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                                                                     EXHIBIT 4.8

                         CENTRAL ORIGINATING LEASE TRUST

                                  SECURED NOTES

                            COLT 200__ - __INDENTURE

                             DATED AS OF _____, 200_

                         CENTRAL ORIGINATING LEASE TRUST

                                       AND

                               _________________ ,

                            AS COLT INDENTURE TRUSTEE

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                                TABLE OF CONTENTS

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ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE.................................................................    3

   SECTION 1.1      Definitions; Rules of Construction...............................................................    3
   SECTION 1.2      Incorporation by Reference of Trust Indenture Act................................................    3

ARTICLE II THE SECURED NOTES.........................................................................................    4

   SECTION 2.1      Form.............................................................................................    4
   SECTION 2.2      Execution, Authentication and Delivery...........................................................    4
   SECTION 2.3      [RESERVED].......................................................................................    5
   SECTION 2.4      Registration; Registration of Transfer and Exchange of COLT 200__-__ Secured Notes...............    5
   SECTION 2.5      Mutilated, Destroyed, Lost or Stolen COLT 200_-__ Secured Notes..................................    6
   SECTION 2.6      Payment of Principal and Interest................................................................    8
   SECTION 2.7      [RESERVED].......................................................................................    9
   SECTION 2.8      Persons Deemed Secured Noteholders...............................................................    9
   SECTION 2.9      Cancellation of COLT 200 - Secured Notes.........................................................    9
   SECTION 2.10     Release of COLT 200 - Trust Estate...............................................................   10
   SECTION 2.11     Seller and CARI as COLT 200 - Secured Noteholders................................................   10
   SECTION 2.12     Tax Treatment....................................................................................   10

ARTICLE III COVENANTS................................................................................................   10

   SECTION 3.1      Payment of Principal and Interest and Other Amounts..............................................   10
   SECTION 3.2      Money for Payments To Be Held in Trust...........................................................   10
   SECTION 3.3      Existence........................................................................................   12
   SECTION 3.4      Protection of COLT 200 - Trust Estate; Acknowledgment of Pledge..................................   12
   SECTION 3.5      Opinions as to COLT 200 - Collateral.............................................................   13
   SECTION 3.6      Performance of Obligations; Servicing of Series 200 - Lease Assets...............................   14
   SECTION 3.7      Negative Covenants...............................................................................   14
   SECTION 3.8      Annual Statement as to Compliance................................................................   15
   SECTION 3.9      Consolidation, Merger, etc., of Trust; Disposition of Trust Assets...............................   16
   SECTION 3.10     Successor or Transferee..........................................................................   18
   SECTION 3.11     No Other Business................................................................................   18
   SECTION 3.12     No Borrowing.....................................................................................   18
   SECTION 3.13     Guarantees, Loans, Advances and Other Liabilities................................................   18
   SECTION 3.14     Servicer's Obligations...........................................................................   18
   SECTION 3.15     Capital Expenditures.............................................................................   19
   SECTION 3.16     Restricted Payments..............................................................................   19
   SECTION 3.17     Notice of Events of Default......................................................................   19
   SECTION 3.18     Further Instruments and Acts.....................................................................   19
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   SECTION 3.19     COLT Indenture Trustee's Assignment of Administrative Lease Assets and Warranty
                    Lease Assets  and Sale or other Distribution of the Related Vehicles.............................   19
   SECTION 3.20     Representations and Warranties by COLT to the COLT Indenture Trustee.............................   20
   SECTION 3.21     Maintenance of Separate Records for each Series..................................................   20

ARTICLE IV SATISFACTION AND DISCHARGE................................................................................   21

   SECTION 4.1      Satisfaction and Discharge of COLT Indenture.....................................................   21
   SECTION 4.2      Application of Trust Money.......................................................................   22
   SECTION 4.3      Repayment of Monies Held by Paying Agent.........................................................   22
   SECTION 4.4      Duration of Position of COLT Indenture Trustee...................................................   22

ARTICLE V DEFAULT AND REMEDIES.......................................................................................   23

   SECTION 5.1      Events of Default................................................................................   23
   SECTION 5.2      Acceleration of Maturity; Rescission and Annulment...............................................   24
   SECTION 5.3      Collection of Indebtedness and Suits for Enforcement by COLT Indenture Trustee...................   24
   SECTION 5.4      Remedies; Priorities.............................................................................   27
   SECTION 5.5      Optional Preservation of the Series 200 - Lease Assets...........................................   28
   SECTION 5.6      Limitation of Suits..............................................................................   28
   SECTION 5.7      Unconditional Rights of the COLT 200 - Secured Noteholders To Receive Principal and Interest.....   29
   SECTION 5.8      Restoration of Rights and Remedies...............................................................   29
   SECTION 5.9      Rights and Remedies Cumulative...................................................................   29
   SECTION 5.10     Delay or Omission Not a Waiver...................................................................   30
   SECTION 5.11     Control by the COLT 200__-___ Secured Noteholders................................................   30
   SECTION 5.12     Waiver of Past Defaults..........................................................................   30
   SECTION 5.13     Undertaking for Costs............................................................................   31
   SECTION 5.14     Waiver of Stay or Extension Laws.................................................................   31
   SECTION 5.15     Action on Secured Notes..........................................................................   31
   SECTION 5.16     Performance and Enforcement of Certain Obligations...............................................   32

ARTICLE VI THE COLT INDENTURE TRUSTEE................................................................................   32

   SECTION 6.1      Duties of COLT Indenture Trustee.................................................................   32
   SECTION 6.2      Rights of COLT Indenture Trustee.................................................................   33
   SECTION 6.3      COLT Indenture Trustee May Own COLT 200 -    Secured Notes.......................................   34
   SECTION 6.4      COLT Indenture Trustee's Disclaimer..............................................................   34
   SECTION 6.5      Notice of Default................................................................................   35
   SECTION 6.6      Reports by COLT Indenture Trustee to the COLT 200__-___ Secured Noteholders......................   35
   SECTION 6.7      Compensation; Indemnity..........................................................................   35
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   SECTION 6.8      Replacement of COLT Indenture Trustee............................................................   35
   SECTION 6.9      Merger or Consolidation of COLT Indenture Trustee................................................   37
   SECTION 6.10     Appointment of Co-COLT Indenture Trustee or Separate COLT Indenture Trustee......................   37
   SECTION 6.11     Eligibility; Disqualification....................................................................   38
   SECTION 6.12     Preferential Collection of Claims Against COLT...................................................   38
   SECTION 6.13     Representations and Warranties of COLT Indenture Trustee.........................................   39
   SECTION 6.14     COLT Indenture Trustee May Enforce Claims Without Possession of COLT 200 - Secured Notes.........   39
   SECTION 6.15     Suit for Enforcement.............................................................................   40
   SECTION 6.16     Rights of COLT 200__-___ Secured Noteholders to Direct COLT Indenture Trustee....................   40

ARTICLE VII COLT 200 - SECURED NOTEHOLDERS' LISTS AND REPORTS........................................................   40

   SECTION 7.1      COLT To Furnish COLT Indenture Trustee Names and Addresses of COLT 200 - Secured Noteholders.....   40
   SECTION 7.2      Preservation of Information, Communications to Secured Noteholders...............................   41
   SECTION 7.3      Reports by COLT..................................................................................   41
   SECTION 7.4      Reports by Trustee...............................................................................   41

ARTICLE VIII ACCOUNTS, DISBURSEMENTS AND RELEASES....................................................................   42

   SECTION 8.1      Collection of Money..............................................................................   42
   SECTION 8.2      Designated Accounts; Allocations; Payments.......................................................   42
   SECTION 8.3      General Provisions Regarding Designated Accounts.................................................   42
   SECTION 8.4      Release of the COLT 200 -    Trust Estate........................................................   43
   SECTION 8.5      Opinion of Counsel...............................................................................   44

ARTICLE IX SUPPLEMENTAL INDENTURES.................................................................... ..............   44

   SECTION 9.1      Supplemental Indentures Without Consent of COLT 200 - Secured Noteholders........................   44
   SECTION 9.2      Supplemental Indentures With Consent of COLT 200 - Secured Noteholders...........................   45
   SECTION 9.3      Execution of Supplemental Indentures.............................................................   47
   SECTION 9.4      Effect of Supplemental Indenture.................................................................   47
   SECTION 9.5      Conformity with Trust Indenture Act..............................................................   47
   SECTION 9.6      Reference in COLT 200 - Secured Notes to Supplemental Indentures.................................   47

ARTICLE X REDEMPTION OF SECURED NOTES................................................................................   48

   SECTION 10.1     Redemption.......................................................................................   48
   SECTION 10.2     Form of Redemption Notice........................................................................   48
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   SECTION 10.3     COLT 200 - Secured Notes Payable on Redemption Date..............................................   48

ARTICLE XI MISCELLANEOUS.............................................................................................   49

   SECTION 11.1     Compliance Certificates and Opinions, etc........................................................   49
   SECTION 11.2     Form of Documents Delivered to COLT Indenture Trustee............................................   50
   SECTION 11.3     Acts of COLT 200 -    Secured Noteholders........................................................   51
   SECTION 11.4     Notices, etc., to COLT Indenture Trustee, COLT and Rating Agencies...............................   52
   SECTION 11.5     Notices to Secured Noteholders; Waiver...........................................................   52
   SECTION 11.6     Alternate Payment and Notice Provisions..........................................................   53
   SECTION 11.7     Conflict with Trust Indenture Act................................................................   53
   SECTION 11.8     Effect of Headings and Table of Contents.........................................................   53
   SECTION 11.9     Successors and Assigns...........................................................................   53
   SECTION 11.10    Severability.....................................................................................   54
   SECTION 11.11    Benefits of COLT Indenture.......................................................................   54
   SECTION 11.12    Legal Holidays...................................................................................   54
   SECTION 11.13    GOVERNING LAW....................................................................................   54
   SECTION 11.14    Counterparts.....................................................................................   54
   SECTION 11.15    Recording of COLT Indenture......................................................................   54
   SECTION 11.16    No Recourse......................................................................................   55
   SECTION 11.17    No Petition......................................................................................   55
   SECTION 11.18    Inspection.......................................................................................   56
   SECTION 11.19    Indemnification by and Reimbursement of the Servicer.............................................   56
   SECTION 11.20    Series Liabilities...............................................................................   56
   SECTION 11.21    Subordination....................................................................................   56
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EXHIBIT A-1 INFORMATION FOR EACH COLT 200 - SECURED NOTE
EXHIBIT A-2 FORM OF COLT 200 - SECURED NOTE

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            COLT 200 - INDENTURE, dated as of , 200 (this "COLT Indenture"),
between CENTRAL ORIGINATING LEASE TRUST, a Delaware statutory trust ("COLT"),
and , , as indenture trustee (as COLT Indenture Trustee and not in its
individual capacity, the "COLT Indenture Trustee").

            Each party agrees as follows for the benefit of the other parties
and for the equal and ratable benefit of the Holders of the COLT 200 - Secured
Notes:

                                 GRANTING CLAUSE

            COLT hereby Grants to the COLT Indenture Trustee, for the equal and
ratable benefit of each Holder of a COLT 200 - Secured Note, a security interest
in, and its transfer, assignment and conveyance of, without recourse, the
following:

            (i) all right, title and interest of COLT in, to and under the
Series 200 - Leases listed on the Series 200 - Lease Assets Schedule attached as
Schedule A to the COLT Sale and Contribution Agreement and all beneficial
interest in the Vehicles related to the Series 200 - Lease Assets under the
VAULT Trust Agreement, and all monies due thereunder on and after the Cutoff
Date and with respect to the Vehicles, to the extent permitted by law, all
accessions thereto;

            (ii) the interest of COLT in any proceeds from claims on any
physical damage, credit life, credit disability or other insurance policies
covering the related Vehicles or Lessees;

            (iii) the interest of COLT in any proceeds from recourse against
Dealers on the Series 200 - Lease Assets;

            (iv) all right, title and interest of COLT in, to and under the COLT
200 - Lease Assets Assignment;

            (v) all right, title and interest of COLT in, to and under the VAULT
Trust Agreement and the COLT 200 - Basic Documents (solely with respect to the
Vehicles related to Series 200 - Lease Assets);

            (vi) all right, title and interest of COLT in, to and under the COLT
Servicing Agreement and any other COLT 200 - Basic Document;

            (vii) all right, title and interest of COLT in, to and under the
funds on deposit from time to time in the Designated Accounts, including all
Designated Account Property; and

            (viii) the present and future claims, demands, causes and choses in
action in respect of any or all the foregoing and all payments on or under and
all proceeds of every kind and nature whatsoever in respect of any or all the
foregoing, including all proceeds of the conversion of any or all of the
foregoing, voluntary or involuntary, into cash or other liquid property, all
cash proceeds, accounts, accounts receivable, notes, drafts, acceptances,
chattel paper, checks, deposit accounts, insurance proceeds, investment
property, payment intangibles, general intangibles, condemnation awards, rights
to payment of any and every kind and other

<PAGE>

forms of obligations and receivables, instruments and other property which at
any time constitute all or part of or are included in the proceeds of any of the
foregoing (collectively, and together with the Direct COLT Pledge, the "COLT 200
- Collateral").

            In addition, to the extent that, notwithstanding the terms of the
VAULT Trust Agreement and the Statutory Trust Act, COLT is deemed to hold a
direct ownership interest in the legal title to any Vehicle related to the
Series 200 - Lease Assets (and not merely a beneficial interest in VAULT
representing an interest in the legal title to such Vehicle), COLT hereby
grants, equally and ratably, to each COLT 200 - Secured Noteholder a security
interest in all of COLT's rights in such Vehicle, to secure its obligations
under the COLT Indenture (the assets pledged under such security interest, the
"Direct COLT Pledge"). The Direct COLT Pledge shall constitute part of the COLT
200 - Collateral for all purposes hereunder, and each COLT 200 - Secured
Noteholder, by its acceptance thereof, hereby appoints the COLT Indenture
Trustee as its agent to act with respect to the Direct COLT Pledge as it is
required to act with respect to the remainder of the COLT 200 - Collateral in
accordance with this COLT Indenture.

            The foregoing Grant has been made and will continue to be made in
trust to secure the payment of principal of and interest on, and any other
amounts owing in respect of, the COLT 200 - Secured Notes, equally and ratably
without prejudice, priority or distinction among the Holders of the COLT 200 -
Secured Notes and to secure compliance with the provisions of this COLT
Indenture, all as provided in this COLT Indenture. This COLT Indenture
constitutes a security agreement under the UCC.

            The foregoing Grant includes all rights, powers and options (but
none of the obligations, if any) of COLT under any agreement or instrument
included in the COLT 200 - Collateral, including the immediate and continuing
right to claim for, collect, receive and give receipt for principal and interest
payments in respect of the Series 200 - Lease Assets included in the COLT 200 -
Collateral and all other monies payable under the COLT 200 - Collateral, to give
and receive notices and other communications, to make waivers or other
agreements, to exercise all rights and options, to bring Proceedings in the name
of COLT or otherwise and generally to do and receive anything that COLT is or
may be entitled to do or receive under or with respect to the COLT 200 -
Collateral.

            Furthermore, on the Series 200 - Closing Date, VAULT shall grant a
security interest in the Pledged Collateral to each COLT 200 - Secured
Noteholder, to the extent set forth in the VAULT Security Agreement. The Pledged
Collateral shall constitute part of the COLT 200 - Trust Estate for all purposes
hereunder, and each COLT 200 - Secured Noteholder, by its acceptance thereof,
hereby appoints the COLT Indenture Trustee as its agent to act with respect to
the Pledged Collateral as it is required to act with respect to the remainder of
the COLT 200 - Trust Estate in accordance with this COLT Indenture.

            The Holders of the COLT 200 - Secured Notes shall enjoy solely the
security of the COLT 200 - Trust Estate and shall have no recourse to the assets
included in the Series Portfolio securing any other Series of Secured Notes or
any other assets of COLT.

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            The COLT Indenture Trustee, as indenture trustee on behalf of each
Holder of the COLT 200 - Secured Notes, acknowledges such Grant and accepts the
trusts under this COLT Indenture in accordance with the provisions of this COLT
Indenture.

                                    ARTICLE I
                   DEFINITIONS AND INCORPORATION BY REFERENCE

            SECTION 1.1 Definitions; Rules of Construction. Capitalized terms
used in this COLT Indenture but not defined herein are defined in and shall have
the meanings assigned to them in the COLT Series Definitions set forth in Part I
of Exhibit A to the COLT Servicing Agreement, or if not defined therein, shall
have the meanings assigned to them in the COLT Program Definitions set forth in
Part I of Exhibit I to the Third Amended and Restated Declaration of Trust,
dated as of March 25, 2004 (the "Declaration"), by Deutsche Bank Trust Company
Delaware, as COLT Owner Trustee, and acknowledged, accepted and agreed by
Central Originating Lease, LLC ("COLT, LLC"), as Residual Certificateholder, and
General Motors Acceptance Corporation ("GMAC"). All references herein to
Articles, Sections, subsections and exhibits are to Articles, Sections,
subsections and exhibits of this COLT Indenture unless otherwise specified. All
terms defined in this COLT Indenture shall have the defined meanings when used
in any certificate, notice, COLT 200 - Secured Note or other document made or
delivered pursuant hereto unless otherwise defined therein. The rules of
construction set forth in Part II of Exhibit A to the COLT Servicing Agreement
shall be applicable to this COLT Indenture.

            SECTION 1.2 Incorporation by Reference of Trust Indenture Act.
Whenever this COLT Indenture refers to a provision of the TIA, such provision is
incorporated by reference in and made a part of this COLT Indenture. The
following TIA terms used in this COLT Indenture have the following meanings:

      "Commission" means the Securities and Exchange Commission;

      "indenture securities" means the COLT 200__-__ Secured Notes;

      "indenture security holder" means a COLT 200__-__ Secured Noteholder;

      "indenture to be qualified" means this COLT Indenture;

      "indenture trustee" means the COLT Indenture Trustee;

      "obligor" on the indenture securities means COLT and any other obligor on
the indenture securities.

      All other TIA terms used in this COLT Indenture that are defined by the
TIA, defined by reference to another statute or defined by a Commission rule
have the respective meanings assigned to them by such definitions.

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                                   ARTICLE II
                                THE SECURED NOTES

            SECTION 2.1 Form.

            (a) Each COLT 200 - Secured Note, together, in each case, with the
COLT Indenture Trustee's certificate of authentication, shall be substantially
in the form set forth in Exhibit A-2, in each case with such appropriate
insertions, omissions, substitutions and other variations as are required or
permitted by this COLT Indenture, and each such COLT 200 - Secured Note may have
such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may, consistently herewith, be determined to be
appropriate by the officers executing such COLT 200 - Secured Notes, as
evidenced by their execution of the COLT 200 - Secured Notes, or as may be
required to comply with any law or with any rule or regulation made pursuant
thereto or with any rule or regulation of any stock exchange on which such COLT
200 - Secured Notes may be listed or to conform to usage. Any portion of the
text of any COLT 200 - Secured Note may be set forth on the reverse thereof,
with an appropriate reference thereto on the face of the COLT 200 - Secured
Note. The COLT 200 - Secured Notes shall be secured by the COLT 200 - Trust
Estate as set forth in this COLT Indenture.

            (b) The COLT 200 - Secured Notes shall be typewritten, printed,
lithographed or engraved or produced by any combination of these methods (with
or without steel engraved borders), all as determined by the officers executing
such COLT 200 - Secured Notes, as evidenced by their execution of such COLT 200
- Secured Notes.

            (c) Each COLT 200 - Secured Note shall identify the Series 200 -
Lease Assets related to such COLT 200 - Secured Note and shall be issued in the
initial Note Principal Balance set forth on the face thereof, which shall be
equal to [99]% of the Initial ABS Value of the related Series 200 - Lease Assets
identified on Schedule I thereto (with respect to each COLT 200 - Secured Note,
the "Initial Note Principal Balance").

            (d) The terms of the COLT 200 - Secured Notes as provided for in
Exhibit A are part of the terms of this COLT Indenture.

            SECTION 2.2 Execution, Authentication and Delivery.

            (a) Each COLT 200__-__ Secured Note shall be dated the date of its
authentication and shall be issuable as a registered COLT 200__-__ Secured Note.

            (b) The COLT 200__-__ Secured Notes shall be executed on behalf of
COLT by any of its Authorized Officers. The signature of any such Authorized
Officer on the COLT 200__-__ Secured Notes may be manual or facsimile.

            (c) COLT 200__-__ Secured Notes bearing the manual or facsimile
signature of individuals who were at any time Authorized Officers of COLT shall
bind COLT, notwithstanding that such individuals or any of them have ceased to
hold such office prior to the authentication and delivery of such COLT 200__-__
Secured Notes or did not hold such office at the date of such COLT 200__-__
Secured Notes.

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            (d) The COLT Indenture Trustee, in exchange for the Grant of the
COLT 200__-__ Collateral, simultaneously with the Grant to the COLT Indenture
Trustee of the COLT 200_ - Collateral, and the constructive delivery to the COLT
Indenture Trustee of the Series 200_ - Lease Assets and the other components and
assets of the COLT 200_ - Collateral, shall cause to be authenticated and
delivered to or upon the order of COLT, COLT 200_ - Secured Notes for original
issue.

            (e) No COLT 200__-__ Secured Notes shall be entitled to any benefit
under this COLT Indenture or be valid or obligatory for any purpose, unless
there appears on such COLT 200__-__ Secured Note a certificate of authentication
substantially in the form set forth in Exhibit A-2 executed by the COLT
Indenture Trustee by the manual signature of one of its Authorized Officers, and
such certificate upon any COLT 200__-__ Secured Note shall be conclusive
evidence, and the only evidence, that such COLT 200__-__ Secured Note has been
duly authenticated and delivered hereunder.

            SECTION 2.3 [RESERVED]

            SECTION 2.4 Registration; Registration of Transfer and Exchange of
COLT 200__-__ Secured Notes.

            (a) COLT shall cause to be kept the Secured Note Register,
comprising separate registers for each of the COLT 200__-___ Secured Notes, in
which, subject to such reasonable regulations as COLT may prescribe, COLT shall
provide for the registration of the COLT 200_-__ Secured Notes and the
registration of transfers and exchanges of the COLT 200_-__ Secured Notes. The
COLT Indenture Trustee shall initially be the Secured Note Registrar for the
purpose of registering the COLT 200_-__ Secured Notes and transfers or exchanges
of the COLT 200__-__ Secured Notes as herein provided. Upon any resignation of
any Secured Note Registrar, COLT shall promptly appoint a successor Secured Note
Registrar or, if it elects not to make such an appointment, assume the duties of
the Secured Note Registrar.

            (b) If a Person other than the COLT Indenture Trustee is appointed
by COLT as Secured Note Registrar, COLT will give the COLT Indenture Trustee
prompt written notice of the appointment of such Secured Note Registrar and of
the location, and any change in the location, of the Secured Note Register. The
COLT Indenture Trustee shall have the right to inspect the Secured Note Register
at all reasonable times and to obtain copies thereof. The COLT Indenture Trustee
shall have the right to rely upon a certificate executed on behalf of the
Secured Note Registrar by a Responsible Officer thereof as to the names and
addresses of the COLT 200__-__ Secured Noteholders and the Note Principal
Balances and number of such COLT 200__-__ Secured Notes.

            (c) Upon surrender for registration of transfer of any COLT 200__-__
Secured Note at the Corporate Trust Office of the COLT Indenture Trustee (and
following the delivery, in the former case, of such COLT 200__-__ Secured Notes
to COLT by the COLT Indenture Trustee), COLT shall execute, the COLT Indenture
Trustee shall authenticate and the COLT 200__-__ Secured Noteholder shall obtain
from the COLT Indenture Trustee, in the name of the designated transferee or
transferees, one or more new COLT 200__-__ Secured Notes in any authorized
denominations, of a like aggregate principal amount.

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            (d) At the option of the COLT 200__-__ Secured Noteholder, COLT
200__-__ Secured Notes may be exchanged for other COLT 200__-__ Secured Notes in
any authorized denominations, of a like Note Principal Balance, upon surrender
of such COLT 200__-__ Secured Notes to be exchanged at the Corporate Trust
Office of the COLT Indenture Trustee (and following the delivery of such COLT
200__-__ Secured Notes to COLT by the COLT Indenture Trustee), COLT shall
execute, and the COLT Indenture Trustee shall authenticate and the COLT 200__-__
Secured Noteholder shall obtain from the COLT Indenture Trustee, such COLT
200__-__ Secured Notes which the COLT 200__-__ Secured Noteholder making the
exchange is entitled to receive.

            (e) All COLT 200__-__ Secured Notes issued upon any registration of
transfer or exchange of other COLT 200__-__ Secured Notes shall be the valid
obligations of COLT, evidencing the same debt, and entitled to the same benefits
under this COLT Indenture, as the COLT 200__-__ Secured Notes surrendered upon
such registration of transfer or exchange.

            (f) Every COLT 200__-__ Secured Note presented or surrendered for
registration of transfer or exchange shall be duly endorsed by, or be
accompanied by a written instrument of transfer in form satisfactory to the COLT
Indenture Trustee and the Secured Note Registrar, duly executed by the Holder
thereof or such Holder's attorney duly authorized in writing, with such
signature guaranteed by a commercial bank or trust company located, or having a
correspondent located, in the City of _________ or the city in which the
Corporate Trust Office of the COLT Indenture Trustee is located, or by a member
firm of a national securities exchange, and such other documents as the COLT
Indenture Trustee may require.

            (g) No service charge shall be made to a Holder for any registration
of transfer or exchange of COLT 200__-__ Secured Notes, but COLT or the COLT
Indenture Trustee may require payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in connection with any
registration of transfer or exchange of COLT 200__-__ Secured Notes, other than
exchanges pursuant to Section 9.6 not involving any transfer.

            (h) By acquiring a COLT 200__-__ Secured Note, each purchaser and
transferee shall be deemed to represent and warrant that either (a) it is not
acquiring the COLT 200__-__ Secured Note with the plan assets of a Benefit Plan
or (b) the acquisition and holding of the COLT 200__-__ Secured Note will not
give rise to a non-exempt prohibited transaction under Section 406(a) of ERISA
of Section 4975 of the Code.

            (i) The preceding provisions of this Section 2.4 notwithstanding,
COLT shall not be required to transfer or make exchanges, and the Secured Note
Registrar need not register transfers or exchanges, of (i) COLT 200__-__ Secured
Notes that have been selected for redemption pursuant to Article X, if
applicable; or (ii) COLT 200__-__ Secured Notes that are due for final repayment
within 15 days of submission to the Corporate Trust Office.

            SECTION 2.5 Mutilated, Destroyed, Lost or Stolen COLT 200_-__
Secured Notes.

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<PAGE>

            (a) If (i) any mutilated COLT 200_-__ Secured Note is surrendered to
the COLT Indenture Trustee, or the COLT Indenture Trustee receives evidence to
its satisfaction of the destruction, loss or theft of any COLT 200__-__ Secured
Note, and (ii) there is delivered to the COLT Indenture Trustee such security or
indemnity as may be required by it to hold COLT and the COLT Indenture Trustee
harmless, then, in the absence of notice to COLT, the Secured Note Registrar or
the COLT Indenture Trustee that such COLT 200__-__ Secured Note has been
acquired by a bona fide purchaser, COLT shall execute and upon COLT's request
the COLT Indenture Trustee shall authenticate and deliver, in exchange for or in
lieu of any such mutilated, destroyed, lost or stolen COLT 200__-__ Secured
Note, a replacement COLT 200__-__ Secured Note; provided, however, that if any
such destroyed, lost or stolen COLT 200__-__ Secured Note, but not a mutilated
COLT 200__-__ Secured Note, shall have become or within seven days shall be due
and payable, or shall have been called for redemption, instead of issuing a
replacement COLT 200__-__ Secured Note, COLT may make payment to the Holder of
such destroyed, lost or stolen COLT 200__-__ Secured Note when so due or payable
or upon the Redemption Date, if applicable, without surrender thereof.

            (b) If, after the delivery of a replacement COLT 200__-__ Secured
Note or payment in respect of a destroyed, lost or stolen COLT 200__-__ Secured
Note pursuant to subsection (a), a bona fide purchaser of the original COLT
200__-__ Secured Note in lieu of which such replacement COLT 200__-__ Secured
Note was issued presents for payment such original COLT 200__-__ Secured Note,
COLT and the COLT Indenture Trustee shall be entitled to recover such
replacement COLT 200__-__ Secured Note (or such payment) from (i) any Person to
whom it was delivered, (ii) the Person taking such replacement COLT 200__-__
Secured Note from the Person to whom such replacement COLT 200__-__ Secured Note
was delivered; or (iii) any assignee of such Person, except a bona fide
purchaser, and COLT and the COLT Indenture Trustee shall be entitled to recover
upon the security or indemnity provided therefor to the extent of any loss,
damage, cost or expense incurred by COLT or the COLT Indenture Trustee in
connection therewith.

            (c) In connection with the issuance of any replacement COLT 200__-__
Secured Note under this Section 2.5, COLT may require the payment by the Holder
of such COLT 200__-__ Secured Note of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other
reasonable expenses (including all fees and expenses of the COLT Indenture
Trustee) connected therewith.

            (d) Any duplicate COLT 200__-__ Secured Note issued pursuant to this
Section 2.5 in replacement for any mutilated, destroyed, lost or stolen COLT
200__-__ Secured Note shall constitute an original additional contractual
obligation of COLT, whether or not the mutilated, destroyed, lost or stolen COLT
200__-__ Secured Note shall be found at any time or be enforced by any Person,
and shall be entitled to all the benefits of this COLT Indenture equally and
proportionately with any and all other COLT 200__ ___ Secured Notes duly issued
hereunder.

            (e) The provisions of this Section 2.5 are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to
the replacement or payment of mutilated, destroyed, lost or stolen COLT 200__-__
Secured Notes.

                                       7
<PAGE>

            SECTION 2.6 Payment of Principal and Interest.

            (a) Each COLT 200 - Secured Note shall accrue interest from and
including the Series 200 - Closing Date on the Note Principal Balance of such
COLT 200 - Secured Note, until but excluding the date on which the Note
Principal Balance of such COLT 200 - Secured Note is reduced to zero. Interest
shall accrue on each COLT 200 - Secured Note at the COLT 200 - Secured Note
Rate. On each Payment Date, each COLT 200 - Secured Note shall be paid interest
in an amount equal to the Secured Note Interest Distributable Amount payable to
such COLT 200 - Secured Note in accordance with Section 3.03(c)(ii) of the COLT
Servicing Agreement on such Payment Date. Any instalment of interest payable on
the COLT 200 - Notes shall be punctually paid or duly provided for with funds
set aside in the COLT Collection Account on the applicable Payment Date and
shall be paid to the Person in whose name such COLT 200 - Secured Note is
registered in the Secured Note Register on the applicable Record Date, by wire
transfer in immediately available funds to the account or accounts designated in
writing by such Holder to the COLT Indenture Trustee on or prior to the related
Record Date.

            (b) To the extent of funds available therefor, principal shall be
paid in instalments on each Payment Date, in the amounts and in accordance with
the priorities set forth in Section 3.03(c)(iv) of the COLT Servicing Agreement.
The principal of the COLT 200__-__ Secured Notes shall be due and payable in
full on the Final Maturity Date. All principal payments on the COLT 200__-__
Secured Notes shall be made pro rata to the COLT 200__-__ Secured Noteholders,
as provided in Section 3.03(c)(iv) of the COLT Servicing Agreement. Any
instalment of principal payable on any COLT 200__-__ Secured Note shall be
punctually paid or duly provided for with funds set aside in the COLT Collection
Account established with respect to the Series 200__-__ Lease Assets on the
applicable Payment Date and shall be paid to the Person in whose name such COLT
200__-__ Secured Note is registered in the Secured Note Register on the
applicable Record Date by wire transfer in immediately available funds to the
account or accounts designated by such Holder on or prior to the related Record
Date, except for the Redemption Price for the COLT 200__-___ Secured Notes
redeemed pursuant to Section 10.1, which shall be payable as provided herein.
The funds represented by any such wire transfers in respect of interest or
principal returned undelivered shall be held in accordance with Section 3.2.

            (c) From and after the occurrence of an Event of Default and a
declaration in accordance with Section 5.2(a) that the COLT 200__-__ Secured
Notes have become immediately due and payable, until such time as all Events of
Default have been cured or waived as provided in Section 5.2(b), all principal
payments shall be allocated pro rata among the Holders of all of the COLT
200__-__ Secured Notes on the basis of the respective aggregate unpaid principal
balances of COLT 200__-__ Secured Notes held by such Holders.

            (d) With respect to any Payment Date on which the final installment
of principal and interest on a class of COLT 200__-__ Secured Notes is to be
paid, the COLT Indenture Trustee on behalf of COLT shall notify each COLT
200__-__ Secured Noteholders of record of such class as of the Record Date for
such Payment Date of the fact that the final installment of principal of and
interest on such COLT 200__-__ Secured Note is to be paid on such Payment Date.
With respect to any such class of COLT 200__-__ Secured Notes, such

                                       8
<PAGE>

notice shall be sent (i) on such Record Date by facsimile, if Book Entry Notes
are outstanding; or (ii) not later than three Business Days after such Record
Date in accordance with Section 11.5(a), and shall specify that such final
installment shall be payable only upon presentation and surrender of such COLT
200__-__ Secured Note and shall specify the place where such COLT 200__-__
Secured Note may be presented and surrendered for payment of such installment
and the manner in which such payment shall be made. Notices in connection with
redemptions of COLT 200__-__ Secured Notes shall be mailed to COLT 200__-__
Secured Noteholders as provided in Section 10.2. Within sixty days of the
payment in full pursuant to this Section 2.6 or cancellation pursuant to Section
2.9 of all of the COLT 200__-__ Secured Notes, the COLT Indenture Trustee shall
provide the COLT 200__-___ Secured Noteholders with written notice stating that
all such COLT 200__-__ Secured Notes have been paid in full or cancelled.

            (e) All payments of principal and interest on the COLT 200_-_
Secured Notes shall be made by the COLT Indenture Trustee pursuant to the
calculations and written direction of the Servicer in accordance with Section
3.03(a) of the COLT Servicing Agreement.

            SECTION 2.7 [RESERVED]

            SECTION 2.8 Persons Deemed Secured Noteholders. Prior to due
presentment for registration of transfer of any COLT 200 - Secured Note, COLT,
the COLT Indenture Trustee and any agent of COLT or the COLT Indenture Trustee
shall treat the Person in whose name any COLT 200 - Secured Note is registered
in the Secured Note Register (as of the day of determination) as the COLT 200 -
Secured Noteholder for the purpose of receiving payments of principal of and
interest on such COLT 200 - Secured Note and for all other purposes whatsoever,
whether or not such COLT 200 - Secured Note be overdue, and neither COLT, the
COLT Indenture Trustee nor any agent of COLT or the COLT Indenture Trustee shall
be affected by notice to the contrary.

            SECTION 2.9 Cancellation of COLT 200 - Secured Notes. All COLT
200__-___ Secured Notes surrendered for payment, redemption, exchange or
registration of transfer shall, if surrendered to any Person other than the COLT
Indenture Trustee, be delivered to the COLT Indenture Trustee and shall be
promptly canceled by the COLT Indenture Trustee. COLT may at any time deliver to
the COLT Indenture Trustee for cancellation any COLT 200__-__ Secured Notes
previously authenticated and delivered hereunder which the Issuer may have
acquired in any manner whatsoever, and all COLT 200__-__ Secured Notes so
delivered shall be promptly canceled by the COLT Indenture Trustee. No COLT
200__-__ Secured Notes shall be authenticated in lieu of or in exchange for any
COLT 200__-__ Secured Notes canceled as provided in this Section 2.9, except as
expressly permitted by this COLT Indenture. All canceled COLT 200__-__ Secured
Notes may be held or disposed of by the COLT Indenture Trustee in accordance
with its standard retention or disposal policy as in effect at the time unless
COLT shall direct that they be destroyed or returned to it; provided, however,
that such direction is timely and the COLT 200__-__ Secured Notes have not been
previously disposed of by the COLT Indenture Trustee. The COLT Indenture Trustee
shall certify to the Issuer upon request that surrendered COLT 200__-__ Secured
Notes have been duly canceled and retained or destroyed, as the case may be.

                                       9
<PAGE>

            SECTION 2.10 Release of COLT 200 - Trust Estate. The COLT Indenture
Trustee shall release property from the lien of this COLT Indenture and the
VAULT Security Agreement, other than as permitted by Sections 3.19, 8.4 and
11.1, only upon receipt of a Trust Request accompanied by an Officers'
Certificate, an Opinion of Counsel (to the extent required by the TIA) and
Independent Certificates in accordance with TIA Sections 314(c) and 314(d)(1).

            SECTION 2.11 Seller and CARI as COLT 200 - Secured Noteholders. Each
of the Seller and CARI, in their individual or any other capacity, may become
the owner or pledgee of COLT 200 - Secured Notes and may otherwise deal with
COLT or its affiliates with the same rights it would have if it were not the
Seller or, with respect to CARI, an Affiliate of the Seller.

            SECTION 2.12 Tax Treatment. COLT and the COLT Indenture Trustee, by
entering into this COLT Indenture, and the COLT 200 - Secured Noteholders, by
acquiring any COLT 200 - Secured Note or interest therein, (i) express their
intention that the COLT 200 - Secured Notes qualify under applicable tax law as
indebtedness secured by the COLT 200 - Trust Estate and (ii) unless otherwise
required by appropriate taxing authorities, agree to treat the COLT 200 -
Secured Notes as indebtedness secured by the COLT 200 - Trust Estate for the
purpose of federal income, state and local income and franchise taxes, any
applicable single business tax, including the Michigan single business tax and
any other taxes imposed upon, measured by or based upon gross or net income.

                                   ARTICLE III
                                    COVENANTS

            SECTION 3.1 Payment of Principal and Interest and Other Amounts.
COLT shall duly and punctually pay the principal of and interest on the COLT 200
- Secured Notes, in accordance with the terms of the COLT 200 - Basic Documents.
On each Payment Date and on the Redemption Date (if applicable), COLT shall
cause amounts on deposit in the COLT Collection Account to be paid to the COLT
200 - Secured Noteholders in accordance with Sections 2.6 and 8.2 and with
Section 3.03 of the COLT Servicing Agreement, less amounts properly withheld
under the Code by any Person from a payment to any COLT 200 - Secured Noteholder
of interest and/or principal. Any amounts so withheld shall be considered as
having been paid by COLT to such COLT 200 - Secured Noteholder for all purposes
of this COLT Indenture.

            SECTION 3.2 Money for Payments To Be Held in Trust.

            (a) As provided in Section 8.2(a) and (b), all payments of amounts
due and payable with respect to any COLT 200 - Secured Notes that are to be made
from amounts withdrawn from the COLT Collection Account pursuant to Section
8.2(c) shall be made on behalf of COLT by the COLT Indenture Trustee or by
another Paying Agent, and no amounts so withdrawn from the COLT Collection
Account for payments of such COLT 200 - Secured Notes shall be paid over to COLT
except as provided in this Section 3.2.

            (b) On or before each Payment Date or the Redemption Date (if
applicable), COLT shall deposit or cause to be deposited in the COLT Collection
Account, pursuant to

                                       10
<PAGE>

Section 3.03(b) of the COLT Servicing Agreement, an aggregate sum sufficient to
pay the amounts then becoming due with respect to the COLT 200 - Secured Notes,
such sums to be held in trust for the benefit of the Persons entitled thereto.

            (c) COLT shall cause each Paying Agent other than the COLT Indenture
Trustee to execute and deliver to the COLT Indenture Trustee an instrument in
which such Paying Agent shall agree with the COLT Indenture Trustee (and if the
Servicer acts as Paying Agent, it hereby so agrees), subject to the provisions
of this Section 3.2, that such Paying Agent shall:

                  (i) hold all sums held by it for the payment of amounts due
      with respect to the COLT 200 - Secured Notes in trust for the benefit of
      the Persons entitled thereto until such sums shall be paid to such Persons
      or otherwise disposed of as herein provided and pay such sums to such
      Persons as herein provided;

                  (ii) give the COLT Indenture Trustee notice of any default by
      COLT (or any other obligor upon the COLT 200 - Secured Notes) of which it
      has actual knowledge in the making of any payment required to be made with
      respect to the COLT 200 - Secured Notes;

                  (iii) at any time during the continuance of any such default,
      upon the written request of the COLT Indenture Trustee, forthwith pay to
      the COLT Indenture Trustee all sums so held in trust by such Paying Agent;

                  (iv) immediately resign as a Paying Agent and forthwith pay to
      the COLT Indenture Trustee all sums held by it in trust for the payment of
      the COLT 200 - Secured Notes if at any time it ceases to meet the
      standards required to be met by a Paying Agent in effect at the time of
      determination; and

                  (v) comply with all requirements of the Code with respect to
      the withholding from any payments made by it on the COLT 200 - Secured
      Notes of any applicable withholding taxes imposed thereon and with respect
      to any applicable reporting requirements in connection therewith.

            (d) COLT may at any time, for the purpose of obtaining the
satisfaction and discharge of this COLT Indenture or for any other purpose, by a
Trust Order direct any Paying Agent to pay to the COLT Indenture Trustee all
sums held in trust by such Paying Agent, such sums to be held by the Servicer
upon the same trusts as those upon which the sums were held by such Paying
Agent; and upon such payment by any Paying Agent to the COLT Indenture Trustee,
such Paying Agent shall be released from all further liability with respect to
such money.

            (e) Subject to applicable laws with respect to escheat of funds, any
distribution to any COLT 200 - Secured Noteholder returned to the COLT Indenture
Trustee or any Paying Agent for any reason, held by the COLT Indenture Trustee
or such Paying Agent in trust for the payment of any amount due with respect to
any COLT 200 - Secured Note and remaining unclaimed for one year after such
amount has become due and payable shall be discharged from such trust and be
paid by the COLT Indenture Trustee or such Paying Agent to

                                       11
<PAGE>

COLT upon receipt of a Trust Request; and such COLT 200 - Secured Noteholder
shall thereafter, as an unsecured general creditor, look only to COLT for
payment thereof (but only to the extent of the amounts so paid to COLT), and all
liability of the COLT Indenture Trustee or such Paying Agent with respect to
such trust money shall thereupon cease; provided, however, that the COLT
Indenture Trustee or such Paying Agent, before being required to make any such
payment, may at the expense of COLT cause to be published once, in a newspaper
published in the English language, customarily published on each Business Day
and of general circulation in the City of New York, notice that such money
remains unclaimed and that, after a date specified therein, which shall not be
less than 30 days from the date of such publication, any unclaimed balance of
such money then remaining shall be paid to COLT. The Servicer may adopt and
employ, at the expense of COLT, any other reasonable means of notification of
such repayment (including, but not limited to, mailing notice of such repayment
of any COLT 200 - Secured Noteholder whose right to or interest in monies due
and payable but not claimed is determinable from the records of the Secured Note
Registrar, at the last address of record for each COLT 200 - Secured
Noteholder).

            SECTION 3.3 Existence. COLT shall keep in full effect its existence,
rights and franchises as a statutory trust under the laws of the State of
Delaware (unless it becomes, or any successor trust hereunder is or becomes,
organized under the laws of any other State or of the United States of America,
in which case COLT shall keep in full effect its existence, rights and
franchises under the laws of such other jurisdiction) and shall obtain and
preserve its qualification to do business in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of this COLT Indenture, the COLT 200 - Secured Notes, the COLT
200 - Collateral and each other instrument or agreement included in the COLT 200
- Trust Estate.

            SECTION 3.4 Protection of COLT 200 - Trust Estate; Acknowledgment of
Pledge.

            (a) COLT shall from time to time execute and deliver all such
supplements and amendments hereto and authorize or execute, as applicable, and
deliver all such financing statements, continuation statements, instruments of
further assurance and other instruments, and shall take such other action
necessary or advisable to:

                  (i) maintain or preserve the lien and security interest (and
      the priority thereof) of this COLT Indenture or carry out more effectively
      the purposes hereof, including by making the necessary filings of
      financing statements or amendments thereto within sixty days after the
      occurrence of any of the following and by promptly notifying in writing
      the COLT Indenture Trustee of any such filings: (A) any change in COLT's
      true legal name or any of its trade names, (B) any change in COLT's
      jurisdiction of organization, (C) any merger or consolidation or other
      change in COLT's identity or organizational structure and (D) any other
      change or occurrence that would make any financing statement or amendment
      seriously misleading within the meaning of Section 9-506 of the UCC;

                  (ii) perfect, publish notice of or protect the validity of any
      Grant made by this COLT Indenture and the priority thereof;

                                       12
<PAGE>

                  (iii) enforce the rights of the COLT Indenture Trustee and the
      COLT 200 - Secured Noteholders in the COLT 200 - Trust Estate; or

                  (iv) preserve and defend title to the COLT 200 - Trust Estate
      and the rights of the COLT Indenture Trustee and the COLT 200 - Secured
      Noteholders in such COLT 200 - Trust Estate against the claims of all
      Persons and parties;

and COLT hereby designates the COLT Indenture Trustee its agent and
attorney-in-fact to authorize or execute any financing statement, continuation
statement or other instrument required pursuant to this Section 3.4.

            (b) COLT hereby authorizes the COLT Indenture Trustee to file all
financing statements naming COLT as debtor that are necessary or advisable to
perfect, make effective or continue the lien and security interest of this COLT
Indenture and the VAULT Security Agreement with respect to the COLT 200 - Trust
Estate, and authorizes the COLT Indenture Trustee to take any such action
without its signature.

            SECTION 3.5 Opinions as to COLT 200 - Collateral.

            (a) On the Series 200 - Closing Date, COLT shall furnish to the COLT
Indenture Trustee and each COLT 200 - Secured Noteholder an Opinion of Counsel
either stating that, in the opinion of such counsel, such action has been taken
with respect to the recording and filing of this COLT Indenture, any indentures
supplemental hereto and any other requisite documents, and with respect to the
authorization, execution and filing of any financing statements and continuation
statements as are necessary to perfect and make effective the lien and security
interest of this COLT Indenture in the related COLT 200 - Collateral and
reciting the details of such action, or stating that, in the opinion of such
counsel, no such action is necessary to make such lien and security interest
effective.

            (b) On or before March 15 in each calendar year, beginning March 15,
2005, COLT shall furnish to the COLT Indenture Trustee and each COLT 200__-___
Secured Noteholder an Opinion of Counsel either stating that, in the opinion of
such counsel, such action has been taken with respect to the recording, filing,
re-recording and refiling of this COLT Indenture, any indentures supplemental
hereto and any other requisite documents and with respect to the authorization,
execution and filing of any financing statements and continuation statements as
is necessary to maintain the lien and security interest created by this COLT
Indenture and reciting the details of such action or stating that in the opinion
of such counsel no such action is necessary to maintain the lien and security
interest created by this COLT Indenture. Such Opinion of Counsel shall also
describe the recording, filing, re-recording and refiling of this COLT
Indenture, any indentures supplemental hereto and any other requisite documents
and the execution and filing of any financing statements and continuation
statements that will, in the opinion of such counsel, be required to maintain
the lien and security interest created by this COLT Indenture until March 15 in
the following calendar year.

                                       13
<PAGE>

            SECTION 3.6 Performance of Obligations; Servicing of Series 200 -
Lease Assets.

            (a) COLT shall not take any action and shall use its reasonable
efforts not to permit any action to be taken by others that would release any
Person from any of such Person's material covenants or obligations under any
instrument or agreement included in the COLT 200 - Trust Estate or that would
result in the amendment, hypothecation, subordination, termination or discharge
of, or impair the validity or effectiveness of, any such instrument or
agreement, except as otherwise expressly provided in this COLT Indenture, any
other COLT 200 - Basic Document or such other instrument or agreement.

            (b) COLT may contract with other Persons to assist it in performing
its duties under this COLT Indenture, and any performance of such duties by a
Person identified to the COLT Indenture Trustee in the COLT 200 - Basic
Documents or an Officers' Certificate of COLT shall be deemed to be action taken
by COLT. Initially, COLT has contracted with the Servicer to assist COLT in
performing its duties under this COLT Indenture.

            (c) COLT shall punctually perform and observe all of its obligations
and agreements contained in this COLT Indenture, any other COLT 200 - Basic
Documents and in the instruments and agreements included in the COLT 200 - Trust
Estate, including filing or causing to be filed all UCC financing statements and
continuation statements required to be filed under the terms of this COLT
Indenture and any other COLT 200 - Basic Documents in accordance with and within
the time periods provided for herein or therein.

            (d) If COLT shall have knowledge of the occurrence of a Servicer
Default under the COLT Servicing Agreement, COLT shall promptly notify (and in
any event within five Business Days) the COLT Indenture Trustee, the COLT 200 -
Secured Noteholders and the Rating Agencies in writing thereof, and shall
specify in such notice the response or action, if any, COLT has taken or is
taking with respect to such default. If any such Servicer Default shall arise
from the failure of the Servicer to perform any of its duties or obligations
under the COLT Servicing Agreement with respect to the Series 200 - Lease
Assets, COLT and the COLT Indenture Trustee shall take all reasonable steps
available to them pursuant to such COLT Servicing Agreement to remedy such
failure.

            (e) Without derogating from the absolute nature of the assignment
granted under this COLT Indenture with respect to the COLT 200 - Collateral and
under the VAULT Security Agreement with respect to the Pledged Collateral or the
rights of the COLT Indenture Trustee and the COLT 200__-___ Secured Noteholders
hereunder or under the VAULT Security Agreement, COLT agrees that it shall not,
without the prior written consent of the COLT Indenture Trustee and the COLT
200__-___ Secured Noteholders, amend, modify, waive, supplement, terminate or
surrender, or agree to any amendment, modification, supplement, termination,
waiver or surrender of, the terms of any assets included in the COLT 200 - Trust
Estate or any of COLT 200 - Basic Documents, or waive timely performance or
observance by any party under any of the COLT 200 - Basic Documents.

