Document:

Exhibit 10.9

 

THE MANITOWOC COMPANY, INC.

NON-QUALIFIED STOCK OPTION AGREEMENT WITH VESTING PROVISIONS

 

THIS
NON-QUALIFIED STOCK OPTION AGREEMENT (this “Agreement”), dated the       
day of (date), is granted by THE MANITOWOC
COMPANY, INC. (the “Company”) to        (name) (the “Optionee”) pursuant to the Company’s 2003
Incentive Stock and Awards Plan (the “Plan”).

 

WHEREAS,
the Company believes it to be in the best interests of the Company, its
subsidiaries and its shareholders for its officers and other key employees,
consultants, or advisors to obtain or increase their stock ownership interest
in the Company so that they will have a greater incentive to work for and
manage the Company’s affairs in such a way that its shares may become more
valuable; and

 

WHEREAS,
the Optionee is employed by the Company or one of its subsidiaries as an
officer or other key employee and has been selected by the Committee to receive
an option;

 

NOW,
THEREFORE, in consideration of the premises and of the services to be performed
by the Optionee, the Company and the Optionee hereby agree as follows:

 

1.             OPTION GRANT

 

Subject
to the terms of this Agreement and the Plan, the Company grants to the Optionee
an option to purchase a total of (#      ) (number) shares of Common Stock of the Company at a price of
      (price) per
share (100% of the Fair Market Value of the shares on
the date of grant).  This
option is not intended to qualify as an “incentive stock option” within the
meaning of Section 422 of the Internal Revenue Code of 1986, as amended.

 

2.             TIME OF
EXERCISE

 

Subject
to the termination provisions of paragraph 3, provided that the Optionee is an
employee of the Company or any of its subsidiaries on the exercise date, the
Optionee may exercise the option and purchase the underlying shares in
accordance with the following schedule [select the appropriate
Alternative below]:

 

o  Alternative 1:

 

	
  Years
  after

  	
   

  	
  Cumulative Percentage of

  
	
  Grant
  Date

  	
   

  	
  Grant Which May be Exercised

  
	
   

  	
   

  	
   

  
	
  Less
  than 1

  	
   

  	
  Zero
  percent (0%)

  
	
   

  	
   

  	
   

  
	
  1 but
  less than 2

  	
   

  	
  Twenty-five
  percent (25%)

  
	
   

  	
   

  	
   

  
	
  2 but
  less than 3

  	
   

  	
  Fifty
  percent (50%)

  
	
   

  	
   

  	
   

  
	
  3 but
  less than 4

  	
   

  	
  Seventy-five
  percent (75%)

  
	
   

  	
   

  	
   

  
	
  4 or
  more

  	
   

  	
  One
  hundred percent (100%)

  

 

 

o  Alternative 2:

 

This option shall become exercisable in accordance with the schedule
established by the Committee at the time of grant and set forth below:

 

[Schedule to be inserted by
Committee at time of grant.]

 

If
the Optionee terminates employment from the Company and its subsidiaries for
any reason other than death, Disability, or Retirement, only those option
shares for which the right to purchase has accrued as of the date of such
termination may be purchased after such termination (subject to the provisions
of paragraph 3).  If the Optionee
terminates employment from the Company and its subsidiaries due to death,
Disability, or Retirement, then all of the Optionee’s option shares may be
purchased after such termination (subject to the provisions of paragraph
3).  The Committee, in its sole
discretion, may accelerate the right to purchase all or any portion of an
Optionee’s option shares under such terms as the Committee deems appropriate
upon termination of employment for any reason other than for Cause.  If the Optionee takes an unpaid leave of
absence, then the Committee may defer the dates on which the Optionee may first
purchase the option shares to take into account such leave of absence.

 

3.             TERMINATION OF
OPTION

 

The
Optionee may not exercise this option after, and this option will terminate
without notice to the Optionee on, the earlier of:

 

a.             Six (6) months after
the date of the Optionee’s termination of employment from the Company and its
subsidiaries for any reason other than for Cause or due to Disability, death or
Retirement; the Committee may, in its discretion, extend this period an
additional (6) months;

 

b.             The date the Company or one
of its subsidiaries terminates Optionee’s employment for Cause;

 

c.             Twelve (12) months after the
date of the Optionee’s termination of employment from the Company and its
subsidiaries by reason of death or Disability;

 

d.             Ten (10) years after
the Optionee terminates employment from the Company and its subsidiaries on
account of Retirement; or

 

e.             Ten (10) years from the
date of this Agreement.

 

For
purposes of this paragraph 3, termination shall occur at 11:59 P.M.
(Central Time) on the applicable date described above, except that if the
Optionee is terminated for Cause, termination shall occur immediately at the
time of such termination.

 

2

 

4.             EXERCISE
PROCEDURES

 

a.             The Optionee may exercise
this option in whole or in part only with respect to any shares for which the
right to exercise shall have accrued pursuant to paragraph 2 and only so long
as paragraph 3 does not prohibit such exercise.

 

b.             This option may be exercised
by delivering a written notice of option exercise to the Company’s Human
Resources Department at Manitowoc, Wisconsin, accompanied by payment of the
purchase price and such additional amount (if any) determined by the Human
Resources Department as necessary to satisfy the Company’s tax withholding
obligations, and such other documents or representations as the Company may
reasonably request to comply with securities, tax or other laws then applicable
to the exercise of the option.  Delivery
may be made in person, by nationally-recognized delivery service that
guarantees overnight delivery, or by facsimile. A notice of option exercise
that is received by the Human Resources Department after 11:59 P.M.
(Central Time) on the date of termination (as provided in paragraph 3) shall be
null and void.

 

c.             No Option Shares shall be
issued until full payment of the purchase price therefor has been made.  The Optionee may pay the purchase price in
one or more of the following forms:

 

i.              a check payable to the order
of the Company for the purchase price of the shares being purchased; or

 

ii.             delivery of shares of Common
Stock (including by attestation) that the Optionee has owned for at least six (6) months
and that have a Fair Market Value (determined on the date of delivery) equal to
the purchase price of the shares being purchased; or

 

iii.            delivery (including by
facsimile) to the Human Resources Department of the Company at Manitowoc,
Wisconsin, of an executed irrevocable option exercise form together with
irrevocable instructions, in a form acceptable to the Company, to a
broker-dealer to sell or margin a sufficient portion of the shares of Common
Stock issuable upon exercise of this option and deliver the sale or margin loan
proceeds directly to the Company to pay for the exercise price.

 

d.             The Optionee may satisfy any
tax withholding obligation of the Company arising from the exercise of this
option, in whole or in part, by paying such tax obligation in cash or by check
made payable to the Company, or by electing to have the Company withhold shares
of Common Stock having a Fair Market Value on the date of exercise equal to the
amount required to be withheld, subject to such rules as the Committee may
adopt.  In any event, the Company
reserves the right to withhold from any compensation otherwise payable to the
Optionee such amount as the Company determines is necessary to satisfy the
Company’s tax withholding obligations arising from the exercise of this option.

 

3

 

5.             DEFINITIONS

 

a.             “Cause” means termination of employment as a result of (i) the
failure of the Optionee to perform or observe any of the material terms or
provisions of any written employment agreement between the Optionee and the
Company or its subsidiaries or, if no written agreement exists, the gross
dereliction of the Optionee’s duties with respect to the Company; (ii) the
failure of the Optionee to comply fully with the lawful directives of the Board
of Directors of the Company or its subsidiaries, as applicable, or the officers
or supervisory employees to whom the Optionee is reporting; (iii) the
Optionee’s dishonesty, misconduct, misappropriation of funds, or disloyalty or
disparagement of the Company, any of its subsidiaries, or its management or
employees; (iv) or (v) other proper cause determined in good faith by
the Committee.  Notwithstanding the
foregoing, if the Optionee is subject to a written agreement with the Company
or its subsidiaries that contains a definition of “Cause” that is different
than the definition provided herein, the definition of “Cause” in such other
agreement shall apply in lieu of the definition provided herein.

 

b.             “Disability” means
permanently and totally disabled within the meaning of Section 22(e)(3) of
the Internal Revenue Code of 1986, as amended.

 

c.             “Retirement” means
termination of employment from the Company and its subsidiaries on or after
reaching the earlier of age sixty (60) or the first of the month following the
date on which the Participant’s attained age plus years of service with the
Company and its subsidiaries equal eighty (80).

 

6.             OPTIONS AS
COLLATERAL

 

The
Optionee may not assign or mortgage this option, or pledge this option as any
type of security or collateral.  Any
attempted assignment, mortgage or pledge of this option in violation of this
paragraph 6 will be null and void and have no legal effect.

 

7.             TRANSFERABILITY;
DEATH

 

a.             Except as provided in
paragraph 7(c), or as the Committee otherwise provides, the Optionee may not
transfer this option other than by will or the laws of descent and distribution
and only the Optionee may exercise this option during his or her lifetime.  However, if the Committee determines that the
Optionee is unable to exercise this option as a result of incapacity or
Disability, then the Committee may permit the Optionee’s guardian or an
individual who has obtained an appropriate power of attorney to exercise this
option on behalf of the Optionee.  In
such an event, neither the Committee nor the Company will be liable for any
losses resulting from such exercise or from the disposition of shares acquired
upon such exercise.

 

b.             If the Optionee dies while
this option is outstanding, then the Optionee’s estate or the person to whom
this option passes by will or the laws of descent and distribution may exercise
this option in the manner described in paragraph 4, but only within the period
described in paragraph 3.

 

4

 

c.             The Optionee may transfer
this option to (i) his or her spouse, children or grandchildren (“Immediate
Family Members”); (ii) a trust or trusts for the exclusive benefit of such
Immediate Family Members; or (iii) a partnership in which such Immediate
Family Members are the only partners. 
The transfer will be effective only if the Optionee receives no
consideration for such transfer. 
Subsequent transfers of the transferred option are prohibited except
transfers to those persons or entities to which the Optionee could have transferred
this option or transfers otherwise in accordance with this paragraph 7.

 

d.             Following any transfer
(whether voluntarily or pursuant to will or the law of descent and
distribution) under this paragraph 7, this option shall continue to be subject
to the same terms and conditions as were applicable immediately prior to such
transfer, provided that for purposes of this Agreement, the term “Optionee” as
used in paragraphs 6, 8, 9, 10, 11 and 12 shall be deemed to refer to the
transferee. The Company disclaims any obligation to provide notice to any
person who has the right to exercise this option of circumstances triggering
termination of this option.

 

8.             REGISTRATION;
TRANSFER RESTRICTIONS

 

If
the Company is advised by its counsel that shares deliverable upon exercise of
this option are required to be registered under the Securities Act of 1933 (“Act”)
or any applicable state or foreign securities laws, or that delivery of the
shares must be accompanied or preceded by a prospectus meeting the requirements
of that Act or such state or foreign securities laws, then the Company will use
its best efforts to effect the registration or provide the prospectus within a
reasonable time following the Company’s receipt of written notice of option
exercise relating to this option, but delivery of shares by the Company may be
deferred until the registration is effected or the prospectus is
available.  The Optionee shall have no
interest in shares covered by this option until certificates for the shares are
issued.  Upon and after such issuance,
the Shares may not be sold or offered for sale except pursuant to an effective
registration statement under the Act or in a transaction, which in the opinion
of counsel for the Company, is exempt from the registration provisions of the
Act.

 

9.             ADJUSTMENTS AND
CHANGE OF CONTROL

 

The
number and type of shares subject to this option and the option price may be
adjusted, or this option may be assumed, cancelled or otherwise changed, in the
event of certain transactions, as provided in Section 11 of the Plan.  Upon a change of control, as defined in the
Plan, the Optionee shall have the rights specified in Section 11 of the
Plan.

 

10.           AMENDMENT OR MODIFICATION

 

Except
as provided in paragraph 9, no term or provision of this Agreement may be
modified or amended except as provided in Section 9 of the Plan.

 

5

 

11.           LIMITED INTEREST

 

a.             The Optionee shall have no
rights as a shareholder as a result of the grant of the option until this
option is exercised, the exercise price and applicable withholding taxes are
paid, and the shares are issued thereunder.

 

b.             The grant of this option
shall not confer on the Optionee any right to continue as an employee, nor
interfere in any way with the right of the Company to terminate the Optionee at
any time.

 

c.             The grant of this option
shall not affect in any way the right or power of the Company or any of its
subsidiaries to make or authorize any or all adjustments, recapitalizations,
reorganizations, or other changes in the Company’s or any subsidiary’s capital
structure or its business, or any merger, consolidation or business combination
of the Company or any subsidiary, or any issuance or modification of any term,
condition, or covenant of any bond, debenture, debt, preferred stock or other
instrument ahead of or affecting the Common Stock or the rights of the holders
of Common Stock, or the dissolution or liquidation of the Company or any
subsidiary, or any sale or transfer of all or any part of its assets or
business or any other Company or subsidiary act or proceeding, whether of a
similar character or otherwise.

 

12.           GOVERNING LAW

 

This
Agreement shall be governed by the internal laws of the state of Wisconsin as
to all matters, including but not limited to matters of validity, construction,
effect, performance and remedies.  Any
legal action or proceeding with respect to the Plan or this option may only be
brought and determined in a court sitting in the County of Manitowoc, or the
Federal District Court for the Eastern District of Wisconsin sitting in the
County of Milwaukee, in the State of Wisconsin. 
The Company may require that the action or proceeding be determined in a
bench trial.

 

ALL
PARTIES ACKNOWLEDGE THAT THIS OPTION IS GRANTED UNDER AND PURSUANT TO THE PLAN,
WHICH SHALL GOVERN ALL RIGHTS, INTERESTS, OBLIGATIONS, AND UNDERTAKINGS OF
BOTH THE COMPANY AND THE OPTIONEE.  IN
THE EVENT OF ANY INCONSISTENCY BETWEEN THE PROVISIONS OF THE PLAN AND THE
PROVISIONS OF THIS AGREEMENT, THE PROVISIONS OF THE PLAN SHALL CONTROL.  ALL CAPITALIZED TERMS NOT OTHERWISE DEFINED
IN THIS OPTION SHALL HAVE THE MEANINGS ASSIGNED TO SUCH TERMS IN THE PLAN.

 

13.           SEVERABILITY

 

If
any provision of this Agreement is or becomes or is deemed to be invalid,
illegal or unenforceable, or would disqualify this option under any law the
Committee deems applicable, then such provision will be construed or deemed
amended to conform to the applicable law, or if the Committee determines that
the provision cannot be construed or deemed amended without materially altering
the intent of this Agreement, then the provision will be stricken and the
remainder of this Agreement will remain in full force and effect.

 

6

 

14.           COUNTERPARTS

 

This
Agreement may be executed in one or more counterparts, each of which will be
deemed to be an original but all of which together will constitute one and the
same instrument.

 

IN
WITNESS WHEREOF, the Company has caused this Agreement to be executed by its
duly authorized officer and the Optionee has executed this Agreement, all as of
the day and date first above written.

 

	
   

  	
  THE
  MANITOWOC COMPANY, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Optionee]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Social Security Number

  

 

7Exhibit
10.12

 

EXECUTION COPY

 

SECOND AMENDED AND RESTATED

RECEIVABLES PURCHASE AGREEMENT

 

among

 

MANITOWOC FUNDING, LLC,

 

as Seller,

 

THE MANITOWOC COMPANY, INC.,

 

as Servicer,

 

HANNOVER FUNDING COMPANY LLC,

 

as Purchaser,

 

and

 

NORDDEUTSCHE LANDESBANK GIROZENTRALE,

 

as Agent

 

Dated as of June 30, 2010

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE I

  	
  AMOUNTS
  AND TERMS OF THE PURCHASES

  	
  2

  
	
   

  	
   

  
	
  Section 1.1

  	
  Purchase
  Facility

  	
  2

  
	
  Section 1.2

  	
  Making
  Investments

  	
  2

  
	
  Section 1.3

  	
  Transfer
  of 100% of Pool Receivables and other Purchased Assets

  	
  2

  
	
  Section 1.4

  	
  Terms
  and Conditions for Sale, Assignment, Conveyance, and Transfer

  	
  3

  
	
  Section 1.5

  	
  Computation
  of the Purchased Assets Coverage Percentage

  	
  5

  
	
  Section 1.6

  	
  Settlement
  Procedures

  	
  5

  
	
  Section 1.7

  	
  Fees

  	
  8

  
	
  Section 1.8

  	
  Payments
  and Computations, Etc.

  	
  8

  
	
  Section 1.9

  	
  Increased
  Costs

  	
  9

  
	
  Section 1.10

  	
  Requirements
  of Law

  	
  10

  
	
  Section 1.11

  	
  Inability
  to Determine Eurodollar Rate

  	
  10

  
	
   

  	
   

  
	
  ARTICLE II

  	
  REPRESENTATIONS
  AND WARRANTIES; COVENANTS; TERMINATION EVENTS

  	
  11

  
	
   

  	
   

  
	
  Section 2.1

  	
  Representations
  and Warranties; Covenants

  	
  11

  
	
  Section 2.2

  	
  Termination
  Events

  	
  11

  
	
   

  	
   

  
	
  ARTICLE III

  	
  INDEMNIFICATION

  	
  11

  
	
   

  	
   

  
	
  Section 3.1

  	
  Indemnification

  	
  11

  
	
   

  	
   

  
	
  ARTICLE IV

  	
  ADMINISTRATION
  AND COLLECTIONS

  	
  14

  
	
   

  	
   

  
	
  Section 4.1

  	
  Appointment
  of Servicer

  	
  14

  
	
  Section 4.2

  	
  Duties
  of Servicer

  	
  15

  
	
  Section 4.3

  	
  Establishment
  and Use of Certain Accounts

  	
  16

  
	
  Section 4.4

  	
  Enforcement
  Rights

  	
  17

  
	
  Section 4.5

  	
  Responsibilities
  of the Seller

  	
  18

  
	
  Section 4.6

  	
  Servicing
  Fee

  	
  18

  
	
   

  	
   

  
	
  ARTICLE V

  	
  MISCELLANEOUS

  	
  19

  
	
   

  	
   

  
	
  Section 5.1

  	
  Amendments,
  Etc.

