Lender to participate in the financing provided by such Lender
under this Agreement and the other Loan Documents, and who shall have entered
into a participation agreement in form and substance satisfactory to such
Lender.

 

“Patent” has the meaning specified in Patent and Trademark
Security Agreement.

 

“Patent and Trademark Security Agreement” means the Amended and
Restated Patent and Trademark Security Agreement, dated as of the Third
Amendment and Restatement Date, executed and delivered by a Loan Party to the
Agent, for the benefit of the Agent and the Lenders, to evidence and perfect
the Agent’s security interest in such Loan Party’s present and future patents,
trademarks, and related licenses and rights.

 

“Payment Account” means each bank account established pursuant
to the Security Agreement, to which the proceeds of Accounts and other
Collateral are deposited or credited, and which is maintained in the name of
the Agent or of FMC or any other Loan Party, as applicable, as the Agent may
determine, on terms acceptable to the Agent.

 

“PBGC” means the Pension Benefit Guaranty Corporation or any
Governmental Authority succeeding to the functions thereof.

 

“Pending Revolving Loans” means, at any time, the aggregate
principal amount of all Revolving Loans requested in any Notice of Borrowing
received by the Agent which have not yet been advanced.

 

“Pension Plan” means a pension plan (as defined in Section 3(2) of
ERISA) subject to Title IV of ERISA which Fleetwood or any ERISA Affiliate
sponsors, maintains, or to which it makes, is making, or is obligated to make
contributions, or in the case of a Multi-employer Plan has made contributions
at any time during the immediately preceding six (6) plan years.

 

“Permitted
Closing Date Encumbered Real Estate Asset Liens” means the Liens on the
Closing Date Encumbered Real Estate Asset in favor of the holders of the 2008
Senior Secured Debentures.

 

A-25

 

“Permitted Liens” means:

 

(a)           Liens for taxes not delinquent or
statutory Liens for taxes in an amount not to exceed three million Dollars
($3,000,000) provided that the payment of such taxes which are due and payable
is being contested in good faith and by appropriate proceedings diligently
pursued and as to which adequate financial reserves have been established on
books and records of Fleetwood and its Subsidiaries and a stay of enforcement
of any such Lien is in effect;

 

(b)           the Agent’s Liens;

 

(c)           Liens consisting of deposits made in
the ordinary course of business in connection with, or to secure payment of,
obligations under worker’s compensation, unemployment insurance, social
security and other similar laws, or to secure the performance of bids, tenders
or contracts (other than for the repayment of Debt) or to secure indemnity,
performance or other similar bonds for the performance of bids, tenders or
contracts (other than for the repayment of Debt) or to secure statutory
obligations (other than liens arising under ERISA or Environmental Liens) or
surety or appeal bonds, or to secure indemnity, performance or other similar
bonds;

 

(d)           Liens securing the claims or demands
of materialmen, mechanics, carriers, warehousemen, landlords and other like
Persons, provided that if any such Lien arises from the nonpayment of
such claims or demand when due, such claims or demands do not exceed one
million Dollars ($1,000,000) in the aggregate at any time;

 

(e)           Liens constituting encumbrances in
the nature of reservations, exceptions, encroachments, easements, rights of
way, covenants running with the land, and other similar title exceptions or
encumbrances affecting any Real Estate; provided that they do not in the
aggregate materially detract from the value of the Real Estate or materially
interfere with its use in the ordinary conduct of the Borrower’s business;

 

(f)            Liens arising from judgments and
attachments in connection with court proceedings provided that the
attachment or enforcement of such Liens would not result in an Event of Default
hereunder and such Liens are being contested in good faith by appropriate
proceedings, adequate reserves have been set aside and no material Property is
subject to a material risk of imminent loss or forfeiture and a stay of
execution pending appeal or proceeding for review is in effect;

 