            SECTION 3.7 Negative Covenants. So long as any COLT 200 - Secured
Notes are Outstanding, COLT shall not:

                                       14
<PAGE>

            (a) sell, transfer, exchange or otherwise dispose of any of the
properties or assets included in the COLT 200 - Trust Estate, except COLT may
cause the Servicer to: (i) collect, liquidate, sell or otherwise dispose of
COLT's interest in the Series 200 - Lease Assets (including any Warranty Lease
Assets, Administrative Lease Assets, and Liquidating Lease Assets, and any
related vehicles; (ii) make cash payments out of the Designated Accounts and
Payment Ahead Servicing Account); and (iii) take other actions, in each case as
contemplated by the COLT 200 - Basic Documents;

            (b) claim any credit on, or make any deduction from the principal or
interest payable in respect of COLT 200 - Secured Notes (other than amounts
properly withheld from such payments under the Code or applicable state law) or
assert any claim against any present or former COLT 200 - Secured Noteholder by
reason of the payment of the taxes levied or assessed upon any part of the COLT
200 - Trust Estate;

            (c) voluntarily commence any insolvency, readjustment of debt,
marshaling of assets and liabilities or other proceeding, or apply for an order
by a court or agency or supervisory authority for the winding-up or liquidation
of its affairs or any other event specified in Section 5.1(f); or

            (d) either (i) permit the validity or effectiveness of this COLT
Indenture or any other COLT 200 - Basic Documents to which it is a party to be
impaired, or permit the lien of this COLT Indenture in the related COLT 200 -
Collateral or the lien of the VAULT Security Agreement in the Pledged Collateral
to be amended, hypothecated, subordinated, terminated or discharged, or permit
any Person to be released from any covenants or obligations with respect to the
COLT 200 - Secured Notes under this COLT Indenture except as may be expressly
permitted hereby, (ii) permit any lien, charge, excise, claim, security
interest, mortgage or other encumbrance (other than the lien of this COLT
Indenture in the COLT 200 - Collateral and the lien of the VAULT Security
Agreement in the Pledged Collateral) to be created on or extend to or otherwise
arise upon or burden the COLT 200 - Trust Estate or any part thereof or any
interest therein or the proceeds thereof (other than tax liens, mechanics' liens
and other liens that arise by operation of law or as otherwise contemplated by
the COLT 200 - Basic Documents) or (iii) permit the lien of this COLT Indenture
not to constitute a valid first priority security interest in the COLT 200 -
Collateral or the lien of the VAULT Security Agreement not to constitute a valid
first priority security interest in the Pledged Collateral (in each case, other
than with respect to any such tax, mechanics' or other lien).

            SECTION 3.8 Annual Statement as to Compliance. Until the COLT 200 -
Secured Notes have been paid in full, COLT shall deliver to the COLT Indenture
Trustee and the COLT 200__-___ Secured Noteholders, on or before March 15 of
each year, beginning March 15, 2005, an Officer's Certificate signed by an
Authorized Officer of COLT, dated as of December 31 of the preceding year,
stating that:

            (a) a review of the activities of COLT during such 12-month period
(or, with respect to the first such Officer's Certificate, such period as shall
have elapsed since the Series 200 - Closing Date) and of COLT's performance
under this COLT Indenture has been made under such Authorized Officer's
supervision; and

                                       15
<PAGE>

            (b) to the best of such Authorized Officer's knowledge, based on
such review, COLT has fulfilled all of its obligations under this COLT Indenture
throughout such period, or, if there has been a default in the fulfillment of
any such obligation, specifying each such default known to such Authorized
Officer and the nature and status thereof.

            SECTION 3.9 Consolidation, Merger, etc., of Trust; Disposition of
Trust Assets.

            (a) COLT shall not consolidate or merge with or into any other
Person, unless:

                  (i) the Person (if other than COLT) formed by or surviving
      such consolidation or merger shall be a Person organized and existing
      under the laws of the United States of America or any State or the
      District of Columbia, and shall expressly assume, by an indenture
      supplemental hereto, executed and delivered to the COLT Indenture Trustee,
      in form satisfactory to the COLT Indenture Trustee, the due and timely
      payment of the principal of and interest on all COLT 200 - Secured Notes
      and the performance or observance of every agreement and covenant of this
      COLT Indenture on the part of COLT to be performed or observed, all as
      provided herein;

                  (ii) immediately after giving effect to such merger or
      consolidation, no Default or Event of Default under any Series of Secured
      Notes shall have occurred and be continuing;

                  (iii) the Approval Condition shall have been satisfied with
      respect to such transaction and such Person;

                  (iv) any action as is necessary to maintain the lien and
      security interest created by this COLT Indenture in the COLT 200 -
      Collateral shall have been taken; and

                  (v) COLT shall have delivered to the COLT Indenture Trustee an
      Officers' Certificate and an Opinion of Counsel addressed to COLT and COLT
      Indenture Trustee, each stating:

                  (A) that such consolidation or merger and such supplemental
      indenture comply with this Section 3.9;

                  (B) that such consolidation or merger and such supplemental
      indenture shall have no material adverse tax consequences to COLT or any
      COLT 200 - Secured Noteholder; and

                  (C) that all conditions precedent herein provided for in this
      Section 3.9 have been complied with, which shall include any filing
      required by the Exchange Act.

            (b) Except as otherwise expressly permitted by this COLT Indenture
or any other COLT 200 - Basic Documents, COLT shall not sell, convey, exchange,
transfer or

                                       16
<PAGE>

otherwise dispose of any of the properties or assets included in the COLT 200 -
Trust Estate to any Person, unless:

                  (i) the Person that acquires such properties or assets of COLT
      (A) shall be a United States citizen or a Person organized and existing
      under the laws of the United States of America or any State or the
      District of Columbia and (B) by an indenture supplemental hereto, executed
      and delivered to the COLT Indenture Trustee, in form satisfactory to the
      COLT Indenture Trustee:

                        (1) expressly assumes the due and punctual payment of
            the principal of and interest on all COLT 200 - Secured Notes, and
            the performance or observance of every agreement and covenant of
            this COLT Indenture on the part of COLT to be performed or observed,
            all as provided herein;

                        (2) expressly agrees that all right, title and interest
            so sold, conveyed, exchanged, transferred or otherwise disposed of
            shall be subject and subordinate to the rights of COLT 200 - Secured
            Noteholders;

                        (3) unless otherwise provided in such supplemental
            indenture, expressly agrees to indemnify, defend and hold harmless
            COLT against and from any loss, liability or expense arising under
            or related to this COLT Indenture and the COLT 200__-___ Secured
            Notes; and

                        (4) expressly agrees that such Person (or if a group of
            Persons, then one specified Person) shall make all filings with the
            Commission (and any other appropriate Person) required by the
            Exchange Act in connection with the COLT 200__-__ Secured Notes;

                  (ii) immediately after giving effect to such transaction, no
      Default or Event of Default with respect to the COLT 200 - Secured Notes
      shall have occurred and be continuing;

                  (iii) the Approval Condition shall have been satisfied with
      respect to such transaction and such Person for the COLT 200 - Secured
      Notes;

                  (iv) any action as is necessary to maintain the lien and
      security interest created by this COLT Indenture in the COLT 200 -
      Collateral shall have been taken; and

                  (v) COLT shall have delivered to the COLT Indenture Trustee an
      Opinion of Counsel addressed to COLT, each stating that:

                  (A) such sale, conveyance, exchange, transfer or disposition
      and such supplemental indenture comply with this Section 3.9;

                  (B) such sale, conveyance, exchange, transfer or disposition
      and such supplemental indenture have no material adverse tax consequence
      to COLT or to any COLT 200 - Secured Noteholder; and

                                       17
<PAGE>

                  (C) that all conditions precedent herein provided for in this
      Section 3.9 have been complied with, which shall include any filing
      required by the Exchange Act.

            SECTION 3.10 Successor or Transferee.

            (a) Upon any consolidation or merger of COLT in accordance with
Section 3.9(a), the Person formed by or surviving such consolidation or merger
(if other than COLT) shall succeed to, and be substituted for, and may exercise
every right and power of, COLT under this COLT Indenture and the other COLT 200
- Basic Documents with the same effect as if such Person had been named as COLT
herein.

            (b) Upon a conveyance or transfer of all the assets and properties
included in the COLT 200 - Collateral pursuant to Section 3.9(b), COLT shall be
released from every covenant and agreement of this COLT Indenture to be observed
or performed on the part of COLT with respect to the COLT 200 - Secured Notes
immediately upon the delivery of written notice to the COLT Indenture Trustee
from the Person acquiring such assets and properties stating that COLT is to be
so released.

            SECTION 3.11 No Other Business. COLT shall not engage in any
business or activity other than acquiring, holding and managing the COLT 200 -
Trust Estate and the proceeds therefrom in the manner contemplated by the COLT
200 - Basic Documents, issuing COLT 200 - Secured Notes and the COLT 200 -
Certificate, making payments on COLT 200 - Secured Notes and the COLT 200 -
Certificate and such other activities that are necessary, suitable or convenient
to accomplish the foregoing or are incidental thereto or are otherwise described
in as set forth in Section 2.3 of the Declaration.

            SECTION 3.12 No Borrowing. COLT shall not issue, incur, assume,
guarantee or otherwise become liable, directly or indirectly, for any
indebtedness for money borrowed other than indebtedness for money borrowed in
respect of the COLT 200 - Secured Notes, money borrowed in respect of any other
Series of Secured Notes or otherwise in accordance with the COLT 200 - Basic
Documents.

            SECTION 3.13 Guarantees, Loans, Advances and Other Liabilities.
Except as contemplated by this COLT Indenture or the other COLT 200 - Basic
Documents, COLT shall not make any loan or advance or credit to, or guarantee
(directly or indirectly or by an instrument having the effect of assuring
another's payment or performance on any obligation or capability of so doing or
otherwise), endorse or otherwise become contingently liable, directly or
indirectly, in connection with the obligations, stocks or dividends of, or own,
purchase, repurchase or acquire (or agree contingently to do so) any stock,
obligations, assets or securities of, or any other interest in, or make any
capital contribution to, any other Person.

            SECTION 3.14 Servicer's Obligations. COLT shall use its best efforts
to cause the Servicer to comply with its obligations under Sections 2.16, 2.17
and 2.18 of the COLT Servicing Agreement.

            SECTION 3.15 Capital Expenditures. COLT shall not make any
expenditure (whether by long-term or operating lease or otherwise) for capital
assets (either real, personal or

                                       18
<PAGE>

intangible property) other than the purchase of the Series 200 - Lease Assets
and other related property and rights from time to time pursuant to the COLT
Sale and Contribution Agreement.

            SECTION 3.16 Restricted Payments. Except for payments of principal
or interest on or redemption of the COLT 200 - Secured Notes, so long as any
COLT 200__-___ Secured Notes are outstanding, COLT shall not, directly or
indirectly:

            (a) pay any dividend or make any distribution from collections
received on the COLT 200 - Trust Estate (by reduction of capital or otherwise),
whether in cash, property, securities or a combination thereof, to the COLT
Owner Trustee or the Series 200__-___ Certificateholder or otherwise, in each
case with respect to any ownership or equity interest or similar security in or
of the related Series Portfolio of COLT or to the Servicer;

            (b) redeem, purchase, retire or otherwise acquire for value any such
ownership or equity interest or similar security; or

            (c) set aside or otherwise segregate any amounts for any such
purpose; provided, however, that COLT may make, or cause to be made,
distributions from collections received on the COLT 200 - Trust Estate to the
Servicer, the COLT Indenture Trustee, the COLT Owner Trustee and the Series 200
- Certificateholder as permitted by, and to the extent funds are available for
such purpose under, the COLT 200 - Basic Documents. COLT shall not, directly or
indirectly, make payments to or distributions from the COLT Collection Account
except in accordance with the COLT 200 - Basic Documents.

            SECTION 3.17 Notice of Events of Default. COLT agrees to give the
COLT Indenture Trustee, each COLT 200 - Secured Noteholder and the Rating
Agencies prompt written notice of each Event of Default, each Servicer Default
under the COLT Servicing Agreement, each default on the part of the Servicer of
its obligations under the COLT 200__-___ Basic Documents and each default on the
part of the Seller of its obligations under the COLT Sale and Contribution
Agreement.

            SECTION 3.18 Further Instruments and Acts. Upon request of the COLT
Indenture Trustee, COLT shall execute and deliver such further instruments and
do such further acts as may be reasonably necessary or proper to carry out more
effectively the purpose of this COLT Indenture.

            SECTION 3.19 COLT Indenture Trustee's Assignment of Administrative
Lease Assets and Warranty Lease Assets and Sale or other Distribution of the
Related Vehicles. Upon receipt of the Administrative Purchase Payment with
respect to any Administrative Lease Asset or the Warranty Payment with respect
to any Warranty Lease Asset in each case into the COLT Collection Account, the
COLT Indenture Trustee shall assign, without recourse, representation or
warranty, (x) such Warranty Lease Asset to the Seller under the COLT Sale and
Contribution Agreement, or (y) such Administrative Lease Asset to the Servicer
under the COLT Servicing Agreement, as the case may be, all the COLT Indenture
Trustee's right, title and interest in and to such repurchased Series 200 -
Lease Asset, all monies due thereon, the security interest in the related
Vehicle and any and all proceeds, rights and remedies relating thereto, such
assignment being an assignment outright and not for security; and the Seller or
the

                                       19
<PAGE>

Servicer, as applicable, shall thereupon own such Series 200 - Lease Asset, and
all such security and documents, free of any further obligation to the COLT
Indenture Trustee, the COLT 200 - Secured Noteholders or the COLT 200 -
Certificateholder with respect thereto. In addition, the Servicer shall have the
right to sell or otherwise dispose of the Vehicles related to the Series 200 -
Lease Assets in accordance with the COLT Servicing Agreement. Upon the sale or
other disposition of any such Vehicle by the Servicer, the lien of the COLT
Indenture Trustee shall be automatically released upon the Servicer's receipt of
the proceeds of any such sale or liquidation.

            If in any enforcement suit or legal proceeding it is held that the
Servicer under the COLT Servicing Agreement may not enforce a Series 200 - Lease
Asset included in the COLT 200 - Collateral on the ground that it is not a real
party in interest or a holder entitled to enforce the Series 200 - Lease Asset,
the COLT Indenture Trustee shall, at the Servicer's expense and written
direction (which may be by electronic mail or other electronic transmission),
take such steps as the Servicer deems necessary to enforce such Series 200 -
Lease Asset, including bringing suit in the COLT Indenture Trustee's name or the
names of the COLT 200 - Secured Noteholders and/or the COLT 200 -
Certificateholder.

            SECTION 3.20 Representations and Warranties by COLT to the COLT
Indenture Trustee. COLT hereby represents and warrants to the COLT Indenture
Trustee as follows as of the Series 200 - Closing Date:

            (a) Good Title. No interest in any Series 200 - Lease Asset has been
sold, transferred, assigned or pledged by COLT to any Person other than the COLT
Indenture Trustee as of the Series 200 - Closing Date (except that GMAC, as
initial holder of the COLT 200 - Secured Notes, has been named as the lienholder
and VAULT has been named the legal titleholder on the certificates of title of
the related Vehicles); immediately prior to the conveyance of such Series 200 -
Lease Assets pursuant to this COLT Indenture, COLT had good and marketable title
thereto, free of any Lien; and, upon execution and delivery of this COLT
Indenture, the COLT Indenture Trustee shall have all of the right, title and
interest of COLT in, to and under the Series 200 - Lease Assets, free of any
Lien; and

            (b) All Filings Made. All filings (including UCC filings) and
notations necessary in any jurisdiction to give the COLT Indenture Trustee (or,
with respect to the Direct COLT Pledge, each COLT 200 - Secured Noteholder) a
first priority perfected security interest in the COLT 200 - Collateral have
been made.

            SECTION 3.21 Maintenance of Separate Records for each Series. So
long as any COLT 200 - Secured Note remains Outstanding and pursuant to Section
3.2(a) of the Declaration, COLT shall maintain separate and distinct records
with respect to the Series 200 - Lease Assets and the remainder of the Series
200 - Portfolio and the Series 200 - Lease Assets and the remainder of the
Series 200 - Portfolio shall be held and accounted for separately from any other
Trust Assets allocated to any other Series Portfolio or the Residual Interest.

                                       20
<PAGE>

                                   ARTICLE IV
                           SATISFACTION AND DISCHARGE

            SECTION 4.1 Satisfaction and Discharge of COLT Indenture. This COLT
Indenture shall cease to be of further effect except as to: (i) rights of
registration of transfer and exchange; (ii) substitution of mutilated,
destroyed, lost or stolen COLT 200__-__ Secured Notes; (iii) rights of COLT 200
- Secured Noteholders to receive payments of principal thereof and interest
thereon; (iv) Sections 3.2, 3.3, 3.4, 3.7, 3.9, 3.11, 3.12, 3.17, and 3.19; (v)
the rights, obligations and immunities of the COLT Indenture Trustee hereunder
(including the rights of the COLT Indenture Trustee under Section 6.7 and the
obligations of the COLT Indenture Trustee under Sections 4.2 and 4.4); and (vi)
the rights of COLT 200 - Secured Noteholders as beneficiaries hereof with
respect to the property so deposited with the COLT Indenture Trustee payable to
all or any of them, and the COLT Indenture Trustee, on demand of and at the
expense of COLT, shall execute proper instruments acknowledging satisfaction and
discharge of this COLT Indenture with respect to the COLT 200 - Secured Notes,
if:

            (a) either:

                  (i) all COLT 200 - Secured Notes theretofore authenticated and
      delivered (other than (A) COLT 200 - Secured Notes that have been
      destroyed, lost or stolen and that have been replaced or paid as provided
      in Section 2.5 and (B) COLT 200__-__ Secured Notes for whose payment money
      has theretofore been deposited in trust or segregated and held in trust by
      COLT and thereafter repaid to COLT or discharged from such trust, as
      provided in Section 3.2) have been delivered to the COLT Indenture Trustee
      for cancellation; or

                  (ii) all COLT 200 - Secured Notes not theretofore delivered to
      the COLT Indenture Trustee for cancellation:

                  (A) have become due and payable,

                  (B) will be due and payable on their respective Final Maturity
      Dates within one year, or

                  (C) are to be called for redemption within one year under
      arrangements satisfactory to the COLT Indenture Trustee for the giving of
      notice of redemption by the COLT Indenture Trustee in the name, and at the
      expense, of COLT or such COLT 200 - Secured Notes have been redeemed in
      accordance with Section 10.1,

      and COLT, in the case of (A), (B) or (C) of subsection 4.1(a)(ii) above,
      has irrevocably deposited or caused to be irrevocably deposited with the
      COLT Indenture Trustee cash or direct obligations of or obligations
      guaranteed by the United States of America (which will mature prior to the
      date such amounts are payable), in trust for such purpose, in an amount
      sufficient to pay and discharge the entire unpaid principal and accrued
      interest on such COLT 200 - Secured Notes not theretofore delivered to the
      COLT Indenture Trustee for cancellation when due on the Final Maturity
      Date for such COLT 200 - Secured Notes or the Redemption Date for such
      COLT 200 - Secured Notes (if such

                                       21
<PAGE>

      COLT 200 - Secured Notes have been called for redemption pursuant to
      Section 10.1), as the case may be;

            (b) COLT has paid or caused to be paid all amounts and has performed
all obligations which COLT may owe to the COLT Indenture Trustee personally or
to the COLT Indenture Trustee for the benefit of the COLT 200 - Secured
Noteholders under this COLT Indenture and any other COLT 200 - Basic Documents;
and

            (c) COLT has delivered to the COLT Indenture Trustee and to the COLT
200__-___ Secured Noteholders an Officer's Certificate of COLT, an Opinion of
Counsel and (if required by the TIA or the COLT Indenture Trustee) an
Independent Certificate from a firm of certified public accountants, each
meeting the applicable requirements of Section 11.1(a) and each stating that all
conditions precedent herein provided for relating to the satisfaction and
discharge of this COLT Indenture have been complied with.

            SECTION 4.2 Application of Trust Money. All monies deposited with
the COLT Indenture Trustee pursuant to Section 4.1 shall be held in trust and
applied by it, in accordance with the provisions of the COLT 200 - Secured Notes
and this COLT Indenture and the applicable provisions of the COLT Servicing
Agreement, to the payment, either directly or through any Paying Agent, as the
COLT Indenture Trustee may determine, to the Holders of the particular COLT 200
- Secured Notes for the payment or redemption of which such monies have been
deposited with the COLT Indenture Trustee, of all sums due and to become due in
accordance with this COLT Indenture and any other COLT 200 - Basic Documents;
but such monies need not be segregated from other funds except to the extent
required herein, in the COLT Servicing Agreement or by applicable law.

            SECTION 4.3 Repayment of Monies Held by Paying Agent. In connection
with the satisfaction and discharge of this COLT Indenture, all monies then held
by any Paying Agent other than the COLT Indenture Trustee under the provisions
of this COLT Indenture with respect to all such COLT 200 - Secured Notes shall,
upon demand of COLT, be paid to the COLT Indenture Trustee to be held and
applied according to Section 3.3 and thereupon such Paying Agent shall be
released from all further liability with respect to such monies.

            SECTION 4.4 Duration of Position of COLT Indenture Trustee.
Notwithstanding the earlier payment in full of all principal and interest due to
all COLT 200 - Secured Noteholders under the terms of the COLT 200 - Secured
Notes and the cancellation of such COLT 200 - Secured Notes pursuant to Section
4.1, the COLT Indenture Trustee shall continue to act in the capacity as COLT
Indenture Trustee hereunder to the benefit of the COLT 200 - Certificateholder
and the COLT Indenture Trustee, for the benefit of the such COLT 200 -
Certificateholder, shall comply with its obligations under the COLT Servicing
Agreement, as appropriate, until such time as all distributions due to the
Holder of the Series 200 - Certificate have been paid in full.

                                       22
<PAGE>

                                    ARTICLE V
                              DEFAULT AND REMEDIES

            SECTION 5.1 Events of Default. For the purposes of this COLT
Indenture, "Event of Default" wherever used herein, means any one of the
following events:

            (a) failure to pay the full Secured Note Interest Distributable
Amount on any COLT 200 - Secured Note on any Payment Date, and such default
shall continue unremedied for a period of five days; or

            (b) except as set forth in Section 5.1(c), failure to pay any
principal of any COLT 200 - Secured Note as and when the same becomes due and
payable, and such default continues unremedied for a period of 30 days after
there shall have been given, by registered or certified mail, by registered or
certified mail, to the Servicer by the COLT Indenture Trustee or to the Servicer
and the COLT Indenture Trustee by the Holders of not less than 25% of the
Outstanding Amount of the COLT 200__-__ Secured Notes, a written notice
specifying such default and demanding that it be remedied and stating that such
notice is a "Notice of Default" hereunder; or

            (c) failure to pay in full the outstanding unpaid principal balance
of any COLT 200 - Secured Notes by the Final Maturity Date; or

            (d) default in the observance or performance in any material respect
of any covenant or agreement of COLT made in this COLT Indenture (other than a
covenant or agreement a default in the observance or performance of which is
specifically dealt with elsewhere in this Section 5.1) which failure materially
and adversely affects the rights of the COLT 200__-___ Secured Noteholders, and
such default shall continue or not be cured for a period of 30 days (x) after
there shall have been given, by registered or certified mail, to COLT and GMAC
(or the Servicer, as applicable) by the COLT Indenture Trustee or to the Issuer
and the Seller (or the Servicer, as applicable) and the COLT Indenture Trustee
by the Holders of at least 25% of the Outstanding Amount of the COLT 200__-__
Secured Notes, a written notice specifying such default, demanding that it be
remedied and stating that such notice is a "Notice of Default" hereunder; or

            (e) the filing of a decree or order for relief by a court having
jurisdiction in the premises in respect of COLT or any substantial part of the
COLT 200 - Trust Estate in an involuntary case under any applicable federal or
state bankruptcy, insolvency or other similar law now or hereafter in effect, or
appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator or
similar official of COLT or for any substantial part of the COLT 200 -
Collateral, or ordering the winding-up or liquidation of COLT's affairs, and
such decree or order shall remain unstayed and in effect for a period of 90
consecutive days; or

            (f) the commencement by COLT of a voluntary case under any
applicable federal or state bankruptcy, insolvency or other similar law now or
hereafter in effect, or the consent of COLT to the entry of an order for relief
in an involuntary case under any such law, or the consent by COLT to the
appointment or taking possession by a receiver, liquidator, assignee, custodian,
trustee, sequestrator or similar official of COLT or for any substantial part of
the

                                       23
<PAGE>

COLT 200 - Collateral, or the making by COLT of any general assignment for the
benefit of creditors, or the failure by COLT generally to pay its debts as such
debts become due, or the taking of action by COLT in furtherance of any of the
foregoing.

COLT shall deliver to the COLT Indenture Trustee and the COLT 200__-___ Secured
Noteholders promptly (and in any event within five Business Days) after learning
of the occurrence thereof, written notice in the form of an Officer's
Certificate of any event which with the giving of notice and the lapse of time
would become an Event of Default under Section 5.1(d), its status and what
action COLT is taking or proposes to take with respect thereto.

            SECTION 5.2 Acceleration of Maturity; Rescission and Annulment.

            (a) If an Event of Default should occur and be continuing, then and
in every such case, unless the principal amount of the COLT 200 - Secured Notes
shall have already become due and payable, either the COLT Indenture Trustee or
the holders of 200__-___ Secured Notes representing not less than a majority of
the Outstanding Amount of the COLT 200_-___ Secured Notes may declare all the
COLT 200 - Secured Notes to be immediately due and payable, by a notice in
writing to COLT and to the COLT Indenture Trustee if given by the 2000_-___
Secured Noteholders setting forth the Event of Default or Events of Default, and
upon any such declaration the unpaid principal amount of the COLT 200 - Secured
Notes, together with accrued and unpaid interest thereon through the date of
acceleration, shall become immediately due and payable.

            (b) At any time after such declaration of acceleration of maturity
of the COLT 200 - Secured Notes has been made and before a judgment or decree
for payment of the money due thereunder has been obtained by the COLT Indenture
Trustee as hereinafter provided in this Article V, the holders of COLT 200__-___
Secured Notes representing not less than a majority of the Outstanding Amount of
the COLT 200_-___ Secured Notes, by written notice to COLT and the COLT
Indenture Trustee, may waive all Defaults set forth in the notice delivered
pursuant to Section 5.2(a) and rescind and annul such declaration and its
consequences; provided, however, that no such rescission and annulment shall
extend to or affect any subsequent Event of Default or impair any right
consequent thereto; and provided, further, that if the COLT Indenture Trustee or
the COLT 200__-___ Secured Noteholders shall have proceeded to enforce any right
under this COLT Indenture and such Proceedings shall have been discontinued or
abandoned because of such rescission and annulment or for any other reason, or
such Proceedings shall have been determined adversely to the COLT Indenture
Trustee or the COLT 200__-___ Secured Noteholders, then and in every such case,
the COLT Indenture Trustee, COLT and the COLT 200__-___ Secured Noteholders, as
the case may be, shall be restored to their respective former positions and
rights hereunder, and all rights, remedies and powers of the COLT Indenture
Trustee, COLT and the COLT 200 - Secured Noteholders, as the case may be, shall
continue as though no such Proceedings had been commenced.

            SECTION 5.3 Collection of Indebtedness and Suits for Enforcement by
COLT Indenture Trustee.

            (a) COLT covenants that if an Event of Default occurs and such Event
of Default has not been waived pursuant to Section 5.12, then COLT shall, upon
demand of the

                                       24
<PAGE>

COLT Indenture Trustee, pay to the COLT Indenture Trustee, for the ratable
benefit of the COLT 200 - Secured Noteholders in accordance with their
respective Note Principal Balances, the entire amount then due and payable on
the COLT 200 - Secured Notes for principal and interest, with interest upon the
overdue principal and overdue interest at the COLT 200 - Secured Note Rate and
in addition thereto such further amount as shall be sufficient to cover the
costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the COLT Indenture Trustee and its
agents and counsel.

            (b) If COLT shall fail forthwith to pay such amounts upon such
demand, the COLT Indenture Trustee, in its own name and as trustee of an express
trust, may institute a Proceeding for the collection of the sums so due and
unpaid, and may prosecute such Proceeding to judgment or final decree, and may
enforce the same against COLT or other obligor upon the COLT 200 - Secured Notes
and collect in the manner provided by law out of the property of the COLT 200 -
Trust Estate, the monies adjudged or decreed to be payable.

            (c) If an Event of Default occurs and is continuing, the COLT
Indenture Trustee, as more particularly provided in Section 5.4, in its
discretion, proceed to protect and enforce its rights and the rights of the COLT
200 - Secured Noteholders, by such appropriate Proceedings as the COLT Indenture
Trustee shall deem most effective to protect and enforce any such rights,
whether for the specific enforcement of any covenant or agreement in this COLT
Indenture or in aid of the exercise of any power granted herein, or to enforce
any other proper remedy or legal or equitable right vested in the COLT Indenture
Trustee by this COLT Indenture or by applicable law.

            (d) If there shall be pending, relative to COLT or other obligor
upon the COLT 200 - Secured Notes or any Person having or claiming an ownership
interest in the COLT 200 - Trust Estate, Proceedings under Title 11 of the
United States Code or any other applicable federal or state bankruptcy,
insolvency or similar law, or if a receiver, assignee or trustee in bankruptcy
or reorganization, liquidator, sequestrator or similar official shall have been
appointed for or taken possession of COLT or its property, or in case of any
other comparable judicial Proceedings relative to COLT or other obligor upon the
COLT 200 - Secured Notes, or to the creditors or property of COLT or such
obligor, the COLT Indenture Trustee, irrespective of whether the principal of
any COLT 200 - Secured Notes shall then be due and payable as therein expressed
or by declaration or otherwise and irrespective of whether the COLT Indenture
Trustee shall have made any demand pursuant to the provisions of this Section
5.3, shall be entitled and empowered, by intervention in such Proceedings or
otherwise:

            (i) to file and prove a claim or claims for the whole amount of
principal and interest and all other amounts owing and unpaid in respect of the
COLT 200 - Secured Notes, and to file such other papers or documents as may be
necessary or advisable in order to have the claims of the COLT Indenture Trustee
(including any claim for reasonable compensation to the COLT Indenture Trustee
and each predecessor trustee, and their respective agents, attorneys and
counsel, and for reimbursement of all expenses and liabilities incurred, and all
advances made, by the COLT Indenture Trustee and each predecessor trustee,
except as a result of negligence or bad faith) and of the COLT 200 - Secured
Noteholders allowed in such Proceedings;

                                       25
<PAGE>

            (ii) unless prohibited by applicable law and regulations, to vote on
behalf of the Holders of the COLT 200 - Secured Notes in any election of a
trustee, a standby trustee or Person performing similar functions in any such
Proceedings;

            (iii) to collect and receive any monies or other property payable or
deliverable on any such claims and to distribute all amounts received with
respect to the claims of the COLT 200 - Secured Noteholders and of the COLT
Indenture Trustee on their behalf; and

            (iv) to file such proofs of claim and other papers or documents as
may be necessary or advisable in order to have the claims of the COLT Indenture
Trustee or the COLT 200 - Secured Noteholders allowed in any judicial
proceedings relative to COLT, its creditors and its property;

and any trustee, receiver, liquidator, custodian or other similar official in
any such Proceeding is hereby authorized by each of such COLT 200 - Secured
Noteholders to make payments to the COLT Indenture Trustee for application in
accordance with the priorities set forth in the COLT 200 - Basic Documents, and,
if the COLT Indenture Trustee shall consent to the making of payments directly
to such COLT 200 - Secured Noteholders, to pay to the COLT Indenture Trustee
such amounts as shall be sufficient to cover reasonable compensation to the COLT
Indenture Trustee, each predecessor trustee and their respective agents,
attorneys and counsel, and all other expenses and liabilities incurred, and all
advances made, by the COLT Indenture Trustee and each predecessor trustee except
as a result of negligence or bad faith.

            (e) Nothing herein contained shall be deemed to authorize the COLT
Indenture Trustee to authorize or consent to or vote for or accept or adopt on
behalf of any COLT 200 - Secured Noteholder any plan of reorganization,
arrangement, adjustment or composition affecting the COLT 200 - Secured Notes or
the rights of any Holder thereof or to authorize the COLT Indenture Trustee to
vote in respect of the claim of any COLT 200__-___ Secured Noteholder in any
such proceeding except, as aforesaid, to vote for the election of a trustee in
bankruptcy or similar Person.

            (f) All rights of action and of asserting claims under this COLT
Indenture, or under any of the COLT 200 - Secured Notes may be enforced by the
COLT Indenture Trustee without the possession of any of the COLT 200 - Secured
Notes or the production thereof in any trial or other Proceedings relative
thereto, and any such Proceedings instituted by the COLT Indenture Trustee shall
be brought in its own name as trustee of an express trust, and any recovery of
judgment, subject to the payment of the expenses, disbursements and compensation
of the COLT Indenture Trustee, each predecessor COLT Indenture Trustee and their
respective agents and attorneys, shall be for the benefit of the COLT 200 -
Secured Noteholders in accordance with the priorities set forth in the COLT 200
- Basic Documents.

            (g) In any Proceedings brought by the COLT Indenture Trustee (and
also any Proceedings involving the interpretation of any provision of this COLT
Indenture to which the COLT Indenture Trustee shall be a party), the COLT
Indenture Trustee shall be held to represent all the COLT 200 - Secured
Noteholders, and it shall not be necessary to make any the COLT 200 - Secured
Noteholder a party to any such Proceedings.

                                       26
<PAGE>

            SECTION 5.4 Remedies; Priorities.

            (a) If an Event of Default shall have occurred and be continuing and
the COLT 200 - Secured Notes have been accelerated under Section 5.2(a), the
COLT Indenture Trustee may do one or more of the following (subject to Section
5.5):

                  (i) institute Proceedings in its own name and as trustee of an
      express trust for the collection of all amounts then due and payable on
      such COLT 200 - Secured Notes, under this COLT Indenture with respect
      thereto, whether by declaration of acceleration or otherwise, enforce any
      judgment obtained, and collect from the COLT 200 - Trust Estate and any
      other obligor upon such COLT 200 - Secured Notes monies adjudged due;

                  (ii) institute Proceedings from time to time for the complete
      or partial foreclosure of this COLT Indenture with respect to the COLT 200
      - Collateral and of the VAULT Security Agreement with respect to the
      Pledged Collateral;

                  (iii) exercise any remedies of a secured party under the UCC
      and take any other appropriate action to protect and enforce the rights
      and remedies of the COLT Indenture Trustee and the COLT 200 - Secured
      Noteholders; and

                  (iv) sell the COLT 200 - Trust Estate, or any portion thereof
      or rights or interest therein, at one or more public or private sales
      called and conducted in any manner permitted by law or elect to have COLT
      maintain possession of the COLT 200 - Trust Estate, including the Series
      200 - Lease Assets included therein, and continue to apply collections on
      such Series 200 - Lease Assets as if there had been no declaration of
      acceleration; provided, however, that the COLT Indenture Trustee may not
      sell or otherwise liquidate the COLT 200 - Trust Estate following an Event
      of Default and acceleration of the COLT 200 - Secured Notes, except as is
      set forth in Section 3.19, unless (i)(A) the Holders of all of the
      aggregate Outstanding Amount of the COLT 200__-___ Secured Notes consent
      thereto, (B) the proceeds of such sale or liquidation distributable to the
      Holders of the COLT 200 - Secured Notes are sufficient to discharge in
      full the principal of and the accrued interest on the COLT 200 - Secured
      Notes as of the date of such sale or liquidation or (C) (x) there has been
      an Event of Default under Section 5.1(a), (b) or (c) or otherwise arising
      from a failure to make a required payment of principal on the COLT 200 -
      Secured Notes, (y) the COLT Indenture Trustee determines that the COLT 200
      - Trust Estate will not continue to provide sufficient funds for the
      payment of principal of and interest on the COLT 200 - Secured Notes as
      and when they would have become due if the COLT 200 - Secured Notes had
      not been declared due and payable and (z) the COLT Indenture Trustee
      obtains the consent of each Holder of a COLT 200 - Secured Note, and (ii)
      10 days' prior written notice of sale or liquidation has been given to the
      Rating Agencies. In determining such sufficiency or insufficiency with
      respect to clauses (B) and (C), the COLT Indenture Trustee may, but need
      not, obtain and rely upon an opinion of an Independent investment banking
      or accounting firm of national reputation as to the feasibility of such
      proposed action and as to the sufficiency of the COLT 200 - Trust Estate
      for such purpose.

                                       27
<PAGE>

            (b) If the COLT Indenture Trustee collects any money or property
pursuant to this Article V, it shall pay out the money or property in the
following order:

                        FIRST: to the COLT Indenture Trustee for amounts due
            under Section 6.7 and then to the COLT Owner Trustee for amounts due
            to the COLT Owner Trustee (not including amounts due for payments to
            the Series 200 - Certificateholder) under Section 6.9 of the
            Declaration; and

                        SECOND: to the COLT Collection Account for distribution
            in the following priority: (i) payment in full of the accrued and
            unpaid interest on the COLT 200 - Secured Notes; (ii) payment in
            full of unpaid principal balance of the Colt 200 - Secured Notes;
            and (iii) the remainder shall be distributed in accordance with the
            instructions of the COLT 200 - Certificateholder.

            SECTION 5.5 Optional Preservation of the Series 200 - Lease Assets.
If the COLT 200 - Secured Notes have been declared to be due and payable under
Section 5.2 following an Event of Default and such declaration and its
consequences have not been rescinded and annulled in accordance with Section
5.2(b), the COLT Indenture Trustee may take and maintain possession of the COLT
200 - Trust Estate. It is the desire of the parties hereto and the COLT 200 -
Secured Noteholders that there be at all times sufficient funds for the payment
of principal of and interest on the COLT 200 - Secured Notes, and the COLT
Indenture Trustee shall take such desire into account when determining whether
or not to take and maintain possession of the COLT 200 - Trust Estate. In
determining whether to take and maintain possession of the COLT 200 - Trust
Estate, the COLT Indenture Trustee may, but need not, obtain and rely upon an
opinion of an Independent investment banking or accounting firm of national
reputation as to the feasibility of such proposed action and as to the
sufficiency of the COLT 200 - Trust Estate for such purpose.

            SECTION 5.6 Limitation of Suits. No Holder of any COLT 200 - Secured
Note shall have any right to institute any Proceeding, judicial or otherwise,
with respect to this COLT Indenture, or for the appointment of a receiver or
trustee, or for any other remedy hereunder, unless:

            (a) such Holder has previously given written notice to the COLT
Indenture Trustee of a continuing Event of Default;

            (b) the Holders of not less than 25% of the Outstanding Amount of
the COLT 200 - Secured Notes have made written request to the COLT Indenture
Trustee to institute such Proceeding in respect of such Event of Default in its
own name as COLT Indenture Trustee hereunder;

            (c) such Holder or Holders have offered to the COLT Indenture
Trustee reasonable indemnity against the costs, expenses and liabilities to be
incurred in complying with such request;

            (d) the COLT Indenture Trustee for 60 days after the earlier of (x)
its receipt of such notice, request and offer of indemnity and (y) any similar
notice, request and offer of

                                       28
<PAGE>

indemnity to the CARAT Indenture Trustee under Section 5.6 of the CARAT
Indenture has failed to institute such Proceedings; and

            (e) no direction inconsistent with such written request has been
given to the COLT Indenture Trustee during such 60-day period by the Holders of
the COLT 200_-__ Secured Notes.

it being understood and intended that no one or more Holders of the COLT 200 -
Secured Notes shall have any right in any manner whatever by virtue of, or by
availing of, any provision of this COLT Indenture to affect, disturb or
prejudice the rights of any other Holders of the COLT 200 - Secured Notes or to
obtain or to seek to obtain priority or preference over any other Holders of the
COLT 200 - Secured Notes or to enforce any right under this COLT Indenture,
except in the manner herein provided and for the equal, ratable (on the basis of
the respective aggregate amount of principal and interest, respectively, due and
unpaid on the COLT 200 - Secured Note held by such COLT 200 - Secured Noteholder
and common benefit of all Holders of the COLT 200 - Secured Notes. For the
protection and enforcement of the provisions of this Section 5.6, each and every
COLT 200 - Secured Noteholder shall be entitled to such relief as can be given
either at law or in equity.

            If the COLT Indenture Trustee shall receive conflicting or
inconsistent requests and indemnity from two or more groups of Holders of the
COLT 200 - Secured Notes, each representing less than a majority of the
Outstanding Amount of the COLT 200 - Secured Notes, the COLT Indenture Trustee
shall take the action requested by the group representing the higher percentage
of the Outstanding Amount of the COLT 200 - Secured Notes.

            SECTION 5.7 Unconditional Rights of the COLT 200 - Secured
Noteholders To Receive Principal and Interest. Notwithstanding any other
provisions in this COLT Indenture, the Holder of any COLT 200 - Secured Note
shall have the right, which is absolute and unconditional, to receive payment of
the principal of and interest on such COLT 200 - Secured Note on or after the
respective due dates thereof expressed in such COLT 200__-___ Secured Note or in
this COLT Indenture (or, in the case of redemption, if applicable, on or after
the Redemption Date) or the other COLT 200 - Basic Documents and to institute
suit for the enforcement of any such payment, and such right shall not be
impaired without the consent of such Holder.

            SECTION 5.8 Restoration of Rights and Remedies. If the COLT
Indenture Trustee or any COLT 200 - Secured Noteholder has instituted any
Proceeding to enforce any right or remedy under this COLT Indenture and such
Proceeding has been discontinued or abandoned for any reason or has been
determined adversely to the COLT Indenture Trustee or to such COLT 200 - Secured
Noteholder, then and in every such case COLT, the COLT Indenture Trustee and the
COLT 200 - Secured Noteholders shall, subject to any determination in such
Proceeding, be restored severally to their respective former positions
hereunder, and thereafter all rights and remedies of the COLT Indenture Trustee
and the COLT 200 - Secured Noteholders shall continue as though no such
Proceeding had been instituted.

            SECTION 5.9 Rights and Remedies Cumulative. No right or remedy
herein conferred upon or reserved to the COLT Indenture Trustee, to the COLT 200
- Secured

                                       29
<PAGE>

Noteholders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

            SECTION 5.10 Delay or Omission Not a Waiver. No delay or omission of
the COLT Indenture Trustee or any Holder of any COLT 200 - Secured Note to
exercise any right or remedy accruing upon any Default or Event of Default shall
impair any such right or remedy or constitute a waiver of any such Default or
Event of Default or an acquiescence therein. Every right and remedy given by
this Article V or by law to the COLT Indenture Trustee or to the COLT 200 -
Secured Noteholders may be exercised from time to time, and as often as may be
deemed expedient, by the COLT Indenture Trustee or by the COLT 200 - Secured
Noteholders, as the case may be.

            SECTION 5.11 Control by the COLT 200__-___ Secured Noteholders. The
Holders of a majority of the Outstanding Amount of the COLT 200__-___ Secured
Notes shall, subject to provision being made for indemnification against costs,
expenses and liabilities in a form satisfactory to the COLT Indenture Trustee,
have the right to direct the time, method and place of conducting any Proceeding
for any remedy available to the COLT Indenture Trustee with respect to the COLT
200 - Secured Notes or exercising any trust or power conferred on the COLT
Indenture Trustee; provided, however, that:

            (a) such direction shall not be in conflict with any rule of law or
with this COLT Indenture;

            (b) subject to the express terms of Section 5.4, any direction to
the COLT Indenture Trustee to sell or liquidate the COLT 200 - Trust Estate
shall be by the Holders of COLT 200 - Secured Notes representing not less than
100% of the Outstanding Amount of the COLT 200 - Secured Notes; and

            (c) the COLT Indenture Trustee may take any other action deemed
proper by the COLT Indenture Trustee that is not inconsistent with such
direction;

provided, however, that, subject to Section 6.1, the COLT Indenture Trustee need
not take any action that it determines might cause it to incur any liability or
which might materially adversely affect the rights of the COLT 200 - Secured
Noteholders not consenting to such action.

            SECTION 5.12 Waiver of Past Defaults.

            (a) Prior to the declaration of the acceleration of the maturity of
the COLT 200 - Secured Notes as provided in Section 5.2, the Holders of not less
than a majority of the Outstanding Amount of the COLT 200__-___ Secured Notes
may waive any past Default or Event of Default and its consequences except a
Default (i) in the payment of principal of or interest on any of the COLT 200 -
Secured Notes or (ii) in respect of a covenant or provision hereof that cannot
be modified or amended without the consent of the Holder of each such COLT 200 -
Secured Note. In the case of any such waiver, COLT, the COLT Indenture Trustee
and the COLT 200 - Secured Noteholders shall be restored to their former
positions and rights

                                       30
<PAGE>

hereunder, respectively; but no such waiver shall extend to any subsequent or
other Default or impair any right consequent thereto.

            (b) Upon any such waiver, such Default shall cease to exist and be
deemed to have been cured and not to have occurred (and any Event of Default
arising from any such Default shall be deemed to have been cured and not to have
occurred) for every purpose of this COLT Indenture; but no such waiver shall
extend to any subsequent or other Default or Event of Default or impair any
right consequent thereto.

            SECTION 5.13 Undertaking for Costs. All parties to this COLT
Indenture agree, and each Holder of any COLT 200 - Secured Note by such Holder's
acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any Proceeding for the enforcement of any right or remedy
under this COLT Indenture, or in any Proceeding against the COLT Indenture
Trustee for any action taken, suffered or omitted by it as COLT Indenture
Trustee, the filing by any party litigant in such Proceeding of an undertaking
to pay the costs of such Proceeding, and that such court may in its discretion
assess reasonable costs, including reasonable attorneys' fees and expenses,
against any party litigant in such Proceeding, having due regard to the merits
and good faith of the claims or defenses made by such party litigant; but the
provisions of this Section 5.13, shall not apply to:

            (a) any Proceeding instituted by the COLT Indenture Trustee;

            (b) any Proceeding instituted by any COLT 200 - Secured Noteholder
or group of COLT 200 - Secured Noteholders holding in the aggregate more than
10% of the Outstanding Amount of the COLT 200 - Secured Notes; or

            (c) any Proceeding instituted by any COLT 200 - Secured Noteholder
for the enforcement of the payment of principal of or interest on any COLT 200 -
Secured Note on or after the respective due dates expressed in such COLT 200 -
Secured Note and in this COLT Indenture (or, in the case of redemption, on or
after the Redemption Date).

            SECTION 5.14 Waiver of Stay or Extension Laws. COLT covenants (to
the extent that it may lawfully do so) that it shall not at any time insist
upon, or plead or in any manner whatsoever, claim or take the benefit or
advantage of, any stay or extension law wherever enacted, now or at any time
hereafter in force, that may affect the covenants or the performance of this
COLT Indenture. COLT (to the extent that it may lawfully do so) hereby expressly
waives all benefit or advantage of any such law, and covenants that it shall not
hinder, delay or impede the execution of any power herein granted to the COLT
Indenture Trustee, but shall suffer and permit the execution of every such power
as though no such law had been enacted.

            SECTION 5.15 Action on Secured Notes. The COLT Indenture Trustee's
right to seek and recover judgment on the COLT 200 - Secured Notes or under this
COLT Indenture shall not be affected by the seeking, obtaining or application of
any other relief under or with respect to this COLT Indenture. Neither the lien
of this COLT Indenture in the COLT 200 - Collateral or the lien of the VAULT
Security Agreement in the Pledged Collateral nor any rights or remedies of the
COLT Indenture Trustee or the COLT 200 - Secured Noteholders shall be

                                       31
<PAGE>

impaired by the recovery of any judgment by the COLT Indenture Trustee against
COLT or by the levy of any execution under such judgment upon any portion of the
COLT 200 - Trust Estate. Any money or property collected by the COLT Indenture
Trustee shall be applied in accordance with Section 5.4(b).

            SECTION 5.16 Performance and Enforcement of Certain Obligations.

            (a) Promptly following a request from the COLT Indenture Trustee to
do so and at the Servicer's expense, COLT agrees to take all such lawful action
as the COLT Indenture Trustee may request to compel or secure the performance
and observance by the Seller and the Servicer of their respective obligations to
COLT under or in connection with the COLT 200 - Basic Documents in accordance
with the terms thereof, and to exercise any and all rights, remedies, powers and
privileges lawfully available to COLT under or in connection with the COLT 200 -
Basic Documents to the extent and in the manner directed by the COLT Indenture
Trustee, including the transmission of notices of default on the part of the
Seller or the Servicer thereunder and the institution of legal or administrative
actions or proceedings to compel or secure performance by the Seller or the
Servicer of each of their obligations under the COLT 200 - Basic Documents.

            (b) If an Event of Default has occurred and is continuing, the COLT
Indenture Trustee may, and, at the direction (which direction shall be in
writing or by telephone (confirmed in writing promptly thereafter)) of the
Holders of 66-2/3% of the Outstanding Amount of the COLT 200 - Secured Notes
shall, exercise all rights, remedies, powers, privileges and claims of COLT
against the Seller or the Servicer under or in connection with the COLT 200 -
Basic Documents, including the right or power to take any action to compel or
secure performance or observance by the Seller or the Servicer of each of their
obligations to COLT thereunder and to give any consent, request, notice,
direction, approval, extension or waiver under the COLT 200 - Basic Documents,
and any right of COLT to take such action shall be suspended.

                                   ARTICLE VI
                           THE COLT INDENTURE TRUSTEE

            SECTION 6.1 Duties of COLT Indenture Trustee.

            (a) If an Event of Default has occurred and is continuing, the COLT
Indenture Trustee shall exercise the rights and powers vested in it by this COLT
Indenture and use the same degree of care and skill in their exercise as a
prudent person would exercise or use under the circumstances in the conduct of
such person's own affairs.