  	
  19

  
	
  Section 5.2

  	
  Notices, Etc.;
  Extension of Stated Termination Date

  	
  19

  
	
  Section 5.3

  	
  Assignability

  	
  19

  
	
  Section 5.4

  	
  Costs,
  Expenses and Taxes

  	
  20

  
	
  Section 5.5

  	
  No
  Proceedings; Limitation on Payments

  	
  21

  
	
  Section 5.6

  	
  Confidentiality

  	
  21

  
					

 

i

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Section 5.7

  	
  GOVERNING
  LAW AND JURISDICTION

  	
  21

  
	
  Section 5.8

  	
  Execution
  in Counterparts

  	
  22

  
	
  Section 5.9

  	
  Survival
  of Termination

  	
  22

  
	
  Section 5.10

  	
  WAIVER
  OF JURY TRIAL

  	
  22

  
	
  Section 5.11

  	
  Entire
  Agreement

  	
  22

  
	
  Section 5.12

  	
  Headings

  	
  23

  
	
  Section 5.13

  	
  Purchaser’s
  Liabilities

  	
  23

  
	
  Section 5.14

  	
  Mutual
  Negotiations

  	
  23

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  
	
  Exhibit I

  	
  Definitions

  	
   

  
	
  Exhibit II

  	
  Conditions
  of Investments and Reinvestments

  	
   

  
	
  Exhibit III

  	
  Representations
  and Warranties

  	
   

  
	
  Exhibit IV

  	
  Covenants

  	
   

  
	
  Exhibit V

  	
  Termination
  Events

  	
   

  
	
  Exhibit VI

  	
  Supplemental
  Representations, Warranties and Covenants

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule I

  	
  Notices

  	
   

  
	
  Schedule II

  	
  Lock-Box
  Banks, Lock-Box Accounts, Lock-Boxes and Post Office Boxes

  	
   

  
	
  Schedule III

  	
  Trade
  Names

  	
   

  
	
  Schedule IV

  	
  Credit
  and Collection Policy

  	
   

  
	
   

  	
   

  	
   

  
	
  ANNEXES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Annex A

  	
  Form of
  Investment Notice

  	
   

  
	
  Annex B

  	
  Form of
  Monthly Report

  	
   

  
				

 

ii

 

SECOND AMENDED AND RESTATED

RECEIVABLES PURCHASE AGREEMENT

 

This
SECOND AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT (this “Agreement”)
is entered into as of June 30, 2010 among MANITOWOC FUNDING, LLC, a Nevada
limited liability company, as seller (the “Seller”), THE MANITOWOC
COMPANY, INC.  (“Manitowoc”),
a Wisconsin corporation, as initial servicer (in such capacity, together with
its successors and permitted assigns in such capacity, including any other
Person designated as Servicer pursuant to Section 4.1(a), the “Servicer”),
HANNOVER FUNDING COMPANY LLC, a Delaware limited liability company (the “Purchaser”),
and NORDDEUTSCHE LANDESBANK GIROZENTRALE (“NORD/LB”), as agent for the
Purchaser (in such capacity, together with its successors and assigns in such
capacity, the “Agent”).

 

PRELIMINARY
STATEMENTS.  Certain terms that are
capitalized and used throughout this Agreement are defined in Exhibit I
to this Agreement.  References in the
Exhibits hereto to “the Agreement” refer to this Agreement, as amended, amended
and restated, modified or supplemented from time to time.

 

The
Seller desires to sell, transfer and assign receivables, and the Purchaser
desires to acquire such receivables from time to time on the terms and subject
to the conditions set forth herein.

 

This
Agreement amends and restates in its entirety, as of the Closing Date, that
certain Amended and Restated Receivables Purchase Agreement, dated as of
December 21, 2006 (as amended, restated, supplemented or otherwise
modified prior to the Closing Date, the “Original Agreement”), among the
parties hereto.  Notwithstanding the
amendment and restatement of the Original Agreement by this Agreement, (i) the
Seller and Servicer shall continue to be liable to the Purchaser, the Agent or
any other Indemnified Party or Affected Person (as such terms are defined in
the Original Agreement) for fees and expenses which are accrued and unpaid
under the Original Agreement on the Closing Date (collectively, the “Original
Agreement Outstanding Amounts”) and all agreements to indemnify such
parties in connection with events or conditions arising or existing prior to
the Closing Date and (ii) the security interest created under the Original
Agreement shall remain in full force and effect as security for such Original
Agreement Outstanding Amounts until such Original Agreement Outstanding Amounts
have been paid in full.  Upon the
effectiveness of this Agreement, each reference to the Original Agreement in
any Transaction Document or in any other document, instrument or agreement shall
mean and be a reference to this Agreement.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, the parties hereto agree as follows:

 

 

ARTICLE I

 

AMOUNTS AND TERMS OF THE
PURCHASES

 

Section 1.1             Purchase Facility.

 

(a)           On the terms and conditions hereinafter set forth,
including the conditions set forth in Exhibit II hereto, the
Purchaser hereby agrees to make Investments (as such term is defined in Section 1.4(a) below)
and Reinvestments (as such term is defined in Section 1.4(b) below)
in the Purchased Assets from time to time from the Closing Date to the Facility
Termination Date; provided, however, that under no circumstances
shall the Purchaser make any such Investment or Reinvestment if, after giving
effect thereto, the aggregate outstanding Capital would exceed the Investment
Limit or the Purchased Assets Coverage Percentage would exceed 100%.

 

(b)           The Seller may, upon at least five (5) Business Days’
notice to the Agent, reduce the unused portion of the Investment Limit in whole
or in part (but not below the amount that would cause the aggregate outstanding
Capital to exceed the Investment Limit after giving effect to such reduction); provided
that each partial reduction shall be in the amount of at least one million
dollars ($1,000,000) or an integral multiple of one hundred thousand dollars
($100,000) in excess thereof; provided, further, that unless
reduced to zero, the Investment Limit shall in no event be reduced below thirty
million dollars ($30,000,000) pursuant to this clause (b).

 

Section 1.2             Making Investments.

 

(a)           Each Investment by the Purchaser hereunder shall be made
upon the Seller’s request evidenced by an irrevocable written notice in the
form of Annex A (each, an “Investment Notice”) delivered to the
Agent in accordance with Section 5.2, which Investment Notice must
be received by the Agent prior to 1:00 p.m., New York time on or before
one (1) Business Day prior to the requested Investment Date.  Each such Investment Notice shall specify (i) the
amount of Capital requested to be paid by the Purchaser to the Seller in
connection with such Investment (provided that such amount shall not be
less than one million dollars ($1,000,000) and integral multiples of one
hundred thousand dollars ($100,000) in excess thereof), (ii) the requested
Investment Date (which shall be a Business Day), (iii) a pro forma
calculation of the Purchased Assets Coverage Percentage after giving effect to
the requested Investment and (iv) the other information contemplated by Annex A.

 

(b)           On each Investment Date, the Purchaser shall, upon
satisfaction of the applicable conditions set forth in Exhibit II
hereto, make available to the Agent at the Agent’s office at its address
determined pursuant to Section 5.2, an amount equal to the Capital of
the Investment being funded by the Purchaser (set forth in the related
Investment Notice delivered in accordance with Section 1.2(a)) in
same day funds, and after the Agent’s receipt of such funds, the Agent shall
make such funds immediately available to the Seller at such office.

 

Section 1.3             Transfer of 100% of Pool
Receivables and other Purchased Assets.

 

(a)           Sale of Receivables.  Notwithstanding the otherwise applicable
conditions precedent to Investments hereunder, upon effectiveness of this
Agreement in accordance with its 

 

2

 

terms, (i) the Purchaser shall be deemed to
have made an Investment of an amount of Capital equal to its outstanding “Investment”
under, and as defined in, the Original Agreement, and (ii) the Purchaser’s
outstanding Capital hereunder after giving effect to such deemed Investment
shall be equal to the Purchaser’s “Investment” that was outstanding under, and
as defined in, the Original Agreement immediately prior to the effectiveness of
this Agreement.  In consideration of such
initial Investment, the entry into this Agreement by the Agent and the
Purchaser and the Purchaser’s agreement to make payments to the Seller from
time to time in accordance with Section 1.4, effective on the
Closing Date, the Seller hereby sells, conveys, transfers and assigns to the
Purchaser, all of Seller’s right, title and interest in and to (i) all
Pool Receivables existing on the Closing Date or thereafter arising or acquired
by the Seller from time to time prior to the Facility Termination Date,
(ii) all Related Security, whether existing on the Closing Date or
thereafter arising at any time and acquired by the Seller and (iii) all
Collections with respect to the foregoing.

 

(b)           Purchase of Purchased Assets.  On the terms and subject to the conditions
hereof, the Purchaser hereby purchases and accepts from the Seller the Pool
Receivables, all other Related Security and all Collections with respect
thereto sold, conveyed, assigned and transferred pursuant to Section 1.3(a) (collectively,
the “Purchased Assets”).

 

(c)           Obligations Not Assumed.  The foregoing sale, assignment, conveyance,
and transfer does not constitute and is not intended to result in the creation,
or an assumption by the Purchaser or the Agent, of any obligation of the
Seller, any Originator, or any other Person under or in connection with the
Receivables or any other Related Security, all of which shall remain the
obligations and liabilities of the Seller and/or the Originator(s), as applicable.

 

(d)           Transfer of 100% of Financial Assets; No Offset.  For the avoidance of doubt, on the terms and
subject to the conditions set forth herein, (i) the Seller is hereby
selling to the Purchaser, and the Purchaser is hereby purchasing, 100% of the
Seller’s right, title and interest in the Purchased Assets (including, without
limitation, 100% of the financial assets constituting the Pool Receivables),
and accordingly (unless, notwithstanding the intent of the parties, such sale
is not treated as a sale), the Seller shall cease being a creditor of the
Obligors on the Pool Receivables and rather, the Purchaser shall be a creditor
of such Obligors, and (ii) the Purchaser shall not offset the new
Receivables acquired against the obligation to the Seller to pay the Deferred
Purchase Price.

 

Section 1.4             Terms and Conditions for Sale,
Assignment, Conveyance, and Transfer. 
On the terms and subject to the conditions set forth herein, including Exhibit II,
in consideration for the sale, assignment, conveyance and transfer of the
Purchased Assets by the Seller to the Purchaser hereunder:

 

(a)           Investments. 
On the Closing Date, and thereafter from time to time prior to the
Facility Termination Date, on request of the Seller for an Investment in
accordance with Section 1.2(a), the Purchaser, in accordance with Section 1.2(b),
shall pay to the Seller the amount of Capital requested by the Seller under Section 1.2(a).  Each such payment is herein referred to as an
“Investment”.

 

3

 

(b)           Reinvestments. 
On each Business Day prior to the Facility Termination Date, the
Servicer, on behalf of the Purchaser, shall pay to the Seller, out of
Collections, the amount available for reinvestment in accordance with Section 1.6(b)(ii).  Each such payment is herein referred to as a “Reinvestment”.

 

(c)           Deferred Purchase Price.  The Servicer, on behalf of the Purchaser,
shall pay to the Seller, from Collections, the amounts payable to the Seller
from time to time pursuant to Section 1.6(b)(ii), Section 1.6(b)(iv) and
the last paragraph of Section 1.6(d) (such amounts, the “Deferred
Purchase Price” with respect to the Purchased Assets) at the times
specified in such Sections.

 

(d)           Payments to Seller Limited to Collections.  Notwithstanding any provision contained in
this Agreement to the contrary, none of the Agent or the Purchaser shall be
obligated to pay any amount to the Seller as the purchase price (including,
without limitation, in respect of the Deferred Purchase Price) for the Purchased
Assets pursuant to clauses (b) and (c) above except to
the extent of Collections on the Pool Receivables available for distribution to
the Seller in accordance with this Agreement. 
Any amount that Agent or the Purchaser does not pay pursuant to the preceding
sentence shall not constitute a claim (as defined in § 101 of the Bankruptcy
Code) against or corporate obligation of the Agent or the Purchaser for any
such insufficiency unless and until such amount becomes available for
distribution to the Seller in accordance with the last paragraph of Section 1.6(d).

 

(e)           Intent of the Parties.  The Seller, the Servicer, the Agent and the
Purchaser intend that the sale, conveyance, assignment and transfer of
Purchased Assets to the Purchaser shall be treated as a sale for all purposes
(other than for federal, state and local income and franchise tax purposes as
provided in the following paragraph of this clause (e)).  If notwithstanding the intent of the parties,
such sale, conveyance, transfer and assignment is not treated as a sale for
such purposes, such sale, conveyance, assignment and transfer shall be treated
as the grant of, and the Seller does hereby grant to the Purchaser a security
interest in the following property to secure all of the Seller’s obligations
(monetary or otherwise) under this Agreement and the other Transaction
Documents to which it is a party, whether now or hereafter existing or arising,
due or to become due, direct or indirect, absolute or contingent: all of the
Seller’s right, title and interest in, to and under all of the following,
whether now or hereafter owned, existing or arising: (i) all Pool
Receivables, (ii) all Related Security with respect to each such Pool
Receivable, (iii) all Collections with respect to each such Pool Receivable,
(iv) the Lock-Box Accounts and all amounts on deposit therein representing
proceeds of the Pool Receivables and proceeds of the Related Security with
respect thereto, the Collection Account and all amounts on deposit therein and
all certificates and instruments, if any, from time to time evidencing such
Lock-Box Accounts and Collection Account and such amounts on deposit therein
and any such amounts that are invested in Permitted Investments and any
securities or other account into which such Permitted Investments, if any, may
from time to time be deposited and any other amounts from time to time on
deposit in any such account, (v) all other accounts, deposit accounts,
chattel paper, documents, fixtures, general intangibles (including payment
intangibles), goods, instruments, investment property, letter-of-credit rights,
letters of credit, money, and supporting obligations and proceeds from
commercial tort claims, (vi) all other personal property of any nature or
type, and (vii) all accessions, products, substitutions, replacements and
proceeds of any of the foregoing, and all other personal property of any nature
or type, and cash and non-cash

 

4

 

proceeds of any of the foregoing (collectively, the “Pool
Assets”).  The Seller hereby
authorizes the Purchaser to file financing statements describing as the
collateral covered thereby as “all of the debtor’s personal property or assets”
or words to that effect, notwithstanding that such wording may be broader in
scope than the collateral described in this Agreement.  The Purchaser shall have, with respect to the
Pool Assets, and in addition to all the other rights and remedies available to
the Purchaser and the Agent, all the rights and remedies of a secured party
under any applicable UCC.

 

Notwithstanding
the foregoing paragraph of this clause (e), the Seller, the Servicer,
the Agent and the Purchaser intend and agree to treat, for purposes only of
federal, state and local income and franchise tax and any other tax measured in
whole or in part by income, the sale, conveyance, assignment and transfer of
the Purchased Assets to the Purchaser as a loan to the Seller secured by the
Pool Assets.  The provisions of this
Agreement and all related Transaction Documents shall be construed to further
these intentions of the parties.

 

Section 1.5             Computation of the Purchased
Assets Coverage Percentage.  The
Purchased Assets Coverage Percentage shall be initially computed on the Closing
Date.  Thereafter, until the Facility
Termination Date, such Purchased Assets Coverage Percentage shall be
automatically recomputed (or deemed to be recomputed) on each Business Day
other than a Termination Day.

 

Section 1.6             Settlement Procedures.

 

(a)           Collection of the Pool Receivables shall be administered
by the Servicer in accordance with the terms of this Agreement.  The Seller shall provide to the Servicer on a
timely basis all information needed for such administration, including notice
of the occurrence of any Termination Day and current computations of the
Purchased Assets Coverage Percentage.