(g)           Liens on the assets of any Loan Party
described on Schedule 6.9 hereto securing the Debt identified on Schedule
6.9 hereto as “Secured Debt” (including, without limitation, the Permitted
Life Insurance Policy Debt) and
refinancings, renewals and extensions thereof permitted pursuant to Section 7.13(f);

 

(h)           Interests of lessors under operating
leases;

 

(i)            other Liens securing Debt not in
excess of one million Dollars ($1,000,000) in the aggregate at any time
outstanding;

 

A-26

 

(j)            second priority Liens
on the Existing Real Estate Subfacility Assets and Specified Additional Real
Estate Subfacility Assets and first priority Liens on the 2008 Senior Secured
Debenture Priority Assets, securing the 2008 Senior Secured Debentures, provided
that each such Lien on any Mortgaged Property is subordinated to a first
priority Lien on the applicable item of Mortgaged Property in favor of the
Agent for the benefit of the Agent and the Lenders and that each such Lien
(whether on Mortgaged Property or not) other than the Permitted Closing Date
Encumbered Real Estate Asset Liens is otherwise subject to the 2008
Intercreditor Agreement; and provided further that, for the avoidance of
doubt, each such Lien on any Mortgaged Property shall be automatically released
(and shall no longer constitute Permitted Liens) to the extent required by the
2008 Intercreditor Agreement; and provided still further that all obligations and liabilities pursuant to such
Liens are limited in recourse to such property and shall otherwise be
non-recourse to the grantor thereof and its other assets; and provided still
further that the aggregate value (such value as set forth in an
appraisal in form and substance and by an appraiser reasonably satisfactory to
the Agent) of all Real Estate (that does
not constitute Collateral) securing the 2008 Senior Secured Debentures, at the
time of the granting of the Lien thereon (excluding the Permitted Closing Date
Encumbered Real Estate Asset Liens), does not exceed twenty million Dollars
($20,000,000); and provided still further
that such Liens shall only constitute “Permitted Liens” to the extent such
Liens have not been invalidated, avoided or otherwise set aside by the
Bankruptcy Court;

 

(k)           first priority Liens on
accounts containing (i) Net Proceeds received from the sale solely of Real
Estate subject to a Lien granted in accordance with clause (j) of
the definition of Permitted Liens constituting collateral for the 2008 Senior
Secured Debentures and not constituting Collateral and (ii) Net Loss
Proceeds (as defined in the indenture governing the 2008 Senior Secured
Debentures as in effect on the issue date thereof) related to any Event of Loss
(as defined in the indenture governing the 2008 Senior Secured Debentures as in
effect on the issue date thereof) received with respect solely to Real Estate
subject to a Lien in accordance with clause (j) of the definition
of Permitted Liens constituting collateral for the 2008 Senior Secured
Debentures and not constituting Collateral, in each case from to time, securing
the 2008 Senior Secured Debentures; provided that all obligations and liabilities pursuant to such
Liens are limited in recourse to such property and shall otherwise be
non-recourse to the grantor thereof and its other assets;

 

(l)            Liens on assets of the Excluded
Subsidiaries, as long as the holder of such Lien has no recourse to any Loan
Party or its assets;

 

(m)          Liens securing Debt permitted under Section 7.13(d),
(j), (t), and (u); provided that such
Liens securing Debt permitted under Section 7.13
(u) shall be released in accordance with Section 7.9(f);

 

(n)           bankers liens and rights of set off
with respect to customary depositary arrangements entered into in the ordinary
conduct of business;

 

A-27

 

(o)           Liens securing the 2008 Mortgage Debt (provided that such Liens shall only constitute “Permitted
Liens” to the extent such Liens have not been invalidated, avoided or otherwise
set aside by the Bankruptcy Court);

 

(p)           Liens
under and in accordance with the Interim Order and Final Order in favor of the
Agent and the Lenders;

 

(q)           the
Permitted Closing Date Encumbered Real Estate Asset Liens; and

 