            (b) Except during the continuance of an Event of Default, the COLT
Indenture Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this COLT Indenture and the COLT Servicing Agreement
and no implied covenants or obligations shall be read into this COLT Indenture
or the COLT Servicing Agreement against the COLT Indenture Trustee; and

            (c) in the absence of bad faith on its part, the COLT Indenture
Trustee may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon certificates or opinions
furnished to the COLT Indenture Trustee and conforming

                                       32
<PAGE>

to the requirements of this COLT Indenture; provided, however, that the COLT
Indenture Trustee shall examine the certificates and opinions to determine
whether or not they conform to the requirements of this COLT Indenture.

            (d) The COLT Indenture Trustee may not be relieved from liability
for its own negligent action, its own negligent failure to act or its own
willful misconduct or bad faith, except that:

                  (i) this Section 6.1(d) does not limit the effect of Section
      6.1(b);

                  (ii) the COLT Indenture Trustee shall not be liable for any
      error of judgment made in good faith by a Responsible Officer unless it is
      proved that the COLT Indenture Trustee was negligent in ascertaining the
      pertinent facts; and

                  (iii) the COLT Indenture Trustee shall not be liable with
      respect to any action it takes or omits to take in good faith in
      accordance with a direction received by it pursuant to Section 5.11.

            (e) The COLT Indenture Trustee shall not be liable for interest on
any money received by it except as the COLT Indenture Trustee may agree in
writing with COLT.

            (f) Money held in trust by the COLT Indenture Trustee need not be
segregated from other funds except to the extent required by law or the terms of
this COLT Indenture, the COLT Servicing Agreement or the other COLT 200 - Basic
Documents.

            (g) No provision of this COLT Indenture shall require the COLT
Indenture Trustee to expend or risk its own funds or otherwise incur financial
liability in the performance of any of its duties hereunder or in the exercise
of any of its rights or powers, if it shall have reasonable grounds to believe
that repayments of such funds or adequate indemnity against such risk or
liability is not reasonably assured to it.

            (h) Every provision of this COLT Indenture relating to the COLT
Indenture Trustee shall be subject to the provisions of this Section 6.1.

            SECTION 6.2 Rights of COLT Indenture Trustee.

            (a) The COLT Indenture Trustee may conclusively rely on any document
believed by it to be genuine and to have been signed or presented by the proper
Person. The COLT Indenture Trustee shall not be bound to make any investigation
into any fact or matter stated in the document.

            (b) Before the COLT Indenture Trustee acts or refrains from acting,
it may require an Officer's Certificate or an Opinion of Counsel. The COLT
Indenture Trustee shall not be liable for any action it takes or omits to take
in good faith in reliance on such Officer's Certificate or Opinion of Counsel.

            (c) The COLT Indenture Trustee may execute any of the trusts or
powers hereunder or perform any duties hereunder either directly or by or
through agents or attorneys or

                                       33
<PAGE>

a custodian or nominee, and the COLT Indenture Trustee shall not be responsible
for any misconduct or negligence on the part of, or for the supervision of, any
such agent, attorney, custodian or nominee appointed with due care by it
hereunder.

            (d) The COLT Indenture Trustee shall not be liable for any action it
takes or omits to take in good faith which it believes to be authorized or
within its rights or powers; provided, however, that the COLT Indenture
Trustee's conduct does not constitute willful misconduct, negligence or bad
faith.

            (e) The COLT Indenture Trustee may consult with counsel, and the
advice or opinion of counsel with respect to legal matters relating to this COLT
Indenture and the COLT 200 - Secured Notes shall be full and complete
authorization and protection from liability in respect to any action taken,
omitted or suffered by it hereunder in good faith and in accordance with the
advice or opinion of such counsel.

            (f) The COLT Indenture Trustee shall be under no obligation to
exercise any of the rights or powers vested in it by this COLT Indenture at the
request or direction of any of the Holders pursuant to this COLT Indenture,
unless such Holders shall have offered to the COLT Indenture Trustee security or
indemnity satisfactory to the COLT Indenture Trustee against the costs, expenses
and liabilities which might be incurred by it in compliance with such request or
direction.

            (g) The COLT Indenture Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note, other evidence of indebtedness or other paper or
document, but the COLT Indenture Trustee, in its discretion, may make such
further inquiry or investigation into such facts or matters as it may see fit.

            (h) The COLT Indenture Trustee shall not be deemed to have notice of
any Default or Event of Default unless a Responsible Officer of the COLT
Indenture Trustee has actual knowledge thereof or unless written notice of any
event which is in fact such a default is received by the COLT Indenture Trustee
at the Corporate Trust Office of the COLT Indenture Trustee, and such notice
references the COLT 200 - Secured Notes and this COLT Indenture.

            (i) The rights, privileges, protections, immunities and benefits
given to the COLT Indenture Trustee, including, without limitation, its right to
be indemnified, are extended to, and shall be enforceable by, the COLT Indenture
Trustee in each of its capacities hereunder.

            SECTION 6.3 COLT Indenture Trustee May Own COLT 200 - Secured Notes.
The COLT Indenture Trustee in its individual or any other capacity may become
the owner or pledgee of COLT 200 - Secured Notes and the Secured Notes of any
other Series and may otherwise deal with COLT, the Servicer or any of their
respective Affiliates with the same rights it would have if it were not COLT
Indenture Trustee; provided, however, that the COLT Indenture Trustee shall
comply with Sections 6.10 and 6.11. Any Paying Agent, Secured Note Registrar,
co-registrar or co-paying agent may do the same with like rights.

            SECTION 6.4 COLT Indenture Trustee's Disclaimer. The COLT Indenture
Trustee shall not be responsible for and makes no representation as to the
validity or adequacy of

                                       34
<PAGE>

this COLT Indenture or the COLT 200 - Secured Notes, it shall not be accountable
for COLT's use of the proceeds from the COLT 200 - Secured Notes, and it shall
not be responsible for any statement of COLT in the COLT Indenture or in any
document issued in connection with the sale of any COLT 200 - Secured Notes or
in the COLT 200 - Secured Notes other than the COLT Indenture Trustee's
certificate of authentication.

            SECTION 6.5 Notice of Default. If a Default occurs and is continuing
and if it is known to a Responsible Officer of the COLT Indenture Trustee, the
COLT Indenture Trustee shall mail to each COLT 200 - Secured Noteholder notice
of the Default within 90 days after it occurs. Except in the case of a Default
in payment of principal or of interest on any COLT 200__-__ Secured Note, the
COLT Indenture Trustee may withhold the notice if and so long as a committee of
its Responsible Officers in good faith determines that withholding the notice is
in the interest of the COLT 200__-__ Secured Noteholders.

            SECTION 6.6 Reports by COLT Indenture Trustee to the COLT 200__-___
Secured Noteholders. To the extent the any COLT 200 - Secured Noteholder does
not receive such information or documents directly, the COLT Indenture Trustee
shall deliver to each such COLT 200 - Secured Noteholder, as applicable, the
information and documents set forth in Article VII, and, in addition, all such
information with respect to the COLT 200 - Secured Notes as may be required to
enable such Holder to prepare its federal and state income tax returns.

            SECTION 6.7 Compensation; Indemnity.

            (a) COLT shall cause the Servicer to pay to the COLT Indenture
Trustee from time to time such compensation for its services as is set forth in
the COLT Servicing Agreement. The COLT Indenture Trustee's compensation shall
not be limited by any law on compensation of a trustee of an express trust. COLT
shall cause the Servicer pursuant to the COLT Servicing Agreement to reimburse
the COLT Indenture Trustee for all reasonable out-of-pocket expenses incurred or
made by it, including costs of collection, in addition to the compensation for
its services. Such expenses shall include the reasonable compensation and
expenses, disbursements and advances of the COLT Indenture Trustee's agents,
external counsel, accountants and experts. COLT shall cause the Servicer to
indemnify the COLT Indenture Trustee in accordance with the COLT Servicing
Agreement.

            (b) COLT's obligations to the COLT Indenture Trustee pursuant to
Section 6.7(a) shall survive the discharge of this COLT Indenture. When the COLT
Indenture Trustee incurs expenses after the occurrence of a Default specified in
Section 5.1(d) or (e), the expenses are intended to constitute expenses of
administration under Title 11 of the United States Code or any other applicable
federal or state bankruptcy, insolvency or similar law.

            SECTION 6.8 Replacement of COLT Indenture Trustee.

            (a) The COLT Indenture Trustee may at any time give notice of its
intent to resign by so notifying COLT and the COLT 200__-___ Secured
Noteholders; provided, however, that no such resignation shall become effective
and the COLT Indenture Trustee shall not resign prior to the time set forth in
Section 6.8(c). The Holders of a majority of the

                                       35
<PAGE>

Outstanding Amount of the COLT 200__-___ Secured Notes may remove the COLT
Indenture Trustee by so notifying the COLT Indenture Trustee and may appoint a
successor COLT Indenture Trustee. Such resignation or removal shall become
effective in accordance with Section 6.8(c). COLT shall remove the COLT
Indenture Trustee if:

                  (i) the COLT Indenture Trustee fails to comply with Section
      6.11;

                  (ii) the COLT Indenture Trustee is adjudged bankrupt or
      insolvent;

                  (iii) a receiver or other public officer takes charge of the
      COLT Indenture Trustee or its property; or

                  (iv) the COLT Indenture Trustee otherwise becomes incapable of
      acting.

            (b) If the COLT Indenture Trustee gives notice of its intent to
resign or is removed or if a vacancy exists in the office of COLT Indenture
Trustee for any reason (the COLT Indenture Trustee in such event being referred
to herein as the retiring COLT Indenture Trustee), COLT shall promptly appoint
and designate a successor COLT Indenture Trustee.

            (c) A successor COLT Indenture Trustee shall deliver a written
acceptance of its appointment and designation to the retiring COLT Indenture
Trustee and to COLT. Thereupon the resignation or removal of the retiring COLT
Indenture Trustee shall become effective, and the successor COLT Indenture
Trustee shall have all the rights, powers and duties of the COLT Indenture
Trustee under this COLT Indenture. The successor COLT Indenture Trustee shall
mail a notice of its succession to the COLT 200 - Secured Noteholders. The
retiring COLT Indenture Trustee shall promptly transfer all property held by it
as COLT Indenture Trustee to the successor COLT Indenture Trustee.

            (d) If a successor COLT Indenture Trustee does not take office
within 60 days after the retiring COLT Indenture Trustee gives notice of its
intent to resign or is removed, the retiring COLT Indenture Trustee, COLT or the
Holders of a majority of the Outstanding Amount of the COLT 200__-___ Secured
Notes may petition any court of competent jurisdiction for the appointment and
designation of a successor COLT Indenture Trustee.

            (e) If the COLT Indenture Trustee fails to comply with Section 6.11,
any COLT 200 - Secured Noteholder may petition any court of competent
jurisdiction for the removal of the COLT Indenture Trustee and the appointment
of a successor COLT Indenture Trustee.

            (f) Notwithstanding the replacement of the COLT Indenture Trustee
pursuant to this Section 6.8, COLT's obligations under Section 6.7 and the
Servicer's corresponding obligations under the COLT Servicing Agreement shall
continue for the benefit of the retiring COLT Indenture Trustee.

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<PAGE>

            SECTION 6.9 Merger or Consolidation of COLT Indenture Trustee.

            (a) Any corporation into which the COLT Indenture Trustee may be
merged or with which it may be consolidated, or any corporation resulting from
any merger or consolidation to which the COLT Indenture Trustee shall be a
party, or any corporation succeeding to the corporate trust business of the COLT
Indenture Trustee, shall be the successor of the COLT Indenture Trustee under
this COLT Indenture; provided, however, that such corporation shall be eligible
under the provisions of Section 6.11, without the execution or filing of any
instrument or any further act on the part of any of the parties to this COLT
Indenture.

            (b) If at the time such successor or successors by merger or
consolidation to the COLT Indenture Trustee shall succeed to the trusts created
by this COLT Indenture, any of the COLT 200 - Secured Notes shall have been
authenticated but not delivered, any such successor to the COLT Indenture
Trustee may adopt the certificate of authentication of any predecessor trustee,
and deliver such COLT 200 - Secured Notes so authenticated; and in case at that
time any of the COLT 200 - Secured Notes shall not have been authenticated, any
successor to the COLT Indenture Trustee may authenticate such COLT 200 - Secured
Notes either in the name of any predecessor hereunder or in the name of the
successor to the COLT Indenture Trustee. In all such cases such certificate of
authentication shall have the same full force as is provided anywhere in the
COLT 200 - Secured Notes or herein with respect to the certificate of
authentication of the COLT Indenture Trustee.

            SECTION 6.10 Appointment of Co-COLT Indenture Trustee or Separate
COLT Indenture Trustee.

            (a) Notwithstanding any other provisions of this COLT Indenture, at
any time, for the purpose of meeting any legal requirement of any jurisdiction
in which any part of the COLT 200 - Trust Estate may at the time be located, the
COLT Indenture Trustee shall have the power and may execute and deliver all
instruments to appoint one or more Persons to act as a co-trustee or
co-trustees, jointly with the COLT Indenture Trustee, or separate indenture
trustees, of all or any part of the COLT 200 - Trust Estate and to vest in such
Person or Persons, in such capacity and for the benefit of the COLT 200 -
Secured Noteholders, such title to the COLT 200 - Trust Estate, or any part
hereof, and, subject to the other provisions of this Section 6.10, such powers,
duties, obligations, rights and trusts as the COLT Indenture Trustee may
consider necessary or desirable. No co-indenture trustee or separate indenture
trustee hereunder shall be required to meet the terms of eligibility as a
successor trustee under Section 6.11 and no notice to COLT 200 - Secured
Noteholders of the appointment of any co-indenture trustee or separate indenture
trustee shall be required under Section 6.8.

            (b) Every separate indenture trustee and co-indenture trustee shall,
to the extent permitted by law, be appointed and act subject to the following
provisions and conditions:

                  (i) all rights, powers, duties and obligations conferred or
      imposed upon the COLT Indenture Trustee shall be conferred or imposed upon
      and exercised or performed by the COLT Indenture Trustee and such separate
      trustee or co-trustee jointly (it being understood that such separate
      indenture trustee or co-indenture trustee is not authorized to act
      separately without the COLT Indenture Trustee joining in such act),

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<PAGE>

      except to the extent that under any law of any jurisdiction in which any
      particular act or acts are to be performed the COLT Indenture Trustee
      shall be incompetent or unqualified to perform such act or acts, in which
      event such rights, powers, duties and obligations (including the holding
      of title to the COLT 200 - Trust Estate or any portion thereof in any such
      jurisdiction) shall be exercised and performed singly by such separate
      trustee or co-trustee, but solely at the direction of the COLT Indenture
      Trustee;

                  (ii) no co-indenture trustee or separate indenture trustee
      hereunder shall be personally liable by reason of any act or omission of
      any other co-indenture trustee or separate indenture trustee hereunder;
      and

                  (iii) the COLT Indenture Trustee may at any time accept the
      resignation of or remove any separate indenture trustee or co-indenture
      trustee.

            (c) Any notice, request or other writing given to the COLT Indenture
Trustee shall be deemed to have been given to each of the then separate
indenture trustees and co-indenture trustees, as effectively as if given to each
of them. Every instrument appointing any separate trustee or co-trustee shall
refer to this COLT Indenture and the conditions of this Article VI. Each
separate indenture trustee and co-indenture trustee, upon its acceptance of the
trusts conferred, shall be vested with the estates or property specified in its
instrument of appointment, either jointly with the COLT Indenture Trustee or
separately, as may be provided therein, subject to all the provisions of this
COLT Indenture, specifically including every provision of this COLT Indenture
relating to the conduct of, affecting the liability of, or affording protection
to, the COLT Indenture Trustee. Every such instrument shall be filed with the
COLT Indenture Trustee.

            (d) Any separate indenture trustee or co-indenture trustee may at
any time appoint the COLT Indenture Trustee as its agent or attorney-in-fact
with full power and authority, to the extent not prohibited by law, to do any
lawful act under or in respect of this COLT Indenture on its behalf and in its
name. If any separate indenture trustee or co-indenture trustee shall die,
become incapable of acting, resign or be removed, all of its estates,
properties, rights, remedies and trusts shall vest in and be exercised by the
COLT Indenture Trustee, to the extent permitted by law, without the appointment
of a new or successor co-indenture trustee or successor indenture trustee.

            SECTION 6.11 Eligibility; Disqualification. The COLT Indenture
Trustee shall at all times satisfy the requirements of TIA Section 310(a). The
COLT Indenture Trustee shall have a combined capital and surplus of at least
$____________ as set forth in its most recent published annual report of
condition and (unless waived by Moody's, if Moody's is rating the COLT 200_-_
Secured Notes) it shall have a long term unsecured debt rating of Baa3 or better
by Moody's. The COLT Indenture Trustee shall comply with TIA Section 310(b);
provided, however, that there shall be excluded from the operation of TIA
Section 310(b)(1) any indenture or indentures under which other securities of
COLT are outstanding if the requirements for such exclusion set forth in TIA
Section 310(b)(1) are met.

            SECTION 6.12 Preferential Collection of Claims Against COLT. The
COLT Indenture Trustee shall comply with TIA Section 311(a), excluding any
creditor relationship listed in

                                       38
<PAGE>

TIA Section 311(b). A trustee who has resigned or been removed shall be subject
to TIA Section 311(a) to the extent indicated.

            SECTION 6.13 Representations and Warranties of COLT Indenture
Trustee. The COLT Indenture Trustee represents and warrants as of the Series 200
- Closing Date that:

            (a) the COLT Indenture Trustee (i) is a [national banking
association duly organized, validly existing and in good standing under the laws
of the United States of America] and (ii) satisfies the eligibility requirements
set forth in Section 6.11;

            (b) the COLT Indenture Trustee has full power, authority and legal
right to execute, deliver and perform this COLT Indenture and any other COLT 200
- Basic Document to which it is a party, and has taken all necessary action to
authorize the execution, delivery and performance by it of this COLT Indenture
and any other COLT 200 - Basic Document to which it is a party;

            (c) the execution, delivery and performance by the COLT Indenture
Trustee of this COLT Indenture and any other COLT 200 - Basic Document to which
it is a party (i) shall not violate any provision of any law or regulation
governing the banking and trust powers of the COLT Indenture Trustee or any
order, writ, judgment or decree of any court, arbitrator, or Governmental
Authority applicable to the COLT Indenture Trustee or any of its assets, (ii)
shall not violate any provision of the corporate charter or by-laws of the COLT
Indenture Trustee and (iii) shall not violate any provision of, or constitute,
with or without notice or lapse of time, a default under, or result in the
creation or imposition of any lien on any properties included in the COLT 200 -
Trust Estate pursuant to the provisions of any mortgage, indenture, contract,
agreement or other undertaking to which it is a party, which violation, default
or lien could reasonably be expected to have a materially adverse effect on the
COLT Indenture Trustee's performance or ability to perform its duties under this
COLT Indenture and any other COLT 200 - Basic Document to which it is a party or
on the transactions contemplated hereunder and thereunder;

            (d) the execution, delivery and performance by the COLT Indenture
Trustee of this COLT Indenture and any other COLT 200 - Basic Document to which
it is a party shall not require the authorization, consent or approval of, the
giving of notice to, the filing or registration with, or the taking of any other
action in respect of, any Governmental Authority or agency regulating the
banking and corporate trust activities of the COLT Indenture Trustee; and

            (e) this COLT Indenture and any other COLT 200 - Basic Document to
which it is a party have been duly executed and delivered by the COLT Indenture
Trustee and constitutes the legal, valid and binding agreement of the COLT
Indenture Trustee, enforceable in accordance with their terms.

            SECTION 6.14 COLT Indenture Trustee May Enforce Claims Without
Possession of COLT 200 - Secured Notes. All rights of action and claims under
this COLT Indenture or the COLT 200 - Secured Notes may be prosecuted and
enforced by the COLT Indenture Trustee without the possession of any of the COLT
200 - Secured Notes or the production thereof in any proceeding relating
thereto, and any such proceeding instituted by the

                                       39
<PAGE>

COLT Indenture Trustee shall be brought in its own name as COLT Indenture
Trustee. Any recovery of judgment shall, after provision for the payment of the
reasonable compensation, expenses, disbursements and advances of the COLT
Indenture Trustee, its agents and counsel, be for the ratable benefit of the
COLT 200 - Secured Noteholders in respect of which such judgment has been
obtained.

            SECTION 6.15 Suit for Enforcement. If an Event of Default shall
occur and be continuing, the COLT Indenture Trustee, in its discretion may,
subject to the provisions of Section 6.1, proceed to protect and enforce its
rights and the rights of the COLT 200 - Secured Noteholders under this COLT
Indenture or in aid of the execution of any power granted to the COLT Indenture
Trustee by a Proceeding whether for the specific performance of any covenant or
agreement contained in this COLT Indenture or for the enforcement of any other
legal, equitable or other remedy as the COLT Indenture Trustee, being advised by
counsel, shall deem necessary to protect and enforce any of the rights of the
COLT Indenture Trustee or the COLT 200 - Secured Noteholders.

            SECTION 6.16 Rights of COLT 200__-___ Secured Noteholders to Direct
COLT Indenture Trustee. The Holders of not less than a majority of the
Outstanding Amount of the COLT 200 - Secured Notes, shall have the right to
direct the time, method and place of conducting any Proceeding for any remedy
available to the COLT Indenture Trustee or exercising any trust or power
conferred on the COLT Indenture Trustee; provided, however, that subject to
Section 6.1, the COLT Indenture Trustee shall have the right to decline to
follow any such direction if the COLT Indenture Trustee being advised by counsel
determines that the action so directed may not lawfully be taken, or if the COLT
Indenture Trustee in good faith shall, by a Responsible Officer, determine that
the proceedings so directed would be illegal or subject it to personal
liability; and provided, further, that nothing in this COLT Indenture shall
impair the right of the COLT Indenture Trustee to take any action deemed proper
by the COLT Indenture Trustee and which is not inconsistent with such direction
by the COLT 200__-___ Secured Noteholders.

                                   ARTICLE VII
                COLT 200 - SECURED NOTEHOLDERS' LISTS AND REPORTS

            SECTION 7.1 COLT To Furnish COLT Indenture Trustee Names and
Addresses of COLT 200 - Secured Noteholders. COLT shall furnish or cause to be
furnished by the Servicer to the COLT Indenture Trustee (a) not more than five
days before each Payment Date, a list, in such form as the COLT Indenture
Trustee may reasonably require, of the names and addresses of the Holders of
COLT 200 - Secured Notes as of the close of business on the related Record Date,
and (b) at such other times as the COLT Indenture Trustee may request in
writing, within 14 days after receipt by COLT of any such request, a list of
similar form and content as of a date not more than 10 days prior to the time
such list is furnished; provided, however, that so long as the COLT Indenture
Trustee is the Secured Note Registrar, no such list shall be required to be
furnished.

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<PAGE>

            SECTION 7.2 Preservation of Information, Communications to Secured
Noteholders.

            (a) The COLT Indenture Trustee shall preserve, in as current a form
as is reasonably practicable, the names and addresses of the Holders of COLT 200
- Secured Notes contained in the most recent list furnished to the COLT
Indenture Trustee as provided in Section 7.1 and the names and addresses of
Holders of COLT 200 - Secured Notes received by the COLT Indenture Trustee in
its capacity as Secured Note Registrar. The COLT Indenture Trustee may destroy
any list furnished to it as provided in such Section 7.1 upon receipt of a new
list so furnished.

            (b) COLT 200 - Secured Noteholders may communicate with other COLT
200 - Secured Noteholders with respect to their rights under this COLT Indenture
or under the COLT 200 - Secured Notes.

            (c) COLT, the COLT Indenture Trustee and the Secured Note Registrar
shall have the protection of TIA Section 312(c).

            SECTION 7.3 Reports by COLT

            (a) COLT shall:

                  (i) file with the COLT Indenture Trustee within 15 days after
      COLT is required to file the same with the Commission, copies of the
      annual reports and of the information, documents and other reports (or
      copies of such portions of any of the foregoing as the Commission may from
      time to time by rules and regulations prescribe) which COLT may be
      required to file with the Commission pursuant to Section 13 or 15(d) of
      the Exchange Act;

                  (ii) file with the COLT Indenture Trustee and the Commission
      in accordance with rules and regulations prescribed from time to time by
      the Commission such additional information, documents and reports with
      respect to compliance by COLT with the conditions and covenants of this
      COLT Indenture as may be required from time to time by such rules and
      regulations; and

                  (iii) supply to the COLT Indenture Trustee (and the COLT
      Indenture Trustee shall transmit by mail to all COLT 200__-__ Secured
      Noteholders described in TIA Section 313(c)) such summaries of any
      information, documents and reports required to be filed by the Issuer
      pursuant to clauses (i) and (ii) of this Section 7.3(a) as may be required
      by rules and regulations prescribed from time to time by the Commission.

            (b) Unless COLT otherwise determines, the fiscal year of COLT shall
end on December 31 of such year.

            SECTION 7.4 Reports by Trustee. If required by TIA Section
313(a),within 60 days after each August 15th, beginning with August 15, 200__,
the COLT Indenture Trustee shall mail to each COLT 200__-__ Secured Noteholder
as required by TIA Section 313(c) a brief report dated as of such date that
complies with TIA Section 313(a). The COLT Indenture Trustee also shall

                                       41
<PAGE>

comply with TIA Section 313(b). A copy of any report delivered pursuant to this
Section 7.4(a) shall, at the time of its mailing to COLT 200__-__ Secured
Noteholders, be filed by the COLT Indenture Trustee with the Commission and each
stock exchange, if any, on which the COLT 200__-__ Secured Notes are listed.
COLT shall notify the COLT Indenture Trustee if and when the COLT 200__-__
Secured Notes are listed on any stock exchange.

                                  ARTICLE VIII
                      ACCOUNTS, DISBURSEMENTS AND RELEASES

            SECTION 8.1 Collection of Money. Except as otherwise expressly
provided herein, the COLT Indenture Trustee may demand payment or delivery of,
and shall receive and collect, directly and without intervention or assistance
of any fiscal agent or other intermediary, all money and other property payable
to or receivable by the COLT Indenture Trustee pursuant to this COLT Indenture
and the COLT 200 - Basic Documents. The COLT Indenture Trustee shall apply all
such money received by it with respect to the COLT 200 - Trust Estate as
provided in this COLT Indenture, the COLT Servicing Agreement and any other COLT
200 - Basic Document to which it is a party. Except as otherwise expressly
provided in this COLT Indenture, if any default occurs in the making of any
payment or performance under any agreement or instrument that is part of the
COLT 200 - Trust Estate, the COLT Indenture Trustee may take such action as may
be appropriate to enforce such payment or performance, including the institution
and prosecution of appropriate Proceedings. Any such action shall be without
prejudice to any right to claim an Event of Default under this COLT Indenture
and any right to proceed thereafter as provided in Article V.

            SECTION 8.2 Designated Accounts; Allocations; Payments.

            (a) On or prior to the Series 200 - Closing Date, COLT shall cause
the Servicer to establish and maintain, in the name of the COLT Indenture
Trustee, for the benefit of the COLT 200 - Secured Noteholders, the Designated
Accounts in accordance with the COLT Servicing Agreement.

            (b) On or before each Payment Date, (i) amounts shall be deposited
in the COLT Collection Account as provided in Section 3.03(a) and (b) of the
COLT Servicing Agreement and (ii) the Aggregate Secured Note Interest
Distributable Amount for such Payment Date, the Secured Note Principal
Distributable Amount for such Payment Date and all other amounts payable on such
Payment Date pursuant to Section 3.03(c) of the COLT Servicing Agreement, shall
be transferred from the COLT Collection Account to the COLT 200 - Secured
Noteholders as and to the extent provided in Section 3.03(c) of the COLT
Servicing Agreement.

            SECTION 8.3 General Provisions Regarding Designated Accounts.

            (a) So long as no Default or Event of Default shall have occurred
and be continuing, all or a portion of the funds in the Designated Accounts
shall be invested in Eligible Investments and reinvested by the COLT Indenture
Trustee upon Trust Order, subject to the provisions of the COLT Servicing
Agreement. COLT shall not direct the COLT Indenture Trustee to make any
investment of any funds or to sell any investment held in any of the

                                       42
<PAGE>

Designated Accounts unless the security interest granted and perfected in such
account shall continue to be perfected in such investment or the proceeds of
such sale, in either case without any further action by any Person, and, in
connection with any direction to the COLT Indenture Trustee to make any such
investment or sale, if requested by the COLT Indenture Trustee, COLT shall
deliver to the COLT Indenture Trustee an Opinion of Counsel acceptable to the
COLT Indenture Trustee, to such effect.

            (b) Subject to Section 6.1(c), the COLT Indenture Trustee shall not
in any way be held liable by reason of any insufficiency in any of the
Designated Accounts resulting from any loss on any Eligible Investment included
therein except as an obligor for losses attributable to the COLT Indenture
Trustee's failure to make payments on such Eligible Investments issued by the
COLT Indenture Trustee, in its commercial capacity as principal obligor and not
as trustee, in accordance with their terms.

            (c) If (i) COLT shall have failed to give written investment
directions (which may be by electronic mail or other electronic transmission)
for any funds on deposit in the Designated Accounts to the COLT Indenture
Trustee by 11:00 A.M., New York City time (or such other time as may be agreed
by COLT and the COLT Indenture Trustee) on any Business Day or (ii) a Default or
Event of Default shall have occurred and be continuing with respect to the COLT
200 - Secured Notes but the COLT 200 - Secured Notes shall not have been
declared due and payable pursuant to Section 5.2, or (iii) if the COLT 200 -
Secured Notes shall have been declared due and payable following an Event of
Default, but amounts collected or receivable from the COLT 200 - Trust Estate
are being applied in accordance with Section 5.5 as if there had not been such a
declaration, then the COLT Indenture Trustee shall, to the fullest extent
practicable, invest and reinvest funds in the Designated Accounts in Eligible
Investments selected by the COLT Indenture Trustee.

            SECTION 8.4 Release of the COLT 200 - Trust Estate.

            (a) Subject to the payment of its fees and expenses pursuant to
Section 6.7, the COLT Indenture Trustee may, and when required by the provisions
of this COLT Indenture shall, execute instruments to release property from the
lien of this COLT Indenture, or convey the COLT Indenture Trustee's interest in
the same, in a manner and under circumstances that are consistent with the
provisions of this COLT Indenture. No party relying upon an instrument executed
by the COLT Indenture Trustee as provided in this Article VIII, shall be bound
to ascertain the COLT Indenture Trustee's authority, inquire into the
satisfaction of any conditions precedent or see to the application of any
monies.

            (b) The COLT Indenture Trustee shall, at such time as there are no
COLT 200 - Secured Notes Outstanding and all sums due to the COLT Indenture
Trustee pursuant to Section 6.7 have been paid, notify COLT thereof in writing
and upon receipt of a Trust Request, release any remaining portion of the COLT
200 - Trust Estate that secured the COLT 200 - Secured Notes from the lien of
this COLT Indenture and release to COLT or any other Person entitled thereto any
funds then on deposit in the Designated Accounts. The COLT Indenture Trustee
shall release property from the lien of this COLT Indenture pursuant to this
Section 8.4(b) only upon receipt by it of a Trust Request, an Officer's
Certificate and an Opinion of

                                       43
<PAGE>

Counsel and (if required by the TIA) Independent Certificate in accordance with
Sections 3.14(c) and 3.14(d)(1) meeting the applicable requirements of Section
11.1.

            SECTION 8.5 Opinion of Counsel. The COLT Indenture Trustee shall
receive at least seven days' notice when requested by COLT to take any action
pursuant to Section 8.4, accompanied by copies of any instruments involved, and
the COLT Indenture Trustee shall also require as a condition to such action, an
Opinion of Counsel, in form and substance satisfactory to the COLT Indenture
Trustee, stating the legal effect of any such action, outlining the steps
required to complete the same, and concluding that all conditions precedent to
the taking of such action have been complied with and such action shall not
materially and adversely impair the security for the COLT 200 - Secured Notes or
the rights of the COLT 200 - Secured Noteholders in contravention of the
provisions of this COLT Indenture; provided, however, that such Opinion of
Counsel shall not be required to express an opinion as to the fair value of the
COLT 200 - Trust Estate. Counsel rendering any such opinion may rely, without
independent investigation, on the accuracy and validity of any certificate or
other instrument delivered to the COLT Indenture Trustee pursuant to the
provisions of this COLT Indenture in connection with any such action.

                                   ARTICLE IX
                             SUPPLEMENTAL INDENTURES

            SECTION 9.1 Supplemental Indentures Without Consent of COLT 200 -
Secured Noteholders.

            (a) Without the consent of the Holders of any COLT 200 - Secured
Notes and with prior notice to the Rating Agencies, COLT and the COLT Indenture
Trustee, when authorized by a Trust Order, at any time and from time to time,
may enter into one or more indentures supplemental hereto (which shall conform
to the provisions of the Trust Indenture Act as in force at the date of the
execution thereof), in form satisfactory to the COLT Indenture Trustee, for any
of the following purposes:

                  (i) to correct or amplify the description of any property at
      any time subject to the lien of this COLT Indenture, or better to assure,
      convey and confirm unto the COLT Indenture Trustee any property subject or
      required to be subjected to the lien of this COLT Indenture, or to subject
      additional property to the lien of this COLT Indenture;

                  (ii) to evidence the succession, in compliance with Section
      3.10 and the applicable provisions hereof, of another Person to COLT, and
      the assumption by any such successor of the covenants of COLT contained
      herein and in the COLT 200 - Secured Notes;

                  (iii) to add to the covenants of COLT for the benefit of the
      COLT 200 - Secured Noteholders or to surrender any right or power herein
      conferred upon COLT;

                  (iv) to convey, transfer, assign, mortgage or pledge any
      property to or with the COLT Indenture Trustee;

                                       44
<PAGE>

                  (v) to cure any ambiguity or to correct or supplement any
      provision herein or in any supplemental indenture which may be
      inconsistent with any other provision herein or in any supplemental
      indenture or in any COLT 200 - Basic Document;

                  (vi) to evidence and provide for the acceptance of the
      appointment hereunder by a successor trustee with respect to the COLT 200
      - Secured Notes and the COLT Indenture and to add to or change any of the
      provisions of this COLT Indenture as shall be necessary to facilitate the
      administration of the trusts hereunder by more than one trustee, pursuant
      to the requirements of Article VI; and

                  (vii) to modify, eliminate or add to the provisions of this
      COLT Indenture to such extent as shall be necessary to effect the
      qualification of this COLT Indenture under the TIA or under any similar
      federal statute hereafter enacted and to add to this COLT Indenture such
      other provisions as may be expressly required by the TIA, and the COLT
      Indenture Trustee is hereby authorized to join in the execution of any
      such supplemental indenture and to make any further appropriate agreements
      and stipulations that may be therein contained.

            (b) COLT and the COLT Indenture Trustee, when authorized by a Trust
Order, may, also without the consent of any of the COLT 200 - Secured
Noteholders but with prior notice to the Rating Agencies, at any time and from
time to time enter into one or more indentures supplemental hereto for the
purpose of adding any provisions to, changing in any manner, or eliminating any
of the provisions of, this COLT Indenture or modifying in any manner the rights
of the COLT 200 - Secured Noteholders under this COLT Indenture; provided,
however, that such action shall not, as evidenced by an Officer's Certificate,
adversely affect in any material respect the interests of any COLT 200 - Secured
Noteholder unless such COLT 200 - Secured Noteholders' consent is obtained.

            SECTION 9.2 Supplemental Indentures With Consent of COLT 200 -
Secured Noteholders.

            (a) COLT and the COLT Indenture Trustee, when authorized by a Trust
Order, also may, with prior notice to the Rating Agencies and with the written
consent of the Holders of not less than a majority of the Outstanding Amount of
COLT 200 - Secured Notes affected in any material respect thereby, by Act of
such Holders delivered to COLT and the COLT Indenture Trustee, enter into an
indenture or indentures supplemental hereto for the purpose of adding any
provisions to, changing in any manner, or eliminating any of the provisions of,
this COLT Indenture or modifying in any manner the rights of the COLT 200 -
Secured Noteholders under this COLT Indenture; provided, however, that no such
supplemental indenture shall, without the consent of the Holder of each
outstanding COLT 200 - Secured Note affected thereby:

                  (i) change the due date of any instalment of principal of or
      interest on any COLT 200 - Secured Note, or reduce the principal amount
      thereof, the interest rate applicable thereto, or the Redemption Price
      with respect thereto, change any place of payment where, or the coin or
      currency in which, any COLT 200 - Secured Note or any

                                       45
<PAGE>

      interest thereon is payable, or impair the right to institute suit for the
      enforcement of the provisions of this COLT Indenture requiring the
      application of funds available therefor, as provided in Article V, to the
      payment of any such amount due on the COLT 200 - Secured Notes on or after
      the respective due dates thereof (or, in the case of redemption, on or
      after the Redemption Date);

                  (ii) reduce the percentage of the Outstanding Amount of the
      COLT 200 - Secured Notes, the consent of the Holders of which is required
      for any such supplemental indenture or the consent of the Holders of which
      is required for any waiver of compliance with certain provisions of this
      COLT Indenture or certain defaults hereunder and their consequences as
      provided for in this COLT Indenture;

                  (iii) modify or alter the provisions of the proviso to the
      definition of the term "Outstanding";

                  (iv) reduce the percentage of the Outstanding Amount of the
      COLT 200 - Secured Notes required to direct the COLT Indenture Trustee to
      sell or liquidate the COLT 200 - Trust Estate pursuant to Section 5.4 if
      the proceeds of such sale would be insufficient to pay the principal
      amount of and accrued but unpaid interest on the Outstanding COLT 200 -
      Secured Notes;

                  (v) modify any provision of this Section 9.2 to decrease the
      required minimum percentage necessary to approve any amendments to any
      provisions of this COLT Indenture;

                  (vi) modify any of the provisions of this COLT Indenture in
      such manner as to affect the calculation of the amount of any payment of
      interest or principal due on any COLT 200 - Secured Notes on any Payment
      Date (including the calculation of any of the individual components of
      such calculation), or modify or alter the provisions of this COLT
      Indenture regarding the voting of COLT 200 - Secured Notes held by COLT,
      the Seller or any Affiliate of either of them; or

                  (vii) permit the creation of any Lien ranking prior to or on a
      parity with the Lien of this COLT Indenture with respect to any part of
      the COLT 200 - Collateral or of the VAULT Security Agreement with respect
      to any part of the Pledged Collateral or, except as otherwise permitted or
      contemplated herein, terminate the Lien of this COLT Indenture on any
      property at any time subject hereto or deprive the Holder of any COLT 200
      - Secured Note of the security afforded by the lien of this COLT
      Indenture.

            (b) The COLT Indenture Trustee may in its discretion determine
whether or not any COLT 200 - Secured Notes would be affected (such that the
consent of each Secured Noteholder would be required) by any supplemental
indenture proposed pursuant to this Section 9.2 and any such determination shall
be conclusive and binding upon the Holders of all COLT 200 - Secured Notes,
whether authenticated and delivered thereunder before or after the date upon
which such supplemental indenture becomes effective. The COLT Indenture Trustee
shall not be liable for any such determination made in good faith.

                                       46
<PAGE>

            (c) It shall be sufficient if an Act of COLT 200 - Secured
Noteholders approves the substance, but not the form, of any proposed
supplemental indenture.

            (d) Promptly after the execution by COLT and the COLT Indenture
Trustee of any supplemental indenture pursuant to this Section 9.2, the COLT
Indenture Trustee shall mail to the COLT 200 - Secured Noteholders to which such
amendment or supplemental indenture relates a notice setting forth in general
terms the substance of such supplemental indenture. Any failure of the COLT
Indenture Trustee to mail such notice, or any defect therein, shall not,
however, in any way impair or affect the validity of any such supplemental
indenture.

            SECTION 9.3 Execution of Supplemental Indentures. In executing, or
permitting the additional trusts created by any supplemental indenture permitted
by this Article IX or the modifications thereby of the trusts created by this
COLT Indenture, the COLT Indenture Trustee shall be entitled to receive, and
subject to Sections 6.1 and 6.2, shall be fully protected in relying upon, an
Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Article IX. The COLT Indenture Trustee may, but
shall not be obligated to, enter into any such supplemental indenture that
affects the COLT Indenture Trustee's own rights, duties, liabilities or
immunities under this COLT Indenture or otherwise.

            SECTION 9.4 Effect of Supplemental Indenture. Upon the execution of
any supplemental indenture pursuant to the provisions hereof, this COLT
Indenture shall be and be deemed to be modified and amended in accordance
therewith with respect to the Secured Notes affected thereby, and the respective
rights, limitations of rights, obligations, duties, liabilities and immunities
under this COLT Indenture of the COLT Indenture Trustee, COLT and the COLT 200 -
Secured Noteholders shall thereafter be determined, exercised and enforced
hereunder subject in all respects to such modifications and amendments, and all
the terms and conditions of any such supplemental indenture shall be and be
deemed to be part of the terms and conditions of this COLT Indenture for any and
all purposes.

            SECTION 9.5 Conformity with Trust Indenture Act. Every amendment of
this COLT Indenture and every supplemental indenture executed pursuant to this
Article IX shall conform to the requirements of the TIA as then in effect so
long as this COLT Indenture shall then be qualified under the TIA.

            SECTION 9.6 Reference in COLT 200 - Secured Notes to Supplemental
Indentures. COLT 200 - Secured Notes authenticated and delivered after the
execution of any supplemental indenture pursuant to this Article IX may, and if
required by the COLT Indenture Trustee shall, bear a notation in form approved
by the COLT Indenture Trustee as to any matter provided for in such supplemental
indenture. If COLT or the COLT Indenture Trustee shall so determine, new COLT
200 - Secured Notes so modified as to conform, in the opinion of the COLT
Indenture Trustee and COLT, to any such supplemental indenture may be prepared
and executed by COLT and authenticated and delivered by the COLT Indenture
Trustee in exchange for Outstanding COLT 200 - Secured Notes.

                                       47
<PAGE>

                                    ARTICLE X
                           REDEMPTION OF SECURED NOTES

            SECTION 10.1 Redemption. The COLT 200 - Secured Notes are subject to
redemption in whole, but not in part, upon the exercise by the Servicer of its
option to purchase the Series 200 - Lease Assets pursuant to Section 6.01 of the
COLT Servicing Agreement. The date on which such redemption shall occur is the
Payment Date following the Optional Purchase Date identified by the Servicer in
its notice of exercise of such purchase option (the "Redemption Date"). The
purchase price for the COLT 200 - Secured Notes shall be equal to the applicable
Redemption Price. The Seller, the Servicer or COLT shall furnish the COLT
200__-___ Secured Noteholders notice of such redemption. If the COLT 200 -
Secured Notes are to be redeemed pursuant to this Section 10.1, the Seller, the
Servicer or COLT shall furnish notice thereof to the COLT Indenture Trustee and
the COLT 200__-___ Secured Noteholders not later than 25 days prior to the
Redemption Date and the COLT 200__-___ Secured Noteholders and the COLT
Indenture Trustee (based on such notice) shall withdraw from the COLT Collection
Account and pay to the COLT 200 - Secured Noteholders on the Redemption Date,
the aggregate Redemption Price of the COLT 200 - Secured Notes, whereupon all
such COLT 200 - Secured Notes shall be due and payable on the Redemption Date.

            SECTION 10.2 Form of Redemption Notice.

            (a) Notice of redemption of the COLT 200 - Secured Notes under
Section 10.1 shall be given by the COLT Indenture Trustee by first-class mail,
postage prepaid, mailed not less than five days prior to the applicable
Redemption Date to each COLT 200 - Secured Noteholder of record at such COLT 200
- Secured Noteholder's address appearing in the Secured Note Register.

            (b) All notices of redemption shall state:

                  (i) the applicable Redemption Date; and

                  (ii) the applicable Redemption Price.

            (c) Notice of redemption of the COLT 200 - Secured Notes shall be
given by the COLT Indenture Trustee in the name and at the expense of COLT.
Failure to give notice of redemption, or any defect therein, to any Holder of
any COLT 200 - Secured Note shall not impair or affect the validity of the
redemption of any other COLT 200 - Secured Note.

            SECTION 10.3 COLT 200 - Secured Notes Payable on Redemption Date.
The COLT 200 - Secured Notes shall, following notice of redemption as required
by Section 10.2, on the Redemption Date cease to be Outstanding for purposes of
this COLT Indenture and shall thereafter represent only the right to receive the
applicable Redemption Price and (unless COLT shall default in the payment of
such Redemption Price) no interest shall accrue on such Redemption Price for any
period after the date to which accrued interest is calculated for purposes of
calculating such Redemption Price.

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<PAGE>

                                   ARTICLE XI
                                  MISCELLANEOUS

            SECTION 11.1 Compliance Certificates and Opinions, etc.

            (a) Upon any application or request by COLT to the COLT Indenture
Trustee to take any action under any provision of this COLT Indenture, COLT
shall furnish to the COLT Indenture Trustee upon request: (i) an Officer's
Certificate stating that all conditions precedent, if any, provided for in this
COLT Indenture relating to the proposed action have been complied with, (ii) an
Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent, if any, have been complied with and (iii) (if required by
the TIA) an Independent Certificate from a firm of certified public accountants
meeting the applicable requirements of this Section 11.1, except that, in the
case of any such application or request as to which the furnishing of such
documents is specifically required by any provision of this COLT Indenture, no
additional certificate or opinion need be furnished. Every certificate or
opinion with respect to compliance with a condition or covenant provided for in
this COLT Indenture shall include:

                  (i) a statement that each signatory of such certificate or
      opinion has read or has caused to be read such covenant or condition and
      the definitions herein relating thereto;

                  (ii) a brief statement as to the nature and scope of the
      examination or investigation upon which the statements or opinions
      contained in such certificate or opinion are based;

                  (iii) a statement that, in the judgment of each such
      signatory, such signatory has made such examination or investigation as is
      necessary to enable such signatory to express an informed opinion as to
      whether or not such covenant or condition has been complied with; and

                  (iv) a statement as to whether, in the opinion of each such
      signatory, such condition or covenant has been complied with.

            (b) (i) Prior to the deposit with the COLT Indenture Trustee of any
COLT 200 - Trust Estate or other property or securities that is to be made the
basis for the release of any property or securities subject to the lien of this
COLT Indenture, COLT shall, in addition to any obligation imposed in Section
11.1(a) or elsewhere in this COLT Indenture, furnish to the COLT Indenture
Trustee an Officers' Certificate certifying or stating the opinion of each
Person signing such certificate as to the fair value (within 90 days of such
deposit) to COLT of the COLT 200 - Trust Estate or other property or securities
to be so deposited.

                  (ii) Whenever COLT is required to furnish to the COLT
      Indenture Trustee an Officers' Certificate certifying or stating the
      opinion of any signer thereof as to the matters described in clause (b)(i)
      above, COLT shall also deliver to the COLT Indenture Trustee an
      Independent Certificate as to the same matters, if the fair value to COLT
      of the securities to be so deposited and of all other such securities made
      the basis of any such withdrawal or release since the commencement of the
      then current fiscal year of COLT, as set forth in the certificates
      delivered pursuant to clause (b)(i) above and this

                                       49
<PAGE>

      clause (b)(ii), is 10% or more of the Outstanding Amount of the COLT 200 -
      Secured Notes, but such a certificate need not be furnished with respect
      to any securities so deposited, if the fair value thereof to COLT as set
      forth in the related Officers' Certificate is less than $25,000 or less
      than one percent of the Outstanding Amount of the COLT 200 - Secured
      Notes.

                  (iii) Other than with respect to the release of any
      Administrative Lease Assets, Warranty Lease Assets, Liquidating Lease
      Asset or the sale or other disposition of any related Vehicle in
      accordance with the COLT Servicing Agreement, whenever any property or
      securities are to be released from the lien of this COLT Indenture, COLT
      shall also furnish to the COLT Indenture Trustee an Officer's Certificate
      certifying or stating the opinion of each Person signing such certificate
      as to the fair value (within 90 days of such release) of the property or
      securities proposed to be released and stating that in the opinion of such
      Person the proposed release will not impair the security under this COLT
      Indenture in contravention of the provisions hereof.

                  (iv) Whenever COLT is required to furnish to the COLT
      Indenture Trustee an Officer's Certificate certifying or stating the
      opinion of any signatory thereof as to the matters described in clause
      (b)(iii) above, COLT shall also furnish to the COLT Indenture Trustee an
      Independent Certificate as to the same matters if the fair value of the
      property or securities and of all other property, other than
      Administrative Lease Assets, Warranty Lease Assets, Liquidating Lease
      Asset or the sale of any other vehicle in accordance with the COLT
      Servicing Agreement, or securities released from the lien of this COLT
      Indenture since the commencement of the then current calendar year, as set
      forth in the certificates required by clause (b)(iii) above and this
      clause (b)(iv), equals 10% or more of the Outstanding Amount of the COLT
      200 - Secured Notes, but such certificate need not be furnished in the
      case of any release of property or securities if the fair value thereof as
      set forth in the related Officer's Certificate is less than $25,000 or
      less than one percent of the Outstanding Amount of the COLT 200 - Secured
      Notes.

                  (v) Notwithstanding Section 2.11 or any other provision of
      this Section 11.1, COLT may (A) collect, liquidate, sell or otherwise
      dispose of Series 200 - Lease Assets proceeds of both as and to the extent
      permitted or required by the COLT 200 - Basic Documents, (B) make cash
      payments out of any Designated Accounts as and to the extent permitted or
      required by the COLT 200 - Basic Documents and (C) take any other action
      not inconsistent with the TIA.

            SECTION 11.2 Form of Documents Delivered to COLT Indenture Trustee.

            (a) In any case where several matters are required to be certified
by, or covered by an opinion of, any specified Person, it is not necessary that
all such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.