 

(b)           The Servicer shall, on each day on which Collections of
Pool Receivables are received (or deemed received) by the Seller or Servicer,
transfer such Collections from the Lock-Box Accounts and deposit such
Collections into the Collection Account, except as otherwise permitted pursuant
to Section 4.3(a).  With
respect to all Collections on deposit in the Collection Account on such day,
the Servicer shall:

 

(i)              set aside and maintain in the Collection Account for
the benefit of the Purchaser (and, in the case of clause fourth below,
the applicable Indemnified Party or Affected Person, subject to their right to
receive such amounts solely in accordance with the priorities for payment set
forth in Section 1.6(d) below), out of such Collections, first
an amount equal to all Discount accrued through such day and not previously set
aside and second, an amount equal to the sum of the Utilization Fees,
Commitment Fees and Breakage Costs accrued through such day and not previously
set aside, third, to the extent funds are available therefor, an amount
equal to the Servicing Fee accrued through such day and not previously set
aside and fourth, to the extent funds are available therefor, any other
amounts (other than return of Capital) owed to any Indemnified Party or
Affected Person pursuant to Section 1.9, Section 1.10, Section 3.1,
or Section 5.4 and not previously set aside;

 

5

 

(ii)             subject to Section 1.6(f), if such day is
not a Termination Day, remit to the Seller, on behalf of the Purchaser, the
remainder of such Collections.  Such
remainder shall, (x) to the extent representing a return of Capital, be
automatically reinvested in Purchased Assets and other proceeds with respect
thereto and (y) to the extent not representing a return of Capital, be
paid (on behalf of the Purchaser) to the Seller in respect of the Deferred
Purchase Price for the Purchased Assets; provided, however, that
if, after giving effect to such Reinvestment, the Purchased Assets Coverage
Percentage would exceed 100%, then the Servicer shall set aside and maintain in
the Collection Account for the benefit of the Purchaser in accordance with clause
(iii) below the portion of such remaining Collections that, together
with any other Collections set aside pursuant to this clause (ii),
equals the amount necessary to reduce the Purchased Assets Coverage Percentage
to 100% (or, if all such remaining Collections are not sufficient to reduce the
Purchased Assets Coverage Percentage to 100%, then all such remaining
Collections shall be so set aside for the benefit of the Purchaser), rather
than remitting all of such remaining Collections to the Seller for Reinvestment
or for payment of the Deferred Purchase Price;

 

(iii)            if such day is a Termination Day, set aside and maintain
in the Collection Account for the benefit of the Purchaser the entire remainder
of such Collections; and

 

(iv)            subject to Section 1.6(f), pay to the Seller
(on behalf of the Purchaser) for the Seller’s own account and in payment of the
Deferred Purchase Price for the Purchased Assets, any Collections in excess
of:  (x) amounts required to be
reinvested in accordance with clause (ii) above, plus
(y) the amounts that are required to be set aside pursuant to clause (i) above,
pursuant to the proviso to clause (ii) above
and pursuant to clause (iii) above, plus (z) all
reasonable and appropriate out-of-pocket costs and expenses of the Servicer for
servicing, collecting and administering the Pool Receivables.

 

(c)           On each Settlement Date, the Servicer shall (i) deposit
into the Purchaser’s Account (or such other account designated by the Agent)
all Collections held on deposit in the Collection Account for the benefit of
the Purchaser, the Indemnified Parties and any other Affected Persons pursuant
to Section 1.6(b) and Section 1.6(f) and (ii) deposit
to the Servicer’s own account, from Collections held on deposit in the Collection
Account pursuant to clause third of Section 1.6(b)(i) in
respect of the accrued Servicing Fee, an amount equal to such accrued Servicing
Fee.

 

(d)           Upon receipt of funds deposited into the Purchaser’s
Account pursuant to Section 1.6(c), the Agent shall cause such
funds to be distributed as follows:

 

(i)              if such distribution occurs on a day that is not a
Termination Day, such funds shall be distributed in the following order of
priority: first to the Purchaser in payment in full of all unpaid
Discount accrued during the most recently ended Discount Accrual Period, second
to the Purchaser in payment in full of all unpaid Utilization Fees, Commitment
Fees and Breakage Costs accrued during the most recently ended Discount Accrual
Period, third to the Purchaser in payment of outstanding Capital (and
accrued Discount thereon) to the extent that funds have been set aside for such
purpose pursuant to Section 1.6(f), fourth to the Purchaser,
the Agent and any other Indemnified Party or 

 

6

 

Affected Person in payment
in full of any other amounts owed thereto pursuant to Section 1.9, Section 1.10,
Section 3.1, or Section 5.4 and fifth, any
remaining amounts shall be paid to the Purchaser in payment of outstanding
Capital; and

 

(ii)             if such distribution occurs on a Termination Day, such
funds shall be distributed in the following order of priority: first to
the Purchaser in payment in full of all accrued and unpaid Discount, second
to the Purchaser in payment in full of all accrued and unpaid Utilization Fees,
Commitment Fees and Breakage Costs, third to the Purchaser in payment in
full of all outstanding Capital, fourth to the Purchaser, the Agent and
any other Indemnified Party or Affected Person in payment in full of any other
amounts owed thereto by the Seller or the Servicer hereunder (including,
without limitation, pursuant to Section 1.9, Section 1.10,
Section 3.1, or Section 5.4).

 

After
the occurrence of the Final Payout Date, all additional Collections with respect
to the Purchased Assets shall be paid to the Seller for its own account in
payment of the Deferred Purchase Price for such Purchased Assets.

 

(e)           For the purposes of this Section 1.6:

 

(i)              if on any day the Outstanding Balance of any Pool
Receivable is reduced or adjusted as a result of any defective, damaged,
rejected, returned, repossessed or foreclosed goods or services, or any
discount, rebate, credit, counterclaim, billing error or other adjustment made
by the Seller, any Originator or Servicer, or any setoff or dispute between the
Seller, any Originator or the Servicer and an Obligor, the Seller shall be
deemed to have received on such day a Collection of such Pool Receivable in the
amount of such reduction or adjustment;

 

(ii)             if on any day any of the representations or warranties
in paragraphs (e), (f) or (k) of Section 1
of Exhibit III is not true with respect to any Pool Receivable, the
Seller shall be deemed to have received on such day a Collection of such Pool
Receivable in full;

 

(iii)            If an Obligor makes a payment but does not designate the
Receivable to which such payment applies, then the Servicer shall contact such
Obligor promptly in order to determine to which Receivable such payment
relates; provided, that if the Obligor does not direct the Servicer to
apply such payment to a particular Receivable or Receivables within thirty (30)
days after such payment has been received in a Lock-Box Account or by the
Servicer, then, except as otherwise required by applicable law or the relevant
Contract, such payment shall be applied to the Receivables of such Obligor in
the order of the age of such Receivables, starting with the oldest such
Receivable; and

 

(iv)            if and to the extent the Agent, the Purchaser or any
other Indemnified Party shall be required for any reason to pay over to an
Obligor (or any trustee, receiver, custodian or similar official in any
Insolvency Proceeding) any amount received by it hereunder, such amount shall
be deemed not to have been so received but rather to have been retained by the
Seller and, accordingly, the Agent or the Purchaser, as the case may 

 

7

 

be, shall have a claim
against the Seller for such amount, payable when and to the extent that any
distribution from or on behalf of such Obligor is made in respect thereof.

 

(f)            If at any time the Seller shall wish to cause the
reduction of the Capital (in whole or in part), the Seller may do so as
follows:

 

(i)              the Seller shall give the Agent at least (x) five (5) Business
Days’ prior written notice thereof in the case of any reduction of the Capital
to zero ($0) or (y) one (1) Business Day’s prior written notice in
the case of any partial reduction of the Capital, in either case, setting forth
the proposed amount of such reduction and the proposed date on which such
reduction will commence,

 

(ii)             on the proposed date of commencement of such reduction
and on each day thereafter, the Servicer shall cause Collections with respect
to the Capital or portion thereof to be reduced (including to any related
Discount) not to be reinvested or used to pay the Deferred Purchase Price until
the amount thereof not so reinvested shall equal the desired amount of
reduction, and

 

(iii)            the Servicer shall hold such Collections in the
Collection Account for the benefit of the Purchaser, for payment to the
Purchaser’s Account on the next Settlement Date (and in the case of a reduction
of the entire Investment, the Servicer shall hold in the Collection Account for
payment on such date an amount equal to all other obligations of the Seller or
Servicer to the Purchaser, the Agent and each other Indemnified Party or
Affected Person hereunder) in accordance with Section 1.6(c), and
the Capital shall be deemed reduced in the amount to be paid to the Purchaser’s
Account only when in fact finally so paid;

 

provided that, the
amount of any such reduction shall be not less than one million dollars
($1,000,000) and shall be an integral multiple of one hundred thousand dollars
($100,000), and the entire Capital after giving effect to such reduction shall
be not less than one million dollars ($1,000,000) unless the entire Capital
shall have been reduced to zero.

 

Section 1.7             Fees.  The Seller shall pay to the Purchaser certain
fees in the amounts and on the dates set forth in a letter agreement, dated as
of the Closing Date, among the Seller, the Agent, the Purchaser and the
Servicer (as the same may be amended, amended and restated, supplemented or
modified, the “Fee Letter”) delivered pursuant to Section 1
of Exhibit II, as such letter agreement may be amended,
supplemented or otherwise modified from time to time.

 

Section 1.8             Payments and Computations, Etc.  (a) All amounts to be paid or deposited
by the Seller or the Servicer hereunder shall be paid or deposited no later
than 1:00 p.m. (New York time) on the day when due in same day funds in
U.S. dollars to the Purchaser’s Account. 
All amounts received after 1:00 p.m. (New York time) will be deemed
to have been received on the immediately succeeding Business Day.

 

(b)           The Seller shall, to the extent permitted by law, pay
interest on any amount not paid or deposited by the Seller or Servicer when due
hereunder, at an interest rate equal to two and one-half percent (2.50%) per
annum above the Base Rate, payable on demand.

 

8

 

(c)           All computations of interest under clause (b) above
and all computations of Discount, fees, and other amounts hereunder shall be
made on the basis of a year of three hundred sixty (360) days (other than
Discount calculated of the Base Rate which shall be computed on the basis of a
year of three hundred sixty-five (365) or three hundred sixty-six (366) days,
as the case may be) for the actual number of days elapsed.  Whenever any payment or deposit to be made
hereunder shall be due on a day other than a Business Day, such payment or
deposit shall be made on the next succeeding Business Day and such extension of
time shall be included in the computation of such payment or deposit.

 

(d)           From time to time, upon reasonable request by the Seller
or the Servicer, the Agent shall notify the Seller or the Servicer, in response
to such request, as to changes in the Base Rate, the CP Rate, the Eurodollar
Rate and LIBOR; provided that the failure of such notice to be requested
or given shall not waive, preclude, delay or otherwise limit the effectiveness
of any such change.

 

Section 1.9             Increased Costs.  (a) If the Agent, the Purchaser, any
Liquidity Bank, any other Program Support Provider or any of their respective
Affiliates (each an “Affected Person”) determines that the existence of
or compliance with (i) any law, rule or regulation of any
Governmental Authority or any change therein or in the interpretation or
application thereof, in each case adopted, issued or occurring after December 21,
2006 or (ii) any request, guideline or directive from any central bank or
other Governmental Authority (whether or not having the force of law) issued or
occurring after December 21, 2006 affects or would affect the amount of
capital required or expected to be maintained by such Affected Person and such
Affected Person determines that the amount of such capital is increased by or
based upon the existence of any commitment to make purchases of or Investments
or Reinvestments in (or otherwise to maintain purchases of or Investments or
Reinvestments in) Pool Receivables related to this Agreement or any related
liquidity facility or credit enhancement facility and other commitments of the
same type, then, upon demand by such Affected Person (with a copy to the
Agent), the Seller shall promptly pay to the Agent, for the account of such
Affected Person, from time to time as specified by such Affected Person,
additional amounts sufficient to compensate such Affected Person in the light
of such circumstances, to the extent that such Affected Person determines such
increase in capital to be allocable to the existence of any of such
commitments.  A certificate as to such
amounts submitted to the Seller and the Agent by such Affected Person
certifying, in reasonably specific detail, the basis for, and calculation of
such amounts, shall be conclusive and binding for all purposes, absent manifest
error.

 

(b)           If, due to either (i) the introduction of or any
change (other than any change by way of imposition or increase of reserve
requirements referred to in Section 1.10) in or in the
interpretation of any law or regulation or (ii) compliance with any
guideline or request from any central bank or other Governmental Authority
(whether or not having the force of law), in either case, after December 21,
2006, there shall be any increase in the cost to any Affected Person of
agreeing to make purchases, Investments or Reinvestments hereunder (or
otherwise to maintain such purchases, Investments or Reinvestments) in
respect of which Discount is computed by reference to the Eurodollar Rate,
then, upon demand by such Affected Person, the Seller shall immediately pay to
such Affected Person, from time to time as specified, additional amounts sufficient
to compensate such Affected Person for such increased costs.  A certificate as to such amounts submitted to
the Seller by such Affected Person certifying, in reasonably specific detail, 

 

9

 

the basis for, and calculation of such amounts,
shall be conclusive and binding for all purposes, absent manifest error.

 

Section 1.10           Requirements of Law.  In the event that any Affected Person
determines that the existence of or compliance with (i) any law, rule or
regulation of any Governmental Authority or any change therein or in the
interpretation or application thereof, in each case adopted, issued or
occurring after December 21, 2006 or (ii) any request, guideline or
directive from any central bank or other Governmental Authority (whether or not
having the force of law) issued or occurring after the December 21, 2006:

 

(i)              does or shall subject such Affected Person to any tax
of any kind whatsoever with respect to this Agreement, any purchase of or
Investment or Reinvestment in the Purchased Assets or any increase in the
amount of Capital relating thereto, or does or shall change the basis of
taxation of payments to such Affected Person on account of Collections,
Discount or any other amounts payable hereunder (excluding taxes imposed on the
overall net income or gross receipts of such Affected Person, and franchise
taxes imposed on such Affected Person, by the jurisdiction under the laws of
which such Affected Person is organized or a political subdivision thereof);

 

(ii)             does or shall impose, modify or hold applicable any
reserve, special deposit, compulsory loan or similar requirement against assets
held by, or deposits or other liabilities in or for the account of, purchases,
advances or loans by, or other credit extended by, or any other acquisition of
funds by, any office of such Affected Person which are not otherwise included
in the determination of the Eurodollar Rate or the Base Rate hereunder; or

 

(iii)            does or shall impose on such Affected Person any other
condition;

 

and
the result of any of the foregoing is (x) to increase the cost to such
Affected Person of acting as Agent, or of agreeing to make purchases, Investments
or Reinvestments hereunder (or otherwise maintain such purchases, Investments
or Reinvestments) or (y) to reduce any amount receivable hereunder
(whether directly or indirectly), then, in any such case, upon demand by such
Affected Person the Seller shall pay such Affected Person any additional
amounts sufficient to compensate such Affected Person for such additional cost
or reduced amount receivable.  All such
amounts shall be payable as incurred.  A
certificate from such Affected Person to the Seller certifying, in reasonably
specific detail, the basis for, calculation of, and amount of such additional
costs or reduced amount receivable shall be conclusive and binding for all
purposes, absent manifest error.

 

Section 1.11           Inability to Determine Eurodollar
Rate.  In the event that the Agent
shall have determined prior to the first day of any Discount Accrual Period
(which determination shall be conclusive and binding upon the parties hereto)
by reason of circumstances affecting the interbank Eurodollar market, either (a) dollar
deposits in the relevant amounts and for the relevant Discount Accrual Period
are not available, (b) adequate and reasonable means do not exist for
ascertaining the Eurodollar Rate for such Discount Accrual Period or (c) the
Eurodollar Rate determined pursuant hereto does not accurately reflect the cost
to the Purchaser (as conclusively determined by the Agent) of maintaining any
Portion of Capital during such 

 

10

 

Discount Accrual Period, the Agent shall promptly
give telephonic notice of such determination, confirmed in writing, to the
Seller prior to the first day of such Discount Accrual Period.  Upon delivery of such notice (a) no
Portion of Capital shall be funded thereafter at the Bank Rate determined by
reference to the Eurodollar Rate, unless and until the Agent shall have given
notice to the Seller that the circumstances giving rise to such determination
no longer exist, and (b) with respect to any outstanding Portions of
Capital then funded at the Bank Rate determined by reference to the Eurodollar
Rate, such Bank Rate shall automatically be converted to the Bank Rate
determined by reference to the Base Rate at the respective last days of the
then-current Discount Accrual Periods relating to such Portions of Capital.

 

ARTICLE II

 

REPRESENTATIONS AND
WARRANTIES; COVENANTS;

TERMINATION EVENTS

 

Section 2.1             Representations and Warranties;
Covenants.  The Seller hereby makes
the representations and warranties, and hereby agrees to perform and observe
the covenants, set forth in Exhibits III, IV and VI,
respectively hereto.

 

Section 2.2             Termination Events.  If any of the Termination Events contemplated
by Exhibit V hereto shall occur and be continuing, the Agent may,
by notice to the Seller, declare the Facility Termination Date to have occurred
(in which case the Facility Termination Date shall be deemed to have occurred);
provided that, automatically upon the occurrence of any event (without
any requirement for the passage of time or the giving of notice) described in subsections (g) of
Exhibit V, the Facility Termination Date shall occur.  Upon any such declaration, occurrence or
deemed occurrence of the Facility Termination Date, the Purchaser and the Agent
shall have, in addition to the rights and remedies which they may have under
this Agreement, all other rights and remedies provided after default under the
UCC and under other applicable law, which rights and remedies shall be
cumulative.

 

ARTICLE III

 

INDEMNIFICATION

 

Section 3.1             Indemnification.