(r)            Liens
consisting of super-priority administrative expense liens granted by the
Bankruptcy Court pursuant to section 364(c)(1) of the Bankruptcy Code in
favor of Westchester Fire Insurance Company and Ace INA Insurance Company
(together, “Ace”) made in the ordinary course of business to secure
Fleetwood and its Subsidiaries obligations to Ace under an Indemnity Agreement,
dated as of February 12, 2009, executed by Fleetwood and Trendsetter Homes, Inc.
(the “Ace Indemnity Agreement”), in an amount not to exceed the
aggregate amounts paid by Ace under up to $8,690,036 of supply bonds issued by
Ace after the Petition Date solely to the extent the same are not reimbursed by
a draw by Ace under a Letter of Credit issued under this Agreement, the
beneficiary of which is Ace, provided that such Liens are subject and
subordinate to the Agent’s Liens and otherwise subordinated as provided for in
the order of the Bankruptcy Court entered in the Chapter 11 Cases, dated March 23,
2009.

 

“Permitted Life Insurance Policy
Debt” means Debt described on Schedule 6.9 that is
secured by Liens on life insurance policies listed on Schedule 7.13(u) and
Schedule A hereto in an aggregate principal amount not to exceed
eighty-five million four hundred thousand Dollars ($85,400,000); provided
that such Debt shall be recourse only to such life insurance policies and
without recourse to Fleetwood or any of its Subsidiaries or Affiliates.

 

“Permitted Priority Liens”
means, to the extent such Liens are valid and perfected, (i) Liens
referred to in clauses (a), (c), (d), and (e) of
the definition of Permitted Liens, solely to the extent such Liens are senior in
priority to the Agent’s Liens as a matter of law and (ii) first priority
Liens referred to in clauses (h) and (m) of the
definition of Permitted Liens, excluding, in any event, the Liens referred to
in clause (r) of the definition of Permitted Liens and including,
in any event, the Exceptions.

 

“Person” means any individual, sole proprietorship, partnership,
limited liability company, joint venture, trust, unincorporated organization,
association, corporation, Governmental Authority, or any other entity.

 

“Petition Date” has the meaning given such term in the recitals.

 

“Plan” means an employee benefit plan (as defined in Section 3(3) of
ERISA) which Fleetwood or any ERISA Affiliate sponsors or maintains or to which
Fleetwood or any ERISA Affiliate makes, is making, or is obligated to make
contributions and includes any Pension Plan.

 

A-28

 

“Pledge Agreement” means the Amended and Restated Pledge
Agreement dated as of the Third Amendment and Restatement Date by the Loan
Parties in favor of the Agent, for the benefit of the Agent and the Lenders.

 

“Postpetition” means the time period beginning immediately after
the filing of the Chapter 11 Cases.

 

“Postpetition Blocked Accounts” has the meaning given such term in
Section 7.25(b).

 

“Prepetition” means the time period ending immediately prior to
the filing of the Chapter 11 Cases.

 

“Projections” means the projections most recently
received by the Agent pursuant to Section 5.2(e) of the Third
Amended and Restated Credit Agreement or this Agreement as supplemented and
delivered to the Agent prior to the Closing Date.

 

“Pro Rata Share” of a Lender means with respect to all
provisions relating to Revolving Loans or Letters of Credit or the Revolving
Credit Commitments, a fraction (expressed as a percentage), the numerator of
which is the amount of such Lender’s Revolving Credit Commitment at such time
and the denominator of which is the Revolving Credit Commitments of all Lenders
at such time, or if no Revolving Credit Commitment is outstanding, a fraction
(expressed as a percentage), the numerator of which is the Aggregate Revolver
Outstandings owed to such Lender and the denominator of which is the Aggregate
Revolver Outstandings.