                                       50
<PAGE>

            (b) Any certificate or opinion of an Authorized Officer of COLT may
be based, insofar as it relates to legal matters, upon a certificate or opinion
of, or representations by, counsel, unless such officer knows, or in the
exercise of reasonable care should know, that the certificate or opinion or
representations with respect to the matters upon which his certificate or
opinion is based are erroneous. Any such certificate of an Authorized Officer or
Opinion of Counsel may be based, insofar as it relates to factual matters, upon
a certificate or opinion of, or representations by, an officer or officers of
the Servicer, the Seller or COLT, stating that the information with respect to
such factual matters is in the possession of the Servicer, the Seller or COLT,
unless such counsel knows, or in the exercise of reasonable care should know,
that the certificate or opinion or representations with respect to such matters
are erroneous.

            (c) Where any Person is required to make, give or execute two or
more applications, requests, consents, certificates, statements, opinions or
other instruments under this COLT Indenture, they may, but need not, be
consolidated and form one instrument.

            (d) Whenever in this COLT Indenture, in connection with any
application or certificate or report to the COLT Indenture Trustee, it is
provided that COLT shall deliver any document as a condition of the granting of
such application, or as evidence of COLT's compliance with any term hereof, it
is intended that the truth and accuracy, at the time of the granting of such
application or at the effective date of such certificate or report (as the case
may be), of the facts and opinions stated in such document shall in such case be
conditions precedent to the right of COLT to have such application granted or to
the sufficiency of such certificate or report. The foregoing shall not, however,
be construed to affect the COLT Indenture Trustee's right to rely upon the truth
and accuracy of any statement or opinion contained in any such document as
provided in Article VI.

            SECTION 11.3 Acts of COLT 200 - Secured Noteholders.

            (a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this COLT Indenture to be given or taken by
COLT 200 - Secured Noteholders may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such COLT 200 - Secured
Noteholders in person or by agents duly appointed in writing and shall be
subject to Section 5.11; and except as herein otherwise expressly provided such
action shall become effective when such instrument or instruments are delivered
to the COLT Indenture Trustee, and, where it is hereby expressly required, to
COLT. Such instrument or instruments (and the action embodied therein and
evidenced thereby) are herein sometimes referred to as the "Act" of the COLT 200
- Secured Noteholders, as applicable, signing such instrument or instruments.
Proof of execution of any such instrument or of a writing appointing any such
agent shall be sufficient for any purpose of this COLT Indenture and (subject to
Section 6.1) conclusive in favor of the COLT Indenture Trustee and COLT, if made
in the manner provided in this Section 11.3.

            (b) The fact and date of the execution by any Person of any such
instrument or writing may be proved in any manner that the COLT Indenture
Trustee deems sufficient.

            (c) The ownership of COLT 200 - Secured Notes shall be proved by the
Secured Note Register.

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<PAGE>

            (d) Any request, demand, authorization, direction, notice, consent,
waiver or other action by the Holder of any COLT 200 - Secured Notes shall bind
the Holder of every COLT 200 - Secured Note issued upon the registration thereof
or in exchange therefor or in lieu thereof, in respect of anything done, omitted
or suffered to be done by the COLT Indenture Trustee or COLT in reliance
thereon, whether or not notation of such action is made upon such COLT 200 -
Secured Note.

            SECTION 11.4 Notices, etc., to COLT Indenture Trustee, COLT and
Rating Agencies. Any request, demand, authorization, direction, notice, consent,
waiver or Act of COLT 200 - Secured Noteholders or other documents provided or
permitted by this COLT Indenture to be made upon, given or furnished to or filed
with:

            (a) the COLT Indenture Trustee by any COLT 200 - Secured Noteholder
or by COLT shall be made, given, furnished or filed in writing to or with the
COLT Indenture Trustee at its Corporate Trust Office, or

            (b) COLT by the COLT Indenture Trustee or by any COLT 200 - Secured
Noteholder shall be sufficient for every purpose hereunder if in writing and
either sent by electronic facsimile transmission (with hard copy to follow via
first class mail) or mailed, by certified mail, return receipt requested, or by
overnight mail to COLT and the COLT Owner Trustee each at the address specified
in Part III of Exhibit I to the Declaration.

            COLT shall promptly transmit any notice received by it from the
Secured Noteholders to the COLT Indenture Trustee and the COLT Indenture Trustee
shall likewise promptly transmit any notice received by it from the COLT 200 -
Secured Noteholders to COLT.

            (c) Notices required to be given to the Rating Agencies by COLT, the
COLT Indenture Trustee or the COLT Owner Trustee shall be delivered as specified
in Part III to Exhibit A to the COLT Servicing Agreement.

            SECTION 11.5 Notices to Secured Noteholders; Waiver.

            (a) Where this COLT Indenture provides for notice to the COLT
200__-___ Secured Noteholders of any condition or event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if it is in
writing and mailed, first-class, postage prepaid to each COLT 200 - Secured
Noteholder affected by such event, at such Person's address as it appears on the
Secured Note Register, not later than the latest date, and not earlier than the
earliest date, prescribed for the giving of such notice. If notice to COLT
200_-_ Secured Noteholders is given by mail, neither the failure to mail such
notice nor any defect in any notice so mailed to any particular COLT 200_-_
Secured Noteholder shall affect the sufficiency of such notice with respect to
other COLT 200_-_ Secured Noteholders, and any notice that is mailed in the
manner herein provided shall conclusively be presumed to have been duly given
regardless of whether such notice is in fact actually received.

            (b) Where this COLT Indenture provides for notice in any manner,
such notice may be waived in writing by any Person entitled to receive such
notice, either before or after the event, and such waiver shall be the
equivalent of such notice. Waivers of notice by

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<PAGE>

COLT 200 - Secured Noteholders shall be filed with the COLT Indenture Trustee
but such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such a waiver.

            (c) In case, by reason of the suspension of regular mail service as
a result of a strike, work stoppage or similar activity, it shall be impractical
to mail notice of any event of COLT 200 - Secured Noteholders when such notice
is required to be given pursuant to any provision of this COLT Indenture, then
any manner of giving such notice as shall be satisfactory to the COLT Indenture
Trustee shall be deemed to be a sufficient giving of such notice.

            (d) Where this COLT Indenture provides for notice to the Rating
Agencies, failure to give such notice shall not affect any other rights or
obligations created hereunder, and shall not under any circumstance constitute
an Event of Default.

            SECTION 11.6 Alternate Payment and Notice Provisions.

            Notwithstanding any provision of this COLT Indenture or any of the
COLT 200 - Secured Notes to the contrary, COLT may enter into any agreement with
any Holder of a COLT 200 - Secured Note providing for a method of payment, or
notice by the COLT Indenture Trustee or any Paying Agent to such Holder, that is
different from the methods provided for in this COLT Indenture for such payments
or notices. COLT shall furnish to the COLT Indenture Trustee a copy of each such
agreement and the COLT Indenture Trustee shall cause payments to be made and
notices to be given in accordance with such agreements at the expense of COLT.

            SECTION 11.7 Conflict with Trust Indenture Act.

            (a) If any provision hereof limits, qualifies or conflicts with
another provision hereof that is required to be included in this COLT Indenture
by any of the provisions of the TIA, such required provision shall control.

            (b) The provisions of TIA Sections 310 through 317 that impose
duties on any Person (including the provisions automatically deemed included
herein unless expressly excluded by this COLT Indenture) are a part of and
govern this COLT Indenture, whether or not physically contained herein.

            SECTION 11.8 Effect of Headings and Table of Contents.

            The Article and Section headings herein and the Table of Contents
are for convenience only and shall not affect the construction hereof.

            SECTION 11.9 Successors and Assigns.

            (a) All covenants and agreements in this COLT Indenture and the COLT
200 - Secured Notes by COLT shall bind its successors and assigns, whether so
expressed or not.

            (b) All covenants and agreements of the COLT Indenture Trustee in
this COLT Indenture shall bind its successors and assigns, whether so expressed
or not.

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<PAGE>

            SECTION 11.10 Severability.

            In case any provision in this COLT Indenture or in the COLT 200 -
Secured Notes shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

            SECTION 11.11 Benefits of COLT Indenture.

            Nothing in this COLT Indenture or in the COLT 200 - Secured Notes,
express or implied, shall give to any Person, other than the parties hereto and
their successors hereunder, and to the extent expressly provided herein, the
COLT 200 - Secured Noteholders and any other Person with an ownership interest
in any part of the COLT 200 - Trust Estate, any benefit or any legal or
equitable right, remedy or claim under this COLT Indenture.

            SECTION 11.12 Legal Holidays.

            If the date on which any payment is due shall not be a Business Day,
then (notwithstanding any other provision of the COLT 200 - Secured Notes or
this COLT Indenture) payment need not be made on such date, but may be made on
the next succeeding Business Day with the same force and effect as if made on
the date on which nominally due, and no interest shall accrue for the period
from and after any such nominal date.

            SECTION 11.13 GOVERNING LAW.

            THIS COLT INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE DOMESTIC LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE
PRINCIPLES OF CONFLICTS OF LAWS THEREOF OR OF ANY OTHER JURISDICTION (EXCEPT
SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW), AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES UNDER THIS COLT INDENTURE SHALL
BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

            SECTION 11.14 Counterparts.

            This COLT Indenture may be executed in any number of counterparts,
each of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument.

            SECTION 11.15 Recording of COLT Indenture.

            If this COLT Indenture is subject to recording in any appropriate
public recording offices, such recording is to be effected by COLT and at its
expense accompanied by an Opinion of Counsel (which may be counsel to the COLT
Indenture Trustee or any other counsel reasonably acceptable to the COLT
Indenture Trustee) to the effect that such recording is necessary either for the
protection of the Secured Noteholders or any other Person secured hereunder or
for the enforcement of any right or remedy granted to the COLT Indenture Trustee
under this COLT Indenture.

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<PAGE>

            SECTION 11.16 No Recourse.

            (a) Each COLT 200 - Secured Noteholder agrees by acceptance of a
COLT 200 - Secured Note (or interest therein) that no recourse may be taken,
directly or indirectly, with respect to the obligations of COLT, the COLT Owner
Trustee or the COLT Indenture Trustee on the COLT 200 - Secured Notes or under
this COLT Indenture or any certificate or other writing delivered in connection
herewith or therewith, against:

                  (i) the COLT Indenture Trustee or the COLT Owner Trustee in
      its individual capacity;

                  (ii) any owner of a beneficial interest in COLT;

                  (iii) any partner, owner, beneficiary, agent, officer,
      director or employee of the COLT Indenture Trustee or the COLT Owner
      Trustee in its individual capacity, any holder of a beneficial interest in
      COLT, the COLT Owner Trustee or the COLT Indenture Trustee or of any
      successor or assign of the COLT Indenture Trustee or the COLT Owner
      Trustee in its individual capacity, except as any such Person may have
      expressly agreed (it being understood that the COLT Indenture Trustee and
      the COLT Owner Trustee have no such obligation in its individual capacity)
      and except that any such partner, owner or beneficiary shall be fully
      liable, to the extent provided by applicable law, for any unpaid
      consideration for stock, unpaid capital contribution or failure to pay any
      instalment or call owing to such entity. For all purposes of this COLT
      Indenture, in the performance of any duties or obligations of COLT
      hereunder, the COLT Owner Trustee shall be subject to, and entitled to the
      benefits of, the terms and provisions of Articles IV, V and VI of the
      Declaration; or

                  (iv) COLT or any portion of the assets of COLT other than with
      respect to the COLT 200 - Trust Estate.

            (b) Except as expressly provided in the COLT 200 - Basic Documents,
neither the Seller, the Servicer, the COLT Indenture Trustee nor the COLT Owner
Trustee in their respective individual capacities, any owner of a beneficial
interest in COLT, nor any of their respective partners, owners, beneficiaries,
agents, officers, directors, employees or successors or assigns, shall be
personally liable for, nor shall recourse be had to any of them for, the payment
of principal of or interest on, or performance of, or omission to perform, any
of the covenants, obligations or indemnifications contained in the COLT 200 -
Secured Notes or this COLT Indenture.

            SECTION 11.17 No Petition.

            Each of the COLT Indenture Trustee by entering this COLT Indenture
and each Holder of a COLT 200 - Secured Note, by its acceptance thereof, hereby
covenants and agrees that prior to the date which is one year and one day after
the payment in full of all Secured Notes, it shall not institute against, or
join any other Person in instituting against, COLT any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings or other
similar proceeding under the laws of the United States or any state of the
United States. This Section 11.17 shall survive the termination of this COLT
Indenture.

                                       55
<PAGE>

            SECTION 11.18 Inspection.

            COLT agrees that, on reasonable prior notice, it shall permit any
representative of the COLT Indenture Trustee, during COLT's normal business
hours, to examine all the books of account, records, reports and other papers of
COLT, to make copies and extracts therefrom, to cause such books to be audited
by Independent certified public accountants, and to discuss COLT's affairs,
finances and accounts with COLT's officers, employees and Independent certified
public accountants, all at such reasonable times and as often as may be
reasonably requested. The COLT Indenture Trustee shall and shall cause its
representatives to hold in confidence all such information except to the extent
disclosure may be required by law (and all reasonable applications for
confidential treatment are unavailing) and except to the extent that the COLT
Indenture Trustee may reasonably determine that such disclosure is consistent
with its obligations hereunder.

            SECTION 11.19 Indemnification by and Reimbursement of the Servicer.
The COLT Indenture Trustee acknowledges and agrees to reimburse (i) the Servicer
and its directors, officers, employees and agents in accordance with the COLT
Servicing Agreement and (ii) the Seller and its directors, officers, employees
and agents in accordance with the COLT Servicing Agreement. The COLT Indenture
Trustee further acknowledges and accepts the conditions and limitations with
respect to the Servicer's obligation to indemnify, defend and hold the COLT
Indenture Trustee harmless as set forth in the COLT Servicing Agreement for any
Series.

            SECTION 11.20 Series Liabilities. It is expressly understood and
agreed by each COLT 200 - Secured Noteholder, by its acceptance of its COLT 200
- Secured Note, that COLT is a series trust pursuant to Sections 3804 and
3806(b)(2) of the Statutory Trust Statute. As such, separate and distinct
records shall be maintained for each Series Portfolio and the COLT 200 - Trust
Estate shall be held and accounted for separately from the other assets of COLT.
The debts, liabilities, obligations and expenses incurred, contracted for or
otherwise existing with respect to each Series of Secured Notes, shall be
enforceable against the related Series Portfolio of COLT only, and not against
the assets of COLT generally or any other Series Portfolio securing any other
Series of Secured Notes.

            SECTION 11.21 Subordination. COLT and each Holder of a COLT 200 -
Secured Note, by accepting its COLT 200 - Secured Note, acknowledges and agrees
that such COLT 200 - Secured Note represents indebtedness of COLT and does not
represent an interest in any other assets of COLT allocated to any other Series
Portfolio (including by virtue of any deficiency claim in respect of obligations
not paid or otherwise satisfied from the COLT 200 - Trust Estate and proceeds
thereof). In furtherance of and not in derogation of the foregoing, to the
extent COLT enters into other securitization transactions, including in
connection with the issuance of other Series of Secured Notes, each of COLT and
each COLT 200 - Secured Noteholder, by accepting its COLT 200 - Secured Note,
acknowledges and agrees that it shall have no right, title or interest in or to
any assets (or interests therein) (other than the COLT 200 - Trust Estate)
conveyed or purported to be conveyed or pledged by COLT to another Person or
Persons in connection therewith (whether by way of a sale, capital contribution
or by virtue of the granting of a lien) ("Other Assets"). To the extent that,
notwithstanding the agreements and provisions contained in the preceding
sentences of this subsection, COLT or any COLT 200 - Secured Noteholder either
(a) asserts an interest or claim to, or benefit from, Other Assets,

                                       56
<PAGE>

whether asserted against or through the COLT Indenture Trustee or any other
Person, or (b) is deemed to have any such interest, claim or benefit in or from
Other Assets, whether by operation of law, legal process, pursuant to applicable
provisions of insolvency laws or otherwise (including by virtue of Section
1111(b) of the federal Bankruptcy Code or any successor provision having similar
effect under the Bankruptcy Code), and whether deemed asserted against or
through the COLT Indenture Trustee or any other Person, then COLT and each COLT
200 - Secured Noteholder, by accepting its COLT 200 - Secured Note, further
acknowledges and agrees that any such interest, claim or benefit in or from
Other Assets is and shall be expressly subordinated to the indefeasible payment
in full of all obligations and liabilities of COLT which, under the terms of the
relevant documents relating to the securitization of such Other Assets, are
entitled to be paid from, entitled to the benefits of, or otherwise secured by
such Other Assets (whether or not any such entitlement or security interest is
legally perfected or otherwise entitled to a priority of distribution or
application under applicable law, including insolvency laws, and whether
asserted against the COLT 200 - Secured Noteholder), including the payment of
post-petition interest on such other obligations and liabilities. This
subordination agreement shall be deemed a subordination agreement within the
meaning of Section 510(a) of the Bankruptcy Code. Each COLT 200 - Secured
Noteholder further acknowledges and agrees that no adequate remedy at law exists
for a breach of this Section 11.21 and the terms of this Section 11.21 may be
enforced by an action for specific performance. The provisions of this Section
11.21 shall be for the third party benefit of those entitled to rely thereon and
shall survive the termination of this COLT Indenture.

                                       57
<PAGE>

            IN WITNESS WHEREOF, COLT and the COLT Indenture Trustee have caused
this COLT Indenture to be duly executed by their respective officers, thereunto
duly authorized, all as of the day and year first above written.

                                      CENTRAL ORIGINATING LEASE TRUST

                                      By: DEUTSCHE BANK TRUST COMPANY DELAWARE,
                                      not in its individual capacity but solely
                                      as COLT Owner Trustee

                                      By:_____________________________________
                                      Name:
                                      Title:

                                      _____________, as COLT Indenture Trustee

                                      By:_____________________________________
                                      Name:
                                      Title:

                                                                  COLT Indenture

<PAGE>

                                                              EXHIBIT A-1 TO THE
                                                            COLT 200 - INDENTURE

                  INFORMATION FOR EACH COLT 200 - SECURED NOTE

             [STATE OF LEASE ORIGINATION:_________________________]

[FOR EACH LEASE ASSET:]

Vehicle ID No.: _____________________

Lease:    Lease
          No.:  _____________________
          Lease
          Date: _____________________    Vehicle:     Year:_____________________
                                                      Make:_____________________
                                                     Model:_____________________
Final Maturity Date:_________________    Initial ABS Value:_____________________

                                     A-1-1
<PAGE>

                                                              EXHIBIT A-2 TO THE
                                                            COLT 200 - INDENTURE

                         FORM OF COLT 200 - SECURED NOTE

                         Date of Issuance:                     ________________
                         Note Principal Balance:               $_______________
                         Secured Note Rate:  _____% per annum
                         Initial Aggregate ABS Value:   _______________________

      Central Originating Lease Trust, a Delaware statutory trust ("COLT"), for
value received, hereby promises to pay on each Payment Date to the Holder of
this COLT 200 - Secured Note identified in the Secured Note Register on the
related Record Date, the sum of (x) the Secured Note Interest Distributable
Amount due on such COLT 200 - Secured Note on such Payment Date, plus (y) such
Secured Noteholder's portion of the aggregate amount payable on such Payment
Date in respect of principal on the COLT 200 - Secured Notes pursuant to
Sections 2.6(b) and 3.1 of the COLT Indenture (as defined below) pro rata based
on the Note Principal Balance of each such COLT 200 - Secured Note. The
principal of this COLT 200 - Secured Note shall be due and payable in full on
the Final Maturity Date, unless an optional redemption of the COLT 200 - Secured
Notes has occurred pursuant to Section 10.1 of the COLT Indenture in which case
such unpaid principal shall be due on the Redemption Date.

      Pursuant to the COLT Indenture, dated as of , 200 (as amended, modified or
otherwise supplemented from time to time, the "COLT Indenture"), between COLT
and , , as COLT indenture trustee (in its capacity as COLT indenture trustee and
not its individual capacity, the "COLT Indenture Trustee"), COLT grants (x) to
the COLT Indenture Trustee a security interest in the COLT 200 - Collateral
(other than the Direct COLT Pledge) to the extent set forth therein, and (y) to
each COLT 200 - Secured Noteholder, to the extent that, notwithstanding the
terms of the VAULT Trust Agreement and the Statutory Trust Act, COLT is deemed
to hold a direct ownership interest in the legal title to any Vehicle related to
the Series 200 - Lease Assets (and not merely a beneficial interest in VAULT
representing an interest in the legal title to such Vehicle), a security
interest in all of COLT's rights in such Vehicle. In addition, pursuant to the
VAULT Pledge and Security Agreement, dated as of , 200 , by Vehicle Asset
Universal Leasing Trust ("VAULT") and acknowledged and agreed by COLT, General
Motors Acceptance Corporation, Capital Auto Receivables, Inc., and Capital Auto
Receivables Asset Trust 200 - , VAULT pledges to each COLT 200 - Secured
Noteholder a security interest in all of VAULT's legal title to the Vehicles
related to the Series 200 - Lease Assets to the extent set forth therein.

      The sole source for payment of this COLT 200 - Secured Note and all other
COLT 200 - Secured Notes is limited to the COLT 200 - Trust Estate and such
other funds as COLT may from time to time pledge to secure the payment of the
COLT 200 - Secured Notes; it being understood that any other assets of COLT
included in any other Series Portfolio or the Residual Interest shall not be
available to make payments on the COLT 200 - Secured Notes.

                                      A-2-1
<PAGE>

      Capitalized terms not otherwise defined herein shall have the meanings set
forth in the COLT Indenture, dated as of , 200 , between COLT and the COLT
Indenture Trustee, as such agreements may be amended, supplemented or otherwise
modified from time to time.

                                      A-2-2
<PAGE>

This COLT 200 - Secured Note is a valid and binding obligation of COLT.

                                   CENTRAL ORIGINATING LEASE TRUST

                                   By: Deutsche Bank Trust Company Delaware,
                                       not in its individual capacity, but
                                       solely as owner trustee

                                   By: General Motors Acceptance Corporation,
                                       its Attorney-in-Fact

                                       By:___________________________________
                                            Its:_____________________________

                                       Dated: ________, 200

                                      A-2-3
<PAGE>

             COLT INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the COLT 200__-__ Secured Notes designed above and referred to in
the within-mentioned COLT Indenture.

                                   __________________________, not in its
                                   individual capacity but solely as COLT
                                   Indenture Trustee

                                   By: ______________________________________
                                       Name:
                                       Title:

                                      A-2-4
<PAGE>

                                                                EXHIBIT B TO THE
                                                            COLT 200 - INDENTURE

      Payment hereunder shall be made to the holder of this COLT 200 - Secured
Note in accordance with the COLT Indenture and the COLT Servicing Agreement.

      The COLT Indenture Trustee and each holder of this COLT 200 - Secured
Note, by its acceptance of this COLT 200 - Secured Note, covenants and agrees
that it shall not, prior to the date which is one year and one day after the
payment in full of all Secured Notes issued by COLT, acquiesce, petition or
otherwise invoke or cause COLT to invoke the process of any court or
governmental authority for the purpose of commencing or sustaining a case
against COLT under any federal or state bankruptcy, insolvency, reorganization
or similar law or appointing a receiver, liquidator, assignee, trustee,
custodian, sequestrator or other similar official of COLT or any substantial
part of its property, or ordering the winding up or liquidation of the affairs
of COLT.

      The obligations of COLT under this COLT 200 - Secured Note shall be
non-recourse to COLT and any other asset of COLT or any COLT 200 -
Certificateholder except to the extent described herein.

      This COLT 200 - Secured Note shall be effective when executed,
authenticated and delivered in accordance with the COLT Indenture.

      THIS COLT 200 - SECURED NOTE SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE DOMESTIC LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO
THE PRINCIPLES OF CONFLICTS OF LAWS THEREOF OR OF ANY OTHER JURISDICTION (EXCEPT
SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW), AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE HEREOF UNDER THIS COLT 200 - SECURED
NOTE SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

      COLT agrees, and by acquiring this COLT 200 - Secured Note or interest
therein the holder of this COLT 200 - Secured Note or interest therein agrees,
to treat this COLT 200 - Secured Note as indebtedness for federal income tax,
state and local income and franchise tax, Michigan single business tax, and any
other taxes imposed upon, measured by or based upon gross or net income.

      It is expressly understood and agreed by the holders of this COLT 200 -
Secured Note that (a) the COLT Indenture and this COLT 200 - Secured Note are
executed and delivered by        , not individually or personally but solely as
owner trustee of COLT, (b) each of the representations, undertakings and
agreements herein and therein made on the part of COLT is made and intended not
as a personal representation, undertaking or agreement by        but is made and
intended for the purpose of binding only COLT, and (c) under no circumstances
shall be            personally liable for the payment of any indebtedness or
expenses of COLT or be liable for the breach or failure of any obligation,
representation, warranty or covenant made or undertaken by COLT under the COLT
Indenture and this COLT 200 - Secured Note.

                                       B-1
<PAGE>

                                                      Schedule I to Secured Note

              STATE OF LEASE ORIGINATION:_________________________

[FOR EACH LEASE ASSET:]

Vehicle ID No.: _____________________

Lease:    Lease
          No.:  _____________________
          Lease
          Date: _____________________    Vehicle:     Year:_____________________
                                                      Make:_____________________
                                                     Model:_____________________
Final Maturity Date:_________________    Initial ABS Value:_____________________

                                       B-2<PAGE>

                                                                    EXHIBIT 10.1

================================================================================

                                CREDIT AGREEMENT

                         DATED AS OF SEPTEMBER 30, 2004

                                      AMONG

                  SUN COMMUNITIES OPERATING LIMITED PARTNERSHIP
                                 AS THE COMPANY,

                             SUN COMMUNITIES, INC.,
                                  AS THE REIT,

                THE VARIOUS FINANCIAL INSTITUTIONS PARTY HERETO,
                                   AS LENDERS,

                                       AND

                   STANDARD FEDERAL BANK NATIONAL ASSOCIATION,
                             AS ADMINISTRATIVE AGENT

================================================================================

                       LASALLE BANK NATIONAL ASSOCIATION,
                              AS SOLE LEAD ARRANGER

<PAGE>

                               TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                                                     Page
<S>                                                                                                                  <C>
SECTION 1.        DEFINITIONS.....................................................................................    2

         1.1      Definitions.....................................................................................    2
         1.2      Other Interpretive Provisions...................................................................    2

SECTION 2.        COMMITMENTS OF THE LENDERS; BORROWING, CONVERSION AND LETTER OF CREDIT PROCEDURES...............    2

         2.1      Commitments.....................................................................................    2
                  2.1.1       Revolving Loan Commitment...........................................................    2
                  2.1.2       L/C Commitment......................................................................    2
         2.2      Loan Procedures.................................................................................    2
                  2.2.1       Various Types of Loans..............................................................    2
                  2.2.2       Borrowing Procedures................................................................    2
                  2.2.3       Conversion and Continuation Procedures..............................................    2
                  2.2.4       Swing Line Facility.................................................................    2
         2.3      Letter of Credit Procedures.....................................................................    2
                  2.3.1       L/C Applications....................................................................    2
                  2.3.2       Participations in Letters of Credit.................................................    2
                  2.3.3       Reimbursement Obligations...........................................................    2
                  2.3.4       Funding by Lenders to Issuing Lender................................................    2
         2.4      Commitments Several.............................................................................    2
         2.5      Certain Conditions..............................................................................    2
         2.6      Release of Guarantors...........................................................................    2

SECTION 3.        EVIDENCING OF LOANS; SECURITY...................................................................    2

         3.1      Notes...........................................................................................    2
         3.2      Recordkeeping...................................................................................    2
         3.3      Security for Obligations........................................................................    2

SECTION 4.        INTEREST........................................................................................    2

         4.1      Interest Rates..................................................................................    2
         4.2      Interest Payment Dates..........................................................................    2
         4.3      Setting and Notice of LIBOR Rates...............................................................    2
         4.4      Computation of Interest.........................................................................    2

SECTION 5.        FEES............................................................................................    2

         5.1      Non-Use Fee.....................................................................................    2
         5.2      Letter of Credit Fees...........................................................................    2
         5.3      Administrative Agent's Fees.....................................................................    2
</TABLE>

                                      -i-
<PAGE>

<TABLE>
                                                                                                                     Page
<S>                                                                                                                  <C>
SECTION 6.        REDUCTION OR TERMINATION OF THE REVOLVING COMMITMENT; PREPAYMENTS; INCREASES IN
                  REVOLVING COMMITMENT; EXTENSION OF TERMINATION DATE.............................................    2

         6.1      Reduction or Termination of the Revolving Commitment............................................    2
                  6.1.1       Voluntary Reduction or Termination of the Revolving Commitment......................    2
                  6.1.2       All Reductions of the Revolving Commitment..........................................    2
         6.2      Prepayments.....................................................................................    2
                  6.2.1       Voluntary Prepayments...............................................................    2
                  6.2.2       Mandatory Prepayments...............................................................    2
         6.3      Manner of Prepayments...........................................................................    2
                  6.3.1       All Prepayments.....................................................................    2
         6.4      Repayments......................................................................................    2
                  6.4.1       Revolving Loans.....................................................................    2
         6.5      Increase in Commitments.........................................................................    2
                  6.5.1       Request for Increase................................................................    2
                  6.5.2       Lender Elections to Increase........................................................    2
                  6.5.3       Notification by Administrative Agent; Additional Lenders............................    2
                  6.5.4       Effective Date and Allocations......................................................    2
                  6.5.5       Conditions to Effectiveness of Increase.............................................    2
         6.6      Extension of Termination Date...................................................................    2
                  6.6.1       The Company's Option to Extend......................................................    2

SECTION 7.        MAKING AND PRORATION OF PAYMENTS; SETOFF; TAXES.................................................    2

         7.1      Making of Payments..............................................................................    2
         7.2      Application of Certain Payments.................................................................    2
         7.3      Due Date Extension..............................................................................    2
         7.4      Setoff..........................................................................................    2
         7.5      Proration of Payments...........................................................................    2
         7.6      Taxes...........................................................................................    2

SECTION 8.        INCREASED COSTS; SPECIAL PROVISIONS FOR LIBOR LOANS.............................................    2

         8.1      Increased Costs.................................................................................    2
         8.2      Basis for Determining Interest Rate Inadequate or Unfair........................................    2
         8.3      Changes in Law Rendering LIBOR Loans Unlawful...................................................    2
         8.4      Funding Losses..................................................................................    2
         8.5      Right of Lenders to Fund through Other Offices..................................................    2
         8.6      Discretion of Lenders as to Manner of Funding...................................................    2
         8.7      Mitigation of Circumstances; Replacement of Lenders.............................................    2
         8.8      Conclusiveness of Statements; Survival of Provisions............................................    2
</TABLE>

                                      -ii-
<PAGE>

<TABLE>
<CAPTION>
                                                                                                                     Page
<S>                                                                                                                  <C>
SECTION 9.        REPRESENTATIONS AND WARRANTIES..................................................................    2

         9.1      Organization....................................................................................    2
         9.2      Authorization; No Conflict......................................................................    2
         9.3      Validity and Binding Nature.....................................................................    2
         9.4      Financial Condition.............................................................................    2
         9.5      No Material Adverse Change......................................................................    2
         9.6      Litigation and Contingent Liabilities...........................................................    2
         9.7      Ownership of Properties; Liens..................................................................    2
         9.8      Equity Ownership; Subsidiaries..................................................................    2
         9.9      Pension Plans...................................................................................    2
         9.10     Investment Company Act..........................................................................    2
         9.11     Public Utility Holding Company Act..............................................................    2
         9.12     Regulation U....................................................................................    2
         9.13     Taxes...........................................................................................    2
         9.14     Solvency, etc...................................................................................    2
         9.15     Environmental Matters...........................................................................    2
         9.16     Insurance.......................................................................................    2
         9.17     Real Property...................................................................................    2
         9.18     Information.....................................................................................    2
         9.19     Intellectual Property...........................................................................    2
         9.20     Burdensome Obligations..........................................................................    2
         9.21     Labor Matters...................................................................................    2
         9.22     No Default......................................................................................    2
         9.23     Status of Property..............................................................................    2
         9.24     The Collateral..................................................................................    2
         9.25     REIT Status.....................................................................................    2
         9.26     Stock...........................................................................................    2

SECTION 10.       AFFIRMATIVE COVENANTS...........................................................................    2

         10.1     Reports, Certificates and Other Information.....................................................    2
                  10.1.1      Annual Report.......................................................................    2
                  10.1.2      Interim Reports.....................................................................    2
                  10.1.3      Compliance Certificates.............................................................    2
                  10.1.4      Reports to the SEC and to Shareholders..............................................    2
                  10.1.5      Notice of Default, Litigation and ERISA Matters.....................................    2
                  10.1.6      Borrowing Base Certificates.........................................................    2
                  10.1.7      Management Reports..................................................................    2
                  10.1.8      Subordinated Debt Notices...........................................................    2
                  10.1.9      Notices Regarding Certain Debt......................................................    2
                  10.1.10     Projections.........................................................................    2
                  10.1.11     Notices Regarding Major Agreements..................................................    2
                  10.1.12     Other Information...................................................................    2
         10.2     Books, Records and Inspections..................................................................    2
         10.3     Maintenance of Property; Insurance..............................................................    2
         10.4     Compliance with Laws; Payment of Taxes and Liabilities..........................................    2
</TABLE>

                                     -iii-
<PAGE>

<TABLE>
<CAPTION>

                                                                                                                     Page
<S>                                                                                                                  <C>
         10.5     Maintenance of Existence, etc...................................................................    2
         10.6     Use of Proceeds.................................................................................    2
         10.7     Employee Benefit Plans..........................................................................    2
         10.8     Environmental Matters...........................................................................    2
         10.9     Further Assurances..............................................................................    2

SECTION 11.       NEGATIVE COVENANTS..............................................................................    2

         11.1     Debt............................................................................................    2
         11.2     Liens...........................................................................................    2
         11.3     Restricted Payments.............................................................................    2
         11.4     Mergers, Consolidations, Sales..................................................................    2
         11.5     Modification of Organizational Documents........................................................    2
         11.6     Transactions with Affiliates....................................................................    2
         11.7     Unconditional Purchase Obligations..............................................................    2
         11.8     Inconsistent Agreements.........................................................................    2
         11.9     Business Activities; Issuance of Equity.........................................................    2
         11.10    Investments.....................................................................................    2
         11.11    Restriction of Amendments to Certain Documents..................................................    2
         11.12    Fiscal Year.....................................................................................    2
         11.13    Financial Covenants.............................................................................    2
                  11.13.1     Adjusted EBITDA to Debt Service Ratio...............................................    2
                  11.13.2     Adjusted EBITDA to Fixed Charge Ratio...............................................    2
                  11.13.3     Total Leverage Ratio................................................................    2
                  11.13.4     Unencumbered Adjusted NOI to Total Unsecured Debt Service Ratio.....................    2
                  11.13.5     Tangible Net Worth..................................................................    2
         11.14    Interest Rate Protection........................................................................    2

SECTION 12.       EFFECTIVENESS; CONDITIONS OF LENDING, ETC.......................................................    2

         12.1     Initial Credit Extension........................................................................    2
                  12.1.1      Notes...............................................................................    2
                  12.1.2      Authorization Documents.............................................................    2
                  12.1.3      Consents, etc.......................................................................    2
                  12.1.4      Letter of Direction.................................................................    2
                  12.1.5      Guaranty............................................................................    2
                  12.1.6      Collateral Documents................................................................    2
                  12.1.7      Title Reports.......................................................................    2
                  12.1.8      Subordination Agreements............................................................    2
                  12.1.9      Opinions of Counsel.................................................................    2
                  12.1.10     Insurance...........................................................................    2
                  12.1.11     Payment of Fees.....................................................................    2
                  12.1.12     Solvency Certificate................................................................    2
                  12.1.13     Environmental Reports...............................................................    2
                  12.1.14     Search Results; Lien Terminations...................................................    2
                  12.1.15     Borrowing Base Certificate..........................................................    2
</TABLE>

                                      -iv-
<PAGE>

<TABLE>
<CAPTION>
                                                                                                                     Page
<S>                                                                                                                  <C>
                  12.1.16     Closing Certificate, Consents and Permits...........................................    2
                  12.1.17     Other...............................................................................    2
         12.2     Conditions......................................................................................    2
                  12.2.1      Compliance with Warranties, No Default, etc.........................................    2
                  12.2.2      Confirmatory Certificate............................................................    2

SECTION 13.       EVENTS OF DEFAULT AND THEIR EFFECT..............................................................    2

         13.1     Events of Default...............................................................................    2
                  13.1.1      Non-Payment of the Loans, etc.......................................................    2
                  13.1.2      Non-Payment of Other Debt...........................................................    2
                  13.1.3      Other Material Obligations..........................................................    2
                  13.1.4      Bankruptcy, Insolvency, etc.........................................................    2
                  13.1.5      Non-Compliance with Loan Documents..................................................    2
                  13.1.6      Representations; Warranties.........................................................    2
                  13.1.7      Pension Plans.......................................................................    2
                  13.1.8      Judgments...........................................................................    2
                  13.1.9      Invalidity of Guaranty..............................................................    2
                  13.1.10     Invalidity of Subordination Provisions, etc.........................................    2
                  13.1.11     Change of Control...................................................................    2
                  13.1.12     Material Adverse Effect.............................................................    2
         13.2     Effect of Event of Default......................................................................    2

SECTION 14.       THE AGENT.......................................................................................    2

         14.1     Appointment and Authorization...................................................................    2
         14.2     Issuing Lender..................................................................................    2
         14.3     Delegation of Duties............................................................................    2
         14.4     Exculpation of Administrative Agent.............................................................    2
         14.5     Reliance by Administrative Agent................................................................    2
         14.6     Notice of Default...............................................................................    2
         14.7     Credit Decision.................................................................................    2
         14.8     Indemnification.................................................................................    2
         14.9     Administrative Agent in Individual Capacity.....................................................    2
         14.10    Successor Administrative Agent..................................................................    2
         14.11    Subordinated Debt...............................................................................    2
         14.12    Administrative Agent May File Proofs of Claim...................................................    2
         14.13    Other Agents; Arrangers and Managers............................................................    2

SECTION 15.       GENERAL.........................................................................................    2

         15.1     Waiver; Amendments..............................................................................    2
         15.2     Confirmations...................................................................................    2
         15.3     Notices.........................................................................................    2
         15.4     Computations....................................................................................    2
         15.5     Costs, Expenses and Taxes.......................................................................    2
</TABLE>

                                      -v-
<PAGE>

<TABLE>
<CAPTION>
                                                                                                                Page
<S>                                                                                                          <C>
         15.6     Assignments; Participations.............................................................            2
                  15.6.1      Assignments.................................................................            2
                  15.6.2      Participations..............................................................            2
         15.7     Register................................................................................            2
         15.8     GOVERNING LAW...........................................................................            2
         15.9     Confidentiality.........................................................................            2
         15.10    Severability............................................................................            2
         15.11    Nature of Remedies......................................................................            2
         15.12    Entire Agreement........................................................................            2
         15.13    Counterparts............................................................................            2
         15.14    Successors and Assigns..................................................................            2
         15.15    Captions................................................................................            2
         15.16    Customer Identification - USA Patriot Act Notice........................................            2
         15.17    INDEMNIFICATION BY THE COMPANY..........................................................            2
         15.18    Nonliability of Lenders.................................................................            2
         15.19    FORUM SELECTION AND CONSENT TO JURISDICTION.............................................            2
         15.20    WAIVER OF JURY TRIAL....................................................................            2

ANNEX A - LENDERS AND PRO RATA SHARES.....................................................................   ANNEX A- 2

ANNEX B - ADDRESSES FOR NOTICES...........................................................................    ANNEX B-2

EXHIBIT A - FORM OF NOTE..................................................................................       EX A-2

EXHIBIT B - FORM OF COMPLIANCE CERTIFICATE................................................................       EX B-2

EXHIBIT C - FORM OF BORROWING BASE CERTIFICATE............................................................       EX C-2

EXHIBIT E - FORM OF NOTICE OF BORROWING...................................................................       EX E-2

EXHIBIT F - FORM OF NOTICE OF CONVERSION/CONTINUATION.....................................................       EX F-2
</TABLE>

                                      -vi-
<PAGE>

                                CREDIT AGREEMENT

      THIS CREDIT AGREEMENT dated as of September 30, 2004 (this "Agreement") is
entered into among SUN COMMUNITIES OPERATING LIMITED PARTNERSHIP, a Michigan
limited partnership (the "Company"), SUN COMMUNITIES, INC., a Maryland
corporation (the "REIT"), the financial institutions that are or may from time
to time become parties hereto (together with their respective successors and
assigns, the "Lenders") and STANDARD FEDERAL BANK NATIONAL ASSOCIATION (in its
individual capacity, "Standard Federal"), as administrative agent for the
Lenders.

      The Lenders have agreed to make available to the Company a revolving
credit facility (which includes letters of credit) upon the terms and conditions
set forth herein.

      In consideration of the mutual agreements herein contained, the parties
hereto agree as follows:

      SECTION 1. DEFINITIONS.

      1.1 Definitions. When used herein the following terms shall have the
following meanings:

      Acquired Debt means mortgage Debt or Debt with respect to Capital Leases
of a Person existing at the time such Person became a Subsidiary or assumed by
the Company or a Subsidiary of the Company pursuant to an Acquisition permitted
hereunder (and not created or incurred in connection with or in anticipation of
such Acquisition).

      Acquisition means any transaction or series of related transactions for
the purpose of or resulting, directly or indirectly, in (a) the acquisition of
all or substantially all of the assets of a Person, or of all or substantially
all of any business or division of a Person, (b) the acquisition of in excess of
50% of the Capital Securities of any Person, or otherwise causing any Person to
become a Subsidiary, or (c) a merger or consolidation or any other combination
with another Person (other than a Person that is already a Subsidiary).

      Adjusted EBITDA means EBITDA less, solely in respect of each Developed
Property, a capital expenditure reserve equal to $50 per pad and the greater of
actual management fees or an imputed management fee equal to 4% of Base Rent
Revenues.

      Adjusted NOI means the Net Operating Income from the properties within the
Borrowing Base Pool for the respective Computation Period less: (a) a capital
expenditure reserve equal to $50 per pad for each fully developed pad; and (b)
the greater of actual management fees or an imputed management fee equal to 4%
of Base Rent Revenues.

      Administrative Agent means Standard Federal in its capacity as
administrative agent for the Lenders hereunder and any successor thereto in such
capacity.

      Affected Loan - see Section 8.3.

<PAGE>

      Affiliate of any Person means (a) any other Person which, directly or
indirectly, controls or is controlled by or is under common control with such
Person and (b) with respect to any Lender, any entity administered or managed by
such Lender or an Affiliate or investment advisor thereof and which is engaged
in making, purchasing, holding or otherwise investing in commercial loans. A
Person shall be deemed to be "controlled by" any other Person if such Person
possesses, directly or indirectly, power to vote 10% or more of the securities
(on a fully diluted basis) having ordinary voting power for the election of
directors or managers or power to direct or cause the direction of the
management and policies of such Person whether by contract or otherwise. Unless
expressly stated otherwise herein, neither the Administrative Agent nor any
Lender shall be deemed an Affiliate of any Loan Party.

      Agent Fee Letter means the Fee letter dated as of August 5, 2004 between
the Company and the Administrative Agent.

      Agreement - see the Preamble.

      Applicable Margin means, for any day, the rate per annum set forth below
opposite the level (the "Level") then in effect, it being understood that the
Applicable Margin for (i) LIBOR Loans shall be the percentage set forth under
the column "LIBOR Margin", (ii) Base Rate Loans shall be the percentage set
forth under the column "Base Rate Margin" and (iii) the L/C Fee shall be the
percentage set forth under the column "L/C Fee Rate":

<TABLE>
<CAPTION>
                                                        LIBOR           BASE RATE        L/C FEE
LEVEL             TOTAL LEVERAGE RATIO                  MARGIN            MARGIN           RATE
<S>    <C>                                              <C>             <C>              <C>
I      Less than 0.40:1                                 1.125%                0%           1.125%

II     Greater than or equal to 0.40:1 but less          1.25%                0%            1.25%
       than 0.50:1

III    Greater than or equal to 0.50:1 but less          1.50%             0.25%            1.50%
       than 0.60:1

IV     Greater than or equal to 0.60:1                   1.75%             0.50%            1.75%
</TABLE>

      The LIBOR Margin, the Base Rate Margin and the L/C Fee Rate shall be
adjusted, to the extent applicable, on the fifth (5th) Business Day after the
Company provides or is required to provide the annual and quarterly financial
statements and other information pursuant to Section 10.1.1 or 10.1.2, as
applicable, and the related Compliance Certificate, pursuant to Section 10.1.3.
Notwithstanding anything contained in this paragraph to the contrary, (a) if the
Company fails to deliver such financial statements and Compliance Certificate in
accordance with the provisions of Section 10.1.1, 10.1.2 and 10.1.3, the LIBOR
Margin, the Base Rate Margin and the L/C Fee Rate shall be based upon Level IV
above beginning on the date such financial statements and Compliance Certificate
were required to be delivered until the fifth (5th) Business Day after such
financial statements and Compliance Certificate are actually delivered,
whereupon the Applicable Margin shall be determined by the then current Level;
(b) no reduction to any Applicable Margin shall become effective at any time
when an Event of Default

                                       2
<PAGE>

or Unmatured Event of Default has occurred and is continuing; and (c) the
initial Applicable Margin on the Closing Date shall be based on Level IV until
the date on which the financial statements and Compliance Certificate are
required to be delivered for the Fiscal Quarter ending September 30, 2004.

      Assignee - see Section 15.6.1.

      Assignment Agreement - see Section 15.6.1.

      Attorney Costs means, with respect to any Person, all reasonable fees and
charges of any counsel to such Person, the reasonable allocable cost of internal
legal services of such Person, all reasonable disbursements of such internal
counsel and all court costs and similar legal expenses.

      Bank Product Agreements means those certain cash management service
agreements entered into from time to time between any Loan Party and a Lender or
its Affiliates in connection with any of the Bank Products.

      Bank Product Obligations means all obligations, liabilities, contingent
reimbursement obligations, fees, and expenses owing by the Loan Parties to any
Lender or its Affiliates pursuant to or evidenced by the Bank Product Agreements
and irrespective of whether for the payment of money, whether direct or
indirect, absolute or contingent, due or to become due, now existing or
hereafter arising, and including all such amounts that a Loan Party is obligated
to reimburse to the Administrative Agent or any Lender as a result of the
Administrative Agent or such Lender purchasing participations or executing
indemnities or reimbursement obligations with respect to the Bank Products
provided to the Loan Parties pursuant to the Bank Product Agreements.

      Bank Products means any service or facility extended to any Loan Party by
any Lender or its Affiliates including: (a) credit cards, (b) credit card
processing services, (c) debit cards, (d) purchase cards, (e) ACH Transactions,
(f) cash management, including controlled disbursement, accounts or services, or
(g) Hedging Agreements.

      Base Rate means at any time the greater of (a) the Federal Funds Rate plus
0.5% and (b) the Prime Rate.

      Base Rate Loan means any Loan which bears interest at or by reference to
the Base Rate.

      Base Rate Margin - see the definition of Applicable Margin.

      Base Rent Revenues means actual rent received for Manufactured Home sites
and Recreational Vehicle sites.

      Borrowing Base means the amount, on a property-by-property basis, equal,
in aggregate, to the lower of:

      1.    The sum of:

            (i)   65% of the Borrowing Base Pool Value;

            (ii)  LESS GMAC Pool Debt;

                                       3
<PAGE>

            (iii) LESS the Sea Air Property Debt.

      2.    The Permanent Loan Estimate.

      3.    An amount equal to 200% of the Borrowing Base attributable to the
            Unencumbered Pool.

      The Borrowing Base will be calculated on a quarterly basis, or more
frequently, if there are changes to the Borrowing Base Pool.

      Notwithstanding anything contained herein to the contrary, not more than
15% of the Borrowing Base may be attributeable to Recreational Vehicle
Communities.

      Borrowing Base Certificate means a certificate substantially in the form
of Exhibit C.

      Borrowing Base Pool means (a) initially, the properties listed on Schedule
1.1(a) attached hereto and (b) any future properties designated by the Company,
acceptable to the Administrative Agent and the Required Lenders and meeting the
following criteria:

      (i)   Either (z) properties must be wholly-owned by the REIT, the Company
            or their Subsidiaries in fee simple, with the exception of ground
            leases approved by the Administrative Agent, in its sole discretion,
            or (y) properties not 100% owned which the REIT and the Company
            consolidates on its financial statements and in which the REIT, the
            Company or their Subsidiaries holds a majority interest, acts as the
            General Partner and controls all management and financial decisions
            acceptable to the Administrative Agent, in its reasonable
            discretion;

      (ii)  Properties must not have any restrictions on sale or ability to be
            encumbered by the Company;

      (iii) Properties must be Manufactured Home Communities or Recreational
            Vehicle Communities;

      (iv)  No single property in the Borrowing Base Pool shall account for more
            than 20% of the total Borrowing Base;

      (v)   There shall be no less than fifteen (15) properties in the Borrowing
            Base Pool at any time;

      (vi)  No more than 50% of the Borrowing Base may be comprised of
            properties located in any single market (as reasonable determined by
            the Administrative Agent), city, or county;

      (vii) The Administrative Agent shall have received a current environmental
            report and a title review satisfactory to the Administrative Agent
            in all respects with regard to each property in the Borrowing Base
            Pool.

                                       4
<PAGE>

Properties included in the Borrowing Base Pool as of the date hereof are
identified in Schedule 1.1(a). The Company may add, delete or substitute
properties included in the Borrowing Base Pool at its discretion upon notice
thereof to the Administrative Agent; provided, however, that properties added to
the Borrowing Base Pool after the date of this Agreement must meet the
conditions set forth in this definition of Borrowing Base Pool and must be
acceptable to the Required Lenders in their reasonable discretion. No property
shall be deleted from the Borrowing Base Pool at the request of the Company, if
immediately after giving effect to such deletion, (a) an Event of Default or
Unmatured Event of Default would exist or (b) the Revolving Outstandings plus
the outstanding amount of the Swing Line Loan would exceed the Borrowing Base.