 

(a)                                  Indemnities by
the Seller.  Without
limiting any other rights that the Agent, the Purchaser, any Liquidity Banks,
any other Program Support Providers, or any of their respective Affiliates,
employees, agents, successors, transferees or assigns (each of the Agent, the
Purchaser, the Liquidity Banks, the other Program Support Providers, and their
respective Affiliates, employees, agents, successors, transferees and assigns
may be referred to as an “Indemnified Party”) may have hereunder or
under applicable law, the Seller hereby agrees to indemnify each Indemnified
Party from and against any and all claims, damages, taxes, costs, expenses,
losses, judgments, liabilities and other amounts (including Attorney Costs)
(all of the foregoing being collectively referred to as “Indemnified Amounts”)
arising out of or resulting from this Agreement or other Transaction Documents
(whether directly or indirectly) or the use of proceeds of purchases, Investments
or Reinvestments hereunder, the ownership of the

 

11

 

Purchased Assets (or any portion thereof or any
interest therein), the payment, or use of proceeds, of the Deferred Purchase
Price, or in respect of any Receivable or any Contract, excluding, however,
(a) Indemnified Amounts to the extent resulting from gross negligence or
willful misconduct on the part of such Indemnified Party, or (b) any net
income taxes or franchise taxes imposed on such Indemnified Party by the
jurisdiction under the laws of which such Indemnified Party is organized or is
doing business (except solely as a result of the transactions contemplated by
this Agreement and the other Transaction Documents) or any political
subdivision thereof.  Without limiting or
being limited by the foregoing, but subject to the exclusions set forth in the preceding
sentence, the Seller shall pay within five (5) Business Days of demand to
each Indemnified Party any and all amounts necessary to indemnify such
Indemnified Party from and against any and all Indemnified Amounts relating to
or resulting from any of the following:

 

(i)              the failure of any Receivable included in the
calculation of the Net Eligible Pool Balance to be an Eligible Receivable, the
failure of any information contained in a Monthly Report to be true and
correct, or the failure of any other information provided to the Purchaser or
the Agent with respect to Receivables or this Agreement to be true and correct;

 

(ii)             the failure of any representation or warranty or
statement made or deemed made by the Seller (or any of its officers) under or in
connection with this Agreement to have been true and correct in all respects
when made;

 

(iii)            the failure by the Seller to comply with any applicable
law, rule or regulation with respect to any Pool Receivable or the related
Contract; or the failure of any Pool Receivable or the related Contract to
conform to any such applicable law, rule or regulation;

 

(iv)            the failure to vest and maintain vested in the Purchaser
a valid and enforceable first priority perfected ownership or security interest
in all the Pool Assets free and clear of any Adverse Claim;

 

(v)             the failure to have filed, or any delay in filing,
financing statements or other similar instruments or documents under the UCC of
any applicable jurisdiction or other applicable laws with respect to any
Receivables in, or purporting to be in, the Receivables Pool and the Related
Security and Collections in respect thereof, whether at the time of any
Investment or Reinvestment or at any subsequent time;

 

(vi)            any dispute, claim, offset or defense of the Obligor to
the payment of any Receivable in, or purporting to be in, the Receivables Pool
(including, without limitation, a defense based on such Receivable or the
related Contract not being a legal, valid and binding obligation of such
Obligor enforceable against it in accordance with its terms), or any other
claim resulting from the sale of the goods or services related to such
Receivable or the furnishing or failure to furnish such goods or services or
relating to collection activities with respect to such Receivable;

 

12

 

(vii)           any failure of the Seller to perform its duties or
obligations in accordance with the provisions hereof or to perform its duties
or obligations under the Contracts;

 

(viii)          any products liability or other claim,
investigation, litigation or proceeding arising out of or in connection with
merchandise, insurance or services which are the subject of any Contract;

 

(ix)             the commingling of Collections of Pool Receivables at
any time with other funds;

 

(x)              any investigation, litigation or proceeding related to
this Agreement or the use of proceeds of any Investment, Reinvestment or any
Deferred Purchase Price (or the payment thereof) or the ownership of the
Purchased Assets (or any interest therein or portion thereof);

 

(xi)             any reduction in Capital as a result of the distribution
of Collections pursuant to Section 1.6, in the event that all or a
portion of such distributions shall thereafter be rescinded or otherwise must
be returned for any reason;

 

(xii)            any tax or governmental fee or charge (other than any tax
upon or measured by net income or gross receipts or franchise tax), all
interest and penalties thereon or with respect thereto, and all reasonable
out-of-pocket costs and expenses, including the reasonable fees and expenses of
counsel in defending against the same, which are required to be paid by reason
of any Investment, Reinvestment or Deferred Purchase Price or the ownership of
the Purchased Assets (or any interest therein or portion thereof); or

 

(xiii)           any Lock-Box Agreement.

 

Without
limiting or being limited by the foregoing, if any Indemnified Party incurs any
loss or expense (including any loss or expense incurred by reason of the
liquidation or reemployment of deposits or other funds acquired by such
Indemnified Party) (such loss or expense may be referred to as “Breakage
Costs”) as a result of (i) the full or partial repayment of any
Portion of Capital on any day other than the scheduled last day of a Discount
Accrual Period with respect thereto or on any day in an amount greater than the
amount specified by the Seller or the Servicer or (ii) any Investment not
being made (other than as a result of a default by the Purchaser) in accordance
with a notice pursuant to Section 1.2(a), then upon demand by such
Indemnified Party, the Seller shall pay to such Indemnified Party the amount of
such Breakage Costs.

 

The
obligations of the Seller under this Section 3.1(a) shall
survive the resignation or removal of the Agent and the execution, delivery,
performance and termination of this Agreement, regardless of any investigation
made by any Indemnified Party.

 

(b)           Indemnity by the Servicer.  Without limiting any other rights which any
Indemnified Party may have hereunder under applicable law, the Servicer hereby
agrees to indemnify each Indemnified Party, forthwith within five (5) Business
Days of demand, from and 

 

13

 

against any and all Indemnified Amounts awarded
against or incurred by any of them arising out of or relating to:

 

(i)              any representation or warranty made by the Servicer
under or in connection with any Transaction Document or any information or
report delivered by or on behalf of the Servicer pursuant hereto, which shall
have been false, incorrect or misleading in any respect when made or deemed
made (except any such amounts to the extent representing recourse due to the
insolvency or other financial inability to pay of any Obligor);

 

(ii)             the failure by the Servicer to comply with any
applicable law, rule or regulation (including truth in lending, fair
credit billing, usury, fair credit reporting, equal credit opportunity, fair
debt collection practices and privacy) with respect to any Pool Receivable or
other related Contract;

 

(iii)            any failure of the Servicer to perform its duties,
covenants and obligations in accordance with the applicable provisions of this
Agreement;

 

(iv)            any dispute, claim, offset or defense (other than a
discharge in bankruptcy of the related Obligor) of an Obligor to the payment of
any Receivable in or purporting to be in the Receivables Pool resulting solely
from collection or other servicing activities of the Servicer with respect to
such Receivable; or

 

(v)             costs and expenses (including Attorney Costs) in
connection with litigation relating to any Transaction Document.

 

The
obligations of the Servicer under this Section 3.1(b) shall
survive the resignation or removal of the Agent and the execution, delivery,
performance and termination of this Agreement for a period of three years
following the Final Payout Date, regardless of any investigation made by any
Indemnified Party.

 

ARTICLE IV

 

ADMINISTRATION AND
COLLECTIONS

 

Section 4.1             Appointment of Servicer.  (a) The servicing, administering and collection
of the Pool Receivables shall be conducted by the Person so designated from
time to time as Servicer in accordance with this Section 4.1.  Until the Agent gives notice to the Seller
and the Servicer (in accordance with this Section 4.1) of the designation
of a new Servicer, Manitowoc is hereby designated as, and hereby agrees to
perform the duties and obligations of, the Servicer pursuant to the terms
hereof.  Upon the occurrence and during
the continuance of a Termination Event, the Agent may designate as Servicer any
Person (including itself) to succeed the Servicer or any successor Servicer, on
the condition in each case that any such Person so designated shall agree to
perform the duties and obligations of the Servicer pursuant to the terms hereof.

 

(b)           Upon the designation of a successor Servicer as set forth
in Section 4.1(a) hereof, the Servicer agrees that it will
terminate its activities as Servicer hereunder in a manner which the Agent
determines will facilitate the transition of the performance of such activities
to the new 

 

14

 

Servicer, and the Servicer shall cooperate with and
assist such new Servicer.  Such
cooperation shall include (without limitation) access to and transfer of
records and use by the new Servicer of all licenses or software necessary or
desirable to collect the Pool Receivables and the Related Security.

 

(c)           The Servicer acknowledges that, in making their decision
to execute and deliver this Agreement, the Agent and the Purchaser have relied
on the Servicer’s agreement to act as Servicer hereunder.  Accordingly, the Servicer agrees that it will
not voluntarily resign as Servicer.

 

(d)           The Servicer may delegate its duties and obligations
hereunder to any subservicer (each, a “Sub-Servicer”); provided
that, in each such delegation (i) such Sub-Servicer shall agree in a
separate letter agreement, to perform the duties and obligations of the
Servicer pursuant to the terms hereof, (ii) the Servicer shall remain
solely liable to the Purchaser and the Agent for the performance of the duties
and obligations so delegated, (iii) the Seller, the Agent and the
Purchaser shall have the right to look solely to the Servicer for performance
and (iv) the terms of any agreement with any Sub-Servicer shall provide
that the Agent may terminate such agreement upon the termination of the
Servicer hereunder by giving notice of its desire to terminate such agreement
to the Servicer (and the Servicer shall provide appropriate notice to such
Sub-Servicer).  For avoidance of doubt,
the existence of the Bond Administration Agreement shall not limit or diminish
the obligations of the Servicer under this Agreement.

 

Section 4.2             Duties of Servicer.  (a) The Servicer shall take or cause to
be taken all such action as may be necessary or advisable to collect each Pool
Receivable from time to time, all in accordance with this Agreement and all
applicable laws, rules and regulations, with reasonable care and
diligence, and in accordance with the Credit and Collection Policy.  The Servicer also shall perform the duties of
the Servicer set forth in the Purchase and Sale Agreement, in accordance with
all applicable laws, rules and regulations and with reasonable care and
diligence.  The Servicer shall set aside
for the accounts of the Seller and the Purchaser the amount of the Collections
to which each is entitled in accordance with Article I hereto.  The Servicer may, in accordance with the
Credit and Collection Policy, extend the maturity of any Pool Receivable (but
not beyond thirty (30) days) and extend the maturity or adjust the Outstanding
Balance of any Defaulted Receivable or Delinquent Receivable as the Servicer
may determine to be appropriate to maximize Collections thereof; provided,
however, that (i) such extension or adjustment shall not alter the
status of such Pool Receivable as a Delinquent Receivable or a Defaulted
Receivable or limit the rights of the Purchaser or the Agent under this
Agreement and (ii) if a Termination Event has occurred and is continuing
and Manitowoc or any of its Affiliates is still serving as Servicer, the
Servicer may make such extension or adjustment only upon the prior written
approval of the Agent.  The Seller shall
deliver to the Servicer and the Servicer shall hold for the benefit of the
Seller and the Agent (for the benefit of the Purchaser and individually) in
accordance with their respective interests, all records and documents
(including without limitation computer tapes or disks) with respect to each
Pool Receivable.  Notwithstanding
anything to the contrary contained herein, the Agent may direct the Servicer to
commence or settle any legal action to enforce collection of any Pool
Receivable or to foreclose upon or repossess any Related Security; provided,
however, that no such direction may be given unless either: (A) a
Termination Event has occurred and is continuing or (B) the Agent believes

 

15

 

in good faith that the failure to commence, settle
or effect such legal action, foreclosure or repossession could adversely affect
the collectibility of such Pool Receivable.

 

(b)           On each Business Day, the Servicer shall provide to the
Agent a report, in form and substance reasonably satisfactory to the Agent, as
to: (i) all outstanding Receivables that have been sold or contributed by
the Originators to the Seller pursuant to the Purchase and Sale Agreement since
the most recent such report; (ii) the Net Eligible Pool Balance as of the
beginning of the day on the date of such report; (iii) the Purchased
Assets Coverage Percentage; (iv) Receivables that became Defaulted
Receivables since the most recent such report; (v) agings of Pool
Receivables as of the beginning of the day on the date of such report; and (vi) the
sum of the Outstanding Balances of the Eligible Receivables in the Receivables
Pool.

 

(c)           The Servicer’s obligations hereunder shall terminate on
the Final Payout Date. After such termination the Servicer shall promptly
deliver to the Seller all books, records and related materials that the Seller
previously provided to the Servicer in connection with this Agreement.

 

Section 4.3             Establishment and Use of Certain
Accounts.

 

(a)           Lock-Box Accounts. 
Prior to the Closing Date, the Seller shall have entered into Lock-Box
Agreements covering the Lock-Box Accounts listed on Schedule II with all
of the Lock-Box Banks, and deliver original counterparts thereof to the
Agent.  All Lock-Box Accounts shall be
maintained in the name of the Seller. 
Each of the Seller and the Servicer shall have directed (and shall
continue to direct) each Lock-Box Bank to cause all Collections received in the
applicable Lock-Box Accounts to be automatically (and without further action,
notice to or consent of the Seller or Servicer) wire transferred to the
Collection Account within one (1) Business Day following the receipt
thereof into such Lock-Box Account; provided that, unless a Termination
Event has occurred and is continuing, M&T Account Collections need not be
transferred automatically to the Collection Account and, instead, the Servicer
shall cause M&T Account Collections to be deposited in the Collection
Account on the first Business Day after any day on which the aggregate amount
of M&T Account Collections exceeds fifteen thousand dollars ($15,000) and,
in any event, the Servicer shall cause all M&T Account Collections to be
transferred to the Collection Account at least once each calendar month.

 

The
Agent (for the benefit of the Purchaser) shall have sole dominion and control
over each Lock-Box Account together with the ability, in the circumstances
contemplated by Section 4.3(d), to exercise all rights with respect
thereto, including without limitation, the exclusive right to receive all
Collections deposited therein.  Neither
the Seller nor the Servicer shall have any ability to control or direct the
application of any Collections deposited in the Lock-Box Accounts; provided
that unless a Termination Event or an Unmatured Termination Event has occurred
and is continuing, all such Collections shall continue to be automatically
transferred to the Collection Account as described in this Section 4.3(a).

 

(b)           Collection Account. 
The Servicer has established the Collection Account.  The Collection Account shall be used to
accept the transfer of Collections of Pool Receivables from the Lock-Box
Accounts pursuant to Section 1.6(b) and for such other
purposes described in the Transaction Documents.

 

16

 

(c)           Permitted Investments.  Prior to the occurrence and continuation of
any Termination Event, any amounts in the Collection Account may be invested by
the Collection Account Bank at Servicer’s direction, in Permitted Investments,
so long as (i) either (A) such Permitted Investments are credited to
a “securities account” (as defined in the applicable UCC) over which the
Purchaser shall have a first priority perfected security interest, (B) such
Permitted Investments are purchased in the name of the Purchaser or (C) such
Permitted Investments are held in another manner sufficient to establish the
Purchaser’s first priority perfected security interest over such Permitted
Investments and (ii) such Permitted Investments are scheduled to mature
prior to the last day of the Discount Accrual Period during which such investment
is made.

 

(d)           Control of Accounts.  The Agent may at any time following the
occurrence and during the continuance of a Termination Event or Unmatured
Termination Event give notice to each Lock-Box Bank and the Collection Account
Bank that the Agent is exercising its rights under the Lock-Box Agreements and
the Collection Account Agreement to do any or all of the following: (i) to
have the exclusive ownership and control of the Lock-Box Accounts and/or the
Collection Account, as the case may be, transferred to the Agent, to the extent
provided in the related Lock-Box Agreement and/or the Collection Account
Agreement, as applicable, (ii) to have the proceeds that are sent to the
respective Lock-Box Accounts and/or the Collection Account, as the case may be,
be redirected pursuant to its instructions rather than deposited in the
applicable Lock-Box Account and/or the Collection Account, as the case may be,
and (iii) to take any or all other actions permitted under the applicable
Lock-Box Agreement and the Collection Account Agreement.  The Seller hereby agrees that if the Agent at
any time takes any action set forth in the preceding sentence, the Agent shall
have exclusive control of the proceeds (including Collections) of all Pool
Receivables and the Seller hereby further agrees to take any other action that
the Agent may reasonably request to transfer such control.  Any proceeds of Pool Receivables received by
the Seller or the Servicer, thereafter shall be sent immediately to the
Agent.  The parties hereto hereby
acknowledge that if at any time the Agent takes control of any Lock-Box Account
and/or the Collection Account, the Agent shall not have any rights to the funds
therein in excess of the unpaid amounts due to the Agent, the Purchaser or any
other Person hereunder and any such funds shall be distributed by the Agent in
accordance with the provisions set forth in Section 1.6.

 

Section 4.4             Enforcement Rights.  (a) At any time following the occurrence
and during the continuance of a Termination Event:

 

(i)              the Agent may direct the Obligors that payment of all
amounts payable under any Pool Receivable be made directly to the Agent or its
designee;

 

(ii)             the Agent may instruct the Seller or the Servicer to
give notice of the Purchaser’s ownership of the Pool Receivables to each
Obligor, which notice shall direct that payments be made directly to the Agent
or its designee, and upon such instruction from the Agent the Seller or the
Servicer, as applicable, shall give such notice at the expense of the Seller; provided,
that if the Seller or the Servicer fails to so notify each Obligor, the Agent
may so notify the Obligors; and

 

17

 

(iii)            the Agent may request the Seller or the Servicer to, and
upon such request the Seller or the Servicer, as applicable, shall (A) assemble
all of the records necessary or desirable to collect the Pool Receivables and
the Related Security, and transfer or license to any new Servicer the use of
all software necessary or desirable to collect the Pool Receivables and the
Related Security, and make the same available to the Agent or its designee at a
place selected by the Agent, and (B) segregate all cash, checks and other
instruments received by it from time to time constituting Collections with
respect to the Pool Receivables in a manner acceptable to the Agent and,
promptly upon receipt, remit all such cash, checks and instruments, duly
endorsed or with duly executed instruments of transfer, to the Agent or its
designee.