 

“Qualified Cash Equivalents” means, as
of any date for any Person, the balance of cash and marketable securities
(other than Borrowing Base Cash Collateral) held by such Person in the United
States on such date, which cash and marketable securities are held in an
account with the Agent and are subject to a first priority, perfected Lien in
favor of the Agent and the use of which is not otherwise restricted, by law or
by agreement.

 

“RCI
Obligations” means any obligations of FVC owing to Resort Condominiums
International, LLC, or its affiliates in respect of payment for services
rendered by Resort Condominiums International, LLC or its affiliates, to FVC or
its affiliates.

 

“Real Estate” means, as to any Person, all of such Person’s now
or hereafter owned or leased estates in real property, including, without
limitation, all fees, leaseholds and future interests, together with all of
such Person’s now or hereafter owned or leased interests in the improvements
thereon, the fixtures attached thereto and the easements appurtenant thereto.

 

“Real Estate
Subfacility Assets” means (i) the Eligible Existing Real Estate
Subfacility Assets and (ii) the Eligible Additional Real Estate
Subfacility Assets; provided that, if an item of Real Estate Subfacility
Assets is sold in accordance with Section 7.9(e), Section 7.9(g) or
otherwise with the consent of the Lenders, such item of Real Estate Subfacility
Assets shall cease to constitute an item of Real Estate Subfacility Assets and
the Borrowing Base shall be immediately reduced by an amount equal to the
amount, if any, attributed to such item of Real Estate Subfacility Assets at
the time of its sale.

 

A-29

 

“Release” means a release, spill, emission, leaking, pumping,
injection, deposit, disposal, discharge, dispersal, leaching or migration of a
Contaminant into the indoor or outdoor environment or into or out of any Real
Estate or other property, including the movement of Contaminants through or in
the air, soil, surface water, groundwater or Real Estate or other property.

 

“Reportable Event” means, any of the events set forth in Section 4043(b) of
ERISA or the regulations thereunder, other than any such event for which the
30-day notice requirement under ERISA has been waived in regulations issued by
the PBGC.

 

“Repurchase Obligations” means the liabilities of Fleetwood to
wholesale floor plan lenders to repurchase Inventory sold by FMC to retail
dealers.

 

“Required Lenders” means at any time Lenders whose Pro Rata
Shares aggregate (a) more than eighty percent (80%) or (b) if the
Bank’s Pro Rata Share is thirty five and a half percent (35.5%) or less, more
than sixty six and two thirds percent (66 2/3%).

 

“Requirement of Law” means, as to any Person, any law (statutory
or common), treaty, rule or regulation or determination of an arbitrator
or of a Governmental Authority, in each case applicable to or binding upon the
Person or any of its property or to which the Person or any of its property is
subject.

 

“Reserves” means reserves that limit the availability of credit
hereunder, consisting of reserves against Availability, Eligible Accounts, or
Eligible Inventory or Real Estate Subfacility Assets established by the Agent
in good faith from time to time in the Agent’s reasonable credit judgment.  Without limiting the generality of the
foregoing, the following reserves shall be deemed to be a reasonable exercise
of the Agent’s credit judgment:  (a) Bank
Product Reserves, (b) reserves for rent at leased locations subject to
statutory or contractual landlord liens, and where the Agent has not received
an acceptable agreement from the landlord, in an amount equal to three
months rent for each such location, (c) Environmental Compliance Reserves
and (d) warehousemen’s or bailees’ charges in an amount equal to three
months charges due to such warehouseman or bailee.

 

“Responsible Officer” means, as to any Loan Party, the chief
executive officer or the president, or any other officer having substantially
the same authority and responsibility; or, with respect to the preparation of
the Borrowing Base Certificate, the chief financial officer, vice
president-treasurer or vice president-controller, or any other officer of such
Loan Party having substantially the same authority and responsibility.