      In addition to any other rights that they may have under this Agreement,
The Administrative Agent and/or the Required Lenders may from time to time
remove one or more properties from the Borrowing Base Pool if any of the
following events occur:

      (A) if a default occurs and remains uncured with respect to the GMAC Debt,
then one or more of the GMAC Pool properties may be removed;

      (B) if a default occurs and remains uncured with respect to any of the
Major Agreements relating to the High Point Property, then the High Point
Property may be removed;

      (C) if a default occurs and remains uncured with respect to any of the
Major Agreements relating to the Sea Air Property, then the Sea Air Property may
be removed;

      (D) if a default occurs and remains uncured with respect any of the Major
Agreements relating to the SunChamp Portfolio, then one or more of the SunChamp
Portfolio properties may be removed; or

      (E) if any of the Unencumbered Properties becomes encumbered or the
ownership and/or management of any such property changes so that the REIT, the
Company or their Subsidiaries no longer controls all management and financial
decisions with respect thereto, then such property may be removed.

      Borrowing Base Pool Value means the sum of the Capitalized Value of the
properties included in the Borrowing Base Pool.

      BSA - see Section 10.4.

      Business Day means any day on which Standard Federal is open for
commercial banking business in Troy, Michigan and, in the case of a Business Day
which relates to a LIBOR Loan, on which dealings are carried on in the London
interbank eurodollar market.

      Capital Expenditures means all expenditures which, in accordance with
GAAP, would be required to be capitalized and shown on the consolidated balance
sheet of the REIT and the Company, including expenditures in respect of Capital
Leases, but excluding expenditures made in connection with the replacement,
substitution or restoration of assets to the extent financed (a) from insurance
proceeds (or other similar recoveries) paid on account of the loss of or damage
to

                                       5
<PAGE>

the assets being replaced or restored or (b) with awards of compensation arising
from the taking by eminent domain or condemnation of the assets being replaced.

      Capital Lease means, with respect to any Person, any lease of (or other
agreement conveying the right to use) any real or personal property by such
Person that, in conformity with GAAP, is accounted for as a capital lease on the
balance sheet of such Person.

      Capital Securities means, with respect to any Person, all shares,
interests, participations or other equivalents (however designated, whether
voting or non-voting) of such Person's capital, whether now outstanding or
issued or acquired after the Effective Date, including common shares, preferred
shares, membership interests in a limited liability company, limited or general
partnership interests in a partnership, interests in a Trust, interests in other
unincorporated organizations or any other equivalent of such ownership interest.

      Capitalized Value means (a) for each Manufactured Home Community, the
quotient of the Net Operating Income for such property for the most recently
ended two Fiscal Quarters multiplied by 2, then divided by 7.75%, and (b) for
each Recreational Vehicle Community, the quotient of the Net Operating Income
for such property for the most recently ended four Fiscal Quarters divided by
7.75%.

      Cash Collateralize means to deliver cash collateral to the Administrative
Agent, to be held as cash collateral for outstanding Letters of Credit, pursuant
to documentation satisfactory to the Administrative Agent. Derivatives of such
term have corresponding meanings.

      Cash Equivalent Investment means, at any time, (a) any evidence of Debt,
maturing not more than one year after such time, issued or guaranteed by the
United States Government or any agency thereof, (b) commercial paper, maturing
not more than one year from the date of issue, or corporate demand notes, in
each case (unless issued by a Lender or its holding company) rated at least A-l
by Standard & Poor's Ratings Services, a division of The McGraw-Hill Companies,
Inc. or P-l by Moody's Investors Service, Inc., (c) any certificate of deposit,
time deposit or banker's acceptance, maturing not more than one year after such
time, or any overnight Federal Funds transaction that is issued or sold by any
Lender or its holding company (or by a commercial banking institution that is a
member of the Federal Reserve System and has a combined capital and surplus and
undivided profits of not less than $500,000,000), (d) any repurchase agreement
entered into with any Lender (or commercial banking institution of the nature
referred to in clause (c)) which (i) is secured by a fully perfected security
interest in any obligation of the type described in any of clauses (a) through
(c) above and (ii) has a market value at the time such repurchase agreement is
entered into of not less than 100% of the repurchase obligation of such Lender
(or other commercial banking institution) thereunder and (e) money market
accounts or mutual funds which invest exclusively in assets satisfying the
foregoing requirements, and (f) other short term liquid investments approved in
writing by the Administrative Agent.

      Change of Control means the occurrence of any of the following events: (a)
the REIT shall cease to own and control at least 70% of the outstanding Capital
Securities of the Company or ceases to be the general partner of the Company or
ceases to control all management and financial decisions of the Company; (b) the
REIT, the Company or their Subsidiaries shall cease to control all management
and financial decisions of any Loan Party (other than SunChamp

                                       6
<PAGE>

LLC); or (c) the Company ceases to directly or indirectly own at least 60% of
the Capital Securities of SunChamp LLC.

      Closing Date - see Section 12.1.

      Code means the Internal Revenue Code of 1986, as amended.

      Collateral means any and all of the assets in which the Administrative
Agent and the Lenders have been granted a mortgage, security interest, pledge
and or other lien pursuant to the Collateral Documents.

      Collateral Documents means each of the mortgages, security agreements,
pledge agreements and other documents required pursuant to Section 3.3.

      Commitment means, as to any Lender, such Lender's commitment to make
Loans, and to issue or participate in Letters of Credit, under this Agreement.
The initial amount of each Lender's commitment to make Loans is set forth on
Annex A.

      Company - see the Preamble.

      Compliance Certificate means a Compliance Certificate in substantially the
form of Exhibit B.

      Computation Period means each period of four consecutive Fiscal Quarters
ending on the last day of a Fiscal Quarter, provided, however, that for purposes
of computing EBITDA and Net Operating Income, the computations for Manufactured
Home Communities shall be based upon the most recent 2 Fiscal Quarters,
annualized.

      Contingent Liability means, with respect to any Person, each obligation
and liability of such Person and all such obligations and liabilities of such
Person incurred pursuant to any agreement, undertaking or arrangement by which
such Person: (a) guarantees, endorses or otherwise becomes or is contingently
liable upon (by direct or indirect agreement, contingent or otherwise, to
provide funds for payment, to supply funds to, or otherwise to invest in, a
debtor, or otherwise to assure a creditor against loss) the indebtedness,
dividend, obligation or other liability of any other Person in any manner (other
than by endorsement of instruments in the course of collection), including any
indebtedness, dividend or other obligation which may be issued or incurred at
some future time; (b) guarantees the payment of dividends or other distributions
upon the Capital Securities of any other Person; (c) undertakes or agrees
(whether contingently or otherwise): (i) to purchase, repurchase, or otherwise
acquire any indebtedness, obligation or liability of any other Person or any
property or assets constituting security therefor, (ii) to advance or provide
funds for the payment or discharge of any indebtedness, obligation or liability
of any other Person (whether in the form of loans, advances, stock purchases,
capital contributions or otherwise), or to maintain solvency, assets, level of
income, working capital or other financial condition of any other Person, or
(iii) to make payment to any other Person other than for value received; (d)
agrees to lease property or to purchase securities, property or services from
such other Person with the purpose or intent of assuring the owner of such
indebtedness or obligation of the ability of such other Person to make payment
of the indebtedness or obligation; (e) to induce the issuance of, or in
connection with the issuance of, any letter of credit for the

                                       7
<PAGE>

benefit of such other Person; or (f) undertakes or agrees otherwise to assure a
creditor against loss. The amount of any Contingent Liability shall (subject to
any limitation set forth herein) be deemed to be the outstanding principal
amount (or maximum permitted principal amount, if larger) of the indebtedness,
obligation or other liability guaranteed or supported thereby.

      Controlled Group means all members of a controlled group of corporations,
all members of a controlled group of trades or businesses (whether or not
incorporated) under common control and all members of an affiliated service
group which, together with the Company, are treated as a single employer under
Section 414 of the Code or Section 4001 of ERISA.

      Debt of any Person means, without duplication, (a) all indebtedness of
such Person, (b) all borrowed money of such Person, whether or not evidenced by
bonds, debentures, notes or similar instruments, (c) all obligations of such
Person as lessee under Capital Leases which have been or should be recorded as
liabilities on a balance sheet of such Person in accordance with GAAP, (d) all
obligations of such Person to pay the deferred purchase price of property or
services (excluding trade accounts payable in the ordinary course of business),
(e) all indebtedness secured by a Lien on the property of such Person, whether
or not such indebtedness shall have been assumed by such Person; provided that
if such Person has not assumed or otherwise become liable for such indebtedness,
such indebtedness shall be measured at the fair market value of such property
securing such indebtedness at the time of determination, (f) all obligations,
contingent or otherwise, with respect to the face amount of all letters of
credit (whether or not drawn), bankers' acceptances and similar obligations
issued for the account of such Person (including the Letters of Credit), (h) all
Contingent Liabilities of such Person, (i) all recourse debt of any partnership
of which such Person is a general partner, (j) all Hedging Obligations of such
Person (excluding the Company's three existing interest rate swap agreements and
any future hedging agreements treated by such Person as permanent fixed rate
debt), and (k) such Person's pro-rata share of all joint venture recourse debt).

      Debt Service means, for any period, the sum (without duplication) of
Interest Expense (including capitalized interest) for such period plus (ii)
scheduled principal amortization of any Debt of the REIT, the Company and their
consolidated Subsidiaries and any unscheduled principal amortization payments
actually made or required to be made during such period pursuant to a settlement
of such Debt (giving effect to any principal payments actually made or required
to be made other than scheduled balloon payments due on the applicable maturity
date that are not then due or past due) for such period, all determined on a
consolidated basis for the REIT, the Company and their consolidated
Subsidiaries.

      Debt to be Repaid means Debt listed on Schedule 12.1.

      Developed Property means a property or portion of a property which is not
under construction and is operational and open for business.

      Dollar and the sign "$" mean lawful money of the United States of America.

      EBITDA means, for the trailing Computation Period, as reported by the
Company, the sum of: (i) net income plus income allocated to OP unit holders
(excluding any non-recurring gains and losses); plus (ii) an amount which, in
the determination of net income for such trailing

                                       8
<PAGE>

Computation Period, has been deducted for or in connection with (A) consolidated
Interest Expense (plus amortization of deferred financing costs included in the
determination of consolidated Interest Expense per GAAP), (B) income taxes, and
(C) depreciation and amortization (including amortization of the portion, if
any, of any purchase price allocated to in-place leases), all determined on a
consolidated basis in accordance with GAAP. In each case, EBITDA will be
adjusted to give pro forma effect to assets acquired during the calendar year.

      Effective Date - see last paragraph of this Agreement.

      Environmental Claims means all claims, however asserted, by any
governmental, regulatory or judicial authority or other Person alleging
potential liability or responsibility for violation of any Environmental Law, or
for release or injury to the environment.

      Environmental Laws means all present or future federal, state or local
laws, statutes, common law duties, rules, regulations, ordinances and codes,
together with all administrative or judicial orders, consent agreements,
directed duties, requests, licenses, authorizations and permits of, and
agreements with, any governmental authority, in each case relating to any matter
arising out of or relating to public health and safety, or pollution or
protection of the environment or workplace, including any of the foregoing
relating to the presence, use, production, generation, handling, transport,
treatment, storage, disposal, distribution, discharge, emission, release,
threatened release, control or cleanup of any Hazardous Substance.

      ERISA means the Employee Retirement Income Security Act of 1974, as
amended.

      Event of Default means any of the events described in Section 13.1.

      Excluded Taxes means taxes based upon, or measured by, the Lender's or
Administrative Agent's (or a branch of the Lender's or Administrative Agent's)
overall net income, overall net receipts, or overall net profits (including
franchise taxes imposed in lieu of such taxes), but only to the extent such
taxes are imposed by a taxing authority (a) in a jurisdiction in which such
Lender or Administrative Agent is organized, (b) in a jurisdiction which the
Lender's or Administrative Agent's principal office is located, or (c) in a
jurisdiction in which such Lender's or Administrative Agent's lending office (or
branch) in respect of which payments under this Agreement are made is located.

      Federal Funds Rate means, for any day, a fluctuating interest rate equal
for each day during such period to the weighted average of the rates on
overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers, as published for such day (or, if such day is
not a Business Day, for the next preceding Business Day) by the Federal Reserve
Bank of New York, or, if such rate is not so published for any day which is a
Business Day, the average of the quotations for such day on such transactions
received by the Administrative Agent from three Federal funds brokers of
recognized standing selected by the Administrative Agent. The Administrative
Agent's determination of such rate shall be binding and conclusive absent
manifest error.

      Fiscal Quarter means a fiscal quarter of a Fiscal Year.

                                       9
<PAGE>

      Fiscal Year means the fiscal year of the Company, the REIT and its
Subsidiaries, which period shall be the 12-month period ending on December 31 of
each year. References to a Fiscal Year with a number corresponding to any
calendar year (e.g., "Fiscal Year 2004") refer to the Fiscal Year ending on
December 31 of such calendar year.

      Fixed Charge Coverage Ratio means, for any Computation Period, the ratio
of (a) the total for such period of Adjusted EBITDA of the Company, the REIT and
their consolidated Subsidiaries to (b) the sum for such period of Fixed Charges
of the Company, the REIT and their consolidated Subsidiaries.

      Fixed Charges means cash Interest Expense, capitalized interest, scheduled
amortization payments, preferred dividends (if any), including distributions to
preferred OP Unit holders, and reserve fundings required by any other debt
agreements. Notwithstanding the above, prepayment penalty fees will not be
included in Fixed Charges.

      FRB means the Board of Governors of the Federal Reserve System or any
successor thereto.

      Funded Debt means, as to any Person, all outstanding Debt of such Person
that matures more than one year from the date of its creation (or is renewable
or extendible, at the option of such Person, to a date more than one year from
such date).

      Funds From Operations means consolidated net income (loss) before
extraordinary items, computed in accordance with GAAP, plus, to the extent
deducted in determining net income (loss) and without duplication, (i) gains (or
losses) from debt restructuring and sales of property, (ii) non-recurring
charges, (iii) provisions for losses, (iv) real estate related depreciation and
amortization (excluding amortization of financing costs, but including
amortization of the portion, if any, of any purchase price allocated to in-place
leases), and (v) amortization of organizational expenses, less, to the extent
included in net income (loss), non-recurring income.

      GAAP means generally accepted accounting principles 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) and the Securities and Exchange Commission, which are applicable to
the circumstances as of the date of determination.

      GMAC Pool means the seven properties identified on Schedule 1.1(a) as the
GMAC Pool.

      GMAC Pool Debt means the indebtedness encumbering the GMAC Pool as
identified on Schedule 1.1(c).

      Gross Asset Value means the sum of cash, Cash Equivalents and refundable
cash deposits of the Company, the REIT and their consolidated Subsidiaries, plus
the capitalized market asset value of all the real estate owned by the Company,
the REIT and their consolidated Subsidiaries, as calculated by the EBITDA of the
Company, the REIT and their consolidated Subsidiaries for such Computation
Period divided by 7.75%, plus the GAAP book value of the unencumbered

                                       10
<PAGE>

Owned Manufactured Homes held in inventory, plus the Transitional Pads Value,
plus the lesser of (i) the GAAP book value of land owned and held by the REIT,
the Company and their Subsidiaries for future development or (ii)
$40,000,000.00.

      Group - see Section 2.2.1.

      Guarantors means the REIT and the Persons set forth in Schedule 1.1(b) and
any other Person that hereafter executes and delivers the Guaranty or a separate
guaranty in substantially the form of the Guaranty.

      Guaranty means the Guaranty dated as of the date hereof executed and
delivered by the Guarantors, together with any joinders thereto and any other
guaranty executed by a Loan Party, in each case in form and substance
satisfactory to the Administrative Agent.

      Hazardous Substances means (a) any petroleum or petroleum products,
radioactive materials, asbestos in any form that is or could become friable,
urea formaldehyde foam insulation, dielectric fluid containing levels of
polychlorinated biphenyls, radon gas and mold; (b) any chemicals, materials,
pollutant or substances defined as or included in the definition of "hazardous
substances", "hazardous waste", "hazardous materials", "extremely hazardous
substances", "restricted hazardous waste", "toxic substances", "toxic
pollutants", "contaminants", "pollutants" or words of similar import, under any
applicable Environmental Law; and (c) any other chemical, material or substance,
the exposure to, or release of which is prohibited, limited or regulated by any
governmental authority or for which any duty or standard of care is imposed
pursuant to, any Environmental Law.

      Hedging Agreement means any interest rate, currency or commodity swap
agreement, cap agreement or collar agreement, and any other agreement or
arrangement designed to protect a Person against fluctuations in interest rates,
currency exchange rates or commodity prices.

      Hedging Obligation means, with respect to any Person, any liability of
such Person under any Hedging Agreement. The amount of any Person's obligation
in respect of any Hedging Obligation shall be deemed to be the incremental
obligation that would be reflected in the financial statements of such Person in
accordance with GAAP.

      High Point Property means the property identified on Schedule 1.1 as the
High Point Property.

      Indemnified Liabilities - see Section 15.16.

      Interest Expense means for any period the consolidated interest expense of
the REIT, the Company and its Subsidiaries for such period (including all
imputed interest on Capital Leases).

      Interest Period means, as to any LIBOR Loan, the period commencing on the
date such Loan is borrowed or continued as, or converted into, a LIBOR Loan and
ending on the date one, two, three, six or nine months thereafter as selected by
the Company pursuant to Section 2.2.2 or 2.2.3, as the case may be; provided
that:

                                       11
<PAGE>

            (a) if any Interest Period would otherwise end on a day that is not
      a Business Day, such Interest Period shall be extended to the following
      Business Day unless the result of such extension would be to carry such
      Interest Period into another calendar month, in which event such Interest
      Period shall end on the preceding Business Day;

            (b) any Interest Period that begins on a day for which there is no
      numerically corresponding day in the calendar month at the end of such
      Interest Period shall end on the last Business Day of the calendar month
      at the end of such Interest Period; and

            (c) the Company may not select any Interest Period for a Revolving
      Loan which would extend beyond the scheduled Termination Date.

      Investment means, with respect to any Person, any investment in another
Person, whether by acquisition of any debt or Capital Security, by making any
loan or advance, by becoming obligated with respect to a Contingent Liability in
respect of obligations of such other Person (other than travel and similar
advances to employees in the ordinary course of business) or by making an
Acquisition.

      Issuing Lender means Standard Federal, in its capacity as the issuer of
Letters of Credit hereunder, or any Affiliate of Standard Federal that may from
time to time issue Letters of Credit, and their successors and assigns in such
capacity.

      L/C Application means, with respect to any request for the issuance of a
Letter of Credit, a letter of credit application in the form being used by the
Issuing Lender at the time of such request for the type of letter of credit
requested.

      L/C Fee Rate - see the definition of Applicable Margin.

      Lender - see the Preamble. References to the "Lenders" shall include the
Issuing Lender; for purposes of clarification only, to the extent that Standard
Federal (or any successor Issuing Lender) may have any rights or obligations in
addition to those of the other Lenders due to its status as Issuing Lender, its
status as such will be specifically referenced. In addition to the foregoing,
for the purpose of identifying the Persons entitled to share in the Collateral
and the proceeds thereof under, and in accordance with the provisions of, this
Agreement and the Collateral Documents, the term "Lender" shall include
Affiliates of a Lender providing a Bank Product.

      Lender Party - see Section 15.16.

      Letter of Credit - see Section 2.1.2.

      LIBOR Loan means any Loan which bears interest at a rate determined by
reference to the LIBOR Rate.

      LIBOR Margin - see the definition of Applicable Margin.

                                       12
<PAGE>

      LIBOR Office means with respect to any Lender the office or offices of
such Lender which shall be making or maintaining the LIBOR Loans of such Lender
hereunder. A LIBOR Office of any Lender may be, at the option of such Lender,
either a domestic or foreign office.

      LIBOR Rate means a rate of interest equal to (a) the per annum rate of
interest at which United States dollar deposits in an amount comparable to the
amount of the relevant LIBOR Loan and for a period equal to the relevant
Interest Period are offered in the London Interbank Eurodollar market at 11:00
A.M. (London time) two (2) Business Days prior to the commencement of such
Interest Period (or three (3) Business Days prior to the commencement of such
Interest Period if banks in London, England were not open and dealing in
offshore United States dollars on such second preceding Business Day), as
displayed in the Bloomberg Financial Markets system (or other authoritative
source selected by the Administrative Agent in its sole discretion) or, if the
Bloomberg Financial Markets system or another authoritative source is not
available, as the LIBOR Rate is otherwise determined by the Administrative Agent
in its sole and absolute discretion, divided by (b) a number determined by
subtracting from 1.00 the then stated maximum reserve percentage for determining
reserves to be maintained by member banks of the Federal Reserve System for
Eurocurrency funding or liabilities as defined in Regulation D (or any successor
category of liabilities under Regulation D), such rate to remain fixed for such
Interest Period. The Administrative Agent's determination of the LIBOR Rate
shall be conclusive, absent manifest error.

      Lien means, with respect to any Person, any interest granted by such
Person in any real or personal property, asset or other right owned or being
purchased or acquired by such Person (including an interest in respect of a
Capital Lease) which secures payment or performance of any obligation and shall
include any mortgage, lien, encumbrance, title retention lien, charge or other
security interest of any kind, whether arising by contract, as a matter of law,
by judicial process or otherwise.

      Loan or Loans means, as the context may require, Revolving Loans and/or
Swing Line Loans.

      Loan Documents means this Agreement, the Notes, the Letters of Credit, the
Master Letter of Credit Agreement, the L/C Applications, the Agent Fee Letter,
the Guaranty, the Collateral Documents and all documents, instruments and
agreements delivered in connection with the foregoing.

      Loan Party means the REIT, the Company, the Guarantors, and each
Subsidiary or Affiliate of the Company that either owns any of the properties in
the Borrowing Base Pool from time to time and/or controls the management and
financial decisions with regard to any such property.

      Major Agreement means each of the agreements and other documents listed on
Schedule 1.1(d).

      Mandatory Prepayment Event - see Section 6.2.2(a).

                                       13
<PAGE>

      Manufactured Home means a manufactured home as defined in section 603(6)
of the national manufactured housing construction and safety standards act of
1974, 42 U.S.C. 5402(6), which is used as a residence, but shall not include any
recreational vehicle.

      Manufactured Home Community means a property meeting the requirements of
the definition of Borrowing Base Pool and the pads on which property consist of
at least 50% Manufactured Home pads.

      Margin Stock means any "margin stock" as defined in Regulation U.

      Master Letter of Credit Agreement means, at any time, with respect to the
issuance of Letters of Credit, a master letter of credit agreement or
reimbursement agreement in the form, if any, being used by the Issuing Lender at
such time.

      Material Adverse Effect means (a) a material adverse change in, or a
material adverse effect upon, the financial condition, operations, assets,
business or properties of the Loan Parties taken as a whole, (b) a material
impairment of the ability of any Loan Party to perform any of the Obligations
under any Loan Document or (c) a material adverse effect upon the legality,
validity, binding effect or enforceability against any Loan Party of any Loan
Document.

      Multiemployer Pension Plan means a multiemployer plan, as defined in
Section 4001(a)(3) of ERISA, to which the Company or any other member of the
Controlled Group has liability or has a reasonable expectation of liability.

      Net Operating Income means, with respect to any property, the gross income
derived from the operation of such property, including any rent loss or business
interruption insurance proceeds, water and sewer charges, recreational vehicle
storage charges, laundry, parking or other vending or concession income, and
other miscellaneous ancillary income of the property, less operating expenses of
the property, all in accordance with accounting principles now in effect, as set
forth in the operating statements for the property. Net Operating Income will be
adjusted to give pro forma effect to assets acquired during the calendar year.

      Non-U.S. Participant - see Section 7.6(d).

      Non-Use Fee - see Section 5.1.

      Note means a promissory note substantially in the form of Exhibit A.

      Notice of Borrowing - see Section 2.2.2.

      Notice of Conversion/Continuation - see Section 2.2.3.

      Obligations means all monetary obligations (including post-petition
interest, allowed or not) or otherwise) of any Loan Party under this Agreement
and any other Loan Document including Attorney Costs and any reimbursement
obligations of each Loan Party in respect of Letters of Credit and surety bonds,
all Hedging Obligations permitted hereunder which are owed to any Lender or its
Affiliate, and all Bank Products Obligations, all in each case howsoever

                                       14
<PAGE>

created, arising or evidenced, whether direct or indirect, absolute or
contingent, now or hereafter existing, or due or to become due.

      OFAC - see Section 10.4.

      Operating Lease means any lease of (or other agreement conveying the right
to use) any real or personal property by any Loan Party, as lessee, other than
any Capital Lease.

      Owned Manufactured Homes means Manufactured Homes owned by the REIT, the
Company or its Subsidiaries, or Sun Home Services, Inc. free and clear of any
indebtedness and located within Manufactured Home Communities owned by the REIT,
the Company or their Subsidiaries.

      Participant - see Section 15.6.2.

      PBGC means the Pension Benefit Guaranty Corporation and any entity
succeeding to any or all of its functions under ERISA.

      Pension Plan means a "pension plan", as such term is defined in Section
3(2) of ERISA, which is subject to Title IV of ERISA or the minimum funding
standards of ERISA (other than a Multiemployer Pension Plan), and as to which
the Company or any member of the Controlled Group has liability or a reasonable
expectation of liability, including any liability by reason of having been a
substantial employer within the meaning of Section 4063 of ERISA at any time
during the preceding five years, or by reason of being deemed to be a
contributing sponsor under Section 4069 of ERISA.

      Permanent Loan Estimate means an amount equal to the pro forma loan amount
achieved by:

      (i)   Dividing Adjusted NOI by a Debt Service Coverage Factor of 1.25x
            ("Available NOI");

      (ii)  Then dividing the Available NOI by the Mortgage Constant derived by
            assuming a 30-year amortization factor and an interest rate equal to
            the greater of (a) the on the run 10-year Treasury Bond Rate as
            displayed in the Bloomberg Financial Markets system plus 1.50%, or
            (b) 7.00%;

      (iii) Then subtracting the then outstanding amount of the total GMAC Pool
            Debt and the Sea Air Property Debt.

      Permitted Lien means a Lien expressly permitted hereunder pursuant to
Section 11.2.

      Person means any natural person, corporation, partnership, trust, limited
liability company, association, governmental authority or unit, or any other
entity, whether acting in an individual, fiduciary or other capacity.

      Prime Rate means, for any day, the rate of interest in effect for such day
as publicly announced from time to time by the Administrative Agent as its prime
rate (whether or not such

                                       15
<PAGE>

rate is actually charged by the Administrative Agent), which is not intended to
be the Administrative Agent's lowest or most favorable rate of interest at any
one time. Any change in the Prime Rate announced by the Administrative Agent
shall take effect at the opening of business on the day specified in the public
announcement of such change; provided that the Administrative Agent shall not be
obligated to give notice of any change in the Prime Rate.

      Pro Rata Share means with respect to a Lender's obligation to make
Revolving Loans, participate in Letters of Credit, reimburse the Issuing Lender,
receive payments of principal, interest, fees, costs, and expenses with respect
thereto and as to all other matters as to a particular Lender, (x) prior to the
Revolving Commitment being terminated or reduced to zero, the percentage
obtained by dividing (i) such Lender's Revolving Commitment, by (ii) the
aggregate Revolving Commitment of all Lenders and (y) from and after the time
the Revolving Commitment has been terminated or reduced to zero, the percentage
obtained by dividing (i) the aggregate unpaid principal amount of such Lender's
Revolving Outstandings (after settlement and repayment of all Swing Line Loans
by the Lenders) by (ii) the aggregate unpaid principal amount of all Revolving
Outstandings.

      Recreational Vehicle Community means a property meeting the requirements
of the definition of Borrowing Base Pool and the pads on which property consist
of less than 50% Manufactured Home pads.

      Refunded Swing Line Loan - see Section 2.2.4(c).

      Regulation D means Regulation D of the FRB.

      Regulation U means Regulation U of the FRB.

      REIT - see the Preamble.

      Replacement Lender - see Section 8.7(b).

      Reportable Event means a reportable event as defined in Section 4043 of
ERISA and the regulations issued thereunder as to which the PBGC has not waived
the notification requirement of Section 4043(a), or the failure of a Pension
Plan to meet the minimum funding standards of Section 412 of the Code (without
regard to whether the Pension Plan is a plan described in Section 4021(a)(2) of
ERISA) or under Section 302 of ERISA.

      Required Lenders means, at any time, Lenders whose Pro Rata Shares exceed
66?% as determined pursuant to the definition of "Pro Rata Share".

      Revolving Commitment means $90,000,000.00, as reduced from time to time
pursuant to Section 6.1 or as increased from time to time pursuant to Section
6.5.

      Revolving Loan - see Section 2.1.1.

      Revolving Loan Availability means the lesser of (i) the Revolving
Commitment and (ii) the Borrowing Base.

                                       16
<PAGE>

      Revolving Outstandings means, at any time, the sum of (a) the aggregate
principal amount of all outstanding Revolving Loans, plus (b) the Stated Amount
of all Letters of Credit.

      Sea Air Property means the property identified on Schedule 1.1(a) as the
Sea Air Property.

      Sea Air Property Debt means the indebtedness encumbering the Sea Air
Property as identified on Schedule 1.1(c).

      SEC means the Securities and Exchange Commission or any other governmental
authority succeeding to any of the principal functions thereof.

      Senior Debt means all Debt of the REIT, the Company and its Subsidiaries
other than Subordinated Debt.

      Senior Officer means, with respect to any Loan Party, any of the chief
executive officer, the chief financial officer, the chief operating officer, the
treasurer or the controller of such Loan Party.

      Standard Federal - see the Preamble.

      Stated Amount means, with respect to any Letter of Credit at any date of
determination, (a) the maximum aggregate amount available for drawing thereunder
under any and all circumstances plus (b) the aggregate amount of all
unreimbursed payments and disbursements under such Letter of Credit.

      Subordinated Debt means any unsecured Debt of the Company which has
subordination terms, covenants, pricing and other terms which have been approved
in writing by the Required Lenders.

      Subordinated Debt Documents means all documents and instruments relating
to the Subordinated Debt and all amendments and modifications thereof approved
by the Administrative Agent.

      Subordination Agreements means all subordination agreements executed by a
holder of Subordinated Debt in favor of the Administrative Agent and the Lenders
from time to time after the Effective Date.

      Subsidiary means, with respect to any Person, a corporation, partnership,
limited liability company or other entity of which such Person owns, directly or
indirectly, such number of outstanding Capital Securities as have more than 50%
of the ordinary voting power for the election of directors or other managers of
such corporation, partnership, limited liability company or other entity. Unless
the context otherwise requires, each reference to Subsidiaries herein shall be a
reference to Subsidiaries of the Company.

      SunChamp Portfolio means the properties identified on Schedule 1.1(a) as
the SunChamp Portfolio.

                                       17
<PAGE>

      Swing Line Availability means the lesser of (a) the Swing Line Commitment
Amount and (b) Revolving Loan Availability (less Revolving Outstandings at such
time).

      Swing Line Commitment Amount means $5,000,000.00, as reduced from time to
time pursuant to Section 6.1, which commitment constitutes a subfacility of the
Revolving Commitment of the Swing Line Lender.

      Swing Line Lender means Standard Federal.

      Swing Line Loan - see Section 2.2.4.

      Tangible Net Worth means consolidated shareholder equity of the REIT plus
add-back of minority interest in the Company (and not minority interests in any
other entity) and accumulated depreciation minus all intangible assets (other
than any purchase price allocation assigned to in place leases), all determined
in accordance with GAAP.

      Taxes means any and all present and future taxes, duties, levies, imposts,
deductions, assessments, charges or withholdings, and any and all liabilities
(including interest and penalties and other additions to taxes) with respect to
the foregoing, but excluding Excluded Taxes.

      Termination Date means (a) that date which is three (3) years after the
Effective Date or (b) if Company has timely exercised its option to extend the
Termination Date pursuant to Section 6.6, to that date that is four (4) years
after the Effective Date or (c) such earlier date on which the Commitments
terminate pursuant to Section 6 or 13.

      Termination Event means, with respect to a Pension Plan that is subject to
Title IV of ERISA, (a) a Reportable Event, (b) the withdrawal of Company or any
other member of the Controlled Group from such Pension Plan during a plan year
in which Company or any other member of the Controlled Group was a "substantial
employer" as defined in Section 4001(a)(2) of ERISA, (c) the termination of such
Pension Plan, the filing of a notice of intent to terminate the Pension Plan or
the treatment of an amendment of such Pension Plan as a termination under
Section 4041 of ERISA, (d) the institution by the PBGC of proceedings to
terminate such Pension Plan or (e) any event or condition that constitutes
grounds under Section 4042 of ERISA for the termination of, or appointment of a
trustee to administer, such Pension Plan.

      Total Leverage Ratio means Total Liabilities divided by the Gross Asset
Value.

      Total Liabilities means all GAAP indebtedness of the Company, the REIT and
their consolidated Subsidiaries on a consolidated basis, including recourse and
non-recourse mortgage debt, letters of credit, purchase obligations, forward
equity sales, repurchase obligations, unsecured debt accounts payable, lease
obligations (including ground leases, to be classified as capital leases on the
balance sheet of the Company, the REIT and their consolidated Subsidiaries),
guarantees of indebtedness, the ownership share (the greater of (a) economic or
(b) nominal share) of the Company, the REIT and their consolidated Subsidiaries
of non-recourse debt in unconsolidated affiliates or debt that is no recourse to
the Company, the REIT and their consolidated Subsidiaries, and subordinated debt
and unfunded obligations of the Company, the REIT and their consolidated
Subsidiaries, provided, however, that "Total Liabilities" shall not

                                       18
<PAGE>

include dividends declared by the Company which are permitted, but not yet paid,
or Preferred Operating Partnership Units and Preferred Stock that mature after
the Termination Date.

      Total Plan Liability means, at any time, the present value of all vested
and unvested accrued benefits under all Pension Plans, determined as of the then
most recent valuation date for each Pension Plan, using the actuarial
assumptions and methods used in the then most recent actuarial valuation reports
for the Pension Plan.

      Transitional Pads means unleased pads at Developed Properties included in
the Borrowing Base Pool.

      Transitional Pads Value means an amount equal to 90% of the lesser of (a)
the Company's cost basis in the Transitional Pads as reported quarterly by the
Company, or (b) $20,000 per pad.

      type - see Section 2.2.1.

      Unencumbered Adjusted NOI means the Net Operating Income from the
Unencumbered Pool for the most recently ended Computation Period less, in
respect of each Developed Property: (a) a capital expenditure reserve equal to
$50 per pad; and (b) the greater of actual management fees or an imputed
management fee equal to 4% of Base Rent Revenues.

      Unencumbered Pool means (A) Manufactured Home Communities and Recreational
Vehicle Communities that are not securing any Debt and are owned in fee simple
or ground leased under ground leases approved by the Administrative Agent in its
reasonable discretion, and which either (i) are wholly-owned by the Company, the
REIT and/or their Subsidiaries, or (ii) are not wholly-owned by the Company, the
REIT and/or their Subsidiaries, but are directly or indirectly majority-owned by
the Company or the REIT, the Company or the REIT directly or indirectly acts as
the general partner or manager of such entity and controls all management and
financial decisions; and such Communities are consolidated on the Company's
Financial Statements, (B) the Sunchamp Portfolio, and (C) the High Point
Property.

      Unfunded Liability means the amount (if any) by which the present value of
all vested and unvested accrued benefits under all Pension Plans exceeds the
fair market value of all assets allocable to those benefits, all determined as
of the then most recent valuation date for each Pension Plan, using the
actuarial assumptions and methods used in the then most recent actuarial
valuation reports for the Pension Plan.

      Unmatured Event of Default means any event that, if it continues uncured,
will, with lapse of time or notice or both, constitute an Event of Default.

      Unsecured Debt Service means, for any Computation Period, Debt Service in
respect of unsecured Debt.

      Wholly-Owned Subsidiary means, a Subsidiary all of the Capital Securities
of which (except directors' qualifying Capital Securities) are at the time
directly or indirectly owned by the Company, the REIT and/or another
Wholly-Owned Subsidiary of such Person.

                                       19
<PAGE>

      Withholding Certificate - see Section 7.6(d).

      1.2 Other Interpretive Provisions. (a) The meanings of defined terms are
equally applicable to the singular and plural forms of the defined terms.

            (b) Section, Annex, Schedule and Exhibit references are to this
      Agreement unless otherwise specified.

            (c) The term "including" is not limiting and means "including
      without limitation."

            (d) 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."

            (e) Unless otherwise expressly provided herein, (i) references to
      agreements (including this Agreement and the other Loan Documents) and
      other contractual instruments shall be deemed to include all subsequent
      amendments, restatements, supplements and other modifications thereto, but
      only to the extent such amendments, restatements, supplements and other
      modifications are not prohibited by the terms of any Loan Document, and
      (ii) references to any statute or regulation shall be construed as
      including all statutory and regulatory provisions amending, replacing,
      supplementing or interpreting such statute or regulation.

            (f) This Agreement and the 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 each shall be performed in accordance with its terms.

            (g) This Agreement and the other Loan Documents are the result of
      negotiations among and have been reviewed by counsel to the Administrative
      Agent, the Company, the Lenders and the other parties thereto and are the
      products of all parties. Accordingly, they shall not be construed against
      the Administrative Agent or the Lenders merely because of the
      Administrative Agent's or Lenders' involvement in their preparation.

      SECTION 2. COMMITMENTS OF THE LENDERS; BORROWING, CONVERSION AND LETTER OF
                 CREDIT PROCEDURES.

      2.1 Commitments. On and subject to the terms and conditions of this
Agreement, each of the Lenders, severally and for itself alone, agrees to make
loans to, and to issue or participate in letters of credit for the account of,
the Company as follows:

            2.1.1 Revolving Loan Commitment. Each Lender agrees to make loans on
a revolving basis ("Revolving Loans") from time to time until the Termination
Date in such Lender's Pro Rata Share of such aggregate amounts as the Company
may request from all Lenders; provided that the Revolving Outstandings will not
at any time exceed Revolving Loan Availability (less the amount of any Swing
Line Loans outstanding at such time).

                                       20
<PAGE>

            2.1.2 L/C Commitment. Subject to Section 2.3.1, the Issuing Lender
agrees to issue letters of credit, in each case containing such terms and
conditions as are permitted by this Agreement and are reasonably satisfactory to
the Issuing Lender (each, a "Letter of Credit"), at the request of and for the
account of the Company from time to time before the scheduled Termination Date
and, as more fully set forth in Section 2.3.2, each Lender agrees to purchase a
participation in each such Letter of Credit; provided that (a) the aggregate
Stated Amount of all Letters of Credit shall not at any time exceed
$15,000,000.00 and (b) the Revolving Outstandings shall not at any time exceed
Revolving Loan Availability (less the amount of any Swing Line Loans outstanding
at such time).

      2.2 Loan Procedures.

            2.2.1 Various Types of Loans. Each Revolving Loan shall be divided
into tranches which are, either a Base Rate Loan or a LIBOR Loan (each a "type"
of Loan), as the Company shall specify in the related notice of borrowing or
conversion pursuant to Section 2.2.2 or 2.2.3. LIBOR Loans having the same
Interest Period are sometimes called a "Group" or collectively "Groups". Base
Rate Loans and LIBOR Loans may be outstanding at the same time, provided that
not more than six (6) different Groups of LIBOR Loans shall be outstanding at
any one time. All borrowings, conversions and repayments of Revolving Loans
shall be effected so that each Lender will have a ratable share (according to
its Pro Rata Share) of all types and Groups of Loans.

            2.2.2 Borrowing Procedures. The Company shall give written notice
(each such written notice, a "Notice of Borrowing") substantially in the form of
Exhibit E or telephonic notice (followed immediately by a Notice of Borrowing)
to the Administrative Agent of each proposed borrowing not later than (a) in the
case of a Base Rate borrowing, 1:00 P.M., Detroit time, on the proposed date of
such borrowing, and (b) in the case of a LIBOR borrowing, 11:00 A.M., Detroit
time, at least three Business Days prior to the proposed date of such borrowing.
Each such notice shall be effective upon receipt by the Administrative Agent,
shall be irrevocable, and shall specify the date, amount and type of borrowing
and, in the case of a LIBOR borrowing, the initial Interest Period therefor.
Promptly upon receipt of such notice, the Administrative Agent shall advise each
Lender thereof. Not later than 3:00 P.M., Detroit time, on the date of a
proposed borrowing, each Lender shall provide the Administrative Agent at the
office specified by the Administrative Agent with immediately available funds
covering such Lender's Pro Rata Share of such borrowing and, so long as the
Administrative Agent has not received written notice that the conditions
precedent set forth in Section 11 with respect to such borrowing have not been
satisfied, the Administrative Agent shall pay over the funds received by the
Administrative Agent to the Company on the requested borrowing date. Each
borrowing shall be on a Business Day. Each Base Rate borrowing shall be in an
aggregate amount of at least $1,000,000.00 and an integral multiple of
$100,000.00, and each LIBOR borrowing shall be in an aggregate amount of at
least $1,000,000.00 and an integral multiple of at least $100,000.00.

            2.2.3 Conversion and Continuation Procedures. (a) Subject to Section
2.2.1, the Company may, upon irrevocable written notice to the Administrative
Agent in accordance with clause (b) below:

                                       21
<PAGE>

                  (A) elect, as of any Business Day, to convert any Loans (or
      any part thereof in an aggregate amount not less than $1,000,000.00 or a
      higher integral multiple of $100,000.00) into Loans of the other type; or

                  (B) elect, as of the last day of the applicable Interest
      Period, to continue any LIBOR Loans having Interest Periods expiring on
      such day (or any part thereof in an aggregate amount not less than
      $1,000,000.00 or a higher integral multiple of $100,000.00) for a new
      Interest Period;

provided that after giving effect to any prepayment, conversion or continuation,
the aggregate principal amount of each Group of LIBOR Loans shall be at least
$1,000,000.00 or a higher integral multiple of $100,000.00.

            (b) The Company shall give written notice (each such written notice,
      a "Notice of Conversion/Continuation") substantially in the form of
      Exhibit F or telephonic notice (followed immediately by a Notice of
      Conversion/Continuation) to the Administrative Agent of each proposed
      conversion or continuation not later than (i) in the case of conversion
      into Base Rate Loans, 1:00 P.M., Detroit time, on the proposed date of
      such conversion and (ii) in the case of conversion into or continuation of
      LIBOR Loans, 11:00 A.M., Detroit time, at least three Business Days prior
      to the proposed date of such conversion or continuation, specifying in
      each case:

                  (A) the proposed date of conversion or continuation;

                  (B) the aggregate amount of Loans to be converted or
      continued;

                  (C) the type of Loans resulting from the proposed conversion
      or continuation; and

                  (D) in the case of conversion into, or continuation of, LIBOR
      Loans, the duration of the requested Interest Period therefor.

            (c) If upon the expiration of any Interest Period applicable to
      LIBOR Loans, the Company has failed to select timely a new Interest Period
      to be applicable to such LIBOR Loans, the Company shall be deemed to have
      elected to convert such LIBOR Loans into Base Rate Loans effective on the
      last day of such Interest Period.

            (d) The Administrative Agent will promptly notify each Lender of its
      receipt of a notice of conversion or continuation pursuant to this Section
      2.2.3 or, if no timely notice is provided by the Company, of the details
      of any automatic conversion.

            (e) Any conversion of a LIBOR Loan on a day other than the last day
      of an Interest Period therefor shall be subject to Section 8.4.

            2.2.4 Swing Line Facility.

            (a) The Administrative Agent shall notify the Swing Line Lender upon
      the Administrative Agent's receipt of any Notice of Borrowing. Subject to
      the terms and

                                       22
<PAGE>

      conditions hereof, the Swing Line Lender may, in its sole discretion, make
      available from time to time until the Termination Date advances (each, a
      "Swing Line Loan") in accordance with any such notice, notwithstanding
      that after making a requested Swing Line Loan, the sum of the Swing Line
      Lender's Pro Rata Share of the Revolving Outstanding and all outstanding
      Swing Line Loans, may exceed the Swing Line Lender's Pro Rata Share of the
      Revolving Commitment. The provisions of this Section 2.2.4 shall not
      relieve Lenders of their obligations to make Revolving Loans under Section
      2.1.1; provided that if the Swing Line Lender makes a Swing Line Loan
      pursuant to any such notice, such Swing Line Loan shall be in lieu of any
      Revolving Loan that otherwise may be made by the Lenders pursuant to such
      notice. The aggregate amount of Swing Line Loans outstanding shall not
      exceed at any time Swing Line Availability. Until the Termination Date,
      the Company may from time to time borrow, repay and reborrow under this
      Section 2.2.4. Each Swing Line Loan shall be made pursuant to a Notice of
      Borrowing delivered by the Company to the Administrative Agent in
      accordance with Section 2.2.2. Any such notice must be given no later than
      2:00 P.M., Detroit time, on the Business Day of the proposed Swing Line
      Loan. Unless the Swing Line Lender has received at least one Business
      Day's prior written notice from the Required Lenders instructing it not to
      make a Swing Line Loan, the Swing Line Lender shall, notwithstanding the
      failure of any condition precedent set forth in Section 12.2, be entitled
      to fund that Swing Line Loan, and to have such Lender make Revolving Loans
      in accordance with Section 2.2.4(c) or purchase participating interests in
      accordance with Section 2.2.4(d). Notwithstanding any other provision of
      this Agreement or the other Loan Documents, each Swing Line Loan shall
      constitute a Base Rate Loan. The Company shall repay the aggregate
      outstanding principal amount of each Swing Line Loan upon demand therefor
      by the Administrative Agent.

            (b) The entire unpaid balance of each Swing Line Loan and all other
      noncontingent Obligations shall be immediately due and payable in full in
      immediately available funds on the Termination Date if not sooner paid in
      full.

            (c) The Swing Line Lender, at any time and from time to time no less
      frequently than once weekly, shall on behalf of the Company (and the
      Company hereby irrevocably authorizes the Swing Line Lender to so act on
      its behalf) request each Lender (including the Swing Line Lender) to make
      a Revolving Loan to the Company (which shall be a Base Rate Loan) in an
      amount equal to that Lender's Pro Rata Share of the principal amount of
      all Swing Line Loans (the "Refunded Swing Line Loan") outstanding on the
      date such notice is given. Unless any of the events described in Section
      13.1.4 has occurred (in which event the procedures of Section 2.2.4(d)
      shall apply) and regardless of whether the conditions precedent set forth
      in this Agreement to the making of a Revolving Loan are then satisfied,
      each Lender shall disburse directly to the Administrative Agent, its Pro
      Rata Share on behalf of the Swing Line Lender, prior to 2:00 P.M., Detroit
      time, in immediately available funds on the date that notice is given
      (provided that such notice is given by 12:00 p.m., Detroit time, on such
      date). The proceeds of those Revolving Loans shall be immediately paid to
      the Swing Line Lender and applied to repay the Refunded Swing Line Loan.

                                       23
<PAGE>

            (d) If, prior to refunding a Swing Line Loan with a Revolving Loan
      pursuant to Section 2.2.4(c), one of the events described in Section
      13.1.4 has occurred, then, subject to the provisions of Section 2.2.4(e)
      below, each Lender shall, on the date such Revolving Loan was to have been
      made for the benefit of the Company, purchase from the Swing Line Lender
      an undivided participation interest in the Swing Line Loan in an amount
      equal to its Pro Rata Share of such Swing Line Loan. Upon request, each
      Lender shall promptly transfer to the Swing Line Lender, in immediately
      available funds, the amount of its participation interest.

            (e) Each Lender's obligation to make Revolving Loans in accordance
      with Section 2.2.4(c) and to purchase participation interests in
      accordance with Section 2.2.4(d) shall be absolute and unconditional and
      shall not be affected by any circumstance, including (i) any setoff,
      counterclaim, recoupment, defense or other right that such Lender may have
      against the Swing Line Lender, the Company or any other Person for any
      reason whatsoever; (ii) the occurrence or continuance of any Unmatured
      Event of Default or Event of Default; (iii) any inability of the Company
      to satisfy the conditions precedent to borrowing set forth in this
      Agreement at any time or (iv) any other circumstance, happening or event
      whatsoever, whether or not similar to any of the foregoing. If and to the
      extent any Lender shall not have made such amount available to the
      Administrative Agent or the Swing Line Lender, as applicable, by 2:00
      P.M., Detroit time, the amount required pursuant to Sections 2.2.4(c) or
      2.2.4(d), as the case may be, on the Business Day on which such Lender
      receives notice from the Administrative Agent of such payment or
      disbursement (it being understood that any such notice received after
      noon, Detroit time, on any Business Day shall be deemed to have been
      received on the next following Business Day), such Lender agrees to pay
      interest on such amount to the Administrative Agent for the Swing Line
      Lender's account forthwith on demand, for each day from the date such
      amount was to have been delivered to the Administrative Agent to the date
      such amount is paid, at a rate per annum equal to (a) for the first three
      days after demand, the Federal Funds Rate from time to time in effect and
      (b) thereafter, the Base Rate from time to time in effect.