 

(b)           The Seller hereby authorizes the Agent, and irrevocably
appoints the Agent as its attorney-in-fact with full power of substitution and
with full authority in the place and stead of the Seller, which appointment is
coupled with an interest, during the occurrence and continuance of a
Termination Event or Unmatured Termination Event, to take any and all steps in
the name of the Seller and on behalf of the Seller necessary or desirable, in
the determination of the Agent, to collect any and all amounts or portions
thereof due under any and all Pool Receivables or Related Security, including,
without limitation, endorsing the name of the Seller on checks and other
instruments representing Collections and enforcing such Pool Receivables,
Related Security and the related Contracts. 
Notwithstanding anything to the contrary contained in this subsection
(b), none of the powers conferred upon such attorney-in-fact pursuant to
the immediately preceding sentence shall subject such attorney-in-fact to any
liability if any action taken by it shall prove to be inadequate or invalid,
nor shall they confer any obligations upon such attorney-in-fact in any manner
whatsoever, except to the extent arising out of the negligence or willful
misconduct of such attorney-in-fact.

 

Section 4.5             Responsibilities of the Seller.  Anything herein to the contrary
notwithstanding, the Seller shall (i) perform all of its obligations, if
any, and cause each Originator to perform all of such Originator’s obligations,
under the Contracts related to the Pool Receivables to the same extent as if
the Purchased Assets had not been sold hereunder or, in the case of the
Originators, under the Purchase and Sale Agreement, and the exercise by the
Agent or the Purchaser of its rights hereunder shall not relieve the Seller or
any Originator from any such obligations and (ii) pay when due any taxes
payable by the Seller when due.  The
Agent and the Purchaser shall not have any obligation or liability with respect
to any Pool Receivable, any Related Security or any related Contract, nor shall
any of them be obligated to perform any of the obligations of the Seller under
any of the foregoing.

 

Section 4.6             Servicing Fee.  The Servicer shall be paid a fee, through
distributions permitted by Section 1.6(d), which shall accrue for
each day, equal to the result of (a) one percent (1%) multiplied by (b) the
Outstanding Balance of all Pool Receivables on such day, multiplied by (c) a
fraction, the numerator of which is one (1) and the denominator of which
is three hundred sixty-five (365).

 

18

 

ARTICLE V

 

MISCELLANEOUS

 

Section 5.1             Amendments, Etc.  No amendment or waiver of any provision of
this Agreement or consent to any departure by the Seller or the Servicer
therefrom shall be effective unless in a writing signed by the Agent, and, in
the case of any amendment, by the Seller and the Servicer and then such
amendment, waiver or consent shall be effective only in the specific instance
and for the specific purpose for which given; provided, however,
that no such material amendment shall be effective until the Rating Agencies
have notified the Agent in writing that such action will not result in a
reduction or withdrawal of the rating of any Notes.  No failure on the part of the Purchaser or
the Agent to exercise, and no delay in exercising, any right hereunder shall
operate as a waiver thereof; nor shall any single or partial exercise of any
right hereunder preclude any other or further exercise thereof or the exercise
of any other right.

 

Section 5.2             Notices, Etc.; Extension of
Stated Termination Date.  (a) All
notices and other communications hereunder shall, unless otherwise stated
herein, be in writing (which shall include facsimile communication) and sent or
delivered, to each party hereto, at its address set forth under its name on Schedule
I hereto, or at such other address as shall be designated by such party in
a written notice to the other parties hereto. 
Notices and communications by facsimile shall be effective when sent
(and shall be followed by hard copy sent by first class mail), and notices and
communications sent by other means shall be effective when received.

 

(b)           The Seller may advise the Agent in writing of its desire
to extend the Stated Termination Date for an additional three hundred
sixty-four (364) days, provided such request is made not more than ninety (90)
days prior to, and not less than sixty (60) days prior to, the then current
Stated Termination Date.  The Agent shall
notify the Seller in writing, within forty-five (45) days after its receipt of
such request by the Seller, whether the Liquidity Banks or any of them are
agreeable to such extension (it being understood that the Liquidity Banks may
accept or decline such a request in their sole discretion and on such terms as
they may elect) and, to the extent the Liquidity Banks are agreeable, the
Seller, the Agent and the Liquidity Banks shall enter into such documents as
the Liquidity Banks may deem necessary or appropriate to reflect such
extension, and all reasonable costs and expenses incurred by the Liquidity Banks,
the Purchaser and the Agent in connection therewith (including reasonable
attorneys’ costs) shall be paid by the Seller; it  being  understood
and  agreed  that the failure of the Agent to so notify the
Seller as set forth above shall not be deemed to be a consent to such request
for extension.

 

Section 5.3             Assignability.  (a) This Agreement and the Purchaser’s
rights and obligations herein (including ownership of the Purchased Assets)
shall be assignable, in whole or in part, by the Purchaser and its successors
and assigns with the prior written consent of the Seller; provided, however,
that such consent shall not be unreasonably withheld, and no such consent shall
be required if (i) such assignment is to a Note Issuer or (ii) a
Termination Event or an Unmatured Termination Event has occurred and is
continuing.  Subject to Section 5.6,
each assignor may, in connection with the assignment, disclose to the
applicable assignee any information relating to the Seller or the Pool
Receivables furnished to such assignor by or on behalf of the Seller, the
Purchaser or the Agent.

 

19

 

Upon
such an assignment the assignee shall have all of the rights of the Purchaser
with respect to the Transaction Documents, the Purchased Assets, the Pool
Assets and the Capital (or such portion thereof as has been assigned).

 

(b)           The Purchaser may at any time sell or grant to one or more
banks or other institutions (each a “Liquidity Bank”) party to the
Liquidity Agreement or to any other Program Support Provider, participating
interests or security interests in its rights in the Purchased Assets, the Pool
Assets and the Capital (or any portion thereof).  In the event of any such sale or grant by the
Purchaser of a participating interest to a Liquidity Bank or other Program
Support Provider, the Purchaser shall remain responsible for the performance of
its obligations hereunder.  The Seller
agrees that each Liquidity Bank or other Program Support Provider shall be
entitled to the benefits of Sections 1.9, 1.10 and 1.11.

 

(c)           This Agreement and the rights and obligations of the Agent
hereunder shall be assignable, in whole or in part, by the Agent and its
successors and assigns.

 

(d)           Except as provided in Section 4.1(d), neither
the Seller nor the Servicer may assign its rights or delegate its obligations
hereunder or any interest herein without the prior written consent of the
Agent.

 

(e)           Without limiting any other rights that may be available
under applicable law, the rights of the Purchaser may be enforced through it or
by its agents.

 

Section 5.4             Costs, Expenses and Taxes.  (a) In addition to the rights of
indemnification granted under Section 3.1 hereof, the Seller agrees
to pay, upon demand, all reasonable costs and expenses in connection with the
preparation, execution, delivery and administration (including auditing
Receivables prior to the Closing Date, periodic auditing of Receivables and the
servicing thereof from and after the Closing Date, and any reasonable and
customary fees from time to time payable to the Rating Agencies in connection
with the transactions contemplated by this Agreement) of this Agreement and the
other Transaction Documents, including all reasonable costs and expenses
relating to the amending, amending and restating, modifying or supplementing of
this Agreement and the other Transaction Documents and the waiving of any
provisions hereof or thereof (whether or not any such amendment, amendment and
restatement, modification, supplement or waiver becomes effective), and
including in all cases, without limitation, Attorney Costs for the Agent, the
Purchaser and their respective Affiliates and agents with respect thereto and
with respect to advising the Agent, the Purchaser and their respective
Affiliates and agents as to their rights and remedies under this Agreement and
the other Transaction Documents, and all costs and expenses, if any (including
Attorney Costs), of the Agent, the Purchaser and their respective Affiliates
and agents, in connection with the enforcement of this Agreement and the other
Transaction Documents.

 

(b)           In addition, the Seller shall pay on demand any and all
stamp and other taxes and fees payable in connection with the execution,
delivery, filing and recording of this Agreement or the other Transaction
Documents, and agrees to save each Indemnified Party harmless from and against
any liabilities with respect to or resulting from any delay in paying or
omission to pay such taxes and fees.

 

20

 

Section 5.5             No Proceedings; Limitation on
Payments.  (a) Each of the
Seller, the Servicer, the Agent, each assignee of the Purchased Assets, the
Pool Assets or the Capital or any interest therein, and each Person which
enters into a commitment to make purchases, Investments or Reinvestments
hereunder, hereby covenants and agrees that it will not institute against, or
join any other Person in instituting against, the Purchaser or any other Note
Issuer, any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceeding, or other proceeding under any federal or state bankruptcy or
similar law, for one year and one day after the latest maturing Note issued by
the Purchaser or any such Note Issuer is paid in full.

 

(b)           Notwithstanding any provisions contained in this Agreement
to the contrary, the Purchaser shall not, and shall not be obligated to, pay
any amount, if any, payable by it pursuant to this Agreement or any other
Transaction Document unless (i) the Purchaser has received funds which may
be used to make such payment and which funds are not required to repay the
Notes when due and (ii) after giving effect to such payment, either (x) the
Purchaser could issue Notes to refinance all outstanding Notes (assuming such
outstanding Notes matured at such time) in accordance with the program
documents governing the Purchaser’s securitization program or (y) all
Notes are paid in full. Any amount which the Purchaser does not pay pursuant to
the operation of the preceding sentence shall not constitute a claim (as
defined in §101 of the Bankruptcy Code) against or corporate obligation of the
Purchaser for any such insufficiency unless and until the Purchaser satisfies
the provisions of clauses (i) and (ii) above.

 

Section 5.6             Confidentiality.  Unless otherwise required by applicable law
(including the disclosure requirement of applicable securities laws), each of
the Seller and the Servicer agrees to maintain the confidentiality of this
Agreement and the other Transaction Documents (and all drafts thereof) in communications
with third parties and otherwise; provided that this Agreement may be
disclosed to (a) third parties to the extent such disclosure is made
pursuant to a written agreement of confidentiality in form and substance
reasonably satisfactory to the Agent and (b) the Seller’s and/or the
Servicer’s legal counsel and auditors if they agree to hold it confidential; provided
that only the terms and conditions of this Agreement may be revealed to such
parties and not the details of any fees, pricing or interest rates.  Unless otherwise required by applicable law,
each of the Agent and the Purchaser agrees to maintain the confidentiality of
non-public financial information regarding Manitowoc and its Subsidiaries and other
information marked as confidential by the Servicer or the Seller; provided,
that such information may be disclosed to: (i) third parties to the extent
such disclosure is made pursuant to a written agreement of confidentiality in
form and substance reasonably satisfactory to Manitowoc, (ii) legal
counsel and auditors of the Purchaser or the Agent if they agree to hold it
confidential, (iii) the rating agencies rating the Notes and any other
nationally recognized statistical rating organization, (iv) any Program
Support Provider or potential Program Support Provider (if they agree to hold
it confidential), (v) any placement agent placing the Notes and (vi) any
regulatory authorities having jurisdiction over the Agent, the Purchaser, any
Program Support Provider or any Liquidity Bank. 
Nothing in this Section shall prevent disclosure of information as
part of a legal proceeding relating to litigation in respect of this Agreement
or any other Transaction Document.

 

Section 5.7             GOVERNING LAW AND JURISDICTION.  (a) THIS AGREEMENT, INCLUDING THE
RIGHTS AND DUTIES OF THE PARTIES HERETO, SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE INTERNAL LAWS 

 

21

 

OF THE STATE OF NEW YORK (INCLUDING SECTIONS 5-1401
AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BUT WITHOUT
REGARD TO ANY OTHER CONFLICT OF LAWS PROVISIONS THEREOF).

 

(b)           ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS
AGREEMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE
UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, AND BY EXECUTION AND
DELIVERY OF THIS AGREEMENT, EACH OF THE PURCHASER, THE SELLER, THE SERVICER AND
THE AGENT CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE
NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. 
EACH OF THE PURCHASER, THE SELLER, THE SERVICER AND THE AGENT
IRREVOCABLY WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY LAW, ANY OBJECTION, INCLUDING
ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON
CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY
ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS AGREEMENT OR ANY
DOCUMENT RELATED HERETO.  THE PURCHASER,
THE SELLER, THE SERVICER AND THE AGENT EACH WAIVE PERSONAL SERVICE OF ANY SUMMONS,
COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED
BY NEW YORK LAW.

 

Section 5.8             Execution in Counterparts.  This Agreement may be executed in any number
of counterparts, each of which when so executed shall be deemed to be an
original and all of which when taken together shall constitute one and the same
agreement.

 

Section 5.9             Survival of Termination.  The provisions of Sections 1.9, 1.10,
1.11, Article III and this Article V shall
survive any termination of this Agreement.

 

Section 5.10           WAIVER OF JURY TRIAL.  THE PURCHASER, THE SELLER, THE SERVICER AND
THE AGENT EACH WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR
CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT OR
THE TRANSACTIONS CONTEMPLATED HEREBY, IN ANY ACTION, PROCEEDING OR OTHER
LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR
PARTIES, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS OR
OTHERWISE.  THE PURCHASER, THE SELLER,
THE SERVICER AND THE AGENT EACH AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION
SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. 
WITHOUT LIMITING THE FOREGOING, EACH OF THE PARTIES HERETO FURTHER
AGREES THAT ITS RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS
SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN
WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT
OR ANY PROVISION HEREOF.  THIS WAIVER
SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR
MODIFICATIONS TO THIS AGREEMENT.

 

Section 5.11           Entire Agreement.  This Agreement and the other Transaction
Documents embodies the entire agreement and understanding between the
Purchaser, the Seller, the Servicer 

 

22

 

and the Agent, and supersedes all prior or
contemporaneous agreements and understandings of such Persons, verbal or
written, relating to the subject matter hereof and thereof.

 

Section 5.12           Headings.  The captions and headings of this Agreement
and in any Exhibit hereto are for convenience of reference only and shall
not affect the interpretation hereof or thereof.

 

Section 5.13           Purchaser’s Liabilities.  The obligations of the Purchaser under this
Agreement are solely the corporate obligations of the Purchaser.  No recourse shall be had for any obligation
or claim arising out of or based upon this Agreement against any stockholder,
employee, officer, director or incorporator of the Purchaser; and provided,
however, that this Section 5.13 shall not relieve any such
Person of any liability it might otherwise have for its own gross negligence or
willful misconduct.  The agreements
provided in this Section 5.13 shall survive termination of this
Agreement.

 

Section 5.14           Mutual Negotiations.  This Agreement and the other Transaction Documents
are the product of mutual negotiations by the parties thereto and their
counsel, and no party shall be deemed the draftsperson of this Agreement or any
other Transaction Document or any provision hereof or thereof or to have
provided the same.  Accordingly, in the
event of any inconsistency or ambiguity of any provision of this Agreement or
any other Transaction Document, such inconsistency or ambiguity shall not be
interpreted against any party because of such party’s involvement in the
drafting thereof.

 

[SIGNATURES FOLLOW]

 

23

 

IN
WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as
of the date first above written.

 

	
   

  	
  MANITOWOC
  FUNDING, LLC,

  
	
   

  	
  as
  Seller

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

Second
A&R Receivables

Purchase Agreement

 

S-1

 

	
   

  	
  THE
  MANITOWOC COMPANY, INC.,

  
	
   

  	
  as
  Servicer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

Second
A&R Receivables

Purchase Agreement

 

S-2

 

	
   

  	
  NORDDEUTSCHE
  LANDESBANK GIROZENTRALE, as Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

Second
A&R Receivables

Purchase Agreement

 

S-3

 

	
   

  	
  HANNOVER
  FUNDING COMPANY LLC,

  
	
   

  	
  as
  Purchaser

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

Second
A&R Receivables

Purchase Agreement

 

S-4

 

EXHIBIT I

 

DEFINITIONS

 

As
used in the Agreement (including its Exhibits), the following terms shall have
the following meanings (such meanings to be equally applicable to both the
singular and plural forms of the terms defined).  Unless otherwise indicated, all Section,
Annex, Exhibit and Schedule references in this Exhibit are to
Sections of and Annexes, Exhibits and Schedules to the Agreement.

 

“Adverse
Claim” means a lien, security interest, restriction on transfer or other
charge or encumbrance, or any other type of preferential arrangement, including
the interest of a consignor, it being understood that a lien, security interest
or other charge or encumbrance, or any other type of preferential arrangement,
in favor of or granted to the Seller or the Purchaser pursuant to this
Agreement and the other Transaction Documents shall not constitute an Adverse
Claim and excluding (i) liens for taxes, assessments or other governmental
charges which are not yet due and payable, and (ii) liens granted to any
Lock-Box Bank and/or the Collection Account Bank in the Collections held by
such bank in the related Lock-Box Account and/or Collection Account, as the
case may be, and solely for and relating to the payment of fees and other
charges to such bank and the ability of such bank to recover for returned
items, in each case, to the extent described and provided for in the agreement,
if any, relating to such account and/or the applicable Lock-Box Agreement
and/or Collection Account Agreement.

 

“Affected
Person” has the meaning set forth in Section 1.9 of the
Agreement.

 

“Affiliate”
means, as to any Person, any other Person that, directly or indirectly, is in
control of, is controlled by or is under common control with such Person or is
a director or officer of such Person.

 

“Affiliate
Obligor” means any Obligor that is a Subsidiary of a Parent Obligor or that
is an Affiliate of a Parent Obligor.

 

“Agent”
shall have the meaning set forth in the preamble to the Agreement.

 

“Attorney
Costs” means and includes all fees and disbursements of any law firm or
other external counsel, the allocated cost of internal legal services and all
disbursements of internal counsel.