 

“Restricted Investment” means any acquisition of property
in exchange for cash or other property, whether in the form of an acquisition
of stock, Debt, or other indebtedness or obligation, or the purchase or
acquisition of any other property, or a loan, advance, capital contribution, or
subscription, except the following:  (a) acquisitions
of (i) Equipment to be used in the business so long as the acquisition
costs thereof constitute Capital Expenditures permitted hereunder and (ii) Real
Estate to be used in the business so long as the acquisition costs are deemed “Capital
Expenditures” for purposes of Section 7.22 hereof, and, in each
case, if financed, are financed in amounts not in excess of the amounts
permitted hereby; (b) acquisitions 

 

A-30

 

of Inventory in the ordinary course of business; (c) acquisitions
of current assets acquired in the ordinary course of business; (d) direct
obligations of the United States of America, or any agency thereof, or
obligations guaranteed by the United States of America, provided that
such obligations mature within one year from the date of acquisition thereof; (e) acquisitions
of certificates of deposit maturing within one year from the date of
acquisition, bankers’ acceptances, Eurodollar bank deposits, or overnight bank
deposits, in each case issued by, created by, or with a bank or trust company
organized under the laws of the United States of America or any state thereof
having capital and surplus aggregating at least one hundred million Dollars
($100,000,000); (f) acquisitions of commercial paper given a rating of “A2”
or better by Standard & Poor’s Corporation or “P2” or better by Moody’s
Investors Service, Inc. and maturing not more than 90 days from the date
of creation thereof; (g) Hedge Agreements; (h) extensions of credit
in the nature of accounts receivable or notes receivable arising from the sale
or lease of goods or services in the ordinary course of business; (i) any
assets received in satisfaction of judgments against third parties, foreclosure
of Liens or good faith settlement of litigation, disputes or debts; (j) operating
leases in the ordinary course of business; (k) licenses in the ordinary
course of business consistent with past practices and (l) intercompany
Debt of Subsidiaries of Fleetwood otherwise permitted under this Agreement.

 

“Revolving Credit Commitment” means, at any time with respect to
a Lender, the principal amount set forth beside such Lender’s name under the
heading “Revolving Credit Commitment” on Schedule 1.2 attached
hereto or on the signature page of the Assignment and Acceptance pursuant
to which such Lender became a Lender hereunder in accordance with the
provisions of Section 11.2, as such Revolving Credit Commitment may
be adjusted from time to time in accordance with the provisions of Section 3.3,
Section 11.2 and Section 13.19, and “Revolving
Credit Commitments” means, collectively, the aggregate amount of the
commitments of all Lenders.

 

“Revolving Credit Lender” means any Lender which has a Revolving
Credit Commitment or, if the Revolving Credit Commitments have been terminated,
any Lender which has any Revolving Loan outstanding or any participation
interest in any outstanding Letter of Credit.

 

“Revolving Loan Note” and “Revolving Loan Notes” have the
meanings specified in Section 1.2(a)(ii).

 

“Revolving Loans” has the meaning specified in Section 1.2
and includes each Agent Advance and Non-Ratable Loan.

 

“Second
Amended and Restated Credit Agreement” means that certain Second Amended
and Restated Credit Agreement dated as of the Second Amendment and Restatement
Date, by and among Fleetwood, the Borrowers, the Lenders, and the Agent, and
the other parties thereto, as amended by that certain First Amendment to Second
Amended and Restated Credit Agreement (and Consent of Guarantors), dated as of July 22,
2006, as amended by that certain Second Amendment to Second Amended and
Restated Credit Agreement and Consent of Guarantors dated as of November 1,
2005, and as amended by that certain Third Amendment to Second Amended and
Restated Credit Agreement and Consent of Guarantors dated as of May 9,
2006.

 

A-31

 

“Second Amendment and Restatement Date” means July 1, 2005.

 

“Securities Act” means the Securities Act of 1933 and the rules and
regulations promulgated thereunder.

 

“Security Agreement” means the Second Amended and Restated
Security Agreement dated as of the Third Amendment and
Restatement Date among the Loan Parties and the
Agent for the benefit of the Agent and the Lenders.