      2.3 Letter of Credit Procedures.

          2.3.1 L/C Applications. The Company shall execute and deliver to the
Issuing Lender the Master Letter of Credit Agreement from time to time in
effect. The Company shall give notice to the Administrative Agent and the
Issuing Lender of the proposed issuance of each Letter of Credit on a Business
Day which is at least three Business Days (or such lesser number of days as the
Administrative Agent and the Issuing Lender shall agree in any particular
instance in their sole discretion) prior to the proposed date of issuance of
such Letter of Credit. Each such notice shall be accompanied by an L/C
Application, duly executed by the Company and in all respects satisfactory to
the Administrative Agent and the Issuing Lender, together with such other
documentation as the Administrative Agent or the Issuing Lender may request in
support thereof, it being understood that each L/C Application shall specify,
among other things, the date on which the proposed Letter of Credit is to be
issued, the expiration date of such Letter of Credit (which shall not be later
than the scheduled Termination Date (unless such Letter of Credit is Cash
Collateralized)) and whether such Letter of Credit is to be transferable in
whole or in part. Any Letter of Credit outstanding after the scheduled
Termination Date which is Cash

                                       24
<PAGE>

Collateralized for the benefit of the Issuing Lender shall be the sole
responsibility of the Issuing Lender. So long as the Issuing Lender has not
received written notice that the conditions precedent set forth in Section 12
with respect to the issuance of such Letter of Credit have not been satisfied,
the Issuing Lender shall issue such Letter of Credit on the requested issuance
date. The Issuing Lender shall promptly advise the Administrative Agent of the
issuance of each Letter of Credit and of any amendment thereto, extension
thereof or event or circumstance changing the amount available for drawing
thereunder. In the event of any inconsistency between the terms of the Master
Letter of Credit Agreement, any L/C Application and the terms of this Agreement,
the terms of this Agreement shall control.

            2.3.2 Participations in Letters of Credit. Concurrently with the
issuance of each Letter of Credit, the Issuing Lender shall be deemed to have
sold and transferred to each Lender with a Revolving Loan Commitment, and each
such Lender shall be deemed irrevocably and unconditionally to have purchased
and received from the Issuing Lender, without recourse or warranty, an undivided
interest and participation, to the extent of such Lender's Pro Rata Share, in
such Letter of Credit and the Company's reimbursement obligations with respect
thereto. If the Company does not pay any reimbursement obligation when due, the
Company shall be deemed to have immediately requested that the Lenders make a
Revolving Loan which is a Base Rate Loan in a principal amount equal to such
reimbursement obligations. The Administrative Agent shall promptly notify such
Lenders of such deemed request and, without the necessity of compliance with the
requirements of Section 2.2.2, 12.2 or otherwise such Lender shall make
available to the Administrative Agent its Pro Rata Share of such Loan. The
proceeds of such Loan shall be paid over by the Administrative Agent to the
Issuing Lender for the account of the Company in satisfaction of such
reimbursement obligations. For the purposes of this Agreement, the
unparticipated portion of each Letter of Credit shall be deemed to be the
Issuing Lender's "participation" therein. The Issuing Lender hereby agrees, upon
request of the Administrative Agent or any Lender, to deliver to the
Administrative Agent or such Lender a list of all outstanding Letters of Credit
issued by the Issuing Lender, together with such information related thereto as
the Administrative Agent or such Lender may reasonably request.

            2.3.3 Reimbursement Obligations. (a) The Company hereby
unconditionally and irrevocably agrees to reimburse the Issuing Lender for each
payment or disbursement made by the Issuing Lender under any Letter of Credit
honoring any demand for payment made by the beneficiary thereunder, in each case
on the date that such payment or disbursement is made; provided that the Company
shall not be precluded from asserting any claim for direct damages suffered by
the Company to the extent caused by the willful misconduct or gross negligence
of the Issuing Lender in determining whether a request presented under any
Letter of Credit issued by it complied with the terms of such Letter of Credit,
or the Issuing Lender's failure to pay under any Letter of Credit issued by it
after the presentation to it of a request strictly complying with the terms of
such Letter of Credit.. Any amount not reimbursed on the date of such payment or
disbursement shall bear interest from the date of such payment or disbursement
to the date that the Issuing Lender is reimbursed by the Company therefor,
payable on demand, at a rate per annum equal to the Base Rate from time to time
in effect plus the Base Rate Margin from time to time in effect plus, beginning
on the third Business Day after receipt of notice from the Issuing Lender of
such payment or disbursement, 3%. The Issuing Lender shall notify the Company
and the Administrative Agent whenever any demand for payment is made under any
Letter of Credit by the beneficiary thereunder; provided that the failure of the
Issuing Lender to

                                       25
<PAGE>

so notify the Company or the Administrative Agent shall not affect the rights of
the Issuing Lender or the Lenders in any manner whatsoever.

            (b) The Company's reimbursement obligations hereunder shall be
      irrevocable and unconditional under all circumstances, including (a) any
      lack of validity or enforceability of any Letter of Credit, this Agreement
      or any other Loan Document, (b) the existence of any claim, set-off,
      defense or other right which any Loan Party may have at any time against a
      beneficiary named in a Letter of Credit, any transferee of any Letter of
      Credit (or any Person for whom any such transferee may be acting), the
      Administrative Agent, the Issuing Lender, any Lender or any other Person,
      whether in connection with any Letter of Credit, this Agreement, any other
      Loan Document, the transactions contemplated herein or any unrelated
      transactions (including any underlying transaction between any Loan Party
      and the beneficiary named in any Letter of Credit), (c) the validity,
      sufficiency or genuineness of any document which the Issuing Lender has
      determined complies on its face with the terms of the applicable Letter of
      Credit, even if such document should later prove to have been forged,
      fraudulent, invalid or insufficient in any respect or any statement
      therein shall have been untrue or inaccurate in any respect, or (d) the
      surrender or impairment of any security for the performance or observance
      of any of the terms hereof. Without limiting the foregoing, no action or
      omission whatsoever by the Administrative Agent or any Lender (excluding
      any Lender in its capacity as the Issuing Lender) under or in connection
      with any Letter of Credit or any related matters shall result in any
      liability of the Administrative Agent or any Lender to the Company, or
      relieve the Company of any of its obligations hereunder to any such
      Person.

            2.3.4 Funding by Lenders to Issuing Lender. If the Issuing Lender
makes any payment or disbursement under any Letter of Credit and (a) the Company
has not reimbursed the Issuing Lender in full for such payment or disbursement
by 11:00 A.M., Detroit time, on the date of such payment or disbursement, (b) a
Revolving Loan may not be made in accordance with Section 2.3.2 or (c) any
reimbursement received by the Issuing Lender from the Company is or must be
returned or rescinded upon or during any bankruptcy or reorganization of the
Company or otherwise, each other Lender with a Revolving Loan Commitment shall
be obligated to pay to the Administrative Agent for the account of the Issuing
Lender, in full or partial payment of the purchase price of its participation in
such Letter of Credit, its Pro Rata Share of such payment or disbursement (but
no such payment shall diminish the obligations of the Company under Section
2.3.3), and, upon notice from the Issuing Lender, the Administrative Agent shall
promptly notify each other Lender thereof. Each other Lender irrevocably and
unconditionally agrees to so pay to the Administrative Agent in immediately
available funds for the Issuing Lender's account the amount of such other
Lender's Pro Rata Share of such payment or disbursement. If and to the extent
any Lender shall not have made such amount available to the Administrative Agent
by 2:00 P.M., Detroit time, on the Business Day on which such Lender receives
notice from the Administrative Agent of such payment or disbursement (it being
understood that any such notice received after noon, Chicago time, on any
Business Day shall be deemed to have been received on the next following
Business Day), such Lender agrees to pay interest on such amount to the
Administrative Agent for the Issuing Lender's account forthwith on demand, for
each day from the date such amount was to have been delivered to the
Administrative Agent to the date such amount is paid, at a rate per annum equal
to (a) for the

                                       26
<PAGE>

first three days after demand, the Federal Funds Rate from time to time in
effect and (b) thereafter, the Base Rate from time to time in effect. Any
Lender's failure to make available to the Administrative Agent its Pro Rata
Share of any such payment or disbursement shall not relieve any other Lender of
its obligation hereunder to make available to the Administrative Agent such
other Lender's Pro Rata Share of such payment, but no Lender shall be
responsible for the failure of any other Lender to make available to the
Administrative Agent such other Lender's Pro Rata Share of any such payment or
disbursement.

      2.4 Commitments Several. The failure of any Lender to make a requested
Loan on any date shall not relieve any other Lender of its obligation (if any)
to make a Loan on such date, but no Lender shall be responsible for the failure
of any other Lender to make any Loan to be made by such other Lender.

      2.5 Certain Conditions. Except as otherwise provided in Section 2.2.4 and
2.3.4 of this Agreement, the Required Lenders may, at their option, by notice to
the Company, during the continuance of an Event of Default or Unmatured Event of
Default, declare that no Loans may be made or LIBOR Loans continued, or Loans
converted into LIBOR Loans; provided that such action may thereafter be
rescinded by the Required Lenders, notwithstanding Section 15.1. The Issuing
Lender may, at its sole option, by notice to the Company, during the continuance
of an Event of Default or Unmatured Event of Default, declare that no Letters of
Credit will be issued, renewed or extended.

      2.6 Release of Guarantors. If the Company elects by written notice to the
Administrative Agent to delete a property from the Borrowing Base Pool and the
owner of such property is not the Company or the REIT and such owner does not
own any other properties included in the Borrowing Base, such owner shall be
immediately and without any further action on the part of the Administrative
Agent or the Lenders be deemed released from the Guaranty on the date of such
notice, and upon request by the Company to the Administrative Agent, the
Administrative Agent shall provide evidence of such release to the Company;
provided that no property shall be deleted from the Borrowing Base Pool at the
request of the Company and no Guarantor shall be released or deemed to be
released from its Guaranty, if immediately after giving effect to such deletion
and/or release, (a) an Event of Default or Unmatured Event of Default would
exist or (b) the Revolving Outstandings plus the outstanding amount of the Swing
Line Loan would exceed the Borrowing Base.

      SECTION 3. EVIDENCING OF LOANS; SECURITY.

      3.1 Notes. The Loans of each Lender shall be evidenced by a Note, with
appropriate insertions, payable to the order of such Lender in a face principal
amount equal to the sum of such Lender's Revolving Loan Commitment.

      3.2 Recordkeeping. The Administrative Agent, on behalf of each Lender,
shall record in its records, the date and amount of each Loan made by each
Lender, each repayment or conversion thereof and, in the case of each LIBOR
Loan, the dates on which each Interest Period for such Loan shall begin and end.
The aggregate unpaid principal amount so recorded shall be rebuttably
presumptive evidence of the principal amount of the Loans owing and unpaid. The
failure to so record any such amount or any error in so recording any such
amount shall not,

                                       27
<PAGE>
however, limit or otherwise affect the Obligations of the Company hereunder or
under any Note to repay the principal amount of the Loans hereunder, together
with all interest accruing thereon.

      3.3 Security for Obligations. As partial security for the Obligations, the
Company shall grant, or cause the Loan Parties to grant, to the Administrative
Agent for the pro-rata benefit of the Lenders, pursuant to documents in form and
substance satisfactory to the Administrative Agent:

            (a) a first priority, perfected assignment of all of the promissory
      notes, mortgages, assignments and security interests held by any Loan
      Party in connection with the existing indebtedness of SunChamp in the
      approximate principal amount of $77,518,000.00;

            (b) a first priority, perfected assignment of all of the promissory
      notes, mortgages, assignments, security interests, options, negative
      pledge agreements, collateral assignments of partnership interests and
      management agreements held by any Loan Party in connection with the High
      Point Property;

            (c) a first priority, perfected assignment of all of the promissory
      notes, mortgages, assignments, security interests, options, negative
      pledge agreements, collateral assignments of partnership interests and
      management agreements held by any Loan Party in connection with the Sea
      Air Property; and

            (d) a negative pledge agreement from each Loan Party which directly
      or indirectly owns an interest in any Person that owns title to and/or
      ground leases any of the properties in the GMAC Pool.

      SECTION 4. INTEREST.

      4.1 Interest Rates. The Company promises to pay interest on the unpaid
principal amount of each Loan for the period commencing on the date of such Loan
until such Loan is paid in full as follows:

            (a) at all times while such Loan is a Base Rate Loan, at a rate per
      annum equal to the sum of the Base Rate from time to time in effect plus
      the Base Rate Margin from time to time in effect; and

            (b) at all times while such Loan is a LIBOR Loan, at a rate per
      annum equal to the sum of the LIBOR Rate applicable to each Interest
      Period for such Loan plus the LIBOR Margin from time to time in effect;

provided that at any time an Event of Default exists, the Required Lenders may
at their option, declare that the interest rate applicable to each Loan shall be
increased by 3% (and, in the case of Obligations not bearing interest, such
Obligations shall bear interest at the Base Rate applicable to Revolving Loans
plus 3%), provided further that such increase may thereafter be rescinded by the
Required Lenders, notwithstanding Section 15.1. Notwithstanding the foregoing,
upon the occurrence of an Event of Default under Section 13.1.1 or 13.1.4, such
increase shall occur automatically.

                                       28
<PAGE>

      4.2 Interest Payment Dates. Accrued interest on each Base Rate Loan shall
be payable in arrears on the first day of each calendar month and at maturity.
Accrued interest on each LIBOR Loan shall be payable on the last day of each
Interest Period relating to such Loan (and, in the case of a LIBOR Loan with an
Interest Period in excess of three months, on the three-month anniversary of the
first day of such Interest Period), upon a prepayment of such Loan, and at
maturity. After maturity, and at any time an Event of Default exists, accrued
interest on all Loans shall be payable on demand.

      4.3 Setting and Notice of LIBOR Rates. The applicable LIBOR Rate for each
Interest Period shall be determined by the Administrative Agent, and notice
thereof shall be given by the Administrative Agent promptly to the Company and
each Lender. Each determination of the applicable LIBOR Rate by the
Administrative Agent shall be conclusive and binding upon the parties hereto, in
the absence of demonstrable error. The Administrative Agent shall, upon written
request of the Company or any Lender, deliver to the Company or such Lender a
statement showing the computations used by the Administrative Agent in
determining any applicable LIBOR Rate hereunder.

      4.4 Computation of Interest. Interest shall be computed for the actual
number of days elapsed on the basis of a year of 360 days. The applicable
interest rate for each Base Rate Loan shall change simultaneously with each
change in the Base Rate.

      SECTION 5. FEES.

      5.1 Non-Use Fee. The Company agrees to pay to the Administrative Agent for
the account of each Lender, in accordance with such Lender's Pro Rata Share, a
non-use fee (the "Non-Use Fee"), for the period from the Effective Date to the
Termination Date, at the per annum rate of 0.20% of the daily unused amount of
the Revolving Commitment. For purposes of calculating usage under this Section,
the Revolving Commitment shall be deemed used to the extent of Revolving
Outstandings, excluding the outstanding amount of any Swing Line Loans. Such
Non-Use Fee shall be payable in arrears on the last day of each calendar quarter
and on the Termination Date for any period then ending for which such Non-Use
Fee shall not have previously been paid, provided, however that the Non-Use Fee
shall not be payable for the period prior to the date which is six (6) months
after the Effective Date. The Non-Use Fee shall be computed for the actual
number of days elapsed on the basis of a year of 360 days.

      5.2 Letter of Credit Fees. (a) The Company agrees to pay to the
Administrative Agent for the account of each Lender a letter of credit fee for
each Letter of Credit equal to the L/C Fee Rate in effect from time to time of
such Lender's Pro Rata Share (as adjusted from time to time) of the undrawn
amount of such Letter of Credit (computed for the actual number of days elapsed
on the basis of a year of 360 days); provided that, unless the Required Lenders
otherwise consent, the rate applicable to each Letter of Credit shall be
increased by 3% at any time that an Event of Default exists. Such letter of
credit fee shall be payable in arrears on the last day of each calendar month
and on the Termination Date (or such later date on which such Letter of Credit
expires or is terminated) for the period from the date of the issuance of each
Letter of Credit (or the last day on which the letter of credit fee was paid
with respect thereto) to the date such payment is due or, if earlier, the date
on which such Letter of Credit expired or was terminated.

                                       29
<PAGE>

            (b) In addition, with respect to each Letter of Credit, the Company
      agrees to pay to the Issuing Lender, for its own account, (i) such fees
      and expenses as the Issuing Lender customarily requires in connection with
      the issuance, negotiation, processing and/or administration of letters of
      credit in similar situations and (ii) a letter of credit fronting fee in
      the amount and at the times agreed to by the Company and the Issuing
      Lender.

      5.3 Administrative Agent's Fees. The Company agrees to pay to the
Administrative Agent such agent's fees as are mutually agreed to from time to
time by the Company and the Administrative Agent including the fees set forth in
the Agent Fee Letter.

      SECTION 6. REDUCTION OR TERMINATION OF THE REVOLVING COMMITMENT;
                 PREPAYMENTS; INCREASES IN REVOLVING COMMITMENT; EXTENSION OF
                 TERMINATION DATE.

      6.1 Reduction or Termination of the Revolving Commitment.

            6.1.1 Voluntary Reduction or Termination of the Revolving
Commitment. The Company may from time to time on at least five Business Days'
prior written notice received by the Administrative Agent (which shall promptly
advise each Lender thereof) permanently reduce the Revolving Commitment to an
amount not less than the Revolving Outstandings plus the outstanding amount of
all Swing Line Loans. Any such reduction shall be in an amount not less than
$1,000,000.00 or a higher integral multiple of $100,000.00. Concurrently with
any reduction of the Revolving Commitment to zero, the Company shall pay all
interest on the Revolving Loans, all Non-Use Fees and all letter of credit fees
and shall Cash Collateralize in full all obligations arising with respect to the
Letters of Credit.

            6.1.2 All Reductions of the Revolving Commitment. All reductions of
the Revolving Commitment shall reduce the Commitments ratably among the Lenders
according to their respective Pro Rata Shares.

      6.2 Prepayments.

            6.2.1 Voluntary Prepayments. The Company may from time to time
prepay the Loans in whole or in part; provided that the Company shall give the
Administrative Agent (which shall promptly advise each Lender) notice thereof
not later than 11:00 A.M., Detroit time, on the day of such prepayment (which
shall be a Business Day), specifying the Loans to be prepaid and the date and
amount of prepayment. Any such partial prepayment shall be in an amount equal to
$500,000.00 or a higher integral multiple of $100,000.00.

            6.2.2 Mandatory Prepayments.

            (a) If on any day the Revolving Outstandings plus the outstanding
      amount of the Swing Line Loan exceeds the Borrowing Base, the Company
      shall within 15 days either (i) prepay Revolving Loans and/or Cash
      Collateralize the outstanding Letters of Credit, or do a combination of
      the foregoing, in an amount sufficient to eliminate such excess, or (ii)
      take such other action to correct such non-compliance as the Required
      Lenders may require.

                                       30
<PAGE>

            (b) If on any day on which the Revolving Commitment is reduced
      pursuant to Section 6.1.2 the Revolving Outstandings plus the outstanding
      amount of the Swing Line Loan exceeds the Revolving Commitment, the
      Company shall immediately prepay Revolving Loans or Cash Collateralize the
      outstanding Letters of Credit, or do a combination of the foregoing, in an
      amount sufficient to eliminate such excess.

      6.3 Manner of Prepayments.

            6.3.1 All Prepayments. Each voluntary partial prepayment shall be in
a principal amount of $500,000.00 or a higher integral multiple of $100,000.00.
Any partial prepayment of a Group of LIBOR Loans shall be subject to the proviso
to Section 2.2.3(a). Any prepayment of a LIBOR Loan on a day other than the last
day of an Interest Period therefor shall include interest on the principal
amount being repaid and shall be subject to Section 8.4. Except as otherwise
provided by this Agreement, all principal payments in respect of the Loans
(other than the Swing Line Loans) shall be applied first, to repay outstanding
Base Rate Loans and then to repay outstanding LIBOR Rate Loans in direct order
of Interest Period maturities.

      6.4 Repayments.

            6.4.1 Revolving Loans. The Revolving Loans of each Lender shall be
paid in full and the Revolving Commitment shall terminate on the Termination
Date.

                                       31
<PAGE>

      6.5 Increase in Commitments.

            6.5.1 Request for Increase. Provided that no Unmatured Event of
Default or Event of Default has occurred and is continuing, upon notice to the
Administrative Agent (which shall promptly notify the Lenders), the Company may,
from time to time, at any time prior to the date that is two (2) years after the
Effective Date, request an increase in the Revolving Commitment by an amount
(for all such requests) not exceeding $125,000,000, less the amount of the
Revolving Commitment in effect on the Effective Date; provided that (i) any such
request for an increase shall be in a minimum amount of $10,000,000, and (ii)
the Company may, on a combined basis, make a maximum of two such requests in any
period of twelve (12) consecutive months. At the time of sending such notice,
the Company (in consultation with the Administrative Agent) shall specify the
time period within which each Lender is requested to respond (which shall in no
event be less than ten Business Days from the date of delivery of such notice to
the Lenders).

            6.5.2 Lender Elections to Increase. Each Lender shall notify the
Administrative Agent within such time period whether or not it agrees to
increase its Commitment and, if so, whether by an amount equal to, greater than,
or less than its Pro Rata Share of such requested increase. Any Lender not
responding within such time period shall be deemed to have declined to increase
its Commitment. No Lender shall be required to increase its Commitment under any
circumstances.

            6.5.3 Notification by Administrative Agent; Additional Lenders. The
Administrative Agent shall notify the Company and each Lender of the Lenders'
responses to each request made hereunder. To achieve the full amount of a
requested increase and subject to the approval of the Administrative Agent
(which approval shall not be unreasonably withheld), the Company may also invite
additional financial institutions to become Lenders pursuant to a joinder
agreement in form and substance reasonably satisfactory to the Administrative
Agent.

            6.5.4 Effective Date and Allocations. If the Aggregate Commitments
are increased in accordance with this Section, the Administrative Agent and the
Company shall determine the effective date (the "Increase Effective Date") and
the final allocation of such increase. The Administrative Agent shall promptly
notify the Company and the Lenders of the final allocation of such increase and
the Increase Effective Date.

            6.5.5 Conditions to Effectiveness of Increase. As a condition
precedent to such increase, the Company shall deliver to the Administrative
Agent a certificate of the Company and each Guarantor dated as of the Increase
Effective Date (in sufficient copies for each Lender) signed by an authorized
officer of the Company and each Guarantor (i) certifying and attaching the
resolutions adopted by the Company and each Guarantor approving or consenting to
such increase, and (ii) in the case of the Company, certifying that, before and
after giving effect to such increase, (A) the representations and warranties
contained in Section 9 and the other Loan Documents that are qualified by
materiality are true and correct on and as of the Increase Effective Date, and
the representations and warranties contained in Section 9 and the other Loan
Documents that are not qualified by materiality are true and correct in all
material respects on and as of the Increase Effective Date, except to the extent
that such representations and warranties specifically refer to an earlier date,
in which case they are true and correct, or true

                                       32
<PAGE>

and correct in all material respects, as the case may be, as of such earlier
date, and except that for purposes of this Section 6.5.5 , the representations
and warranties contained in Section 9.4 shall be deemed to refer to the most
recent statements furnished pursuant to the provisions of this Agreement, and
(B) no Unmatured Event of Default or Event of Default has occurred and is
continuing. The Company shall prepay any Loans outstanding on the Increase
Effective Date to the extent necessary to keep the outstanding Loans ratable
with any revised Pro Rata Shares of the Lenders arising from any nonratable
increase in the Commitments under this Section; provided that the Company shall
not be obligated to prepay any LIBOR Loans until the end of the applicable
Interest Period.

      6.6 Extension of Termination Date.

            6.6.1 The Company's Option to Extend. Provided that no Unmatured
Event of Default or Event of Default has occurred and is continuing, upon
written notice to the Administrative Agent (which shall promptly notify the
Lenders), the Company may, extend the Termination Date, one time, for one (1)
year, provided, however, (a) that such written notice shall be received by the
Administrative Agent not more than 120 days and not less than 90 days prior to
the original Termination Date and (b) such written notice shall be accompanied
by a nonrefundable extension fee in an amount equal to 0.25% of the Revolving
Commitment from which the Administrative Agent shall promptly pay over to each
Lender its Pro Rata Share of such extension fee.

      SECTION 7. MAKING AND PRORATION OF PAYMENTS; SETOFF; TAXES.

      7.1 Making of Payments. All payments of principal or interest on the
Notes, and of all fees, shall be made by the Company to the Administrative Agent
in immediately available funds at the office specified by the Administrative
Agent not later than noon, Detroit time, on the date due; and funds received
after that hour shall be deemed to have been received by the Administrative
Agent on the following Business Day. The Administrative Agent shall promptly
remit to each Lender its share of all such payments received in collected funds
by the Administrative Agent for the account of such Lender. All payments under
Section 8.1 shall be made by the Company directly to the Lender entitled thereto
without setoff, counterclaim or other defense.

      7.2 Application of Certain Payments. So long as no Unmatured Event of
Default or Event of Default has occurred and is continuing, (a) payments
matching specific scheduled payments then due shall be applied to those
scheduled payments and (b) voluntary and mandatory prepayments shall be applied
as set forth in Sections 6.2 and 6.3. After the occurrence and during the
continuance of an Unmatured Event of Default or Event of Default, all amounts
collected or received by the Administrative Agent or any Lender as proceeds from
the sale of, or other realization upon, all or any part of the collateral shall
be applied as the Administrative Agent shall determine in its discretion.
Concurrently with each remittance to any Lender of its share of any such
payment, the Administrative Agent shall advise such Lender as to the application
of such payment.

      7.3 Due Date Extension. If any payment of principal or interest with
respect to any of the Loans, or of any fees, falls due on a day which is not a
Business Day, then such due date

                                       33
<PAGE>

shall be extended to the immediately following Business Day (unless, in the case
of a LIBOR Loan, such immediately following Business Day is the first Business
Day of a calendar month, in which case such due date shall be the immediately
preceding Business Day) and, in the case of principal, additional interest shall
accrue and be payable for the period of any such extension.

      7.4 Setoff. The Company agrees that the Administrative Agent and each
Lender have all rights of set-off and bankers' lien provided by applicable law,
and in addition thereto, the Company agrees that at any time any Event of
Default exists, the Administrative Agent and each Lender may apply to the
payment of any Obligations of the Company hereunder, whether or not then due,
any and all balances, credits, deposits, accounts or moneys of the Company then
or thereafter with the Administrative Agent or such Lender.

      7.5 Proration of Payments. If any Lender shall obtain any payment or other
recovery (whether voluntary, involuntary, by application of offset or otherwise,
on account of (a) principal of or interest on any Loan, but excluding (i) any
payment pursuant to Section 8.7 or 15.6 and (ii) payments of interest on any
Affected Loan) or (b) its participation in any Letter of Credit) in excess of
its applicable Pro Rata Share of payments and other recoveries obtained by all
Lenders on account of principal of and interest on the Loans (or such
participation) then held by them, then such Lender shall purchase from the other
Lenders such participations in the Loans (or sub-participations in Letters of
Credit) held by them as shall be necessary to cause such purchasing Lender to
share the excess payment or other recovery ratably with each of them; provided
that if all or any portion of the excess payment or other recovery is thereafter
recovered from such purchasing Lender, the purchase shall be rescinded and the
purchase price restored to the extent of such recovery.

      7.6 Taxes.

            (a) All payments made by the Company or any other Loan Party
      hereunder or under any Loan Documents shall be made without setoff,
      counterclaim, or other defense. To the extent permitted by applicable law,
      all payments hereunder or under the Loan Documents (including any payment
      of principal, interest, or fees) to, or for the benefit, of any person
      shall be made by the Company or such other Loan Party free and clear of
      and without deduction or withholding for, or account of, any Taxes now or
      hereinafter imposed by any taxing authority.

            (b) If the Company or any other Loan Party makes any payment
      hereunder or under any Loan Document in respect of which it is required by
      applicable law to deduct or withhold any Taxes, the Company or such other
      Loan Party shall increase the payment hereunder or under any such Loan
      Document such that after the reduction for the amount of Taxes withheld
      (and any taxes withheld or imposed with respect to the additional payments
      required under this Section 7.6(b)), the net amount received by the
      Lenders or the Administrative Agent after the payment of such Taxes
      (including Taxes on such additional amount) shall equal the amount such
      Person would have received had not such Taxes been asserted. To the extent
      the Company or such other Loan Party withholds any Taxes on payments
      hereunder or under any Loan Document, the Company or such other Loan Party
      shall pay the full amount deducted to the relevant taxing authority within
      the time allowed for payment under applicable law and shall deliver to the
      Administrative

                                       34
<PAGE>

      Agent within 30 days after it has made payment to such authority a receipt
      issued by such authority (or other evidence satisfactory to the
      Administrative Agent) evidencing the payment of all amounts so required to
      be deducted or withheld from such payment.

            (c) If any Lender or the Administrative Agent is required by law to
      make any payments of any Taxes on or in relation to any amounts received
      or receivable hereunder or under any other Loan Document, or any Tax is
      assessed against a Lender or the Administrative Agent with respect to
      amounts received or receivable hereunder or under any other Loan Document,
      the Company will indemnify such person against (i) such Tax (and any
      reasonable counsel fees and expenses associated with such Tax) and (ii)
      any taxes imposed as a result of the receipt of the payment under this
      Section 7.6(c). A certificate prepared in good faith as to the amount of
      such payment by such Lender or the Administrative Agent shall, absent
      manifest error, be final, conclusive, and binding on all parties.

            (d)   (i) To the extent permitted by applicable law, each Lender
      that is not a United States person within the meaning of Code section
      7701(a)(30) (a "Non-U.S. Participant") shall deliver to the Company and
      the Administrative Agent on or prior to the Closing Date (or in the case
      of a Lender that is an Assignee, on the date of such assignment to such
      Lender, or in the case of a new Lender pursuant to Section 6.5.3, on the
      date such Lender becomes a Lender) two accurate and complete original
      signed copies of IRS Form W-8BEN, W-8ECI, or W-8IMY (or any successor or
      other applicable form prescribed by the IRS) certifying to such Lender's
      entitlement to a complete exemption from, or a reduced rate in, United
      States withholding tax on interest payments to be made hereunder or any
      Loan. If a Lender that is a Non-U.S. Participant is claiming a complete
      exemption from withholding on interest pursuant to Sections 871(h) or
      881(c) of the Code, the Lender shall deliver (along with two accurate and
      complete original signed copies of IRS Form W-8BEN) a certificate in form
      and substance reasonably acceptable to Administrative Agent (any such
      certificate, a "Withholding Certificate"). In addition, each Lender that
      is a Non-U.S. Participant agrees that from time to time after the
      Effective Date, (or in the case of a Lender that is an Assignee, after the
      date of the assignment to such Lender), when a lapse in time (or change in
      circumstances occurs) renders the prior certificates hereunder obsolete or
      inaccurate in any material respect, such Lender shall, to the extent
      permitted under applicable law, deliver to the Company and the
      Administrative Agent two new and accurate and complete original signed
      copies of an IRS Form W-8BEN, W-8ECI, or W-8IMY (or any successor or other
      applicable forms prescribed by the IRS), and if applicable, a new
      Withholding Certificate, to confirm or establish the entitlement of such
      Lender or the Administrative Agent to an exemption from, or reduction in,
      United States withholding tax on interest payments to be made hereunder or
      any Loan.

                  (ii) Each Lender that is not a Non-U.S. Participant (other
            than any such Lender which is taxed as a corporation for U.S.
            federal income tax purposes) shall provide two properly completed
            and duly executed copies of IRS Form W-9 (or any successor or other
            applicable form) to the Company and the Administrative Agent
            certifying that such Lender is exempt from United States backup
            withholding tax. To the extent that a form provided pursuant to this

                                       35
<PAGE>

            Section 7.6(d)(ii) is rendered obsolete or inaccurate in any
            material respects as result of change in circumstances with respect
            to the status of a Lender, such Lender shall, to the extent
            permitted by applicable law, deliver to the Company and the
            Administrative Agent revised forms necessary to confirm or establish
            the entitlement to such Lender's or Agent's exemption from United
            States backup withholding tax.

                  (iii) The Company shall not be required to pay additional
            amounts to a Lender, or indemnify any Lender, under this Section 7.6
            to the extent that such obligations would not have arisen but for
            the failure of such Lender to comply with Section 7.6(d).

                  (iv) Each Lender agrees to indemnify the Administrative Agent
            and hold the Administrative Agent harmless for the full amount of
            any and all present or future Taxes and related liabilities
            (including penalties, interest, additions to tax and expenses, and
            any Taxes imposed by any jurisdiction on amounts payable to the
            Administrative Agent under this Section 7.6) which are imposed on or
            with respect to principal, interest or fees payable to such Lender
            hereunder and which are not paid by the Company pursuant to this
            Section 7.6, whether or not such Taxes or related liabilities were
            correctly or legally asserted. This indemnification shall be made
            within 30 days from the date the Administrative Agent makes written
            demand therefor.

      SECTION 8. INCREASED COSTS; SPECIAL PROVISIONS FOR LIBOR LOANS.

      8.1 Increased Costs. (a) If, after the date hereof, the adoption of, or
any change in, any applicable law, rule or regulation, or any change in the
interpretation or administration of any applicable law, rule or regulation by
any governmental authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by any Lender with any
request or directive (whether or not having the force of law) of any such
authority, central bank or comparable agency: (i) shall impose, modify or deem
applicable any reserve (including any reserve imposed by the FRB, but excluding
any reserve included in the determination of the LIBOR Rate pursuant to Section
4), special deposit or similar requirement against assets of, deposits with or
for the account of, or credit extended by any Lender; or (ii) shall impose on
any Lender any other condition affecting its LIBOR Loans, its Note or its
obligation to make LIBOR Loans; and the result of anything described in clauses
(i) and (ii) above is to increase the cost to (or to impose a cost on) such
Lender (or any LIBOR Office of such Lender) of making or maintaining any LIBOR
Loan, or to reduce the amount of any sum received or receivable by such Lender
(or its LIBOR Office) under this Agreement or under its Note with respect
thereto, then upon demand by such Lender (which demand shall be accompanied by a
statement setting forth the basis for such demand and a calculation of the
amount thereof in reasonable detail, a copy of which shall be furnished to the
Administrative Agent), the Company shall pay directly to such Lender such
additional amount as will compensate such Lender for such increased cost or such
reduction, so long as such amounts have accrued on or after the day which is 180
days prior to the date on which such Lender first made demand therefor.

                                       36
<PAGE>

            (b) If any Lender shall reasonably determine that any change in, or
      the adoption or phase-in of, any applicable law, rule or regulation
      regarding capital adequacy, or any change in the interpretation or
      administration thereof by any governmental authority, central bank or
      comparable agency charged with the interpretation or administration
      thereof, or the compliance by any Lender or any Person controlling such
      Lender with any request or directive regarding capital adequacy (whether
      or not having the force of law) of any such authority, central bank or
      comparable agency, has or would have the effect of reducing the rate of
      return on such Lender's or such controlling Person's capital as a
      consequence of such Lender's obligations hereunder or under any Letter of
      Credit to a level below that which such Lender or such controlling Person
      could have achieved but for such change, adoption, phase-in or compliance
      (taking into consideration such Lender's or such controlling Person's
      policies with respect to capital adequacy) by an amount deemed by such
      Lender or such controlling Person to be material, then from time to time,
      upon demand by such Lender (which demand shall be accompanied by a
      statement setting forth the basis for such demand and a calculation of the
      amount thereof in reasonable detail, a copy of which shall be furnished to
      the Administrative Agent), the Company shall pay to such Lender such
      additional amount as will compensate such Lender or such controlling
      Person for such reduction so long as such amounts have accrued on or after
      the day which is 180 days prior to the date on which such Lender first
      made demand therefor.

      8.2 Basis for Determining Interest Rate Inadequate or Unfair. If

            (a) the Administrative Agent reasonably determines (which
      determination shall be binding and conclusive on the Company) that by
      reason of circumstances affecting the interbank LIBOR market adequate and
      reasonable means do not exist for ascertaining the applicable LIBOR Rate;
      or

            (b) the Required Lenders advise the Administrative Agent that the
      LIBOR Rate as determined by the Administrative Agent will not adequately
      and fairly reflect the cost to such Lenders of maintaining or funding
      LIBOR Loans for such Interest Period (taking into account any amount to
      which such Lenders may be entitled under Section 8.1) or that the making
      or funding of LIBOR Loans has become impracticable as a result of an event
      occurring after the date of this Agreement which in the opinion of such
      Lenders materially affects such Loans;

then the Administrative Agent shall promptly notify the other parties thereof
and, so long as such circumstances shall continue, (i) no Lender shall be under
any obligation to make or convert any Base Rate Loans into LIBOR Loans and (ii)
on the last day of the current Interest Period for each LIBOR Loan, such Loan
shall, unless then repaid in full, automatically convert to a Base Rate Loan.

      8.3 Changes in Law Rendering LIBOR Loans Unlawful. If any change in, or
the adoption of any new, law or regulation, or any change in the interpretation
of any applicable law or regulation by any governmental or other regulatory body
charged with the administration thereof, should make it (or in the good faith
judgment of any Lender cause a substantial question as to whether it is)
unlawful for any Lender to make, maintain or fund LIBOR Loans, then such

                                       37
<PAGE>

Lender shall promptly notify each of the other parties hereto and, so long as
such circumstances shall continue, (a) such Lender shall have no obligation to
make or convert any Base Rate Loan into a LIBOR Loan (but shall make Base Rate
Loans concurrently with the making of or conversion of Base Rate Loans into
LIBOR Loans by the Lenders which are not so affected, in each case in an amount
equal to the amount of LIBOR Loans which would be made or converted into by such
Lender at such time in the absence of such circumstances) and (b) on the last
day of the current Interest Period for each LIBOR Loan of such Lender (or, in
any event, on such earlier date as may be required by the relevant law,
regulation or interpretation), such LIBOR Loan shall, unless then repaid in
full, automatically convert to a Base Rate Loan. Each Base Rate Loan made by a
Lender which, but for the circumstances described in the foregoing sentence,
would be a LIBOR Loan (an "Affected Loan") shall remain outstanding for the
period corresponding to the Group of LIBOR Loans of which such Affected Loan
would be a part absent such circumstances.

      8.4 Funding Losses. The Company hereby agrees that upon demand by any
Lender (which demand shall be accompanied by a statement setting forth the basis
for the amount being claimed, a copy of which shall be furnished to the
Administrative Agent), the Company will indemnify such Lender against any net
loss or expense which such Lender may sustain or incur (including any net loss
or expense incurred by reason of the liquidation or reemployment of deposits or
other funds acquired by such Lender to fund or maintain any LIBOR Loan), as
reasonably determined by such Lender, as a result of (a) any payment, prepayment
or conversion of any LIBOR Loan of such Lender on a date other than the last day
of an Interest Period for such Loan (including any conversion pursuant to
Section 8.3) or (b) any failure of the Company to borrow, convert or continue
any Loan on a date specified therefor in a notice of borrowing, conversion or
continuation pursuant to this Agreement. For this purpose, all notices to the
Administrative Agent pursuant to this Agreement shall be deemed to be
irrevocable.

      8.5 Right of Lenders to Fund through Other Offices. Each Lender may, if it
so elects, fulfill its commitment as to any LIBOR Loan by causing a foreign
branch or Affiliate of such Lender to make such Loan; provided that in such
event for the purposes of this Agreement such Loan shall be deemed to have been
made by such Lender and the obligation of the Company to repay such Loan shall
nevertheless be to such Lender and shall be deemed held by it, to the extent of
such Loan, for the account of such branch or Affiliate.

      8.6 Discretion of Lenders as to Manner of Funding. Notwithstanding any
provision of this Agreement to the contrary, each Lender shall be entitled to
fund and maintain its funding of all or any part of its Loans in any manner it
sees fit, it being understood, however, that for the purposes of this Agreement
all determinations hereunder shall be made as if such Lender had actually funded
and maintained each LIBOR Loan during each Interest Period for such Loan through
the purchase of deposits having a maturity corresponding to such Interest Period
and bearing an interest rate equal to the LIBOR Rate for such Interest Period.

      8.7 Mitigation of Circumstances; Replacement of Lenders. (a) Each Lender
shall promptly notify the Company and the Administrative Agent of any event of
which it has knowledge which will result in, and will use reasonable commercial
efforts available to it (and not, in such Lender's sole judgment, otherwise
disadvantageous to such Lender) to mitigate or avoid, (i) any obligation by the
Company to pay any amount pursuant to Section 7.6 or 8.1 or (ii)

                                       38
<PAGE>

the occurrence of any circumstances described in Section 8.2 or 8.3 (and, if any
Lender has given notice of any such event described in clause (i) or (ii) above
and thereafter such event ceases to exist, such Lender shall promptly so notify
the Company and the Administrative Agent). Without limiting the foregoing, each
Lender will designate a different funding office if such designation will avoid
(or reduce the cost to the Company of) any event described in clause (i) or (ii)
above and such designation will not, in such Lender's sole judgment, be
otherwise disadvantageous to such Lender.

            (b) If the Company becomes obligated to pay additional amounts to
      any Lender pursuant to Section 7.6 or 8.1, or any Lender gives notice of
      the occurrence of any circumstances described in Section 8.2 or 8.3, the
      Company may designate another bank which is acceptable to the
      Administrative Agent and the Issuing Lender in their reasonable discretion
      (such other bank being called a "Replacement Lender") to purchase the
      Loans of such Lender and such Lender's rights hereunder, without recourse
      to or warranty by, or expense to, such Lender, for a purchase price equal
      to the outstanding principal amount of the Loans payable to such Lender
      plus any accrued but unpaid interest on such Loans and all accrued but
      unpaid fees owed to such Lender and any other amounts payable to such
      Lender under this Agreement, and to assume all the obligations of such
      Lender hereunder, and, upon such purchase and assumption (pursuant to an
      Assignment Agreement), such Lender shall no longer be a party hereto or
      have any rights hereunder (other than rights with respect to indemnities
      and similar rights applicable to such Lender prior to the date of such
      purchase and assumption) and shall be relieved from all obligations to the
      Company hereunder, and the Replacement Lender shall succeed to the rights
      and obligations of such Lender hereunder.

      8.8 Conclusiveness of Statements; Survival of Provisions. Determinations
and statements of any Lender pursuant to Section 8.1, 8.2, 8.3 or 8.4 shall be
conclusive absent demonstrable error. Lenders may use reasonable averaging and
attribution methods in determining compensation under Sections 8.1 and 8.4, and
the provisions of such Sections shall survive repayment of the Obligations,
cancellation of any Notes, expiration or termination of the Letters of Credit
and termination of this Agreement.

      SECTION 9. REPRESENTATIONS AND WARRANTIES.

      To induce the Administrative Agent and the Lenders to enter into this
Agreement and to induce the Lenders to make Loans and issue and participate in
Letters of Credit hereunder, the Company and the REIT represent and warrant to
the Administrative Agent and the Lenders that:

      9.1 Organization. Each Loan Party is validly existing and in good standing
under the laws of its jurisdiction of organization; and each Loan Party is duly
qualified to do business in each jurisdiction where, because of the nature of
its activities or properties, such qualification is required, except for such
jurisdictions where the failure to so qualify would not have a Material Adverse
Effect.

      9.2 Authorization; No Conflict. Each Loan Party is duly authorized to
execute and deliver each Loan Document to which it is a party, the Company is
duly authorized to borrow monies hereunder and each Loan Party is duly
authorized to perform its Obligations under each

                                       39
<PAGE>

Loan Document to which it is a party. The execution, delivery and performance by
each Loan Party of each Loan Document to which it is a party, and the borrowings
by the Company hereunder, do not and will not (a) require any consent or
approval of any governmental agency or authority (other than any consent or
approval which has been obtained and is in full force and effect), (b) conflict
with (i) any provision of law, (ii) the charter, by-laws or other organizational
documents of such Loan Party or (iii) any agreement, indenture, instrument or
other document, or any judgment, order or decree, which is binding upon such
Loan Party or any of its properties or (c) require, or result in, the creation
or imposition of any Lien on any asset of any such Loan Party.

      9.3 Validity and Binding Nature. Each of this Agreement and each other
Loan Document to which any Loan Party is a party is the legal, valid and binding
obligation of such Person, enforceable against such Person in accordance with
its terms, subject to bankruptcy, insolvency and similar laws affecting the
enforceability of creditors' rights generally and to general principles of
equity.

      9.4 Financial Condition. The audited consolidated financial statements of
the Company, the REIT and their Subsidiaries as at Company's Fiscal Year End,
2003 and the unaudited consolidated financial statements of the Company, the
REIT and their Subsidiaries as at June 30, 2004, copies of each of which have
been delivered to each Lender, were prepared in accordance with GAAP (subject,
in the case of such unaudited statements, to the absence of footnotes and to
normal year-end adjustments) and present fairly the consolidated financial
condition of the Company, the REIT and their Subsidiaries as at such dates and
the results of their operations for the periods then ended.

      9.5 No Material Adverse Change. Since Company's Fiscal Year End, 2003
there has been no material adverse change in the financial condition,
operations, assets, business, properties or prospects of the Loan Parties taken
as a whole.

      9.6 Litigation and Contingent Liabilities. No litigation (including
derivative actions), arbitration proceeding or governmental investigation or
proceeding is pending or, to the knowledge of the Company and the REIT,
threatened against any Loan Party which would reasonably be expected to have a
Material Adverse Effect, except as set forth in Schedule 9.6. Other than any
liability incident to such litigation or proceedings, no Loan Party has any
material contingent liabilities not listed on Schedule 9.6 or permitted by
Section 11.1.

      9.7 Ownership of Properties; Liens. Except as set forth in Schedule 9.7,
each Loan Party owns good and, in the case of real property, marketable title to
all of its properties and assets, real and personal, tangible and intangible, of
any nature whatsoever (including patents, trademarks, trade names, service marks
and copyrights), free and clear of all Liens, charges and claims (including
infringement claims with respect to patents, trademarks, service marks,
copyrights and the like) except as permitted by Section 11.2.

      9.8 Equity Ownership; Subsidiaries. All issued and outstanding Capital
Securities of each Loan Party are duly authorized and validly issued, fully
paid, non-assessable and such securities were issued in compliance with all
applicable state and federal laws concerning the issuance of securities.
Schedule 9.8 sets forth the authorized Capital Securities of each Loan

                                       40
<PAGE>

Party held by the REIT, the Company and their Subsidiaries and the respective
percentage ownerships such Capital Securities represent, as of the Effective
Date. As of the Effective Date, except as set forth on Schedule 9.8, all of the
Capital Securities of each Loan Party held by the REIT, the Company and their
Subsidiaries are free and clear of all Liens.

      9.9 Pension Plans. (a) The Unfunded Liability of all Pension Plans does
not in the aggregate exceed twenty percent of the Total Plan Liability for all
such Pension Plans. Each Pension Plan complies in all material respects with all
applicable requirements of law and regulations. No contribution failure under
Section 412 of the Code, Section 302 of ERISA or the terms of any Pension Plan
has occurred with respect to any Pension Plan, sufficient to give rise to a Lien
under Section 302(f) of ERISA, or otherwise to have a Material Adverse Effect.
There are no pending or, to the knowledge of Company, threatened, claims,
actions, investigations or lawsuits against any Pension Plan, any fiduciary of
any Pension Plan, or Company or other any member of the Controlled Group with
respect to a Pension Plan which would reasonably be expected to have a Material
Adverse Effect. Neither the Company nor, to the knowledge of the Company, any
other member of the Controlled Group has engaged in any prohibited transaction
(as defined in Section 4975 of the Code or Section 406 of ERISA) in connection
with any Pension Plan or Multiemployer Pension Plan which would subject that
Person to any material liability. Within the past five years, neither the
Company nor any other member of the Controlled Group has engaged in a
transaction which resulted in a Pension Plan with an Unfunded Liability being
transferred out of the Controlled Group, which could reasonably be expected to
have a Material Adverse Effect. No Termination Event has occurred or is
reasonably expected to occur with respect to any Pension Plan, which could
reasonably be expected to have a Material Adverse Effect.

            (b) All contributions (if any) that are required to be made by the
      Company or any other member of the Controlled Group to any Multiemployer
      Pension Plan that are due under the terms of the plan or of any collective
      bargaining agreement or by applicable law have been made; neither the
      Company nor any other member of the Controlled Group has withdrawn or
      partially withdrawn from any Multiemployer Pension Plan, incurred any
      withdrawal liability with respect to any such plan or received notice of
      any claim or demand for withdrawal liability or partial withdrawal
      liability from any such plan, and no condition has occurred which, if
      continued, would reasonably be expected to result in a withdrawal or
      partial withdrawal from any such plan; and neither the Company nor any
      other member of the Controlled Group has received any notice that any
      Multiemployer Pension Plan is in reorganization, that increased
      contributions may be required to avoid a reduction in plan benefits or the
      imposition of any excise tax, that any such plan is or has been funded at
      a rate less than that required under Section 412 of the Code, that any
      such plan is or may be terminated, or that any such plan is or may become
      insolvent.

      9.10 Investment Company Act. No Loan Party is an "investment company" or a
company "controlled" by an "investment company" or a "subsidiary" of an
"investment company," within the meaning of the Investment Company Act of 1940.

      9.11 Public Utility Holding Company Act. No Loan Party is a "holding
company", or a "subsidiary company" of a "holding company," or an "affiliate" of
a "holding company" or of a

                                       41
<PAGE>

"subsidiary company" of a "holding company," within the meaning of the Public
Utility Holding Company Act of 1935.

      9.12 Regulation U. The Company is not engaged principally, or as one of
its important activities, in the business of extending credit for the purpose of
purchasing or carrying Margin Stock.

      9.13 Taxes. Each Loan Party has timely filed all tax returns and reports
required by law to have been filed by it and has paid all taxes and governmental
charges due and payable with respect to such return, except any such taxes or
charges which are being diligently contested in good faith by appropriate
proceedings and for which adequate reserves in accordance with GAAP shall have
been set aside on its books. The Loan Parties have made adequate reserves on
their books and records in accordance with GAAP for all taxes that have accrued
but which are not yet due and payable. No Loan Party has participated in any
transaction that relates to a year of the taxpayer (which is still open under
the applicable statute of limitations) which is a "reportable transaction"
within the meaning of Treasury Regulation Section 1.6011-4(b)(2) (irrespective
of the date when the transaction was entered into).