 

“Average
Remaining Maturity” means, for any day, the result of (i) the sum of,
for each Eligible Receivable then in the Receivables Pool, (a) the
Remaining Maturity times (b) the Net Outstanding Balance, divided by (ii) the
sum of the Net Outstanding Balances of all Eligible Receivables then in the
Receivables Pool.

 

“Bank
Rate” for any Discount Accrual Period for any Portion of Capital, means an
interest rate per  annum equal to (A) the Eurodollar Rate for
such Discount Accrual Period plus two percent (2%) for the first ten days of
such Discount Accrual Period and (B) the Eurodollar Rate plus two and
one-half percent (2.50%) thereafter; provided that the “Bank Rate”
for each day in a Discount Accrual Period occurring during the continuance of a
Termination Event shall 

 

I-1

 

be
an interest rate equal to plus two and one-half percent (2.50%) per  annum
above the Base Rate in effect on such day.

 

“Bankruptcy
Code” means the United States Bankruptcy Reform Act of 1978 (11 U.S.C.
§ 101, et seq.), as amended from time to time.

 

“Base
Concentration Limit” means, for any day, a percentage,  not to exceed five percent (5%), determined
by the Servicer.

 

“Base
Rate” means for any day, a fluctuating interest rate per  annum
as shall be in effect from time to time, which rate shall be at all times equal
to the greatest of (i) the rate of interest most recently announced by
NORD/LB at its branch in New York, New York as its prime commercial rate for
United States loans made in the United States (which rate is not necessarily
intended to be the lowest rate of interest determined by NORD/LB in connection
with extensions of credit) plus one percent (1.00%) per  annum, (ii) the
latest Federal Funds Rate plus one and one-half percent (1.50%) per  annum
and (iii) the Eurodollar Rate applicable to the Discount Accrual Period
for which the Base Rate is then being determined.

 

“Bond
Administration Agreement” means the Bond Administration Agreement dated as
of December 21, 2006 between the Servicer and Finacity, as amended,
amended and restated, supplemented or otherwise modified from time to time.

 

“Breakage
Costs” is defined in Section 3.1 of the Agreement.

 

“Business
Day” means any day on which (i) both (A) the Agent at its branch
office in New York, New York is open for business and (B) commercial banks
in New York City are not authorized or required to be closed for business, and (ii) if
this definition of “Business Day” is utilized in connection with the Eurodollar
Rate, dealings are carried out in the London interbank market.

 

“Calculation
Period” means a calendar month.

 

“Capital”
means the amount paid to the Seller in respect of Investments made by the
Purchaser pursuant to the Agreement, or such amount divided or combined in
order to determine the Discount applicable to any Portion of Capital, in each
case, reduced from time to time by Collections distributed and applied on
account of such Capital pursuant to Section 1.6(d) of the
Agreement; provided, however, that if such Capital shall have
been reduced by any distribution and thereafter all or a portion of such
distribution is rescinded or must otherwise be returned for any reason, such
Capital shall be increased by the amount of such rescinded or returned
distribution, as though it had not been made.

 

“Change
in Control” means (x) with respect to Manitowoc, (a) the
acquisition of ownership, directly or indirectly, beneficially or of record, by
any Person or group (within the meaning of the Securities Exchange Act of 1934
and the rules of the Securities and Exchange Commission thereunder as in
effect on the Closing Date) of Equity Interests representing more than thirty
percent (30%) of the aggregate ordinary voting power represented by the issued
and outstanding Equity Interests of Manitowoc, (b) occupation of a
majority of the seats (other than vacant seats) on the board of directors of Manitowoc
by Persons who were neither (i) nominated 

 

I-2

 

by
the board of directors of Manitowoc nor (ii) appointed by directors so
nominated, (c) the acquisition of direct or indirect Control of Manitowoc
by any Person or group or (d) a “Change of Control” as defined in the
Senior Note Documents; and

 

(y) with
respect to an Originator, (a) the acquisition of ownership, directly or
indirectly, beneficially or of record, by any Person or group (within the
meaning of the Securities Exchange Act of 1934 and the rules of the
Securities and Exchange Commission thereunder as in effect on the Closing
Date), other than Manitowoc (or a Subsidiary of Manitowoc), of any membership
interests or Equity Interests of such Originator, (b) occupation of a
majority of the seats (other than vacant seats) on the board of directors of
the Seller by Persons who were neither (i) nominated by the board of
directors of the Seller nor (ii) appointed by directors so nominated, or (c) the
acquisition of direct or indirect Control of such Originator by any Person or
group other than Manitowoc (or a Subsidiary of Manitowoc); and

 

(z) with
respect to the Seller, (a) the acquisition of ownership, directly or
indirectly, beneficially or of record, by any Person or group (within the
meaning of the Securities Exchange Act of 1934 and the rules of the
Securities and Exchange Commission thereunder as in effect on the Closing
Date), other than Grove U.S. L.L.C., of any membership interests or Equity Interests
of the Seller, (b) occupation of a majority of the seats (other than
vacant seats) on the board of directors of the Seller by Persons who were
neither (i) nominated by the board of directors of the Seller nor (ii) appointed
by directors so nominated, or (c) the acquisition of direct or indirect
Control of the Seller by any Person or group other than Grove U.S. L.L.C.; and

 

For
purposes of this definition of Change in Control, capitalized terms used in
this definition that are defined in the Credit Agreement (or by reference in
the Credit Agreement) shall have the meanings assigned thereto in (or by
reference in) the Credit Agreement, without giving effect to any amendment,
amendment and restatement, supplement or other modification to the Credit Agreement;
provided that the terms “Seller” and “Manitowoc” shall have the meanings
assigned thereto in the Agreement.

 

“Closing
Date” means June 30, 2010.

 

“Collection
Account” means that certain bank account numbered 330-785-7 maintained at
Harris N.A. which is (i) identified as the “Manitowoc Funding, LLC
Collection Account,” (ii) pledged, on a first-priority basis, to the
Purchaser pursuant to Section 1.2(d) of the Agreement, and (iii) is
governed by the Collection Account Agreement.

 

“Collection
Account Agreement” means a letter agreement, in form and substance
satisfactory to the Agent, among the Seller, the Agent, the Collection Account
Bank, and such other Persons as may be acceptable to the Agent, as the same may
be amended, supplemented, amended and restated, or otherwise modified from time
to time in accordance with the Agreement and with the consent of the Agent.

 

“Collection
Account Bank” means the bank holding the Collection Account.

 

“Collections”
means, with respect to any Pool Receivable, (a) all funds which are
received by the Seller, Servicer or any Originator in payment of any amounts
owed in respect of such Receivable (including, without limitation, purchase
price, finance charges, interest and all 

 

I-3

 

other
charges), or applied to amounts owed in respect of such Receivable (including,
without limitation, insurance payments and net proceeds of the sale or other
disposition of repossessed goods or other collateral or property of the related
Obligor or any other Person directly or indirectly liable for the payment of
such Pool Receivable and available to be applied thereon), (b) all
Collections deemed to have been received pursuant to Section 1.4(e) of
the Agreement and (c) all other proceeds of such Receivable.

 

“Commitment
Fee” has the meaning set forth in the Fee Letter.

 

“Commitment
Fee Rate” has the meaning set forth in the Fee Letter.

 

“Commitment
Fee Reserve” means on any date of determination, an amount equal to the
product of (a) the Commitment Fee Rate, times (b) two (2) times
the Days Sales Outstanding at such time, times (c) the result of (1) the
Investment Limit at such time minus (2) the aggregate outstanding Capital
at such time, divided by (d) three hundred sixty (360).

 

“Company
Note” has the meaning set forth in Section 3.1 of the Purchase
and Sale Agreement.

 

“Concentration
Component” means, on any date, the greatest of:  (a) the Concentration Percentage for all
Group B Obligors, (b) two (2) times the Concentration Percentage for
all Group C Obligors, or (c) four (4) times the Concentration
Percentage for all Group D Obligors.

 

“Concentration
Percentage” means, on any day, (a) for any Group A Obligor, a
percentage equal to fifty percent (50%), or any other percentage as agreed by
the Servicer and the Agent in writing, (b) for all Group B Obligors, a
percentage equal to four (4) times the Base Concentration Limit, (c) for
all Group C Obligors, a percentage equal to two (2) times the Base
Concentration Limit, and (d) for all Group D Obligors, a percentage equal
to the Base Concentration Limit.

 

“Consolidated
Interest Coverage Ratio” has the meaning set forth in the Credit Agreement,
without giving effect to any amendment, amendment and restatement, supplement
or other modification to the Credit Agreement (unless such amendment, amendment
and restatement, supplement or other modification has been consented to in
writing by the Agent).

 

“Consolidated
Senior Secured Leverage Ratio” has the meaning set forth in the Credit
Agreement, without giving effect to any amendment, amendment and restatement,
supplement or other modification to the Credit Agreement (unless such
amendment, amendment and restatement, supplement or other modification has been
consented to in writing by the Agent).

 

“Consolidated
Total Leverage Ratio” has the meaning set forth in the Credit Agreement,
without giving effect to any amendment, amendment and restatement, supplement
or other modification to the Credit Agreement (unless such amendment, amendment
and restatement, supplement or other modification has been consented to in
writing by the Agent).

 

“Contract”
means, with respect to any Receivable, any and all contracts, understandings,
instruments, agreements, invoices, notes, purchase orders or other writings
pursuant to which 

 

I-4

 

such
Receivable arises or which evidences such Receivable or under which an Obligor
becomes or is obligated to make payment in respect of such Receivable.

 

“Contractual
Dilution” means any Dilution that is contractually limited prior to the
sale or contribution to the Seller, pursuant to the Purchase and Sale
Agreement, of the Receivable(s) that gave rise to such Dilution, such as
discounts or rebates.

 

“Contributed
Receivables” is defined in Section 1.1(a) of the Purchase
and Sale Agreement.

 

“Contributed
Value” is defined in Section 3.3(b) of the Purchase and
Sale Agreement.

 

“CP
Rate” for any Discount Accrual Period for any Portion of Capital, means, to
the extent the Purchaser funds such Portion of Capital for such Discount
Accrual Period by issuing Notes, a rate per  annum equal to the
sum of (a) the weighted average of the rates paid or payable by the
Purchaser from time to time as interest on or otherwise (by means of interest
rate hedges or otherwise) in respect of Notes and allocated, in whole or in
part, by the Agent to fund the purchase or maintenance of a Portion of Capital
(and which may also be allocated in part to the funding of other assets of the
Purchaser) during the relevant Discount Accrual Period; provided that if
any component of such rate is a discount rate, then such component shall be the
rate resulting from converting such discount rate to an interest-bearing
equivalent rate per annum, plus (b) the per annum rate (expressed as a
percentage and an interest rate equivalent and calculated based on a 360-day
year) equivalent to the sum of (i) the allocable amount of any placement
agent or commercial paper dealer fees incurred in connection with the issuance
of Notes, plus (ii) certain documentation and transaction costs associated
with the issuance of Notes, plus (iii) any incremental carrying costs
incurred with respect to Notes maturing on dates other than those on which
corresponding funds are received by the Purchaser, plus (iv) other
borrowings by the Purchaser, including borrowings to fund small or odd dollar
amounts that are not easily accommodated in the commercial paper market
(provided that the rate contemplated by this clause (iv) shall not
exceed the Eurodollar Rate plus fifty basis points (0.50%)).  Notwithstanding anything to the contrary in
the Agreement or in any other Transaction Document on and after the occurrence
and during the continuation of any Termination Event the “CP Rate” shall be
equal to the Base Rate plus two and one-half percent (2.50%) per  annum.

 

“Crane
Business” means the Crane business segment as described in Part I, Item
1 of Form 10-K filed by Manitowoc with the United States Securities and
Exchange Commission for the fiscal year ended December 31, 2009.

 

“Credit
Agreement” means the Amended and Restated Credit Agreement, dated as of August 25,
2008, among Manitowoc, the “Subsidiary Borrowers” party thereto, the “Lenders”
party thereto, and JPMorgan Chase Bank, N.A., as administrative agent, as amended,
supplemented or otherwise modified from time to time; provided, however,
that for purposes of any reference herein to a defined term set forth in the
Credit Agreement, such reference shall be deemed to be a reference to the
Credit Agreement as in effect on January 21, 2010 without giving effect to
any amendment, supplement or other modification thereto entered into without
the Agent’s written consent.

 

I-5

 

“Credit
and Collection Policy” means those receivables credit and collection
policies and practices of the Servicer in effect on the Closing Date and
attached as Schedule IV to the Agreement, as modified in compliance with
the Agreement.

 

“Cutoff
Date” means, (a) for any Settlement Date, the final day of a preceding
Calculation Period, or (b) for any other date, the Cutoff Date for the
immediately preceding Settlement Date.

 

“Days
Sales Outstanding” means, for any calendar month, an amount computed as of
the last day of such calendar month equal to: 
(a) the average of the Outstanding Balance of all Pool Receivables
as of the last day of each of the three most recent calendar months ended on
the last day of such calendar month, divided by (b)(i) the aggregate
credit sales made by the Originators giving rise to Pool Receivables during the
three calendar months ended on or before the last day of such calendar month
divided by (ii) ninety (90).

 

“Debt”
means Indebtedness as defined in the Credit Agreement without giving effect to
any amendment, amendment and restatement, supplement or other modification to
the Credit Agreement.

 

“Default
Horizon” means the number four (4).

 

“Default
Horizon Calculation Period” means, for any day, a number, equal to the
Default Horizon, of consecutive Calculation Periods ending with the Cutoff
Date.

 

“Default
Ratio” means, for any day, the ratio computed as of the Cutoff Date by
dividing (i) the sum (without duplication) of the Net Outstanding Balances
of Pool Receivables that (a) were Defaulted Receivables as of the Cutoff
Date, and (b) were not Defaulted Receivables as of the previous Cutoff
Date, and (c) were Eligible Receivables on at least one day during the
Calculation Period by (ii) the Eligible Sales during the Loss Horizon
Lookback Period.

 

“Defaulted
Receivable” means a Receivable:

 

(i) as
to which any payment, or part thereof, remains unpaid for at least ninety-one
(91) days from the original due date, or, if applicable, the adjusted due date,
provided that any such adjustments are consistent with the Credit and Collection
Policy therefor;

 

(ii) as
to which the Obligor thereof or any other Person obligated thereon or owning
any Related Security in respect thereof has taken any action, or suffered any
event to occur, of the type described in paragraph (g) of Exhibit V
to the Agreement; or

 

(iii) which
has been, or, consistent with the Credit and Collection Policy, which should
be, written off as uncollectible.

 

“Deferred
Purchase Price” has the meaning set forth in Section 1.4(c) of
the Agreement.

 

“Delinquent
Receivable” means a Receivable which is not a Defaulted Receivable and:

 

I-6

 

(i) as
to which any payment, or part thereof, remains unpaid for at least 61 days from
the original due date therefor; or

 

(ii) which,
consistent with the Credit and Collection Policy, would be classified as
delinquent.

 

“Dilution”
means any non-cash credit granted to an Obligor for the purpose of reducing or
canceling the Net Outstanding Balance of any Eligible Receivable of such
Obligor, except to the extent that such credit is offset by the sale or
contribution of an Eligible Receivable(s) to the Seller pursuant to the
Purchase and Sale Agreement, as part of a transfer, cancellation (of invoice,
not product), replacement (of invoice, not product), correction, or any
artifact of A/R tracking, or as part of a buyback/resell arrangement between
such Obligor and the applicable Originator.

 

“Dilution
Component” means, for any day, the product of (i) the average of the
Dilution Ratios for the twelve most recent Calculation Periods and (ii) the
Dilution Horizon Ratio.

 

“Dilution
Horizon” means the number one (1).

 

“Dilution
Horizon Calculation Period” means, for any day, a number, equal to the
Dilution Horizon, of consecutive Calculation Periods ending with the Cutoff
Date.

 

“Dilution
Horizon Lookback Period” means, for any day, the Calculation Period
preceding the Calculation Period containing the Cutoff Date by a number, equal
to the Dilution Horizon, of Calculation Periods.

 

“Dilution
Horizon Ratio” means, for any Settlement Date (and any subsequent date
until the following Settlement Date), the result of (i) the Eligible Sales
during the Dilution Horizon Calculation Period, divided by (ii) the Net
Eligible Pool Balance as of such date.

 

“Dilution
Ratio” means, for any day, the ratio computed as of the Cutoff Date by
dividing:  (a) the Eligible Dilution
during the Calculation Period by (b) the Eligible Sales during the
Dilution Horizon Lookback Period.

 

“Dilution
Reserve Percentage” means, on any Settlement Date (and any subsequent date
until the following Settlement Date), the product of (i) the Dilution
Horizon Ratio multiplied by (ii) the sum of (x) the Dilution Reserve
Stress Factor times the average of the Dilution Ratios for the twelve most
recent Calculation Periods and (y) the Spike Factor.

 

“Dilution
Reserve Stress Factor” means the number two (2).