 

“Settlement” and “Settlement Date” have the meanings
specified in Section 12.15(a)(ii).

 

“Specified Additional Real Estate Subfacility Assets” means
Additional Real Estate Subfacility Assets that are described and identified as
such on Schedule 6.11.

 

“Stated Termination Date” means October 31, 2009.

 

“Subordinated
Debt” means the unsecured Debt from time to time outstanding under the 1998
Subordinated Debentures, the 2003 Subordinated Debentures and the maximum
liability of Fleetwood on any subordinated Guaranty of the Trust Securities.

 

“Subsidiary” of a Person means any corporation, association,
partnership, limited liability company, joint venture or other business entity
of which more than fifty percent (50%) of the voting Capital Stock, is owned or
controlled directly or indirectly by the Person, or one or more of the
Subsidiaries of the Person, or a combination thereof.  Unless the context otherwise clearly
requires, references herein to a “Subsidiary” refer to a Subsidiary of
Fleetwood.

 

“Subsidiary Guaranty” means the Third Amended and Restated
Subsidiary Guaranty dated as of the Third Amendment and
Restatement Date from Subsidiaries of Fleetwood
(other than the Borrowers and the Excluded Subsidiaries) to the Agent, for its
benefit and the benefit of the Lenders.

 

“Supporting Letter of Credit” has the meanings specified in Section 1.4(g).

 

“Supporting Obligations” means all supporting obligations as
such term is defined in the UCC.

 

“Taxes” means, with respect to any Lender or the Agent, any and
all present or future taxes, levies, imposts, deductions, charges or
withholdings, and all liabilities with respect thereto, excluding, in the case
of each Lender and the Agent, (i) such taxes (including income, franchise
or branch profits taxes) as are imposed on or measured by the Agent’s or each
Lender’s net income in any jurisdiction (whether federal, state or local and
including any political subdivision thereof) under the laws of which such
Lender or the Agent, as the case may be, is organized or maintains a lending
office or (ii) in the case of any Lender that is a “foreign
corporation, partnership or trust” within the meaning of the Code, any
withholding tax that is imposed on amounts payable to such Lender at the time
such Lender becomes a party hereto (or designates a new lending office) or is
attributable to such Lender’s failure (other than as a result of the
introduction of any Requirement of Law or any change in any Requirement of Law
or in 

 

A-32

 

the
interpretation or administration of any Requirement of Law) to comply with Section 12.10,
except to the extent that such Lender (or its assignor, if any) was entitled,
at the time of the designation or a new lending office (or assignment), to
receive additional amounts from the Borrowers with respect to such withholding
taxes pursuant to Article IV hereof.

 

“Termination Date” means the earliest to occur of (i) the
Stated Termination Date, (ii) the effective date of any confirmed plan or
plans of reorganization of the Loan Parties in the Chapter 11 Cases, (iii) the
date the Total Facility is terminated either by the Borrowers pursuant to Section 3.2
or by the Required Lenders pursuant to Section 9.2, (iv) the
date the Agreement is otherwise terminated for any reason whatsoever pursuant
to the terms of the Agreement, (v) the date the Revolving
Credit Commitments are terminated or have expired, (vi) April 2, 2009, if the Interim Order has
not been entered by
the Bankruptcy Court by such date, (vii) forty-five (45) days following
the Petition Date if the Final Order has not been entered by the Bankruptcy
Court by such date, (viii) the date upon which the Interim Order expires,
unless the Final Order shall have been entered and become effective by such
date, (ix) the close of business on the first (1st) Business Day after the entry of
the Final Order, if by that time Borrowers have not paid the Agent’s the fees
required under the Fee Letter, unless the Agent and the Lenders agree
otherwise, (x) the date of entry of an order of the Bankruptcy Court
confirming a plan of reorganization in any Chapter 11 Case that has not been
consented to by the Required Lenders and fails to provide for the payment in
full in cash of all Obligations under this Agreement and the other Loan
Documents on the effective date of such plan, (xi) the date of the closing of a
sale of all or substantially all of any Loan Party’s assets pursuant to Section 363
of the Bankruptcy Code, a confirmed plan of reorganization or a liquidation
pursuant to Chapter 7 of the Bankruptcy Code, and (xii) if a plan of
reorganization that has been consented to by the Required Lenders or that
provides for payment in full in cash of all Obligations under this Agreement
and the other Loan Documents has been confirmed by order of the Bankruptcy
Court, the earlier of the effective date of such plan of reorganization or the
sixtieth day after the date of entry of such confirmation order.