      9.14 Solvency, etc. On the Effective Date, and immediately prior to and
after giving effect to the issuance of each Letter of Credit and each borrowing
hereunder and the use of the proceeds thereof, with respect to each Loan Party,
(a) the fair value of its assets is greater than the amount of its liabilities
(including disputed, contingent and unliquidated liabilities) as such value is
established and liabilities evaluated, (b) the present fair saleable value of
its assets is not less than the amount that will be required to pay the probable
liability on its debts as they become absolute and matured, (c) it is able to
realize upon its assets and pay its debts and other liabilities (including
disputed, contingent and unliquidated liabilities) as they mature in the normal
course of business, (d) it does not intend to, and does not believe that it
will, incur debts or liabilities beyond its ability to pay as such debts and
liabilities mature and (e) it is not engaged in business or a transaction, and
is not about to engage in business or a transaction, for which its property
would constitute unreasonably small capital.

      9.15 Environmental Matters. In the ordinary course of its business, the
officers of the REIT consider the effect of Environmental Laws on the business
of the Company, the REIT and their Subsidiaries, in the course of which they
identify and evaluate potential risks and liabilities accruing due to
Environmental Laws. On the basis of this consideration, the Borrower and the
REIT have concluded that Environmental Laws would not reasonably be expected to
have a Material Adverse Effect.

      9.16 Insurance. Set forth on Schedule 9.16 is a complete and accurate
summary of the property and casualty insurance program of the Loan Parties as of
the Effective Date. Each Loan Party and its properties are insured with
companies which are not Affiliates of the Loan Parties, in such amounts, with
such deductibles and covering such risks as are set forth in Schedule 9.16.

      9.17 Real Property. Set forth on Schedule 9.17 is a complete and accurate
list, as of the Effective Date, of the address of all real property included in
the Borrowing Base Pool.

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<PAGE>

      9.18 Information. All information heretofore or contemporaneously herewith
furnished in writing by any Loan Party to the Administrative Agent or any Lender
for purposes of or in connection with this Agreement and the transactions
contemplated hereby is, and all written information hereafter furnished by or on
behalf of any Loan Party to the Administrative Agent or any Lender pursuant
hereto or in connection herewith will be, true and accurate in every material
respect on the date as of which such information is dated or certified, and none
of such information is or will be incomplete by omitting to state any material
fact necessary to make such information not misleading in light of the
circumstances under which made (it being recognized by the Administrative Agent
and the Lenders that any projections and forecasts provided by the Company are
based on good faith estimates and assumptions believed by the Company to be
reasonable as of the date of the applicable projections or assumptions and that
actual results during the period or periods covered by any such projections and
forecasts may differ from projected or forecasted results).

      9.19 Intellectual Property. Each Loan Party owns and possesses or has a
license or other right to use all patents, patent rights, trademarks, trademark
rights, trade names, trade name rights, service marks, service mark rights and
copyrights as are necessary for the conduct of the businesses of such Loan
Parties, without any infringement upon rights of others which could reasonably
be expected to have a Material Adverse Effect.

      9.20 Burdensome Obligations. No Loan Party is a party to any agreement or
contract or subject to any restriction contained in its organizational documents
which could reasonably be expected to have a Material Adverse Effect.

      9.21 Labor Matters. Except as set forth on Schedule 9.21, no Loan Party is
subject to any labor or collective bargaining agreement. There are no existing
or threatened strikes, lockouts or other labor disputes involving any Loan Party
that singly or in the aggregate would reasonably be expected to have a Material
Adverse Effect. Hours worked by and payment made to employees of the Loan
Parties are not in violation of the Fair Labor Standards Act or any other
applicable law, rule or regulation dealing with such matters.

      9.22 No Default. No Event of Default or Unmatured Event of Default exists
or would result from the incurrence by any Loan Party of any Debt hereunder or
under any other Loan Document.

      9.23 Status of Property. With respect to each property that is included in
the Borrowing Base Pool, except as set forth on Schedule 9.23:

            (a) No portion of any improvement on such property is located in an
      area identified by the Secretary of Housing and Urban Development or any
      successor thereto as an area having special flood hazards pursuant to the
      National Flood Insurance Act of 1968 or the Flood Disaster Protection Act
      of 1973, as amended, or any successor law, or, if located within any such
      area, the Company or the respective consolidated Subsidiary has obtained
      and will maintain appropriate flood insurance.

            (b) To the best knowledge of the Company and the REIT, the Company
      or the respective consolidated Subsidiary has obtained all necessary
      certificates, licenses and

                                       43
<PAGE>

      other approvals, governmental and otherwise, necessary for the operation
      of such property and the conduct of its business and all required zoning,
      building code, land use, environmental and other similar permits or
      approvals, all of which are in full force and effect as of the date hereof
      and not subject to revocation, suspension, forfeiture or modification.

            (c) To the best knowledge of the Company and the REIT, such property
      and the present and contemplated use and occupancy thereof are in material
      compliance with all applicable zoning ordinances (without reliance upon
      grandfather provisions or adjoining or other properties), building codes,
      land use and Environmental Laws, laws relating to the disabled (including,
      but not limited to, the ADA) and other similar laws.

            (d) Such property is served by all utilities required for the
      current or contemplated use thereof. All utility service is provided by
      public utilities and such property has accepted or is equipped to accept
      such utility service.

            (e) All public roads and streets necessary for service of and access
      to such property for the current or contemplated use thereof have been
      completed, are serviceable and all-weather and are physically and legally
      open for use by the public.

            (f) Such property is served by public water and sewer systems; or,
      if such property is not serviced by a public water and sewer system, such
      alternate systems are adequate and meet, in all material respects, all
      requirements and regulations of, and otherwise comply in all material
      respects with all applicable laws.

            (g) Neither the Company nor any consolidated Subsidiary is aware of
      any latent or patent structural or other significant deficiency of such
      property. Such property is free of damage and waste that would materially
      and adversely affect the value of such property, is in good repair and
      there is no deferred maintenance, other than ordinary wear and tear. Such
      property is free from damage caused by fire or other casualty. There is no
      pending or, to the actual knowledge of the Company, the REIT or the
      respective consolidated Subsidiary, threatened condemnation proceedings
      affecting such property, or any part thereof.

            (h) To the best knowledge of the Company and the REIT, all costs and
      expenses of any and all labor, materials, supplies and equipment used in
      the construction of the improvements on such property have either (a) been
      paid in full, (b) not yet due and payable, or (c) are being contested in
      good faith by the Company, the REIT or the applicable consolidated
      Subsidiary. Subject to the Company's or the respective consolidated
      Subsidiary's right to contest as set forth in any permitted mortgage debt
      related to such property, there are no mechanics' or similar liens or
      claims that have been filed and recorded for work, labor or materials that
      affects such property.

            (i) To the best knowledge of the Company and the REIT, the Company
      or the respective consolidated Subsidiary has paid in full for, and is the
      owner of, all furnishings, fixtures and equipment (other than tenants'
      property) used in connection with

                                       44
<PAGE>

      the operation of such property, free and clear of any and all security
      interests, liens or encumbrances, except for Permitted Liens.

            (j) To the best knowledge of the Company and the REIT, all liquid
      and solid waste disposal, septic and sewer systems located on such
      property are in a good and safe condition and repair and are in material
      compliance with all applicable laws.

            (k) All improvements on such property lie within the boundaries and
      building restrictions of the legal description of record of such property,
      no such improvements encroach upon easements benefitting such property
      other than encroachments that do not materially adversely affect the use
      or occupancy of such property and no improvements on adjoining properties
      encroach upon such property or easements benefitting such property other
      than encroachments that do not materially adversely affect the use or
      occupancy of such property. All amenities, access routes or other items
      that materially benefit such property are under direct control of the
      Company or the respective consolidated Subsidiary, constitute permanent
      easements that benefit all or part of such property or are public
      property, and such property, by virtue of such easements or otherwise, is
      contiguous to a physically open, dedicated all weather public street, and
      has the necessary permits for ingress and egress.

            (l) If such property constitutes a legal non-conforming use, the
      non-conforming Improvements may be rebuilt to current density and used and
      occupied for such non-conforming purposes if damaged or destroyed.

            (m) To the best knowledge of the Company and the REIT, there are no
      delinquent taxes, ground rents, water charges, sewer rents, assessments
      (including assessments payable in future installments), insurance
      premiums, leasehold payments, or other outstanding charges affecting such
      property.

            (n) To the best knowledge of the Company and the REIT, such property
      is assessed for real estate tax purposes as one or more wholly independent
      tax lot or lots, separate from any adjoining land or improvements not
      constituting a part of such lot or lots, and no other land or improvements
      are assessed and taxed together with such property or any portion thereof.

            (o) No portion of such property has been or will be purchased with
      proceeds of any illegal activity.

            (p) To the best knowledge of the Company and the REIT, all
      contracts, agreements, consents, waivers, documents and writings of every
      kind or character at any time to which the Company or any consolidated
      Subsidiary is a party to be delivered to the Agent pursuant to any of the
      provisions hereof are valid and enforceable against the Company and such
      consolidated Subsidiary and, to the best knowledge of Company, are
      enforceable against all other parties thereto, and in all respects are
      what they purport to be and, to the best knowledge of the Company, to the
      extent that any such writing shall impose any obligation or duty on the
      party thereto or constitute a waiver of any rights which any such party
      might otherwise have, said writing shall be valid and enforceable

                                       45
<PAGE>

      against said party in accordance with the terms, except as such
      enforcement may be limited by applicable bankruptcy, insolvency,
      reorganization or similar laws affecting the rights of creditors
      generally.

      9.24 The Collateral. Each item of Collateral is owned by the respective
Loan Party executing the Collateral Documents relating thereto, free and clear
of any and all security interests, liens or encumbrances, except Liens listed on
Schedule 11.2.

      9.25 REIT Status. The "REIT" is a "qualified real estate investment trust"
as defined in Section 856 of the Code.

      9.26 Stock. The REIT lists all of its outstanding shares of stock on the
New York Stock Exchange.

      SECTION 10. AFFIRMATIVE COVENANTS.

      Until the expiration or termination of the Commitments and thereafter
until all Obligations hereunder and under the other Loan Documents are paid in
full and all Letters of Credit have been terminated, the Company and the REIT
agree that, unless at any time the Required Lenders shall otherwise expressly
consent in writing, they will:

      10.1 Reports, Certificates and Other Information. Furnish to the
Administrative Agent and each Lender:

            10.1.1 Annual Report. Promptly when available and in any event
within 90 days after the close of each Fiscal Year: (a) a copy of the annual
audited consolidated financial statements of the REIT and its consolidated
Subsidiaries for such Fiscal Year, including therein consolidated balance sheets
and statements of earnings and cash flows of the REIT and its Subsidiaries as at
the end of such Fiscal Year, certified without adverse reference to going
concern value and without qualification by independent auditors of recognized
material standing selected by the Company and reasonably acceptable to the
Administrative Agent.

            10.1.2 Interim Reports. Promptly when available and in any event
within 50 days after the end of each Fiscal Quarter, consolidated balance sheets
of the REIT and its consolidated Subsidiaries as of the end of such Fiscal
Quarter, together with consolidated statements of earnings and cash flows for
such Fiscal Quarter and for the period beginning with the first day of such
Fiscal Year and ending on the last day of such Fiscal Quarter, together with a
comparison with the corresponding period of the previous Fiscal Year, certified
by a Senior Officer of the Company.

            10.1.3 Compliance Certificates. Contemporaneously with the
furnishing of a copy of each annual audited financial statements pursuant to
Section 10.1.1 and each set of quarterly statements pursuant to Section 10.1.2,
a duly completed compliance certificate in the form of Exhibit B, with
appropriate insertions, as of the date of such annual report or such quarterly
statements and signed by a Senior Officer of the Company, containing a
computation of each of the financial ratios and restrictions set forth in
Section 11.13 and to the effect that such officer has not become aware of any
Event of Default or Unmatured Event of Default that has

                                       46
<PAGE>

occurred and is continuing or, if there is any such event, describing it and the
steps, if any, being taken to cure it.

            10.1.4 Reports to the SEC and to Shareholders. Promptly upon the
filing or sending thereof, copies of all periodic or special reports of the REIT
filed with the SEC; copies of all registration statements of the Company or the
REIT filed with the SEC (other than on Form S-8) and copies of all proxy
statements or other communications made to security holders of the Company or
the REIT which are not obtainable by the Administrative Agent through the
internet.

            10.1.5 Notice of Default, Litigation and ERISA Matters. Promptly
after a Senior Officer of the Company or the REIT obtains actual knowledge of
any of the following, written notice describing the same and the steps being
taken by the Company and the REIT with respect thereto:

                  (a) the occurrence of an Event of Default or an Unmatured
            Event of Default;

                  (b) any litigation, arbitration or governmental investigation
            or proceeding not previously disclosed by the Company or the REIT to
            the Lenders which has been instituted or, to the knowledge of the
            Company or the REIT, is threatened against any Loan Party or to
            which any of the properties of any thereof is subject which
            reasonably would be expected to have a Material Adverse Effect;

                  (c) the institution of any steps by any member of the
            Controlled Group or any other Person to terminate any Pension Plan,
            or the failure of any member of the Controlled Group to make a
            required contribution to any Pension Plan (if such failure is
            sufficient to give rise to a Lien under Section 302(f) of ERISA) or
            to any Multiemployer Pension Plan, or the taking of any action with
            respect to a Pension Plan which would be reasonably expected to
            result in the requirement that the Company furnish a bond or other
            security to the PBGC or such Pension Plan, or the occurrence of any
            event with respect to any Pension Plan or Multiemployer Pension Plan
            which would be reasonably expected to result in the incurrence by
            any member of the Controlled Group of any material liability, fine
            or penalty (including any claim or demand for withdrawal liability
            or partial withdrawal from any Multiemployer Pension Plan), or any
            material increase in the contingent liability of the Company with
            respect to any post-retirement welfare benefit plan of the Company,
            or any notice that any Multiemployer Pension Plan is in
            reorganization, that increased contributions may be required to
            avoid a reduction in plan benefits or the imposition of an excise
            tax, that any such plan is or has been funded at a rate less than
            that required under Section 412 of the Code, that any such plan is
            or may be terminated, or that any such plan is or may become
            insolvent;

                  (d) any cancellation or material adverse change in any
            insurance maintained by any Loan Party; or

                                       47
<PAGE>

                  (e) any other event (including (i) any violation of any
            Environmental Law or the assertion of any Environmental Claim or
            (ii) the enactment or effectiveness of any law, rule or regulation
            known to the Company or the REIT) which might reasonably be expected
            to have a Material Adverse Effect.

            10.1.6 Borrowing Base Certificates. Within 50 days of the end of
each Fiscal Quarter, a Borrowing Base Certificate dated as of the end of such
Fiscal Quarter and executed by a Senior Officer of the Company on behalf of the
Company (provided that (a) the Company may deliver a Borrowing Base Certificate
more frequently if it chooses and (b) at any time an Event of Default exists,
the Administrative Agent may require the Company to deliver Borrowing Base
Certificates more frequently).

            10.1.7 Management Reports. Promptly upon receipt thereof, copies of
all detailed financial and management reports submitted to the REIT by its
independent auditors in connection with each annual audit made by such auditors.

            10.1.8 Subordinated Debt Notices. Promptly following receipt, copies
of any notices (including notices of default or acceleration) received from any
holder or trustee of, under or with respect to any Subordinated Debt.

            10.1.9 Notices Regarding Certain Debt. Promptly following receipt,
copies of any notices of default or acceleration received from any holder or
trustee of, lender or with respect of any Debt relating to any property in the
Borrowing Base Pool, including the GMAC Pool Debt or the Sea Air Property Debt.

            10.1.10 Projections. As soon as practicable, and in any event not
later than 30 days after the commencement of each Fiscal Year, financial
projections for the Company for such Fiscal Year (including annual operating
budgets for the Company and each of the properties in the Borrowing Base Pool)
prepared in a manner consistent with the projections delivered by the Company to
the Lenders prior to the Effective Date or otherwise in a manner reasonably
satisfactory to the Administrative Agent, accompanied by a certificate of a
Senior Officer of the Company on behalf of the Company to the effect that (a)
such projections were prepared by the Company in good faith, (b) the Company has
a reasonable basis for the assumptions contained in such projections and (c)
such projections have been prepared in accordance with such assumptions.

            10.1.11 Notices Regarding Major Agreements. Promptly following
receipt, copies of any material notices (including notices of default or
acceleration) received from any Person with respect of any Major Agreement.

            10.1.12 Other Information. Promptly from time to time, such other
information concerning the Loan Parties as any Lender or the Administrative
Agent may reasonably request.

      10.2 Books, Records and Inspections. Keep, and cause each other Loan Party
to keep, its books and records in accordance with sound business practices
sufficient to allow the preparation of financial statements in accordance with
GAAP; permit, and cause each other Loan Party to permit, any Lender or the
Administrative Agent or any representative thereof to inspect the properties and
operations of the Loan Parties; and permit, and cause each other Loan Party to

                                       48
<PAGE>

permit, at any reasonable time and with reasonable notice (or at any time
without notice if an Event of Default exists), any Lender or the Administrative
Agent or any representative thereof to visit any or all of its offices, to
discuss its financial matters with its officers and its independent auditors
(and the Company hereby authorizes such independent auditors to discuss such
financial matters with any Lender or the Administrative Agent or any
representative thereof), and to examine (and, at the expense of the Company
photocopy extracts from) any of its books or other records; and permit, and
cause each other Loan Party to permit, the Administrative Agent and its
representatives to inspect the properties included in the Borrowing Base Pool,
and to inspect, audit, check and make copies of and extracts from the books,
records, computer data, computer programs, journals, orders, receipts,
correspondence and other data relating to the properties included in the
Borrowing Base Pool. All such inspections or audits by the Administrative Agent
shall be at the Company's EXPENSE, provided that so long as no Event of Default
or Unmatured Event of Default exists, the Company shall not be required to
reimburse the Administrative Agent for inspections or audits more frequently
than once each Fiscal Year.

      10.3 Maintenance of Property; Insurance. (a) Keep, and cause each other
Loan Party to keep, all property useful and necessary in the business of the
Loan Parties in good working order and condition, ordinary wear and tear
excepted.

            (b) Maintain, and cause each other Loan Party to maintain, with

      insurance companies licensed to conduct business in the states where the
      business of the Loan Parties is located, such insurance coverage as may be
      required by any law or governmental regulation or court decree or order
      applicable to it and such other insurance, to such extent and against such
      hazards and liabilities, as the Loan Parties currently maintain which
      insure against risks and liabilities of the types identified in the
      insurance policies listed on Schedule 9.16, unless the Loan Parties and
      the Required Lenders shall have agreed it is not commercially reasonable
      to maintain; and, upon request of the Administrative Agent or any Lender,
      furnish to the Administrative Agent or such Lender a certificate setting
      forth in reasonable detail the nature and extent of all insurance
      maintained by the Loan Parties. With respect to any Collateral that
      consists of tangible property, the Company shall cause each issuer of an
      insurance policy to provide the Administrative Agent with an endorsement
      (i) showing the Administrative Agent as loss payee with respect to each
      policy of property insurance applicable to properties in the Borrowing
      Base Pool, (ii) providing that 30 days' notice will be given to the
      Administrative Agent prior to any cancellation of, material reduction or
      change in coverage provided by or other material modification to such
      policy and (iii) be reasonably acceptable in all other respects to the
      Administrative Agent.

            (c) UNLESS THE COMPANY PROVIDES THE ADMINISTRATIVE AGENT WITH
      EVIDENCE OF THE INSURANCE COVERAGE REQUIRED BY THIS AGREEMENT, THE
      ADMINISTRATIVE AGENT MAY AFTER TEN (10) DAYS NOTICE TO THE COMPANY,
      PURCHASE INSURANCE AT THE COMPANY'S EXPENSE TO PROTECT THE ADMINISTRATIVE
      AGENT'S AND THE LENDERS' INTERESTS IN THE COLLATERAL AND/OR TO PRESERVE
      THE VALUE OF THE BORROWING BASE POOL, AS THE CASE MAY BE. THIS INSURANCE
      MAY, BUT NEED NOT, PROTECT ANY LOAN PARTY'S INTERESTS. THE COVERAGE THAT
      THE ADMINISTRATIVE AGENT

                                       49
<PAGE>

      PURCHASES MAY NOT PAY ANY CLAIM THAT IS MADE AGAINST ANY LOAN PARTY IN
      CONNECTION WITH THE COLLATERAL. THE COMPANY MAY LATER CANCEL ANY INSURANCE
      PURCHASED BY THE ADMINISTRATIVE AGENT, BUT ONLY AFTER PROVIDING THE
      ADMINISTRATIVE AGENT WITH EVIDENCE THAT THE COMPANY HAS OBTAINED INSURANCE
      AS REQUIRED BY THIS AGREEMENT. IF THE ADMINISTRATIVE AGENT PURCHASES
      INSURANCE UNDER THIS PROVISION, THE COMPANY WILL BE RESPONSIBLE FOR THE
      COSTS OF THAT INSURANCE, INCLUDING INTEREST AND ANY OTHER CHARGES THAT MAY
      BE IMPOSED WITH THE PLACEMENT OF THE INSURANCE, UNTIL THE EFFECTIVE DATE
      OF THE CANCELLATION OR EXPIRATION OF THE INSURANCE. THE COSTS OF THE
      INSURANCE MAY BE ADDED TO THE PRINCIPAL AMOUNT OF THE LOANS OWING
      HEREUNDER. THE COSTS OF THE INSURANCE MAY BE MORE THAN THE COST OF THE
      INSURANCE THE LOAN PARTIES MAY BE ABLE TO OBTAIN ON THEIR OWN.

      10.4 Compliance with Laws; Payment of Taxes and Liabilities. (a) Comply,
and cause each other Loan Party to comply, in all material respects with all
applicable laws, rules, regulations, decrees, orders, judgments, licenses and
permits, except where failure to comply would not reasonably be expected to have
a Material Adverse Effect; (b) without limiting clause (a) above, ensure, and
cause each other Loan Party to ensure, that no person who owns a controlling
interest in or otherwise controls a Loan Party is or shall be (i) listed on the
Specially Designated Nationals and Blocked Person List maintained by the Office
of Foreign Assets Control ("OFAC"), Department of the Treasury, and/or any other
similar lists maintained by OFAC pursuant to any authorizing statute, Executive
Order or regulation or (ii) a person designated under Section 1(b), (c) or (d)
of Executive Order No. 13224 (September 23, 2001), any related enabling
legislation or any other similar Executive Orders, (c) without limiting clause
(a) above, comply, and cause each other Loan Party to comply, with all
applicable Bank Secrecy Act ("BSA") and anti-money laundering laws and
regulations and (d) pay, and cause each other Loan Party to pay, prior to
delinquency, all taxes and other governmental charges against it or any
collateral, as well as claims of any kind which, if unpaid, could become a Lien
on any of its property; provided that the foregoing shall not require any Loan
Party to pay any such tax or charge so long as it shall contest the validity
thereof in good faith by appropriate proceedings and shall set aside on its
books adequate reserves with respect thereto in accordance with GAAP and, in the
case of a claim which could become a Lien on any collateral, such contest
proceedings shall stay the foreclosure of such Lien or the sale of any portion
of the collateral to satisfy such claim.

      10.5 Maintenance of Existence, etc. Maintain and preserve, and (subject to
Section 11.5) cause each other Loan Party to maintain and preserve, (a) its
existence and good standing in the jurisdiction of its organization and (b) its
qualification to do business and good standing in each jurisdiction where the
nature of its business makes such qualification necessary (other than such
jurisdictions in which the failure to be qualified or in good standing would not
reasonably be expected to have a Material Adverse Effect).

      10.6 Use of Proceeds. Use the proceeds of the Loans, and the Letters of
Credit, solely to repay in full the Debt to be Repaid, for working capital
purposes and for other general

                                       50
<PAGE>

business purposes; and not use or permit any proceeds of any Loan to be used,
either directly or indirectly, for the purpose, whether immediate, incidental or
ultimate, of "purchasing or carrying" any Margin Stock.

      10.7 Employee Benefit Plans.

            (a) Maintain, and cause each other member of the Controlled Group to
      maintain, each Pension Plan in substantial compliance with all applicable
      requirements of law and regulations.

            (b) Make, and cause each other member of the Controlled Group to
      make, on a timely basis, all required contributions to any Multiemployer
      Pension Plan.

            (c) Not, and not permit any other member of the Controlled Group to
      (i) seek a waiver of the minimum funding standards of ERISA, (ii)
      terminate or withdraw from any Pension Plan or Multiemployer Pension Plan
      or (iii) take any other action with respect to any Pension Plan that would
      reasonably be expected to entitle the PBGC to terminate, impose liability
      in respect of, or cause a trustee to be appointed to administer, any
      Pension Plan, unless the actions or events described in clauses (i), (ii)
      and (iii) individually or in the aggregate would not have a Material
      Adverse Effect.

      10.8 Environmental Matters. If any release or threatened release or other
disposal of Hazardous Substances in violation of Environmental Laws shall occur
or shall have occurred on any real property or any other assets of any Loan
Party, the Company and the REIT shall, or shall cause the applicable Loan Party
to, cause the prompt containment, removal, remediation or other action
acceptable to the proper governmental authority with respect to such Hazardous
Substances as necessary to comply with applicable Environmental Laws and to
prevent a material decline in the value of such real property or other asset.
Without limiting the generality of the foregoing, the Company and the REIT
shall, and shall cause each other Loan Party to, comply with any Federal or
state judicial or administrative order requiring the performance at any real
property of any Loan Party of activities in response to the release or
threatened release of a Hazardous Substance. To the extent that the
transportation of Hazardous Substances is permitted by this Agreement, the
Company and the REIT shall, and shall cause its Subsidiaries to, dispose of such
Hazardous Substances, or of any other wastes, only at licensed disposal
facilities operating in compliance with Environmental Laws.

      10.9 Further Assurances. The Company and the REIT shall take, and cause
each Loan Party to take, such actions as are necessary or as the Administrative
Agent may reasonably request from time to time to ensure that the Obligations
under the Loan Documents are secured as contemplated by this Agreement, in each
case as the Administrative Agent may determine, including (a) the execution and
delivery of security agreements, pledge agreements, mortgages, deeds of trust,
financing statements and other documents, and the filing or recording of any of
the foregoing, and (b) the delivery of certificated securities and other
collateral with respect to which perfection is obtained by possession.

      SECTION 11. NEGATIVE COVENANTS.

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<PAGE>

      Until the expiration or termination of the Commitments and thereafter
until all Obligations hereunder and under the other Loan Documents are paid in
full and all Letters of Credit have been terminated, the Company and the REIT
agree that, unless at any time the Required Lenders shall otherwise expressly
consent in writing, they will:

      11.1 Debt. Not, and not permit any other Loan Party to, create, incur,
assume or suffer to exist any Debt, except:

            (a) Obligations under this Agreement and the other Loan Documents;

            (b) Debt secured by Liens on assets not included in the Borrowing
      Base Pool or the Collateral;

            (c) Debt between the Company, the REIT or any Subsidiary;

            (d) Subordinated Debt;

            (e) Hedging Obligations for bona fide hedging purposes and not for
      speculation;

            (f) Debt described on Schedule 11.1(f) and any extension, renewal or
      refinancing thereof so long as the principal amount thereof is not
      increased;

            (g) the Debt to be Repaid (so long as such Debt is repaid on the
      Closing Date with the proceeds of the initial Loans hereunder);

            (h) Contingent Liabilities arising with respect to customary
      indemnification obligations in favor of sellers in connection with
      acquisitions of assets or purchasers in connection with dispositions of
      assets;

            (i) The existing unsecured Debt described on Schedule 11.1(i) and
      any extension, renewal or refinancing thereof so long as the principal
      amount thereof is not increased;

            (j) The GMAC Pool Debt, provided that the principal amount of such
      debt is not increased;

            (k) The Debt encumbering the Sea Air Property, provided that the
      principal amount of such debt is not increased; and

            (l) Other Debt of the REIT, the Company and their consolidated
      Subsidiaries incurred in the ordinary course of their business of
      developing, constructing, owning, leasing to consumers, operating and
      selling or otherwise disposing of Manufactured Home Communities and
      Recreational Vehicle Communities and activities related thereto where

                (A) immediately before and after giving effect to such
incurrence of Debt, no Event of Default or Unmatured Event of Default shall
exist;

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<PAGE>

                (B) immediately after giving effect to such incurrence of Debt,
the Company is in pro forma compliance with all the financial ratios and
restrictions set forth in Section 11.14.

      11.2 Liens. Not, and not permit any other Loan Party to, create or permit
to exist any Lien on any of its real or personal properties, assets or rights of
whatsoever nature (whether now owned or hereafter acquired), except (the
"Permitted Liens"):

            (a) Liens for taxes or other governmental charges not at the time
      delinquent or thereafter payable without penalty or being contested in
      good faith by appropriate proceedings and, in each case, for which it
      maintains adequate reserves;

            (b) Liens arising in the ordinary course of business (such as (i)
      Liens of carriers, warehousemen, mechanics and materialmen and other
      similar Liens imposed by law and (ii) Liens in the form of deposits or
      pledges incurred in connection with worker's compensation, unemployment
      compensation and other types of social security (excluding Liens arising
      under ERISA) or in connection with surety bonds, bids, performance bonds
      and similar obligations) for sums not overdue or being contested in good
      faith by appropriate proceedings and not involving any advances or
      borrowed money or the deferred purchase price of property or services and,
      in each case, for which it maintains adequate reserves;

            (c) Liens described on Schedule 11.2 as of the Effective Date;

            (d) subject to the limitation set forth in Section 11.1(b), (i)
      Liens arising in connection with Capital Leases (and attaching only to the
      property being leased), (ii) Liens existing on property at the time of the
      acquisition thereof by any Loan Party (and not created in contemplation of
      such acquisition) and (iii) Liens that constitute purchase money security
      interests on any property securing debt incurred for the purpose of
      financing all or any part of the cost of acquiring such property, provided
      that any such Lien attaches to such property within 60 days of the
      acquisition thereof and attaches solely to the property so acquired;

            (e) attachments, appeal bonds, judgments and other similar Liens,
      for sums not exceeding $5,000,000.00, in aggregate, arising in connection
      with court proceedings, provided the execution or other enforcement of
      such Liens is effectively stayed and the claims secured thereby are being
      actively contested in good faith and by appropriate proceedings;

            (f) easements, rights of way, restrictions, minor defects or
      irregularities in title and other similar Liens not interfering in any
      material respect with the ordinary conduct of the business of any Loan
      Party;

            (g) Liens arising under the Loan Documents; and

            (h) the replacement, extension or renewal of any Lien permitted by
      clause (c) and (d) above upon or in the same property subject thereto
      arising out of the extension,

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<PAGE>

      renewal or replacement of the Debt secured thereby (without increase in
      the amount thereof).

      11.3 Restricted Payments. Commencing on the earlier of (Y) the second
Fiscal Quarter of 2005 or (Z) the Fiscal Quarter next following the date that
the Company's cash position is less than $10,000,000.00, not pay or declare
Distributions that in the aggregate exceed (a) ninety percent (90%) of the Funds
From Operations of the Company individually and combined with the REIT (without
duplication), respectively, in any four consecutive calendar quarters, (b) the
amount necessary to maintain the REIT's status as a real estate investment trust
under Section 856 of the Code, or (c) the amount necessary for the REIT to avoid
the payment of any federal income or excise tax, whichever of (a), (b) or (c) is
greatest.

      11.4 Mergers, Consolidations, Sales. Not, and not permit any other Loan
Party to, (a) be a party to any merger or consolidation, or purchase or
otherwise acquire all or substantially all of the assets or any Capital
Securities of any class of, or any partnership or joint venture interest in, any
other Person, (b) sell, transfer, convey or lease all or any substantial part of
its assets or Capital Securities (including the sale of Capital Securities of
any Subsidiary) except for sales of inventory in the ordinary course of
business, or (c) sell or assign with or without recourse any receivables, except
for (i) any such merger, consolidation, sale, transfer, conveyance, lease or
assignment of or by any Wholly-Owned Subsidiary into the Company or into any
other domestic Wholly-Owned Subsidiary; (ii) any such purchase or other
acquisition by the Company or any domestic Wholly-Owned Subsidiary of the assets
or Capital Securities of any Wholly-Owned Subsidiary; (iii) sales and
dispositions of assets (including the Capital Securities of Subsidiaries) for at
least fair market value (as determined by the Board of Directors of the Company)
and (iv) any Acquisition by the Company or any Wholly-Owned Subsidiary where:

                  (A) the property, business or division acquired are for use,
      or the Person acquired is engaged, in the businesses engaged in by the
      Loan Parties on the Effective Date;

                  (B) immediately before and after giving effect to such
      Acquisition, no Event of Default or Unmatured Event of Default shall
      exist;

                  (C) immediately after giving effect to such Acquisition, the
      Company is in pro forma compliance with all the financial ratios and
      restrictions set forth in Section 11.13;

                  (D) in the case of the Acquisition of any Person, the Board of
      Directors of such Person has approved such Acquisition;

                  (E) not less than ten Business Days prior to such Acquisition,
      the Administrative Agent shall have received an acquisition summary with
      respect to the Person and/or business or division to be acquired, and the
      Company's calculation of pro forma EBITDA relating thereto; and

                  (F) the Administrative Agent and Required Lenders shall have
      approved the Company's computation of pro forma EBITDA, provided that if
      the Administrative Agent and Required Lenders shall not have notified the
      Company that

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<PAGE>

      they disapprove such computation of pro forma EBITDA within 5 Business
      Days after they have received such computation, then they shall be deemed
      to have approved such computation.

      11.5 Modification of Organizational Documents. Not permit the charter,
by-laws or other organizational documents of any Loan Party to be amended or
modified in any way which could reasonably be expected to materially adversely
affect the interests of the Lenders.

      11.6 Transactions with Affiliates. Not, and not permit any other Loan
Party to, enter into, or cause, suffer or permit to exist any transaction,
arrangement or contract with any of its other Affiliates (other than the Loan
Parties) which is on terms which are less favorable than are obtainable from any
Person which is not one of its Affiliates.

      11.7 Unconditional Purchase Obligations. Not, and not permit any other
Loan Party to, enter into or be a party to any contract for the purchase of
materials, supplies or other property or services if such contract requires that
payment be made by it regardless of whether delivery is ever made of such
materials, supplies or other property or services.

      11.8 Inconsistent Agreements. Not, and not permit any other Loan Party to,
enter into any agreement containing any provision which would (a) be violated or
breached by any borrowing by the Company hereunder or by the performance by any
Loan Party of any of its Obligations hereunder or under any other Loan Document,
(b) prohibit any Loan Party from granting to the Administrative Agent and the
Lenders, a Lien on any of the properties in the Borrowing Base Pool, or (c)
create or permit to exist or become effective any encumbrance or restriction on
the ability of any Subsidiary to (i) pay dividends or make other distributions
to the Company or any other Subsidiary, or pay any Debt owed to the Company or
any other Subsidiary, (ii) make loans or advances to any Loan Party or (iii)
transfer any of its assets or properties to any Loan Party, other than (A)
customary restrictions and conditions contained in agreements relating to the
sale of all or a substantial part of the assets of any Subsidiary pending such
sale, provided that such restrictions and conditions apply only to the
Subsidiary to be sold and such sale is permitted hereunder (B) restrictions or
conditions imposed by any agreement relating to purchase money Debt, Capital
Leases and other secured Debt permitted by this Agreement if such restrictions
or conditions apply only to the property or assets securing such Debt and (C)
customary provisions in leases and other contracts restricting the assignment
thereof.

      11.9 Business Activities; Issuance of Equity. Not, and not permit any
other Loan Party to, engage in any line of business other than the businesses
engaged in on the date hereof and businesses reasonably related thereto.

      11.10 Investments. Not, and not permit any other Loan Party to, make or
permit to exist any Investment in any other Person, except the following:

            (a) contributions by the Company to the capital of any Wholly-Owned
      Subsidiary, or by any Subsidiary to the capital of any other Wholly-Owned
      Subsidiary;

            (b) Investments constituting Debt permitted by Section 11.1;

                                       55
<PAGE>

            (c) Contingent Liabilities constituting Debt permitted by Section
      11.1 or Liens permitted by Section 11.2;

            (d) Cash Equivalent Investments;

            (e) bank deposits in the ordinary course of business;

            (f) Investments in securities of Account Debtors received pursuant
      to any plan of reorganization or similar arrangement upon the bankruptcy
      or insolvency of such account debtors;

            (g) Investments to consummate Acquisitions permitted by Section
      11.5;

            (h) Investments listed on Schedule 11.11 as of the Effective Date,
      provided, however, that no additional investment may be made in Origin;

            (i) Loans by the Company or any of its Subsidiaries to purchasers of
      Manufactured Homes;

            (j) Investments in Sun Home Services and SunChamp LLC; and

            (k) Other investments relating to the Company's business of
      developing, constructing; owning, leasing to consumers, operating and
      selling or otherwise disposing of Manufacture Home Communities and
      Recreational Vehicle Communities and activities related thereto where

                  (A) immediately before and after giving effect to such
      Investment, no Event of Default or Unmatured Event of Default shall exist;

                  (B) immediately after giving effect to such Investment, the
      Company is in pro forma compliance with all the financial ratios and
      restrictions set forth in Section 11.13.

provided that (x) any Investment which when made complies with the requirements
of the definition of the term "Cash Equivalent Investment" may continue to be
held notwithstanding that such Investment if made thereafter would not comply
with such requirements; (y) no Investment otherwise permitted by clause (b),
(c), or (g) shall be permitted to be made if, immediately before or after giving
effect thereto, any Event of Default or Unmatured Event of Default exists.

      11.11 Restriction of Amendments to Certain Documents. Not amend or
otherwise modify, or waive any rights under, any document evidencing or related
to the GMAC Pool Debt or the Sea Air Property Debt in any manner which would
materially increase the obligations of the borrower thereunder or otherwise
materially adversely affect the Lenders.

      11.12 Fiscal Year. Not change its Fiscal Year.

      11.13 Financial Covenants.

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<PAGE>

                  11.13.1 Adjusted EBITDA to Debt Service Ratio. Not permit the
      ratio of Adjusted EBITDA to Debt Service for any Computation Period to be
      less than 1.75:1.

                  11.13.2 Adjusted EBITDA to Fixed Charge Ratio. Not permit the
      ratio of Adjusted EBITDA to Fixed Charge for any Computation Period to be
      less than 1.40 to 1.

                  11.13.3 Total Leverage Ratio. Not permit Total Leverage Ratio
      as of the last day of any Computation Period to be greater than 0.70 to 1.

                  11.13.4 Unencumbered Adjusted NOI to Total Unsecured Debt
      Service Ratio. Not permit the ratio of Unencumbered Adjusted NOI to
      Unsecured Debt Service ratio as of the last day of any Computation Period
      to be less than 1.75 to 1.

                  11.13.5 Tangible Net Worth. Not permit the Tangible Net Worth
      as of the last day of any Computation Period to be less than
      $400,000,000.00.

      11.14 Interest Rate Protection. Not permit floating rate Debt in an amount
that exceeds 20% of the Gross Asset Value of the Company from time to time that
is not subject to an interest rate Hedging Agreement.

      SECTION 12. EFFECTIVENESS; CONDITIONS OF LENDING, ETC.

      The obligation of each Lender to make its Loans and of the Issuing Lender
to issue Letters of Credit is subject to the following conditions precedent:

      12.1 Initial Credit Extension. The obligation of the Lenders to make the
initial Loans and the obligation of the Issuing Lender to issue its initial
Letter of Credit (whichever first occurs) is, in addition to the conditions
precedent specified in Section 12.2, subject to the conditions precedent that
(a) all Debt to be Repaid has been (or concurrently with the initial borrowing
will be) paid in full, and that all agreements and instruments governing the
Debt to be Repaid and that all Liens securing such Debt to be Repaid have been
(or concurrently with the initial borrowing will be) terminated and (b) the
Administrative Agent shall have received all of the following, each duly
executed and dated the Effective Date (or such earlier date as shall be
satisfactory to the Administrative Agent), in form and substance satisfactory to
the Administrative Agent (and the date on which all such conditions precedent
have been satisfied or waived in writing by the Administrative Agent and the
Lenders is called the "Closing Date"):

                  12.1.1 Notes. A Note for each Lender.

                  12.1.2 Authorization Documents. For the Company, the REIT,
each Guarantor and each other Loan Party with a property included in the
Borrowing Base Pool, such Person's (a) charter (or similar formation document),
certified by the appropriate governmental authority; (b) good standing
certificates in its state of incorporation (or formation) and in each other
state requested by the Administrative Agent; (c) bylaws (or similar governing
document); (d) resolutions of its board of directors (or similar governing body)
approving and authorizing such Person's execution, delivery and performance of
the Loan Documents to which it is party and the transactions contemplated
thereby; and (e) signature and incumbency certificates of its officers executing
any of the Loan Documents (it being understood that the Administrative

                                       57
<PAGE>

Agent and each Lender may conclusively rely on each such certificate until
formally advised by a like certificate of any changes therein), all certified by
its secretary or an assistant secretary (or similar officer) as being in full
force and effect without modification.

            12.1.3 Consents, etc. Certified copies of all documents evidencing
any necessary corporate or partnership action, consents and governmental
approvals (if any) required for the execution, delivery and performance by the
Loan Parties of the documents referred to in this Section 12.

            12.1.4 Letter of Direction. A letter of direction containing funds
flow information with respect to the proceeds of the Loans on the Closing Date.

            12.1.5 Guaranty. A counterpart of the Guaranty executed by each
Guarantor.

            12.1.6 Collateral Documents. Each of the Collateral Documents
required pursuant to Section 3.3.

            12.1.7 Title Reports. A title report, in form and substance
satisfactory to the Administrative Agent, for each property in the Borrowing
Base Pool, together with a copy of each document that evidences an encumbrance
against each such property.

            12.1.8 Subordination Agreements. Subordination Agreements with
respect to all Subordinated Debt.

            12.1.9 Opinions of Counsel. Opinions of counsel for the Company and
each Guarantor in form and substance acceptable to the Administrative Agent.

            12.1.10 Insurance. Evidence of the existence of insurance required
to be maintained pursuant to Section 10.3(b).

            12.1.11 Payment of Fees. Evidence of payment by the Company of all
accrued and unpaid fees, costs and expenses to the extent then due and payable
on the Effective Date, together with all Attorney Costs of the Administrative
Agent to the extent invoiced prior to the Effective Date, plus such additional
amounts of Attorney Costs as shall constitute the Administrative Agent's
reasonable estimate of Attorney Costs incurred or to be incurred by the
Administrative Agent through the closing proceedings (provided that such
estimate shall not thereafter preclude final settling of accounts between the
Company and the Administrative Agent).

            12.1.12 Solvency Certificate. A Solvency Certificate executed by a
Senior Officer of the Company.

            12.1.13 Environmental Reports. Environmental site assessment reports
in respect of the Borrowing Base Pool, as requested by the Administrative Agent.

            12.1.14 Search Results; Lien Terminations. Certified copies of
Uniform Commercial Code search reports dated a date reasonably near to the
Effective Date, listing all effective financing statements which name the REIT,
the Company and any Loan Party owning a

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<PAGE>

Property included in the Borrowing Base Pool (under their present names and any
previous names) as debtors, together with (a) copies of such financing
statements, (b) payoff letters evidencing repayment in full of all Debt to be
Repaid, the termination of all agreements relating thereto and the release of
all Liens granted in connection therewith, with Uniform Commercial Code or other
appropriate termination statements and documents effective to evidence the
foregoing (other than Liens permitted by Section 11.2) and (c) such other
Uniform Commercial Code termination statements as the Administrative Agent may
reasonably request.

            12.1.15 Borrowing Base Certificate. A Borrowing Base Certificate
dated as of June 30, 2004.

            12.1.16 Closing Certificate, Consents and Permits. A certificate
executed by an officer of the Company on behalf of the Company certifying the
matters set forth in Section 12.2.1 as of the Closing Date.

            12.1.17 Other. Such other documents as the Administrative Agent or
any Lender may reasonably request.

       12.2 Conditions. The obligation (a) of each Lender to make each Loan
and (b) of the Issuing Lender to issue each Letter of Credit is subject to the
following further conditions precedent that:

            12.2.1 Compliance with Warranties, No Default, etc. Both before and
after giving effect to any borrowing and the issuance of any Letter of Credit,
the following statements shall be true and correct:

            (a) the representations and warranties of each Loan Party set forth
      in this Agreement and the other Loan Documents shall be true and correct
      in all material respects with the same effect as if then made (except to
      the extent stated to relate to a specific earlier date, in which case such
      representations and warranties shall be true and correct as of such
      earlier date); and

            (b) no Event of Default or Unmatured Event of Default shall have
      then occurred and be continuing.

            12.2.2 Confirmatory Certificate. If requested by the Administrative
Agent or the Required Lenders, the Administrative Agent shall have received (in
sufficient counterparts to provide one to each Lender) a certificate dated the
date of such requested Loan or Letter of Credit and signed by a duly authorized
representative of the Company as to the matters set out in Section 12.2.1 (it
being understood that each request by the Company for the making of a Loan or
the issuance of a Letter of Credit shall be deemed to constitute a
representation and warranty by the Company that the conditions precedent set
forth in Section 12.2.1 will be satisfied at the time of the making of such Loan
or the issuance of such Letter of Credit), together with such other documents as
the Administrative Agent or any Lender may reasonably request in support
thereof.

       SECTION 13. EVENTS OF DEFAULT AND THEIR EFFECT.

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<PAGE>

      13.1 Events of Default. Each of the following shall constitute an Event of
Default under this Agreement:

            13.1.1 Non-Payment of the Loans, etc. Default in the payment when
due of the principal of any Loan; or default, and continuance thereof for five
days, in the payment when due of any interest, fee, reimbursement obligation
with respect to any Letter of Credit or other amount payable by the Company
hereunder or under any other Loan Document.

            13.1.2 Non-Payment of Other Debt. Any default shall occur under the
terms applicable to any Debt of any Loan Party (excluding intercompany Debt) in
an aggregate amount (for all such Debt so affected and including undrawn
committed or available amounts and amounts owing to all creditors under any
combined or syndicated credit arrangement) exceeding $10,000,000.00 and such
default shall (a) consist of the failure to pay such Debt when due, whether by
acceleration or otherwise, or (b) accelerate the maturity of such Debt or permit
the holder or holders thereof, or any trustee or agent for such holder or
holders, to cause such Debt to become due and payable (or require any Loan Party
to purchase or redeem such Debt or post cash collateral in respect thereof)
prior to its expressed maturity.

            13.1.3 Other Material Obligations. Default in the payment when due,
or in the performance or observance of, any material obligation of, or condition
agreed to by, any Loan Party with respect to any material purchase or lease of
goods or services where such default, singly or in the aggregate with all other
such defaults, might reasonably be expected to have a Material Adverse Effect.

            13.1.4 Bankruptcy, Insolvency, etc. The Company, the REIT, or any
Guarantor becomes insolvent or generally fails to pay, or admits in writing its
inability or refusal to pay, debts as they become due; or any such Person
applies for, consents to, or acquiesces in the appointment of a trustee,
receiver or other custodian for such Person or any property thereof, or makes a
general assignment for the benefit of creditors; or, in the absence of such
application, consent or acquiescence, a trustee, receiver or other custodian is
appointed for any such Person or for a substantial part of the property of any
such Person and is not discharged within 90 days; or any bankruptcy,
reorganization, debt arrangement, or other case or proceeding under any
bankruptcy or insolvency law, or any dissolution or liquidation proceeding, is
commenced in respect of any such Person, and if such case or proceeding is not
commenced by such Person, it is consented to or acquiesced in by such Person, or
remains for 90 days undismissed; or any such Person takes any action to
authorize, or in furtherance of, any of the foregoing.

            13.1.5 Non-Compliance with Loan Documents. (a) Failure by the
Company to comply with or to perform any covenant set forth in Section, 10.3(b)
or 10.5 or Section 11; (b) failure by any Loan Party to comply with or to
perform any other provision of this Agreement or any other Loan Document (and
not constituting an Event of Default under any other provision of this Section
13) and continuance of such failure described in this clause (b) for 30 days
after delivery of notice thereof to the Company, or such longer period of time
as is reasonably necessary to cure such failure, provided that the Company has
commenced and is diligently prosecuting the cure of such failure and cures it
within ninety (90) days; or (c) failure by the Company to comply with Section
6.2.2(a).

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<PAGE>

            13.1.6 Representations; Warranties. Any representation or warranty
made by any Loan Party herein or any other Loan Document is breached or is false
or misleading in any material respect, or any schedule, certificate, financial
statement, report, notice or other writing furnished by any Loan Party to the
Administrative Agent or any Lender in connection herewith is false or misleading
in any material respect on the date as of which the facts therein set forth are
stated or certified.

            13.1.7 Pension Plans. (a) Any Person institutes steps to terminate a
Pension Plan if as a result of such termination the Company or any member of the
Controlled Group could be required to make a contribution to such Pension Plan,
or could incur a liability or obligation to such Pension Plan, in excess of
$2,000,000.00; (b) a contribution failure occurs with respect to any Pension
Plan sufficient to give rise to a Lien under Section 302(f) of ERISA; (c) the
Unfunded Liability exceeds the greater of $2,000,000.00 or twenty percent of the
Total Plan Liability, or (d) there shall occur any withdrawal or partial
withdrawal from a Multiemployer Pension Plan and the withdrawal liability
(without unaccrued interest) to Multiemployer Pension Plans as a result of such
withdrawal (including any outstanding withdrawal liability that the Company or
any member of the Controlled Group have incurred on the date of such withdrawal)
exceeds $2,000,000.00.

            13.1.8 Judgments. Final judgments which exceed an aggregate of
$10,000,000.00 shall be rendered against any Loan Party and shall not have been
paid, discharged or vacated or had execution thereof stayed pending appeal
within 30 days after entry or filing of such judgments.

            13.1.9 Invalidity of Guaranty. Any Guaranty shall cease to be in
full force and effect; or any Guarantor (or any Person by, through or on behalf
of any Guarantor) shall contest in any manner the validity, binding nature or
enforceability of any Guaranty.