 

“Discount”
means:

 

(i) for
any Portion of Capital for any Discount Accrual Period to the extent the
Purchaser is funding such Portion of Capital through the issuance of Notes,

 

{CPR
x I x (ED/360)} + TF

 

I-7

 

(ii) for
any Portion of Capital for any Discount Accrual Period to the extent the
Purchaser is funding such Portion of Capital pursuant to the Liquidity
Agreement or other than through the issuance of Notes,

 

{BR
x I x (ED/Year)}+ TF

 

where:

 

	
  BR

  	
  =

  	
  the
  Bank Rate for the Portion of Capital for such Discount Accrual Period

  
	
   

  	
   

  	
   

  
	
  I

  	
  =

  	
  the
  Portion of Capital for such Discount Accrual Period

  
	
   

  	
   

  	
   

  
	
  CPR

  	
  =

  	
  the
  CP Rate for the Portion of Capital for such Discount Accrual Period

  
	
   

  	
   

  	
   

  
	
  ED

  	
  =

  	
  the
  actual number of days during such Discount Accrual Period

  
	
   

  	
   

  	
   

  
	
  Year

  	
  =

  	
  if
  such Portion of Capital is funded based upon: (i) the Eurodollar Rate,
  three hundred sixty (360) days, and (ii) the Base Rate, three hundred
  sixty-five (365) or three hundred sixty-six (366) days, as applicable

  
	
   

  	
   

  	
   

  
	
  TF

  	
  =

  	
  the
  Termination Fee, if any, for the Portion of Capital for such Discount Accrual
  Period

  

 

provided, however,
that no provision of the Agreement shall require the payment or permit the
collection of Discount in excess of the maximum permitted by applicable law;
and provided, further, that Discount for the Portion of Capital
shall not be considered paid by any distribution to the extent that at any time
all or a portion of such distribution is rescinded or must otherwise be
returned for any reason.

 

“Discount
Accrual Period” means, with respect to each Portion of Capital:

 

(a)           initially the period
commencing on the Investment Date of the related Investment and ending the last
day of the calendar month in which such Investment Date occurred; and

 

(b)           thereafter, each
calendar month;

 

provided, however,
that on and after the Facility Termination Date, the Agent may, from time to
time and in its sole discretion, select any shorter or longer Discount Accrual
Period for any Portion of Capital (including a period of one day).

 

“Discount
Reserve” at any time means the sum of (i) the Termination Discount at
such time, and (ii) the then accrued and unpaid Discount.

 

I-8

 

“Dividends”
means any dividend or distribution (in cash or obligations) on any of the
Seller’s membership or other equity interests or any warrants, options or other
rights with respect to any of the Seller’s membership or other equity
interests.

 

“Eligible
Dilution” means, for any Calculation Period, the sum of all Variable
Dilutions occurring during the Calculation Period except to the extent that
such credits have been applied to any Obligor in excess of the amount of any
Net Outstanding Balances owed on Eligible Receivables for any such Obligor.

 

“Eligible
Receivables” means, at any time, Receivables:

 

(i)              the Obligor of which is a resident of either (a) the
United States, or (b) Canada (excluding the province of Quebec);

 

(ii)             the Obligor of which is not, nor has at any time during
the life of such Receivable been, subject to any bankruptcy, insolvency or any
other action, circumstance or proceeding of the type described in paragraph (g) of
Exhibit V to the Agreement;

 

(iii)            the Obligor of which is not an Affiliate of Manitowoc or
any Affiliate of Manitowoc;

 

(iv)            which are denominated and payable only in U.S. dollars in
the United States;

 

(v)             which have a stated maturity; and the invoice relating
thereto has been sent to the related Obligor;

 

(vi)            which arise under a Contract which is in full force and
effect and which is a legal, valid and binding obligation of the related
Obligor, enforceable against such Obligor in accordance with its terms and
which contains an obligation to pay a specified amount of money, and, without
limiting the foregoing, such Receivables (A) constitute legal, valid,
binding and irrevocable payment obligations of the related Obligor, enforceable
against such Obligor in accordance with their terms and (B) have not been
terminated (according to the Servicer’s records) and whose termination is not
pending;

 

(vii)           which were created in compliance with all laws, rulings
and regulations applicable to the transactions under which such Receivables
were generated;

 

(viii)          which conform with all applicable
laws, rulings and regulations in effect; which are not the subject of any
dispute, offset, hold back defense, Adverse Claim, counterclaim, warranty claim
or other claim or defense (including as a result of any liability of the
applicable Originator to any such Obligor that is also a supplier to such
Originator); and which do not arise from the sale of inventory which is subject
to any Adverse Claim;

 

(ix)             which were created in accordance with, and which comply
with, the requirements of the Credit and Collection Policy;

 

I-9

 

(x)              which arise from the sale and delivery of goods or
services in the ordinary course of business of the Crane Business or the
Foodservice Business of an Originator;

 

(xi)             which do not require the consent of the related Obligor
to be sold, transferred or assigned, under the related Contract or otherwise,
and the Contract relating thereto does not contain any provision that restricts
the ability of the Purchaser or the Agent to exercise rights thereunder or under
the Transaction Documents, except in each case as consented to or waived by the
related Obligor pursuant to a written consent or waiver in form and in
substance satisfactory to the Agent;

 

(xii)            which have not been modified, extended, renegotiated or
restructured since their creation in any way not provided for in the Credit and
Collection Policy;

 

(xiii)           in which the Seller owns good and
valid title, free and clear of any Adverse Claim, and which are freely
assignable by the Seller;

 

(xiv)          for which the Purchaser shall have a valid and enforceable
first priority perfected ownership or security interest therein and in the
Related Security and Collections with respect thereto, in each case free and
clear of any Adverse Claim;

 

(xv)           which constitute accounts as defined in the UCC, and which
are not evidenced by instruments or chattel paper as defined in the UCC;

 

(xvi)          which are not Defaulted Receivables and which, on the date
of purchase of such Receivables by the Seller, are not Delinquent Receivables;

 

(xvii)         which are not Receivables in any Parent
Obligor Pool where the aggregate Outstanding Balance of all Defaulted
Receivables in such Parent Obligor Pool exceeds thirty-five percent (35%) of
the aggregate Outstanding Balance of all Receivables in such Parent Obligor
Pool;

 

(xviii)        which are accounts receivable
representing all or part of the sales price of merchandise, insurance or
services within the meaning of Section 3(c)(5) of the Investment
Company Act of 1940, as amended, and are “eligible assets” as defined in Rule 3a-7
under such Act;

 

(xix)           the Originator of which (A) is not in default in any
material respect under the terms of the related Contract from which such
Receivable arose, (B) is wholly-owned by Manitowoc and (C) is not
Manitowoc FSG Holdings, Inc.;

 

(xx)            that represent amounts earned and payable by the related
Obligor and that are not subject to the performance of additional services or
to the delivery of additional goods by the Originator thereof;

 

(xxi)           which have not been disqualified by the Agent, Purchaser
or the rating agencies rating the Purchaser’s commercial paper for any other
reason;

 

I-10

 

(xxii)          for which the Obligor has been
directed to make all payments to a Lock-Box Account which is subject to a
Lock-Box Agreement;

 

(xxiii)         which are not “bill and hold”
Receivables, unless (A) the applicable Originator has received a letter
from the applicable Obligor identifying the goods relating to such Receivables
and stating that such Obligor accepts such goods, (B) such goods have been
placed in a gated area on the premises of such Originator that does not contain
any goods owned by such Originator and (C) such Originator has fulfilled
all of its obligations under the applicable Contract with respect to such goods
and such Receivables (and, without limiting the generality of the foregoing,
such Originator has no delivery obligation with respect to such goods);

 

(xxiv)         which are not payable in installments;
and

 

(xxv)          for which the related goods have been shipped to the
applicable Obligor and for which the related services have been performed.

 

“Eligible
Sales” means, for any Calculation Period, the sum of the Net Outstanding
Balances of all Pool Receivables that were originated during or prior to the
Calculation Period and were Eligible Receivables at any time during the
Calculation Period but were not Eligible Receivables during any previous
Calculation Period.

 

“Eligible
Unapplied Cash and Credits” means the sum of (i) all cash and non-cash
credits not applied to any Obligor, and the sum of (ii) for each Obligor,
the smaller of (a) the sum of all cash and non-cash credits applied to
such Obligor but not yet applied to any particular Receivable, or (b) the
sum of the Net Outstanding Balance of all Eligible Receivables for which such
Obligor is the Obligor.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time
to time, and any successor statute of similar import, together with the
regulations thereunder, in each case as in effect from time to time.  References to sections of ERISA also refer to
any successor sections.

 

“ERISA
Affiliate” means with respect to any Person, at any time, each trade or
business (whether or not incorporated) that would, at the time, be treated
together with such Person as a single employer under Section 4001 of ERISA
or Sections 414(b), (c), (m) or (o) of the Code.

 

“Eurodollar
Rate” means, for any Discount Accrual Period, an interest rate per annum
(rounded upward to the nearest 1/100th of 1%) determined pursuant to the
following formula:

 

	
  Eurodollar
  Rate

  	
  =

  	
  LIBOR

  	
   

  
	
   

  	
   

  	
  1.00 - Eurodollar Reserve Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Where:

  	
   

  	
   

  	
   

  

 

“Eurodollar
Reserve Percentage” means, for any Discount Accrual Period, the maximum
reserve percentage (expressed as a decimal, rounded upward to the nearest
1/100th of 1%) in effect with respect to any Program Support Provider on the
date LIBOR for such 

 

I-11

 

Discount
Accrual Period is determined under regulations issued from time to time by the
Federal Reserve Board for determining the maximum reserve requirement
(including any emergency, supplemental or other marginal reserve requirement)
with respect to “Eurocurrency” funding (currently referred to as “Eurocurrency
liabilities”) having a term comparable to such Discount Accrual Period.

 

“Excess
Concentration” means, for any Parent Obligor Pool, the amount by which the
sum of the Net Outstanding Balances, or portions thereof, of the Eligible
Receivables in such Parent Obligor Pool exceeds an amount equal to:  (a) the Concentration Percentage for
such Parent Obligor multiplied by (b) the Outstanding Balance of all
Receivables then in the Receivables Pool.

 

“Excluded
Receivable” means a Receivable (a) the Obligor of which is a resident
of Quebec, Canada, (b) the Obligor of which is a resident of any country
other than Canada or the United States, or (c) the Obligor of which is the
United States Federal Government; provided that the determination as to whether
a Receivable is an Excluded Receivable shall be made only at the time that such
Receivable was transferred to the Seller pursuant to the Purchase and Sale
Agreement.

 

“Facility
Termination Date” means the earliest of (a) the fifth anniversary of
the Closing Date, (b) the declaration or occurrence of the Facility
Termination Date pursuant to Section 2.2 of the Agreement, (c) the
Purchase and Sale Termination Date, and (d) the current scheduled
termination date of the commitments of the Liquidity Banks under the Liquidity
Agreement with respect to this Agreement.

 

“Federal
Funds Rate” means, for any period, the per  annum rate set
forth in the weekly statistical release designated as H.15(519), or any
successor publication, published by the Federal Reserve Board (including any
such successor, “H.15(519)”) for such day opposite the caption “Federal Funds
(Effective)”.  If on any relevant day
such rate is not yet published in H.15(519), the rate for such day will be the
rate set forth in the daily statistical release designated as the Composite
3:30 p.m. Quotations for U.S. Government Securities, or any successor
publication, published by the Federal Reserve Bank of New York (including any
such successor, the “Composite 3:30 p.m. Quotation”) for such day under
the caption “Federal Funds Effective Rate.” 
If on any relevant day the appropriate rate for such previous day is not
yet published in either H.15(519) or the Composite 3:30 p.m. Quotations,
the rate for such day will be the arithmetic mean as determined by the Agent of
the rates for the last transaction in overnight Federal funds arranged prior to
9:00 a.m. (New York time) on that day by each of three leading brokers of
Federal funds transactions in New York City selected by the Agent.

 

“Federal
Reserve Board” means the Board of Governors of the Federal Reserve System,
or any entity succeeding to any of its principal functions.

 

“Fee
Letter” has the meaning set forth in Section 1.5 of the
Agreement.

 

“Finacity”
means Finacity Corporation, a Delaware corporation.

 

“Final
Payout Date” means the date following the Facility Termination Date on
which (i) the Investment Limit has been reduced to zero ($0), (ii) no
Capital or Discount remains 

 

I-12

 

outstanding
and (iii) all other amounts then due and payable by the Originators, the
Seller or the Servicer to the Purchaser, the Agent or any other Indemnified
Party or Affected Person under the Transaction Documents (including, without
limitation, all Original Agreement Outstanding Amounts) have been paid in full.

 

“Foodservice
Business” means the Foodservice business segment as described in Part 1, Item
I of Form 10-K filed by Manitowoc with the United States Securities and
Exchange Commission for the fiscal year ended December 31, 2009.

 

“GAAP”
means generally accepted accounting principles in the United States.

 

“Governmental
Authority” means any nation or government, any state, municipal or other
political subdivision thereof, any central bank (or similar monetary or
regulatory authority) thereof, any body or entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to government, any court or arbitrator, and any accounting board or authority
(whether or not a part of government) which is responsible for the
establishment or interpretation of national or international accounting
principles, in each case whether foreign or domestic.  Without limiting the foregoing, Governmental
Authority shall include any Person owned or controlled, through stock or
capital ownership or otherwise, by any of the foregoing.

 

“Group
A Obligor” means any Obligor that has a short-term rating of at least: (a) “A-1”
by S&P, or if such Obligor does not have a short-term rating from
S&P,  a rating of “AA-” or better by
S&P on its long-term senior unsecured and uncredit-enhanced debt
securities, and (b) “P-1” by Moody’s, or if such Obligor does not have a
short-term rating from Moody’s, “Aa3”or better by Moody’s on its long-term
senior unsecured and uncredit-enhanced debt securities; provided that if an
Obligor is not rated by S&P but is rated by Moody’s, then such Obligor
shall be deemed to be a Group D Obligor, and if an Obligor is not rated by
Moody’s but is rated by S&P, then such Obligor shall be deemed to be a Group
D Obligor.

 

“Group
B Obligor” means any Obligor that is not a Group A Obligor, and has a
short-term rating of at least:  (a) “A-2”
by S&P, or if such Obligor does not have a short-term rating from S&P,
a rating of  “A-” or better by S&P on
its long-term senior unsecured and uncredit-enhanced debt securities, and (b) “P-2”
by Moody’s, or if such Obligor does not have a short-term rating from Moody’s, “A3”
or better by Moody’s on its long-term senior unsecured and uncredit-enhanced
debt securities; provided that if an Obligor is not rated by S&P but is
rated by Moody’s, then such Obligor shall be deemed to be a Group D Obligor,
and if an Obligor is not rated by Moody’s but is rated by S&P, then such
Obligor shall be deemed to be a Group D Obligor.

 

“Group
C Obligor” means any Obligor that is neither a Group A Obligor nor a Group
B Obligor, and has a short-term rating of at least:  (a) “A-3” by S&P, or if such Obligor
does not have a short-term rating from S&P, a rating of “BBB-” or better by
S&P on its long-term senior unsecured and uncredit-enhanced debt
securities, and (b) “P-3” by Moody’s, or if such Obligor does not have a
short-term rating from Moody’s, “Baa3” or better by Moody’s on its long-term
senior unsecured and uncredit-enhanced debt securities; provided that if an
Obligor is not rated by S&P but is rated by Moody’s, then such Obligor
shall be deemed to be a Group D Obligor, 

 

I-13

 

and
if an Obligor is not rated by Moody’s but is rated by S&P, then such
Obligor shall be deemed to be a Group D Obligor.

 

“Group
D Obligor” means any Obligor that is not a Group A Obligor, nor a Group B
Obligor, nor a Group C Obligor.

 

“Indemnified
Amounts” has the meaning set forth in Section 3.1 of the
Agreement.

 

“Indemnified
Party” has the meaning set forth in Section 3.1 of the
Agreement.

 

“Insolvency
Proceeding” means (a) any case, action or proceeding before any court
or other Governmental Authority relating to bankruptcy, reorganization,
insolvency, liquidations, receivership, dissolution, winding-up or relief of
debtors, or (b) any general assignment for the benefit of creditors,
composition, marshaling of assets for creditors, or other, similar arrangement
in respect of its creditors generally or any substantial portion of its
creditors; in each case (a) and (b) undertaken under U.S. Federal,
state or foreign law, including the Bankruptcy Code.

 

“Intercreditor
Agreement” means the Seventh Amended and Restated Intercreditor Agreement,
dated as of June 30, 2010, among Manitowoc, the Originators, the Seller,
the Agent and JPMorgan Chase Bank, N.A., as the same may be amended,
supplemented or otherwise modified from time to time.

 

“Investment”
has the meaning set forth in Section 1.4(a) of the Agreement.

 

“Investment
Date” means the date on which an Investment or a Reinvestment is made
pursuant to the Agreement.

 

“Investment
Limit” means the lesser of (i) one hundred twenty-five million dollars
($125,000,000), as such amount may be reduced pursuant to Section 1.1(b) of
the Agreement and (ii) the aggregate of the commitments, if any, of all
then existing Liquidity Banks under the Liquidity Agreement relating to this
Agreement.  References to the unused
portion of the Investment Limit means, at any time, the Investment Limit minus
the aggregate then outstanding Capital.

 

“Investment
Notice” has the meaning set forth in Section 1.2(a) of the
Agreement.

 

“Joinder
Agreement” means a joinder agreement entered into by the Seller and a
Person becoming an Originator pursuant to Section 4.3 of the
Purchase and Sale Agreement.

 

“LIBOR”
means the rate of interest per annum (i) for deposits in U.S. dollars for
a period equal to such Discount Accrual Period which appears on Dow Jones
Markets Service (formerly known as Telerate) display page 3750 (or any
successor or alternative service or display page providing London
interbank market offered rates for U.S. dollars quoted by the BBA reasonably
selected by the Liquidity Agent) or (ii) if such rate is not published or
available as contemplated by clause (i) above, determined by the
Liquidity Agent to be the arithmetic mean (rounded upward, if necessary, to the
nearest 1/100th of 1%) of the rates of interest per annum notified to the
Liquidity Agent as the rate of interest at which dollar deposits in the
approximate amount of the Capital associated with such Discount Accrual Period
would be offered to major banks in the

 

I-14

 

London
interbank market at their request, in each case at or about 11:00 a.m.
(London time) on the second Business Day prior to the commencement of such
Discount Accrual Period.