 

“Third
Amended and Restated Credit Agreement” means that certain Third Amended and
Restated Credit Agreement dated as of the Third Amendment and Restatement Date,
by and among Fleetwood, the Borrowers, the Lenders, and the Agent, and the
other parties thereto, as amended by that certain (i) First Amendment to
Third Amended and Restated Credit Agreement and Consent of Guarantors dated as
of May 25, 2007, (ii)  Second Amendment to Third Amended and Restated
Credit Agreement and Consent of Guarantors dated as of September 18, 2007,
(iii) Third Amendment to Third Amended and Restated Credit Agreement and
Consent of Guarantors dated as of January 16, 2008, (iv) Fourth
Amendment to Third Amended and Restated Credit Agreement and Consent of
Guarantors dated as of March 5, 2008, (v) Fifth Amendment to Third
Amended and Restated Credit Agreement and Consent of Guarantors dated as of April 9,
2008, (vi) Sixth Amendment to Third Amended and Restated Credit Agreement
and Consent of Guarantors dated as of April 24, 2008, (vii) Seventh
Amendment to Third Amended and Restated Credit Agreement and Consent of
Guarantors dated as of August 6, 2008, (viii) Eighth Amendment to
Third Amended and Restated Credit Agreement and Consent of Guarantors dated as
of October 21, 2008, (ix) Ninth Amendment to Third Amended and
Restated Credit Agreement and Consent of Guarantors dated as of October 29,
2008 and (x) Tenth Amendment to Third Amended and Restated Credit
Agreement and Consent of Guarantors dated as of November 26, 2008.

 

A-33

 

“Third Amendment and Restatement Date” means January 5,
2007.

 

“Third Amendment to Indemnity Agreement” means that certain
Third Amendment to Amended and Restated Hazardous Substances Indemnity
Agreement dated as of the Closing Date among the Loan Parties and the Agent.

 

“Total Facility” has the meaning specified in Section 1.1.

 

“Trademark” has the meaning specified in Patent and Trademark
Security Agreement.

 

“Trust Estate Liens” means (i) the rights of the Loan
Parties and any successor trustee or estate representative in the Chapter 11
Cases and any subsequent proceedings under the Bankruptcy Code, including,
without limitation, any Chapter 7 proceedings if any of the Chapter 11 Cases
are converted to a case under Chapter 7 of the Bankruptcy Code (collectively,
the “Successor Case”), (ii) any intercompany claim of any Loan
Party or any Subsidiary or Affiliate of any Loan Party, (iii) any Lien of
any creditor or other party in interest in the Chapter 11 Cases or any
Successor Case, (iv) subject to entry of the Final Order, any Lien which
is avoided or otherwise preserved for the benefit of any Loan Party’s Estate
under Section 551 or any other provision of the Bankruptcy Code, and (v) any
Liens granted on or after the Petition Date to provide adequate protection to
any party.

 

“Trust Securities” means, collectively, (a) the
6% Convertible Trust Preferred Securities
issued by Fleetwood Trust in February 1998 with a liquidation preference
of fifty Dollars ($50) per share, guaranteed on a subordinated unsecured
basis by Fleetwood, (b) any convertible preferred securities issued by
Fleetwood Trust in exchange therefore to the extent and only to the extent that
issuance of such securities is permitted under this Agreement, (c) any
additional securities issued by Fleetwood Trust concurrently with, and having
the same terms as, the securities issued in such exchange to the extent and
only to the extent that issuance of such securities is permitted under this
Agreement, and (d) the 6% Convertible
Trust Common Securities issued by Fleetwood Trust to Fleetwood in February 1998.