            13.1.10 Invalidity of Subordination Provisions, etc. Any
subordination provision in any document or instrument governing Subordinated
Debt, or any subordination provision in any guaranty by any Subsidiary of any
Subordinated Debt, shall cease to be in full force and effect, or any Loan Party
or any other Person (including the holder of any applicable Subordinated Debt)
shall contest in any manner the validity, binding nature or enforceability of
any such provision.

            13.1.11 Change of Control. A Change of Control shall occur.

            13.1.12 Material Adverse Effect. The occurrence of any event having
a Material Adverse Effect.

       13.2 Effect of Event of Default. If any Event of Default described
in Section 13.1.4 shall occur in respect of the Company, the Commitments shall
immediately terminate and the Loans and all other Obligations hereunder shall
become immediately due and payable and the Company shall become immediately
obligated to Cash Collateralize all Letters of Credit, all without presentment,
demand, protest or notice of any kind; and, if any other Event of Default shall
occur and be continuing, the Administrative Agent may (and, upon the written
request of the Required Lenders shall) declare the Commitments to be terminated
in whole or in part and/or

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<PAGE>

declare all or any part of the Loans and all other Obligations hereunder to be
due and payable and/or demand that the Company immediately Cash Collateralize
all or any Letters of Credit, whereupon the Commitments shall immediately
terminate (or be reduced, as applicable) and/or the Loans and other Obligations
hereunder shall become immediately due and payable (in whole or in part, as
applicable) and/or the Company shall immediately become obligated to Cash
Collateralize the Letters of Credit (all or any, as applicable), all without
presentment, demand, protest or notice of any kind. The Administrative Agent
shall promptly advise the Company of any such declaration, but failure to do so
shall not impair the effect of such declaration. Any cash collateral delivered
hereunder shall be held by the Administrative Agent (without liability for
interest thereon) and applied to the Obligations arising in connection with any
drawing under a Letter of Credit. After the expiration or termination of all
Letters of Credit, such cash collateral shall be applied by the Administrative
Agent to any remaining Obligations hereunder and any excess shall be delivered
to the Company or as a court of competent jurisdiction may elect.

      SECTION 14. THE AGENT.

      14.1 Appointment and Authorization. Each Lender hereby irrevocably
(subject to Section 14.10) appoints, designates and authorizes the
Administrative 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. Notwithstanding any provision to the contrary
contained elsewhere in this Agreement or in any other Loan Document, the
Administrative Agent shall not have any duty or responsibility except those
expressly set forth herein, nor shall the Administrative Agent have or be deemed
to have any fiduciary relationship with any Lender or participant, 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 Administrative Agent. Without limiting the
generality of the foregoing sentence, the use of the term "agent" herein and in
other Loan Documents 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.

      14.2 Issuing Lender. The Issuing Lender shall act on behalf of the Lenders
(according to their Pro Rata Shares) with respect to any Letters of Credit
issued by it and the documents associated therewith. The Issuing Lender shall
have all of the benefits and immunities (a) provided to the Administrative Agent
in this Section 14 with respect to any acts taken or omissions suffered by the
Issuing Lender in connection with Letters of Credit issued by it or proposed to
be issued by it and the applications and agreements for letters of credit
pertaining to such Letters of Credit as fully as if the term "Administrative
Agent", as used in this Section 14, included the Issuing Lender with respect to
such acts or omissions and (b) as additionally provided in this Agreement with
respect to the Issuing Lender.

      14.3 Delegation of Duties. The Administrative 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 and
other consultants or experts

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concerning all matters pertaining to such duties. The Administrative Agent shall
not be responsible for the negligence or misconduct of any agent or
attorney-in-fact that it selects in the absence of gross negligence or willful
misconduct.

      14.4 Exculpation of Administrative Agent. None of the Administrative Agent
nor any of its directors, officers, employees or agents shall (a) 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 to the extent resulting from its own gross negligence or willful
misconduct in connection with its duties expressly set forth herein as
determined by a final, nonappealable judgment by a court of competent
jurisdiction), or (b) be responsible in any manner to any Lender or participant
for any recital, statement, representation or warranty made by any Loan Party or
Affiliate of the Company, 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 Administrative 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 the creation, perfection or priority of
any Lien or security interest therein), or for any failure of the Company or any
other party to any Loan Document to perform its Obligations hereunder or
thereunder. The Administrative Agent shall not 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 the Company or any
of the Company's Subsidiaries or Affiliates.

      14.5 Reliance by Administrative Agent. The Administrative Agent shall be
entitled to rely, and shall be fully protected in relying, upon any writing,
communication, signature, resolution, representation, notice, consent,
certificate, electronic mail message, 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 Company), independent accountants and other experts
selected by the Administrative Agent. The Administrative 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,
confirmation from the Lenders of their obligation to indemnify the
Administrative Agent 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
Administrative 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 and such request
and any action taken or failure to act pursuant thereto shall be binding upon
each Lender. For purposes of determining compliance with the conditions
specified in Section 12, each Lender that has signed this Agreement shall be
deemed to have consented to, approved or accepted or to be satisfied with, each
document or other matter required thereunder to be consented to or approved by
or acceptable or satisfactory to a Lender unless the Administrative Agent shall
have received written notice from such Lender prior to the proposed Effective
Date specifying its objection thereto.

      14.6 Notice of Default. The Administrative Agent shall not be deemed to
have knowledge or notice of the occurrence of any Event of Default

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except with respect to defaults in the payment of principal, interest and fees
required to be paid to the Administrative Agent for the account of the Lenders,
unless the Administrative Agent shall have received written notice from a Lender
or the Company referring to this Agreement, describing such Event of Default or
Unmatured Event of Default and stating that such notice is a "notice of
default". The Administrative Agent will notify the Lenders of its receipt of any
such notice. The Administrative Agent shall take such action with respect to
such Event of Default or Unmatured Event of Default as may be requested by the
Required Lenders in accordance with Section 13; provided that unless and until
the Administrative Agent has received any such request, the Administrative Agent
may (but shall not be obligated to) take such action, or refrain from taking
such action, with respect to such Event of Default or Unmatured Event of Default
as it shall deem advisable or in the best interest of the Lenders.

      14.7 Credit Decision. Each Lender acknowledges that the Administrative
Agent has not made any representation or warranty to it, and that no act by the
Administrative Agent hereafter taken, including any consent and acceptance of
any assignment or review of the affairs of the Loan Parties, shall be deemed to
constitute any representation or warranty by the Administrative Agent to any
Lender as to any matter, including whether the Administrative Agent has
disclosed material information in its possession. Each Lender represents to the
Administrative Agent that it has, independently and without reliance upon the
Administrative Agent 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 the Loan Parties, and made its own decision to enter into
this Agreement and to extend credit to the Company hereunder. Each Lender also
represents that it will, independently and without reliance upon the
Administrative Agent 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 Company. Except for notices,
reports and other documents expressly herein required to be furnished to the
Lenders by the Administrative Agent, the Administrative 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
or other condition or creditworthiness of the Company which may come into the
possession of the Administrative Agent.

      14.8 Indemnification. Whether or not the transactions contemplated hereby
are consummated, each Lender shall indemnify upon demand the Administrative
Agent and its directors, officers, employees and agents (to the extent not
reimbursed by or on behalf of the Company and without limiting the obligation of
the Company to do so), according to its applicable Pro Rata Share, from and
against any and all Indemnified Liabilities (as hereinafter defined); provided
that no Lender shall be liable for any payment to any such Person of any portion
of the Indemnified Liabilities to the extent determined by a final,
nonappealable judgment by a court of competent jurisdiction to have resulted
from the applicable Person's own gross negligence or willful misconduct. No
action taken in accordance with the directions of the Required Lenders shall be
deemed to constitute gross negligence or willful misconduct for purposes of this
Section. Without limitation of the foregoing, each Lender shall reimburse the
Administrative Agent upon demand for its ratable share of any costs or
out-of-pocket expenses

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<PAGE>

(including Attorney Costs and Taxes) incurred by the Administrative 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 Administrative
Agent is not reimbursed for such expenses by or on behalf of the Company. The
undertaking in this Section shall survive repayment of the Loans, cancellation
of the Notes, expiration or termination of the Letters of Credit, any
foreclosure under, or modification, release or discharge of, any or all of the
Collateral Documents, termination of this Agreement and the resignation or
replacement of the Administrative Agent.

      14.9 Administrative Agent in Individual Capacity. Standard Federal 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 the Loan
Parties and Affiliates as though Standard Federal were not the Administrative
Agent hereunder and without notice to or consent of any Lender. Each Lender
acknowledges that, pursuant to such activities, Standard Federal or its
Affiliates may receive information regarding the Company or its Affiliates
(including information that may be subject to confidentiality obligations in
favor of the Company or such Affiliate) and acknowledge that the Administrative
Agent shall be under no obligation to provide such information to them. With
respect to their Loans (if any), Standard Federal and its Affiliates shall have
the same rights and powers under this Agreement as any other Lender and may
exercise the same as though Standard Federal were not the Administrative Agent,
and the terms "Lender" and "Lenders" include Standard Federal and its
Affiliates, to the extent applicable, in their individual capacities.

      14.10 Successor Administrative Agent. The Administrative Agent may resign
as Administrative Agent upon 30 days' notice to the Lenders. If the
Administrative Agent resigns under this Agreement, the Required Lenders shall,
with (so long as no Event of Default exists) the consent of the Company (which
shall not be unreasonably withheld or delayed), 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 Administrative Agent, the
Administrative Agent may appoint, after consulting with the Lenders and the
Company, 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 Administrative Agent and the
term "Administrative Agent" shall mean such successor agent, and the retiring
Administrative Agent's appointment, powers and duties as Administrative Agent
shall be terminated. After any retiring Administrative Agent's resignation
hereunder as Administrative Agent, the provisions of this Section 14 and
Sections 15.5 and 15.16 shall inure to its benefit as to any actions taken or
omitted to be taken by it while it was Administrative Agent under this
Agreement. If no successor agent has accepted appointment as Administrative
Agent by the date which is 30 days following a retiring Administrative Agent's
notice of resignation, the retiring Administrative Agent's resignation shall
nevertheless thereupon become effective and the Lenders shall perform all of the
duties of the Administrative Agent hereunder until such time, if any, as the
Required Lenders appoint a successor agent as provided for above.

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<PAGE>

      14.11 Subordinated Debt. Each Lender hereby authorizes the Administrative
Agent to give blockage notices in connection with any Subordinated Debt at the
direction of Required Lenders and agrees that it will not act unilaterally to
deliver such notices.

      14.12 Administrative Agent May File Proofs of Claim. In case of the
pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to any Loan Party, the Administrative Agent (irrespective of
whether the principal of any Loan shall then be due and payable as herein
expressed or by declaration or otherwise and irrespective of whether the
Administrative Agent shall have made any demand on the Company) shall be
entitled and empowered, by intervention in such proceeding or otherwise:

            (a) to file and prove a claim for the whole amount of the principal
      and interest owing and unpaid in respect of the Loans, and all other
      Obligations that are owing and unpaid and to file such other documents as
      may be necessary or advisable in order to have the claims of the Lenders
      and the Administrative Agent (including any claim for the reasonable
      compensation, expenses, disbursements and advances of the Lenders and the
      Administrative Agent and their respective agents and counsel and all other
      amounts due the Lenders and the Administrative Agent under Sections 5,
      15.5 and 15.16) allowed in such judicial proceedings; and

            (b) to collect and receive any monies or other property payable or
      deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Lender to make such payments to the Administrative Agent and, in the event
that the Administrative Agent shall consent to the making of such payments
directly to the Lenders, to pay to the Administrative Agent any amount due for
the reasonable compensation, expenses, disbursements and advances of the
Administrative Agent and its agents and counsel, and any other amounts due the
Administrative Agent under Sections 5, 15.5 and 15.16.

      Nothing contained herein shall be deemed to authorize the Administrative
Agent to authorize or consent to or accept or adopt on behalf of any Lender any
plan of reorganization, arrangement, adjustment or composition affecting the
Obligations or the rights of any Lender or to authorize the Administrative Agent
to vote in respect of the claim of any Lender in any such proceeding.

      14.13 Other Agents; Arrangers and Managers. None of the Lenders or other
Persons identified on the facing page or signature pages of this Agreement as a
"syndication agent," "documentation agent," "co-agent," "book manager," "lead
manager," "arranger," "sole lead arranger" or "co-arranger", if any, shall have
any right, power, obligation, liability, responsibility or duty under this
Agreement other than, in the case of such Lenders, those applicable to all
Lenders as such. Without limiting the foregoing, none of the Lenders or other
Persons so identified 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 or other

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<PAGE>

Persons so identified in deciding to enter into this Agreement or in taking or
not taking action hereunder.

      SECTION 15. GENERAL.

      15.1 Waiver; Amendments. No delay on the part of the Administrative Agent
or any Lender in the exercise of any right, power or remedy shall operate as a
waiver thereof, nor shall any single or partial exercise by any of them of any
right, power or remedy preclude other or further exercise thereof, or the
exercise of any other right, power or remedy. No amendment, modification or
waiver of, or consent with respect to, any provision of this Agreement or the
other Loan Documents shall in any event be effective unless the same shall be in
writing and acknowledged by Lenders having an aggregate Pro Rata Shares of not
less than the aggregate Pro Rata Shares expressly designated herein with respect
thereto or, in the absence of such designation as to any provision of this
Agreement, by the Required Lenders, and then any such amendment, modification,
waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given. No amendment, modification, waiver or consent
shall (a) extend or increase the Commitment of any Lender without the written
consent of such Lender, (b) extend the date scheduled for payment of any
principal (excluding mandatory prepayments) of or interest on the Loans or any
fees payable hereunder without the written consent of each Lender directly
affected thereby, (c) reduce the principal amount of any Loan, the rate of
interest thereon or any fees payable hereunder, without the consent of each
Lender directly affected thereby; or (d) release any party from its obligations
under the Guaranty (except as provided in Section 2.6), change the definition of
Required Lenders, any provision of this Section 15.1 or reduce the aggregate Pro
Rata Share required to effect an amendment, modification, waiver or consent,
without, in each case, the written consent of all Lenders. No provision of
Sections 6.2.2 or 6.3 with respect to the timing or application of mandatory
prepayments of the Loans shall be amended, modified or waived without the
consent of Lenders having a majority of the aggregate Pro Rata Shares of the
Loans affected thereby. No provision of Section 14 or other provision of this
Agreement affecting the Administrative Agent in its capacity as such shall be
amended, modified or waived without the consent of the Administrative Agent. No
provision of this Agreement relating to the rights or duties of the Issuing
Lender in its capacity as such shall be amended, modified or waived without the
consent of the Issuing Lender. No provision of this Agreement relating to the
rights or duties of the Swing Line Lender in its capacity as such shall be
amended, modified or waived without the consent of the Swing Line Lender.

      15.2 Confirmations. The Company and each holder of a Note agree from time
to time, upon written request received by it from the other, to confirm to the
other in writing (with a copy of each such confirmation to the Administrative
Agent) the aggregate unpaid principal amount of the Loans then outstanding under
such Note.

      15.3 Notices. Except as otherwise provided in Sections 2.2.2 and 2.2.3,
all notices hereunder shall be in writing (including facsimile transmission) and
shall be sent to the applicable party at its address shown on Annex B or at such
other address as such party may, by written notice received by the other
parties, have designated as its address for such purpose. Notices sent by
facsimile transmission shall be deemed to have been given when sent; notices
sent by mail shall be deemed to have been given three Business Days after the
date when sent by

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registered or certified mail, postage prepaid; and notices sent by hand delivery
or overnight courier service shall be deemed to have been given when received.
For purposes of Sections 2.2.2 and 2.2.3, the Administrative Agent shall be
entitled to rely on telephonic instructions from any person that the
Administrative Agent in good faith believes is an authorized officer or employee
of the Company or the REIT, and the Company and the REIT shall hold the
Administrative Agent and each other Lender harmless from any loss, cost or
expense resulting from any such reliance.

      15.4 Computations. Where the character or amount of any asset or liability
or item of income or expense is required to be determined, or any consolidation
or other accounting computation is required to be made, for the purpose of this
Agreement, such determination or calculation shall, to the extent applicable and
except as otherwise specified in this Agreement, be made in accordance with
GAAP, consistently applied; provided that if the Company notifies the
Administrative Agent that the Company wishes to amend any covenant in Section 11
(or any related definition) to eliminate or to take into account the effect of
any change in GAAP on the operation of such covenant (or if the Administrative
Agent notifies the Company that the Required Lenders wish to amend Section 11
(or any related definition) for such purpose), then the Company's compliance
with such covenant shall be determined on the basis of GAAP in effect
immediately before the relevant change in GAAP became effective, until either
such notice is withdrawn or such covenant (or related definition) is amended in
a manner satisfactory to the Company and the Required Lenders.

      15.5 Costs, Expenses and Taxes. The Company agrees to pay on demand all
reasonable out-of-pocket costs and expenses of the Administrative Agent
(including Attorney Costs and any Taxes) in connection with the preparation,
execution, syndication, delivery and administration (including perfection and
protection of any collateral and the costs of Intralinks (or other similar
service), if applicable) of this Agreement, the other Loan Documents and all
other documents provided for herein or delivered or to be delivered hereunder or
in connection herewith (including any amendment, supplement or waiver to any
Loan Document), whether or not the transactions contemplated hereby or thereby
shall be consummated, and all reasonable out-of-pocket costs and expenses
(including Attorney Costs and any Taxes) incurred by the Administrative Agent
and each Lender after an Event of Default in connection with the collection of
the Obligations or the enforcement of this Agreement the other Loan Documents or
any such other documents or during any workout, restructuring or negotiations in
respect thereof. In addition, the Company agrees to pay, and to save the
Administrative Agent and the Lenders harmless from all liability for, any fees
of the Company's auditors in connection with any reasonable exercise by the
Administrative Agent and the Lenders of their rights pursuant to Section 10.2.
All Obligations provided for in this Section 15.5 shall survive repayment of the
Loans, cancellation of the Notes, expiration or termination of the Letters of
Credit and termination of this Agreement.

      15.6 Assignments; Participations.

           15.6.1 Assignments. (a) Any Lender may at any time assign to one or
more Persons (any such Person, an "Assignee") all or any portion of such
Lender's Loans and Commitments, with the prior written consent of the
Administrative Agent, the Issuing Lender (for an assignment of the Revolving
Loans and the Revolving Commitment) and, so long as no

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<PAGE>

Event of Default exists, the Company (which consents shall not be unreasonably
withheld or delayed and shall not be required for an assignment by a Lender to a
Lender or an Affiliate of a Lender). Each Assignee must represent that none of
consideration used to make the purchase of a Commitment are "plan assets" as
defined under ERISA and that the rights and interest of the Assignee in and
under the Loan Documents will not be "plan assets" under ERISA. Except as the
Administrative Agent may otherwise agree, any such assignment shall be in a
minimum aggregate amount equal to $5,000,000 or, if less, the remaining
Commitment and Loans held by the assigning Lender. The Company and the
Administrative Agent shall be entitled to continue to deal solely and directly
with such Lender in connection with the interests so assigned to an Assignee
until the Administrative Agent shall have received and accepted an effective
assignment agreement in substantially the form of Exhibit D hereto (an
"Assignment Agreement") executed, delivered and fully completed by the
applicable parties thereto and a processing fee of $3,500. No assignment may be
made to any Person if at the time of such assignment the Company would be
obligated to pay any greater amount under Section 7.6 or 8 to the Assignee than
the Company is then obligated to pay to the assigning Lender under such Sections
(and if any assignment is made in violation of the foregoing, the Company will
not be required to pay such greater amounts). Any attempted assignment not made
in accordance with this Section 15.6.1 shall be treated as the sale of a
participation under Section 15.6.2. The Company shall be deemed to have granted
its consent to any assignment requiring its consent hereunder unless the Company
has expressly objected to such assignment within three Business Days after
notice thereof.

            (b) From and after the date on which the conditions described above
      have been met, (i) such Assignee shall be deemed automatically to have
      become a party hereto and, to the extent that rights and obligations
      hereunder have been assigned to such Assignee pursuant to such Assignment
      Agreement, shall have the rights and obligations of a Lender hereunder and
      (ii) the assigning Lender, to the extent that rights and obligations
      hereunder have been assigned by it pursuant to such Assignment Agreement,
      shall be released from its rights (other than its indemnification rights)
      and obligations hereunder. Upon the request of the Assignee (and, as
      applicable, the assigning Lender) pursuant to an effective Assignment
      Agreement, the Company shall execute and deliver to the Administrative
      Agent for delivery to the Assignee (and, as applicable, the assigning
      Lender) a Note in the principal amount of the Assignee's Pro Rata Share of
      the Revolving Commitment plus the principal amount of the Assignee's Term
      Loan[s] (and, as applicable, a Note in the principal amount of the Pro
      Rata Share of the Revolving Commitment retained by the assigning Lender
      plus the principal amount of the Term Loan[s] retained by the assigning
      Lender). Each such Note shall be dated the effective date of such
      assignment. Upon receipt by the assigning Lender of such Note, the
      assigning Lender shall return to the Company any prior Note held by it.

            (c) Any Lender may at any time pledge or assign a security interest
      in all or any portion of its rights under this Agreement to secure
      obligations of such Lender, including any pledge or assignment to secure
      obligations to a Federal Reserve Bank, and this Section shall not apply to
      any such pledge or assignment of a security interest; provided that no
      such pledge or assignment of a security interest shall release a Lender
      from any of its obligations hereunder or substitute any such pledgee or
      assignee for such Lender as a party hereto.

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            15.6.2 Participations. Any Lender may at any time sell to one or
more Persons participating interests in its Loans, Commitments or other
interests hereunder (any such Person, a "Participant"). In the event of a sale
by a Lender of a participating interest to a Participant, (a) such Lender's
obligations hereunder shall remain unchanged for all purposes, (b) the Company
and the Administrative Agent shall continue to deal solely and directly with
such Lender in connection with such Lender's rights and obligations hereunder
and (c) all amounts payable by the Company shall be determined as if such Lender
had not sold such participation and shall be paid directly to such Lender. No
Participant shall have any direct or indirect voting rights hereunder except
with respect to any event described in Section 15.1 expressly requiring the
unanimous vote of all Lenders or, as applicable, all affected Lenders. Each
Lender agrees to incorporate the requirements of the preceding sentence into
each participation agreement which such Lender enters into with any Participant.
The Company agrees that if amounts outstanding under this Agreement are due and
payable (as a result of acceleration or otherwise), each Participant shall be
deemed to have the right of set-off in respect of its participating interest in
amounts owing under this Agreement and with respect to any Letter of Credit to
the same extent as if the amount of its participating interest were owing
directly to it as a Lender under this Agreement; provided that such right of
set-off shall be subject to the obligation of each Participant to share with the
Lenders, and the Lenders agree to share with each Participant, as provided in
Section 7.5. The Company also agrees that each Participant shall be entitled to
the benefits of Section 7.6 or 8 as if it were a Lender (provided that on the
date of the participation no Participant shall be entitled to any greater
compensation pursuant to Section 7.6 or 8 than would have been paid to the
participating Lender on such date if no participation had been sold and that
each Participant complies with Section 7.6(d) as if it were an Assignee).

      15.7 Register. The Administrative Agent shall maintain a copy of each
Assignment Agreement delivered and accepted by it and register (the "Register")
for the recordation of names and addresses of the Lenders and the Commitment of
each Lender from time to time and whether such Lender is the original Lender or
the Assignee. No assignment shall be effective unless and until the Assignment
Agreement is accepted and registered in the Register. All records of transfer of
a Lender's interest in the Register shall be conclusive, absent manifest error,
as to the ownership of the interests in the Loans. The Administrative Agent
shall not incur any liability of any kind with respect to any Lender with
respect to the maintenance of the Register.

      15.8 GOVERNING LAW. THIS AGREEMENT AND EACH NOTE SHALL BE A CONTRACT MADE
UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF MICHIGAN APPLICABLE TO
CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO
CONFLICT OF LAWS PRINCIPLES.

      15.9 Confidentiality. The Administrative Agent and each Lender agree to
use commercially reasonable efforts (equivalent to the efforts the
Administrative Agent or such Lender applies to maintain the confidentiality of
its own confidential information) to maintain as confidential all information
provided to them by any Loan Party and designated as confidential, except that
the Administrative Agent and each Lender may disclose such information (a) to
Persons employed or engaged by the Administrative Agent or such Lender in
evaluating, approving, structuring or administering the Loans and the
Commitments; (b) to any assignee or participant or potential assignee or
participant that has agreed to comply with the covenant

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<PAGE>

contained in this Section 15.9 (and any such assignee or participant or
potential assignee or participant may disclose such information to Persons
employed or engaged by them as described in clause (a) above); (c) as required
or requested by any federal or state regulatory authority or examiner, or any
insurance industry association, or as reasonably believed by the Administrative
Agent or such Lender to be compelled by any court decree, subpoena or legal or
administrative order or process; (d) as, on the advice of the Administrative
Agent's or such Lender's counsel, is required by law; (e) in connection with the
exercise of any right or remedy under the Loan Documents or in connection with
any litigation to which the Administrative Agent or such Lender is a party; (f)
to any nationally recognized rating agency that requires access to information
about a Lender's investment portfolio in connection with ratings issued with
respect to such Lender; (g) to any Affiliate of the Administrative Agent, the
Issuing Lender or any other Lender who may provide Bank Products to the Loan
Parties; or (h) that ceases to be confidential through no fault of the
Administrative Agent or any Lender. Notwithstanding the foregoing, the Company
consents to the publication by the Administrative Agent or any Lender of a
tombstone or similar advertising material relating to the financing transactions
contemplated by this Agreement, and the Administrative Agent reserves the right
to provide to industry trade organizations information necessary and customary
for inclusion in league table measurements.

      15.10 Severability. Whenever possible each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement shall be prohibited by or
invalid under applicable law, such provision shall be ineffective to the extent
of such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Agreement. All obligations of the
Company and the REIT and rights of the Administrative Agent and the Lenders
expressed herein or in any other Loan Document shall be in addition to and not
in limitation of those provided by applicable law.

      15.11 Nature of Remedies. All Obligations of the Company and the REIT and
rights of the Administrative Agent and the Lenders expressed herein or in any
other Loan Document shall be in addition to and not in limitation of those
provided by applicable law. No failure to exercise and no delay in exercising,
on the part of the Administrative Agent or any Lender, any right, remedy, power
or privilege hereunder, shall operate as a waiver thereof; nor shall any single
or partial exercise of any right, remedy, power or privilege hereunder preclude
any other or further exercise thereof or the exercise of any other right,
remedy, power or privilege.

      15.12 Entire Agreement. This Agreement, together with the other Loan
Documents, embodies the entire agreement and understanding among the parties
hereto and supersedes all prior or contemporaneous agreements and understandings
of such Persons, verbal or written, relating to the subject matter hereof and
thereof (except as relates to the fees described in Section 5.3) and any prior
arrangements made with respect to the payment by the Company of (or any
indemnification for) any fees, costs or expenses payable to or incurred (or to
be incurred) by or on behalf of the Administrative Agent or the Lenders.

      15.13 Counterparts. This Agreement may be executed in any number of
counterparts and by the different parties hereto on separate counterparts and
each such counterpart shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same Agreement. Receipt
of an executed signature page to this Agreement by facsimile or other

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electronic transmission shall constitute effective delivery thereof. Electronic
records of executed Loan Documents maintained by the Lenders shall deemed to be
originals.

      15.14 Successors and Assigns. This Agreement shall be binding upon the
Company, the REIT, the Lenders and the Administrative Agent and their respective
successors and assigns, and shall inure to the benefit of the Company, the
Lenders and the Administrative Agent and the successors and assigns of the
Lenders and the Administrative Agent. No other Person shall be a direct or
indirect legal beneficiary of, or have any direct or indirect cause of action or
claim in connection with, this Agreement or any of the other Loan Documents. The
Company may not assign or transfer any of its rights or Obligations under this
Agreement without the prior written consent of the Administrative Agent and each
Lender.

      15.15 Captions. Section captions used in this Agreement are for
convenience only and shall not affect the construction of this Agreement.

      15.16 Customer Identification - USA Patriot Act Notice. The Administrative
Agent hereby notifies the Company and each of the other Loan Parties that
pursuant to the requirements of the USA Patriot Act (Title III of Pub. L.
107-56, signed into law October 26, 2001) (the "Act"), and the policies and
practices of the Administrative Agent and the Lenders, the Administrative Agent
and the Lenders are required to obtain, verify and record certain information
and documentation that identifies the Loan Parties, which information includes
the names and addresses of the Loan Parties and such other information that will
allow the Administrative Agent and the Lenders to identify the Loan Parties in
accordance with the Act.

      15.17 INDEMNIFICATION BY THE COMPANY. IN CONSIDERATION OF THE EXECUTION
AND DELIVERY OF THIS AGREEMENT BY THE ADMINISTRATIVE AGENT AND THE LENDERS AND
THE AGREEMENT TO EXTEND THE COMMITMENTS PROVIDED HEREUNDER, THE COMPANY HEREBY
AGREES TO INDEMNIFY, EXONERATE AND HOLD THE ADMINISTRATIVE AGENT, EACH LENDER
AND EACH OF THE OFFICERS, DIRECTORS, EMPLOYEES, AFFILIATES AND AGENTS OF THE
ADMINISTRATIVE AGENT AND EACH LENDER (EACH A "LENDER PARTY") FREE AND HARMLESS
FROM AND AGAINST ANY AND ALL ACTIONS, CAUSES OF ACTION, SUITS, LOSSES,
LIABILITIES, DAMAGES AND EXPENSES, INCLUDING ATTORNEY COSTS (COLLECTIVELY, THE
"INDEMNIFIED LIABILITIES"), INCURRED BY THE LENDER PARTIES OR ANY OF THEM AS A
RESULT OF, OR ARISING OUT OF, OR RELATING TO (A) ANY TENDER OFFER, MERGER,
PURCHASE OF CAPITAL SECURITIES, PURCHASE OF ASSETS OR OTHER SIMILAR TRANSACTION
FINANCED OR PROPOSED TO BE FINANCED IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY,
WITH THE PROCEEDS OF ANY OF THE LOANS, (B) THE USE, HANDLING, RELEASE, EMISSION,
DISCHARGE, TRANSPORTATION, STORAGE, TREATMENT OR DISPOSAL OF ANY HAZARDOUS
SUBSTANCE AT ANY PROPERTY OWNED OR LEASED BY ANY LOAN PARTY, (C) ANY VIOLATION
OF ANY ENVIRONMENTAL LAWS WITH RESPECT TO CONDITIONS AT ANY PROPERTY OWNED OR
LEASED BY ANY LOAN PARTY OR THE OPERATIONS CONDUCTED THEREON, (D) THE
INVESTIGATION, CLEANUP OR REMEDIATION OF OFFSITE LOCATIONS AT

                                       72
<PAGE>

WHICH ANY LOAN PARTY OR THEIR RESPECTIVE PREDECESSORS ARE ALLEGED TO HAVE
DIRECTLY OR INDIRECTLY DISPOSED OF HAZARDOUS SUBSTANCES OR (E) THE EXECUTION,
DELIVERY, PERFORMANCE OR ENFORCEMENT OF THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT BY ANY OF THE LENDER PARTIES, EXCEPT FOR ANY SUCH INDEMNIFIED
LIABILITIES ARISING ON ACCOUNT OF THE APPLICABLE LENDER PARTY'S GROSS NEGLIGENCE
OR WILLFUL MISCONDUCT AS DETERMINED BY A FINAL, NONAPPEALABLE JUDGMENT BY A
COURT OF COMPETENT JURISDICTION. IF AND TO THE EXTENT THAT THE FOREGOING
UNDERTAKING MAY BE UNENFORCEABLE FOR ANY REASON, THE COMPANY HEREBY AGREES TO
MAKE THE MAXIMUM CONTRIBUTION TO THE PAYMENT AND SATISFACTION OF EACH OF THE
INDEMNIFIED LIABILITIES WHICH IS PERMISSIBLE UNDER APPLICABLE LAW. ALL
OBLIGATIONS PROVIDED FOR IN THIS SECTION 15.17 SHALL SURVIVE REPAYMENT OF THE
LOANS, CANCELLATION OF THE NOTES, EXPIRATION OR TERMINATION OF THE LETTERS OF
CREDIT, AND TERMINATION OF THIS AGREEMENT.

      15.18 Nonliability of Lenders. The relationship between the Company on the
one hand and the Lenders and the Administrative Agent on the other hand shall be
solely that of borrower and lender. Neither the Administrative Agent nor any
Lender has any fiduciary relationship with or duty to any Loan Party arising out
of or in connection with this Agreement or any of the other Loan Documents, and
the relationship between the Loan Parties, on the one hand, and the
Administrative Agent and the Lenders, on the other hand, in connection herewith
or therewith is solely that of debtor and creditor. Neither the Administrative
Agent nor any Lender undertakes any responsibility to any Loan Party to review
or inform any Loan Party of any matter in connection with any phase of any Loan
Party's business or operations. The Company agrees, on behalf of itself and each
other Loan Party, that neither the Administrative Agent nor any Lender shall
have liability to any Loan Party (whether sounding in tort, contract or
otherwise) for losses suffered by any Loan Party in connection with, arising out
of, or in any way related to the transactions contemplated and the relationship
established by the Loan Documents, or any act, omission or event occurring in
connection therewith, unless it is determined in a final non-appealable judgment
by a court of competent jurisdiction that such losses resulted from the gross
negligence or willful misconduct of the party from which recovery is sought. NO
LENDER PARTY SHALL BE LIABLE FOR ANY DAMAGES ARISING FROM THE USE BY OTHERS OF
ANY INFORMATION OR OTHER MATERIALS OBTAINED THROUGH INTRALINKS OR OTHER SIMILAR
INFORMATION TRANSMISSION SYSTEMS IN CONNECTION WITH THIS AGREEMENT, NOR SHALL
ANY LENDER PARTY HAVE ANY LIABILITY WITH RESPECT TO, AND THE COMPANY AND THE
REIT, ON BEHALF OF ITSELF AND EACH OTHER LOAN PARTY, HEREBY WAIVES, RELEASES AND
AGREES NOT TO SUE FOR ANY SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES RELATING TO
THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR ARISING OUT OF ITS ACTIVITIES IN
CONNECTION HEREWITH OR THEREWITH (WHETHER BEFORE OR AFTER THE EFFECTIVE DATE).
The Company and the REIT each acknowledges that it has been advised by counsel
in the negotiation, execution and delivery of this Agreement and the other Loan
Documents to which it is a party. No joint venture is created hereby or by the
other Loan Documents or

                                       73
<PAGE>

otherwise exists by virtue of the transactions contemplated hereby among the
Lenders or among the Grantors and the Lenders.

      15.19 FORUM SELECTION AND CONSENT TO JURISDICTION. ANY LITIGATION BASED
HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT OR ANY
OTHER LOAN DOCUMENT, SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE COURTS
OF THE STATE OF MICHIGAN OR IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN
DISTRICT OF MICHIGAN; PROVIDED THAT NOTHING IN THIS AGREEMENT SHALL BE DEEMED OR
OPERATE TO PRECLUDE THE ADMINISTRATIVE AGENT FROM BRINGING SUIT OR TAKING OTHER
LEGAL ACTION IN ANY OTHER JURISDICTION. THE COMPANY AND THE REIT HEREBY
EXPRESSLY AND IRREVOCABLY SUBMIT TO THE JURISDICTION OF THE COURTS OF THE STATE
OF MICHIGAN AND OF THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF
MICHIGAN FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE. THE COMPANY
AND THE REIT FURTHER IRREVOCABLY CONSENT TO THE SERVICE OF PROCESS BY REGISTERED
MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF
MICHIGAN. THE COMPANY AND THE REIT HEREBY EXPRESSLY AND IRREVOCABLY WAIVE, TO
THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER
HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT
REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM.

      15.20 WAIVER OF JURY TRIAL. EACH OF THE COMPANY, THE REIT, THE
ADMINISTRATIVE AGENT AND EACH LENDER HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY
IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS
AGREEMENT, ANY NOTE, ANY OTHER LOAN DOCUMENT AND ANY AMENDMENT, INSTRUMENT,
DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN
CONNECTION HEREWITH OR THEREWITH OR ARISING FROM ANY LENDING RELATIONSHIP
EXISTING IN CONNECTION WITH ANY OF THE FOREGOING, AND AGREES THAT ANY SUCH
ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

                         [SIGNATURES ON FOLLOWING PAGES]

                                       74
<PAGE>

      The parties hereto have caused this Agreement to be duly executed and
delivered by their duly authorized officers as of September 30, 2004, which
shall be the effective date hereof (the "Effective Date") notwithstanding the
date first set forth above.

                                     SUN COMMUNITIES OPERATING LIMITED
                                     PARTNERSHIP, a Michigan limited partnership

                                     By: Sun Communities, Inc., a
                                     Maryland corporation, its general partner

                                     By: /s/ Jeffrey P. Jorissen
                                         --------------------------------
                                         Jeffrey P. Jorissen
                                         Title: Executive Vice President
                                                and Chief Financial Officer

                                     SUN COMMUNITIES, INC., a Maryland
                                     corporation, its general partner

                                     By: /s/ Jeffrey P. Jorissen
                                         --------------------------------
                                         Jeffrey P. Jorissen
                                         Title: Executive Vice President and
                                                Chief Financial Office

                                     STANDARD FEDERAL BANK NATIONAL
                                     ASSOCIATION, as Administrative Agent, as
                                     Issuing Lender and as a Lender

                                     By: /s/ Scott M. McLean
                                         ---------------------------------
                                     Scott M. McLean
                                     Title: Vice President

<PAGE>

                                     THE HUNTINGTON NATIONAL BANK

                                     By:    /s/ Daniel LeFevre
                                            ------------------------------
                                            Daniel LeFevre
                                     Title: Vice President

                                     NATIONAL CITY BANK OF THE MIDWEST

                                     By:    /s/ Timothy H. Hampton
                                            ------------------------------
                                            Timothy H. Hampton
                                     Title: Vice President

                                     SOVEREIGN BANK

                                     By:    /s/ Katherine M. Felpel
                                            -------------------------------
                                            Katherine M. Felpel
                                     Title: Assistant Vice President

<PAGE>

                                     ANNEX A

                           LENDERS AND PRO RATA SHARES

<TABLE>
<CAPTION>
                                               Revolving                        Pro
                                               Commitment                       Rata
              Lender                             Amount                        Share*
              ------                             ------                        ------
<S>                                          <C>                            <C>
Standard Federal                             $35,000,000.00**               38.888888889%

The Huntington National Bank                 $25,000,000.00                 27.777777778%

National City Bank of the Midwest            $15,000,000.00                 16.666666667%

Sovereign Bank                               $15,000,000.00                 16.666666667%

         TOTALS                              $90,000,000.00                     100%
</TABLE>

** Includes Swing Line Commitment Amount of $5,000,000.00.

                                    ANNEX A-1

<PAGE>

                                     ANNEX B

                              ADDRESSES FOR NOTICES

SUN COMMUNITIES OPERATING LIMITED PARTNERSHIP:

Sun Communities Operating Limited Partnership
27777 Franklin Road, Suite 200
Southfield, MI 48034
Attention: Jeffrey P. Jorissen
Telephone: (248) 208-2500
Facsimile: (248) 208-2640

With required copies to:

Jaffe, Raitt, Heuer & Weiss
27777 Franklin Road, Suite 2500
Southfield, MI 48034
Attention: Gail A. Morris and Arthur A. Weiss
Telephone: (248) 351-3000
Facsimile: (248) 351-3082

SUN COMMUNITIES, INC.:

Sun Communities, Inc.
27777 Franklin Road, Suite 200
Southfield, MI 48034
Attention: Jeffrey P. Jorissen
Telephone: (248) 208-2500
Facsimile: (248) 208-2640

With required copies to:

Jaffe, Raitt, Heuer & Weiss
27777 Franklin Road, Suite 2500
Southfield, MI 48034
Attention: Gail A. Morris and Arthur A. Weiss
Telephone: (248) 351-3000
Facsimile: (248) 351-3082

                                    ANNEX B-1

<PAGE>

STANDARD FEDERAL BANK NATIONAL ASSOCIATION, as Administrative Agent,
Issuing Lender and a Lender:

Standard Federal Bank N.A.
Commercial Real Estate Department
2600 West Big Beaver Road
Troy, MI 48084
Attention: Scott M. McLean
Telephone: (248) 822-5605
Facsimile: (248) 822-5749

With required copies to:

Dykema Gossett PLLC
39577 Woodward Avenue, Suite 300
Bloomfield Hills, MI 48304
Attention: B. Kingsley Buhl
Telephone: (248) 203-0702
Facsimile: (248) 203-0763

THE HUNTINGTON NATIONAL BANK:

The Huntington National Bank
803 West Big Beaver Road, Suite 202
Troy, Michigan 48084-4726
Attention: Daniel LeFevre
Telephone: 248-244-3574
Facsimile: 248-244-3504 fax

NATIONAL CITY BANK OF THE MIDWEST:

National City Bank
1001 South Worth
Birmingham, MI 48009
Attention: Timothy H. Hampton
Telephone: (248) 901-2061
Facsimile: (248) 901-2188

With required copies to:

Butzel Long, P.C.
100 Bloomfield Hills Parkway, Suite 200
Bloomfield Hills, Michigan 48304
Attention: Joseph J. DeVito, Esq.
Telephone: (248) 258-1312
Facsimile: (248) 258-1439

                                    ANNEX B-2

<PAGE>

SOVEREIGN BANK:

Sovereign Bank
75 State Street MA1 SST 04-11
Boston, MA 02109
Attention: T Gregory Donohue
Telephone: 617-757-5578
Facsimile: 617-757-5652

[OTHER LENDERS]

                                    ANNEX B-3

<PAGE>

                                    EXHIBIT A

                                  FORM OF NOTE

$______________                                              September ___, 2004
                                                                  Troy, Michigan

      The undersigned, for value received, promises to pay to the order of
______________ (the "Lender") at the principal office of Standard Federal Bank
National Association (the "Administrative Agent") in Troy, Michigan the
aggregate unpaid amount of all Loans made to the undersigned by the Lender
pursuant to the Credit Agreement referred to below (as shown on the schedule
attached hereto (and any continuation thereof) or in the records of the Lender),
such principal amount to be payable on the dates set forth in the Credit
Agreement.

      The undersigned further promises to pay interest on the unpaid principal
amount of each Loan from the date of such Loan until such Loan is paid in full,
payable at the rate(s) and at the time(s) set forth in the Credit Agreement.
Payments of both principal and interest are to be made in lawful money of the
United States of America.

      This Note evidences indebtedness incurred under, and is subject to the
terms and provisions of, the Credit Agreement, dated as of September 30, 2004
(as amended, restated, supplemented or otherwise modified from time to time, the
"Credit Agreement"; terms not otherwise defined herein are used herein as
defined in the Credit Agreement), among the undersigned, Sun Communities, Inc.,
certain financial institutions (including the Lender) and the Administrative
Agent, to which Credit Agreement reference is hereby made for a statement of the
terms and provisions under which this Note may or must be paid prior to its due
date or its due date accelerated.

      This Note is made under and governed by the laws of the State of Michigan
applicable to contracts made and to be performed entirely within such State.

                                     SUN COMMUNITIES OPERATING LIMITED
                                     PARTNERSHIP

                                     By:    _________________________________

                                     Title: _________________________________

                                     EX A-1

<PAGE>

                                    EXHIBIT B

                         FORM OF COMPLIANCE CERTIFICATE

To:   Standard Federal Bank National Association, as Administrative Agent

      Please refer to the Credit Agreement dated as of September 30, 2004 (as
amended, restated, supplemented or otherwise modified from time to time, the
"Credit Agreement") among Sun Communities Operating Limited Partnership (the
"Company"), Sun Communities, Inc., various financial institutions and Standard
Federal Bank National Association, as Administrative Agent. Terms used but not
otherwise defined herein are used herein as defined in the Credit Agreement.

      Reports. Enclosed herewith is a copy of the [ANNUAL AUDITED/QUARTERLY]
report of the Company as at _____________, ____ (the "Computation Date"), which
report fairly presents in all material respects the financial condition and
results of operations [(SUBJECT TO THE ABSENCE OF FOOTNOTES AND TO NORMAL
YEAR-END ADJUSTMENTS)] of the Company as of the Computation Date and has been
prepared in accordance with GAAP consistently applied.

      Financial Tests. The Company hereby certifies and warrants to you that the
following is a true and correct computation as at the Computation Date of the
following ratios and/or financial restrictions contained in the Credit
Agreement:

      [INSERT FINANCIAL TESTS]

      The Company further certifies to you that no Event of Default or Unmatured
Event of Default has occurred and is continuing.

      The Company has caused this Certificate to be executed and delivered by
its duly authorized officer on _________, ____.

                                     SUN COMMUNITIES OPERATING LIMITED
                                     PARTNERSHIP

                                     By:    _________________________________

                                     Title: _________________________________

                                     EX B-1

<PAGE>

                                    EXHIBIT C

                       FORM OF BORROWING BASE CERTIFICATE

To:   Standard Federal Bank National Association, as Administrative Agent

      Please refer to the Credit Agreement dated as of September 30, 2004 (as
amended, restated, supplemented or otherwise modified from time to time, the
"Credit Agreement") among Sun Communities Operating Limited Partnership (the
"Company"), Sun Communities, Inc., various financial institutions and Standard
Federal Bank National Association, as Administrative Agent. This certificate
(this "Certificate"), together with supporting calculations attached hereto, is
delivered to you pursuant to the terms of the Credit Agreement. Capitalized
terms used but not otherwise defined herein shall have the same meanings herein
as in the Credit Agreement.

      The Company hereby certifies and warrants to the Administrative Agent and
the Lenders that at the close of business on ______________, ____ (the
"Calculation Date"), the Borrowing Base was $_____________, computed as set
forth on the schedule attached hereto.

      The Company has caused this Certificate to be executed and delivered by
its officer thereunto duly authorized on ___________, ______.

                                     SUN COMMUNITIES OPERATING LIMITED
                                     PARTNERSHIP

                                     By:    _________________________________

                                     Title: _________________________________

                                     EX C-1

<PAGE>

                     SCHEDULE TO BORROWING BASE CERTIFICATE
                         DATED as of [_________________]

                      [INSERT BORROWING BASE CALCULATIONS]

1.                                                                $_____________

2.                                                                $_____________

3.                                                                $_____________

4.                                                                $_____________

5.                                                                $_____________

6.                                                                $_____________

<PAGE>

                                    EXHIBIT E

                           FORM OF NOTICE OF BORROWING

To:   Standard Federal Bank National Association, as Administrative Agent

      Please refer to the Credit Agreement dated as of September 30, 2004 (as
amended, restated, supplemented or otherwise modified from time to time, the
"Credit Agreement") among Sun Communities Operating Limited Partnership (the
"Company"), Sun Communities, Inc., various financial institutions and LaSalle
Bank National Association, as Administrative Agent. Terms used but not otherwise
defined herein are used herein as defined in the Credit Agreement.

      The undersigned hereby gives irrevocable notice, pursuant to Section 2.2.2
of the Credit Agreement, of a request hereby for a borrowing as follows:

      (i) The requested borrowing date for the proposed borrowing (which is a
Business Day) is _______________,____.

      (ii) The aggregate amount of the proposed borrowing is $______________.

      (iii) The type of Revolving Loans comprising the proposed borrowing are
[Base Rate] [LIBOR] Loans.

      (iv) The duration of the Interest Period for each LIBOR Loan made as part
of the proposed borrowing, if applicable, is ___________ months (which shall be
1, 2, 3, 6 or 9 months).

      The undersigned hereby certifies that on the date hereof and on the date
of borrowing set forth above, and immediately after giving effect to the
borrowing requested hereby: (i) there exists and there shall exist no Unmatured
Event of Default or Event of Default under the Credit Agreement; and (ii) each
of the representations and warranties contained in the Credit Agreement and the
other Loan Documents is true and correct as of the date hereof, except to the
extent that such representation or warranty expressly relates to another date
and except for changes therein expressly permitted or expressly contemplated by
the Credit Agreement.

      The Company has caused this Notice of Borrowing to be executed and
delivered by its officer thereunto duly authorized on ___________, ______.

                                     SUN COMMUNITIES OPERATING LIMITED
                                     PARTNERSHIP

                                     By:    _________________________________

                                     Title: _________________________________

                                     EX E-1

<PAGE>

                                    EXHIBIT F

                    FORM OF NOTICE OF CONVERSION/CONTINUATION

To:   Standard Federal Bank National Association, as Administrative Agent

      Please refer to the Credit Agreement dated as of September 30, 2004 (as
amended, restated, supplemented or otherwise modified from time to time, the
"Credit Agreement") among Sun Communities Operating Limited Partnership (the
"Company"), Sun Communities, Inc., various financial institutions and LaSalle
Bank National Association, as Administrative Agent. Terms used but not otherwise
defined herein are used herein as defined in the Credit Agreement.

      The undersigned hereby gives irrevocable notice, pursuant to Section 2.2.3
of the Credit Agreement, of its request to:

      (a) on [date] convert $[________]of the aggregate outstanding principal
amount of the [_______] Loan, bearing interest at the [________] Rate, into a(n)
[________] Loan [and, in the case of a LIBOR Loan, having an Interest Period of
[_____] month(s)];

      [(b) on [date] continue $[________]of the aggregate outstanding principal
amount of the [_______] Loan, bearing interest at the LIBOR Rate, as a LIBOR
Loan having an Interest Period of [_____] month(s)].

      The undersigned hereby represents and warrants that all of the conditions
contained in Section 12.2 of the Credit Agreement have been satisfied on and as
of the date hereof, and will continue to be satisfied on and as of the date of
the conversion/continuation requested hereby, before and after giving effect
thereto.

      The Company has caused this Notice of Conversion/Continuation to be
executed and delivered by its officer thereunto duly authorized on ___________,
______.

                                     SUN COMMUNITIES OPERATING LIMITED
                                     PARTNERSHIP

                                     By:    _________________________________

                                     Title: _________________________________

                                     EX F-1

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