 

“UCC” means the Uniform Commercial Code, as in effect from time
to time, of the State of California or of any other state the laws of which are
required as a result thereof to be applied in connection with the issues of
perfection, continuation or enforcement of security interests.

 

“Unfunded Pension Liability” means the excess of a Plan’s
benefit liabilities under Section 4001(a)(16) of ERISA, over the current
value of that Plan’s assets, determined in accordance with the assumptions used
for funding the Pension Plan pursuant to Section 412 of the Code for the
applicable plan year.

 

“Unused Letter of Credit Subfacility” means an amount equal to
sixty-five million Dollars ($65,000,000) minus the sum of (a) the
aggregate undrawn amount of all outstanding Letters of Credit plus,
without duplication, (b) the aggregate unpaid reimbursement obligations
with respect to all Letters of Credit, subject to decrease in accordance with Section 3.4(e).

 

“Unused Line Fee” has the meaning specified in Section 2.5.

 

A-34

 

“Weekly
Borrowing Base Certificate” has the meaning specified in Section 5.2(l).

 

Accounting Terms.  Any accounting term used in the
Agreement shall have, unless otherwise specifically provided herein, the
meaning customarily given in accordance with GAAP, and all financial
computations in the Agreement shall be computed, unless otherwise specifically
provided therein, in accordance with GAAP as consistently applied and using the
same method for inventory valuation as used in the preparation of the Financial
Statements.

 

Interpretive Provisions.

 

(a)                                  The meanings of defined terms are equally applicable
to the singular and plural forms of the defined terms.

 

(b)                                 The words “hereof,” “herein,” “hereunder” and similar
words refer to the Agreement as a whole and not to any particular provision of
the Agreement; and subsection, Section, Schedule and Exhibit references
are to the Agreement unless otherwise specified.

 

(c)                                  (i)            The
term “documents” includes any and all instruments, documents, agreements,
certificates, indentures, notices and other writings, however evidenced.

 

(ii)           The term “including” is not limiting
and means “including without limitation.”

 

(iii)          In the computation of periods of time
from a specified date to a later specified date, the word “from” means “from
and including,” the words “to” and “until” each mean “to but excluding” and the
word “through” means “to and including.”

 

(iv)          The word “or” is not exclusive.

 

(d)                                 Unless otherwise expressly provided herein, (i) references
to agreements (including the Agreement) and other contractual instruments shall
be deemed to include all subsequent amendments and other modifications thereto,
but only to the extent such amendments and other modifications are not
prohibited by the terms of any Loan Document, and (ii) references to any
statute or regulation are to be construed as including all statutory and
regulatory provisions consolidating, amending, replacing, supplementing or
interpreting the statute or regulation.

 

(e)                                  The terms “business week,” “week,” “weekly period”
and phrases to similar effect mean each weekly period ending on a Sunday.

 

(f)                                    The captions and headings of the Agreement and other
Loan Documents are for convenience of reference only and shall not affect the
interpretation of the Agreement.

 

(g)                                 The Agreement and other Loan Documents may use several
different limitations, tests or measurements to regulate the same or similar
matters.  All such limitations, tests and
measurements are cumulative and shall each be performed in accordance with
their terms.

 

A-35

 

(h)           The Agreement and
the other Loan Documents are the result of negotiations among and have been
reviewed by counsel to the Agent, Fleetwood, the Borrowers and the other
parties, and are the products of all parties. 
Accordingly, they shall not be construed against the Lenders or the
Agent merely because of the Agent’s or Lenders’ involvement in their
preparation.

 

A-36

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