 

“Lien”
means, with respect to any Property, any mortgage, lien, pledge, claim, charge,
security interest or encumbrance of any kind, any other type of preferential
arrangement in respect of such Property having the effect of a security
interest or any filing consented to by any Company of any financing statement
under the UCC or any other similar notice of Lien under any similar notice or
recording statute of any Governmental Authority consented to by any Company,
including any easement, right-of-way or other encumbrance on title to Real
Property, and any agreement to give any of the foregoing.

 

“Liquidity
Agent” means NORD/LB in its capacity as Liquidity Agent pursuant to the
Liquidity Agreement.

 

“Liquidity
Agreement” means that certain Amended and Restated Liquidity Asset Purchase
Agreement, dated as of June 30, 2010 entered into among the Purchaser and
the other parties thereto, as amended, amended and restated, supplemented or
otherwise modified from time to time.

 

“Liquidity
Bank” has the meaning set forth in Section 5.3(b) of the
Agreement.

 

“Lock-Box
Account” means each account maintained at a bank or other financial
institution for the purpose of receiving Collections.

 

“Lock-Box
Agreement” means an agreement, in form and substance satisfactory to the
Agent, among an Originator, the Seller, a Lock-Box Bank, and the Agent and such
other Persons as may be acceptable to the Agent.

 

“Lock-Box
Bank” means any of the banks or other financial institutions holding one or
more Lock-Box Accounts.

 

“Loss
Horizon” means the number four (4).

 

“Loss
Horizon Lookback Period” means, for any day, the Calculation Period
preceding the Calculation Period containing the Cutoff Date by a number, equal
to the Loss Horizon, of Calculation Periods.

 

“Loss
Horizon Ratio” means, for any Settlement Date (and any subsequent date
until the following Settlement Date), the result of (i) the Eligible Sales
during the Default Horizon Calculation Period, divided by (ii) the Net
Eligible Pool Balance as of such date.

 

“Loss
Reserve Percentage” means, on any Settlement Date (and any subsequent date
until the following Settlement Date), the result of (i) the Loss Reserve
Stress Factor times (ii) the highest average of the Default Ratios for any
three consecutive Calculation Periods from among the twelve most recent such
averages prior to such Settlement Date, multiplied by (iii) the Loss
Horizon Ratio.

 

“Loss
Reserve Stress Factor” means the number two (2).

 

I-15

 

“M&T”
means Manufacturers and Traders Trust Company.

 

“M&T
Account” means an account of Grove U.S. L.L.C. held at M&T and
identified in Schedule II to the Agreement.

 

“M&T
Account Collections” means Collections received in or deposited in the
M&T Account.

 

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

 

“Material
Adverse Effect” means, with respect to any event or circumstance and any
Person, a material adverse effect on:

 

(a)           the business, operations, assets, financial condition or
other condition of the Seller, any Originator or the Servicer;

 

(b)           the ability of the Seller, any Originator or the Servicer
(if it is Manitowoc or an Affiliate of Manitowoc) to perform its obligations
under the Transaction Documents to which it is a party or the performance of
any such obligations;

 

(c)           the validity or enforceability of any portion of, or
collectibility of amounts payable under, the Agreement or any other Transaction
Document;

 

(d)           the rights and remedies of the Purchaser, the Agent, any
Program Support Provider or any of their respective Affiliates under the
Agreement or any other Transaction Document;

 

(e)           the status, existence, perfection, priority or
enforceability of the Seller’s or Purchaser’s interest in the Pool Receivables,
Contracts, or Related Security; or

 

(f)            the validity, enforceability or collectibility of a
material portion of the Pool Receivables.

 

“Monthly
Report” means a report, in substantially the form of Annex C hereto,
furnished by the Servicer to the Agent pursuant to paragraph (l)(iii) and
(l)(iv) of Exhibit IV to the Agreement.

 

“Monthly
Reporting Date” means the Business Day immediately following the 14th calendar day of each calendar month.

 

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

 

“Net
Eligible Pool” means, on any date of calculation, a set, determined by the
Servicer of Eligible Receivables (or portions thereof) then in the Receivables
Pool, provided that such set has (a) no Excess Concentrations, and (b) no
Receivables due more than sixty (60) days thereafter.

 

I-16

 

“Net
Eligible Pool Balance” means, at any time, (a) the sum of the Net
Outstanding Balances of the Receivables in the Net Eligible Pool minus (b) the
sum of (i) Eligible Unapplied Cash and Credits, (ii) the amount by
which (A) the sum of the Net Outstanding Balances of the Receivables in
the Net Eligible Pool having due dates that have been adjusted and that have
been outstanding for more than ninety (90) days from their original due dates,
exceeds (B) an amount equal to five percent (5%) of the Net Outstanding
Balances of the Receivables in the Net Eligible Pool, (iii) the amount by
which (A) the sum of the Net Outstanding Balances of the Receivables in
the Net Eligible Pool for which the Obligors are Governmental Authorities
(excluding the United States Federal Government) exceeds (B) an amount equal
to five percent (5%) of the Net Outstanding Balances of the Receivables in the
Net Eligible Pool, and (iv) the amount by which (A) the sum of the
Net Outstanding Balances of the Receivables in the Net Eligible Pool for which
the Obligors are residents of Canada exceeds (B) an amount equal to five
percent (5%) of the Net Outstanding Balances of the Receivables in the Net
Eligible Pool.

 

“Net
Outstanding Balance” means, for any Receivable, at any time, (i) the
Outstanding Balance of such Receivable reduced by the amount of any and all
available, unused discounts or credits relating to such Receivable, provided
that the result is greater than zero, or (ii) zero, otherwise.

 

“NORD/LB”
is defined in the preamble to the Agreement.

 

“Note
Issuer” means (a) the Purchaser, (b) any Affiliate of the
Purchaser, (c) any Liquidity Bank, (d) any other Program Support
Provider, or (e) any Person which is (x) in the business of issuing
Notes and (y) associated with or administered by the Agent or any
Affiliate of the Agent.

 

“Notes”
means with regard to this Agreement, short-term promissory notes issued or to
be issued by any Note Issuer to fund its investments in accounts receivable or
other financial assets.

 

“Obligor”
means, with respect to any Receivable, the Person obligated to make payments
pursuant to the Contract relating to such Receivable.

 

“Originators”
means each of the Persons from time to time party to the Purchase and Sale
Agreement as “Originators” (including Persons that become a party to the
Purchase and Sale Agreement as “Originators” pursuant to a Joinder Agreement).

 

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

 

“Original
Agreement Outstanding Amounts” has the meaning set forth in the preamble to
the Agreement.

 

“Outstanding
Balance” of any Receivable at any time means the then outstanding principal
balance thereof.

 

“Parent
Obligor” means any Obligor so designated by the Servicer; provided  that each Obligor must be either a Parent
Obligor or an Affiliate Obligor but not both.

 

I-17

 

“Parent
Obligor Pool” means, for any Parent Obligor, all Receivables in the
Receivables Pool owed either by such Parent Obligor or by any Affiliate Obligor
of such Parent Obligor.

 

“Payment
Date” is defined in Section 2.2 of the Purchase and Sale
Agreement.

 

“Permitted
Investments” means with respect to any of the funds in the Lock-Box
Accounts or the Collection Account which are invested, (a) certificates of
deposit that are not represented by instruments, have a maturity of one week or
less and are issued by the Collection Account Bank (with respect to the
investment of funds in the Collection Account) or NORD/LB, in either case
issued by an institution having a rating no lower than the respective ratings
assigned by each of the Rating Agencies to the Notes, (b) direct
obligations of the United States of America, or of any agency thereof, or
obligations guaranteed as to principal and interest by the United States of
America, or by any agency thereof, in either case maturing not more than sixty
(60) days from the date of acquisition thereof by such Person, (c) time
deposits, certificates of deposit or bankers’ acceptances (including Eurodollar
deposits) issued by any bank or trust company organized under the laws of the
United States of America or any state thereof and having capital, surplus and
undivided profits of at least five hundred million dollars ($500,000,000) and a
deposit rating of A/A-1 or better by S&P and A2/P-1 or better by Moody’s, (d) commercial
paper rated A-1 or better by S&P and P-1 or better by Moody’s maturing not
more than sixty (60) days from the date of acquisition thereof by such Person, (e) repurchase
obligations with a term of not more than thirty (30) days for underlying
securities of the types described in clause (c) above, (f) securities
with maturities of sixty (60) days or less from the date of acquisition issued
or fully guaranteed by any state, commonwealth or territory of the United
States of America, or by any political subdivision or taxing authority thereof,
and rated at least A by S&P and A by Moody’s, or (g) money market
mutual funds that invest primarily in the foregoing items, such funds coming
from an institution having a rating no lower than the respective ratings
assigned by each of the Rating Agencies to the Notes; provided, however,
that the Agent (on behalf of the Purchaser) may, from time to time, upon three (3) Business
Days’ prior written notice to the Servicer, remove from the scope of “Permitted
Investments” certificates of deposit of any such bank(s) and specify to be
within such scope, certificates of deposit of any other bank that has a rating
of at least A-1 by S&P and P-1 by Moody’s.

 

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

 

“Pool
Assets” has the meaning set forth in Section 1.4(e) of the
Agreement.

 

“Pool
Receivable” means a Receivable in the Receivables Pool.

 

“Portion
of Capital” means each portion of the Capital pursuant to which the
Discount with respect thereto is calculated by reference to a different
interest rate.

 

“Prime
Rate” is defined in the Purchase and Sale Agreement.

 

“Program
Support Provider” means and includes any Liquidity Bank and any other or
additional Person (other than any customer of the Purchaser) now or hereafter
extending credit or having a commitment to extend credit to or for the account
of, or to make purchases from, the 

 

I-18

 

Purchaser
or issuing a letter of credit, surety bond or other instrument to support any
obligations arising under or in connection with the Purchaser’s securitization
program.

 

“Program
Support Agreement” means and includes the Liquidity Agreement and any other
agreement entered into by any Program Support Provider providing for the
issuance of one or more letters of credit for the account of the Purchaser, the
issuance of one or more surety bonds for which the Purchaser is obligated to
reimburse the applicable Program Support Provider for any drawings thereunder,
the sale by the Purchaser to any Program Support Provider of the Purchased
Assets (or portions thereof or interests therein, including participation
interests) and/or the making of loans and/or other extensions of credit to the
Purchaser in connection with the Purchaser’s securitization program, together
with any letter of credit, surety bond or other instrument issued thereunder.

 

“Property”
means any right, title or interest in or to property or assets of any kind
whatsoever, whether real, personal or mixed and whether tangible or intangible
and including ownership interests of any Person.

 

“Purchase
and Sale Agreement” means the Second Amended and Restated Purchase and Sale
Agreement, dated as of June 30, 2010, among the Originators and the
Seller, as the same may be modified, supplemented, amended and amended and restated
from time to time in accordance with the Agreement and the Purchase and Sale
Agreement.

 

“Purchase
and Sale Termination Date” is defined in Section 1.4 of the
Purchase and Sale Agreement.

 

“Purchase
and Sale Termination Event” is defined in Section 8.1 of the
Purchase and Sale Agreement.

 

“Purchase
Price” is defined in Section 2.2 of the Purchase and Sale
Agreement.

 

“Purchase
Report” is defined in Section 2.1 the Purchase and Sale
Agreement.

 

“Purchased
Assets” has the meaning set forth in Section 1.3(b) of the
Agreement.

 

“Purchased
Assets Coverage Percentage” means, at any time, a fraction, expressed as a
percentage and calculated pursuant to the following formula:

 

C + TR + DR + SFR + CFR

NEPB + AC

 

where:

 

	
  C

  	
  =

  	
  the
  aggregate outstanding Capital at such time.

  
	
   

  	
   

  	
   

  
	
  TR

  	
  =

  	
  the
  Total Reserve as of two (2) Business Days prior to the date of
  computation.

  
	
   

  	
   

  	
   

  
	
  DR

  	
  =

  	
  the
  Discount Reserve at such time.

  

 

I-19

 

	
  SFR

  	
  =

  	
  the
  Servicing Fee Reserve at such time.

  
	
   

  	
   

  	
   

  
	
  CFR

  	
  =

  	
  the
  Commitment Fee Reserve at such time.

  
	
   

  	
   

  	
   

  
	
  NEPB

  	
  =

  	
  the
  Net Eligible Pool Balance as of two (2) Business Days prior to the date
  of computation.

  
	
   

  	
   

  	
   

  
	
  AC

  	
  =

  	
  Cash
  in the Collection Account as of the close of business two (2) Business
  Days prior to the date of computation, solely to the extent that such cash,
  if representing Collections, has been applied to reduce the Net Eligible Pool
  Balance included in such calculation.

  

 

The
Purchased Assets Coverage Percentage shall be determined from time to time
pursuant to the provisions of Section 1.5 of the Agreement.

 

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

 

“Purchaser’s
Account” means the account (account number 507-944941) of the Purchaser
maintained at the office of JPMorgan Chase Bank in New York, New York (ABA#
021-000-021), or such other account as may be so designated in writing by the
Agent to the Seller and the Servicer.

 

“Rate
Variance Factor” means two (2); provided, that the “Rate Variance
Factor” may be changed from time to time by the Agent (if such change is
necessary or desirable in the reasonable credit judgment of the Agent) upon at
least five Business Days’ prior written notice to the Servicer; provided,
further, that the Agent may not decrease the “Rate Variance Factor”
below two (2) without the prior written consent of each Rating Agency.

 

“Rating
Agencies” means Moody’s and S&P.

 

“Receivable”
means any indebtedness and other obligations owed to an Originator or the
Seller or any right of any Originator or the Seller to payment from or on
behalf of an Obligor, whether constituting an account, chattel paper,
instrument or general intangible, arising in connection with the sale of goods
or the rendering of services by any Originator relating to the cranes and
related products business or the foodservice and related products business of
such Originator, and includes, without limitation, the obligation to pay any
finance charges, fees and other charges with respect thereto.  Indebtedness and other obligations arising
from any one transaction, including, without limitation, indebtedness and other
obligations represented by an individual invoice or agreement, shall constitute
a Receivable separate from a Receivable consisting of the indebtedness and
other obligations arising from any other transaction.

 

“Receivables
Pool” means at any time all of the then outstanding Receivables in which
the Seller has an interest (and, for avoidance of doubt, shall not include the
Excluded Receivables).

 

“Reinvestment”
has the meaning set forth in Section 1.4(b) of the Agreement.

 

“Related
Rights” is defined in Section 1.1 of the Purchase and Sale
Agreement.

 

I-20

 

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

 

(a)           all of the Seller’s and any Originator’s interest in any
goods (including returned goods), and documentation or title evidencing the
shipment or storage of any goods (including returned goods), relating to any
sale giving rise to such Receivable;

 

(b)           all other security interests or liens and property subject
thereto from time to time purporting to secure payment of such Receivable,
whether pursuant to the Contract related to such Receivable or otherwise,
together with all UCC financing statements or similar filings relating thereto;
and

 

(c)           all guaranties, indemnities, insurance and other
agreements (including the related Contract) or arrangements of whatever
character from time to time supporting or securing payment of such Receivable
or otherwise relating to such Receivable whether pursuant to the Contract
related to such Receivable or otherwise.

 

“Remaining
Maturity” means, for any day, for any Receivable in the Receivables Pool, (i) if
such Receivable is a Defaulted Receivable, the number zero, or (ii) otherwise,
the lesser of (a) the number of days until such Receivable would become a
Defaulted Receivable if it remained unpaid and (b) one hundred fifty
(150).

 

“Requirement
of Law” means as to any Person, the certificate of incorporation and
by-laws or other organizational or governing documents of such Person, and any
law, treaty, rule or regulation or determination of an arbitrator or a
court or other Governmental Authority, in each case applicable to or binding
upon such Person or any of its Property or to which such Person or any of its
Property is subject.

 

“Responsible
Officer” means the Chief Executive Officer of the Seller or the Servicer,
as the case may be, or the President of the Seller or the Servicer, as the case
may be, or, with respect to financial matters, the Chief Financial Officer of
Manitowoc, any Vice President-Finance or Treasurer (or an equivalent officer);
it being understood, that for purposes of this definition if the Seller or
Servicer, as applicable, does not have or no longer has an officer with one of
the titles set forth above, a “Responsible Officer” for purposes of this
Agreement and the other Transaction Documents shall be the officer or officers
of the Seller or Servicer, as applicable, designated to perform the duties of
the officers described above.

 

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

 

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

 

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

 

“Servicer
Default” means any of the following:

 

(a)           the Servicer shall fail to make when due any payment or
deposit to be made by it under the Agreement or any other Transaction Document
and such failure shall continue unremedied for two Business Days; or

 

I-21

 

(b)           Manitowoc (or any Affiliate thereof) shall fail to
transfer to any successor Servicer when required any rights, pursuant to the
Agreement, which Manitowoc (or such Affiliate) then has as Servicer; or

 

(c)           Any representation or warranty or certification made or
deemed made by the Servicer (or any of its officers) under or in connection
with the Agreement or any other Transaction Document or any information or
report delivered by the Servicer pursuant to the Agreement shall prove to have
been incorrect or untrue in any material respect when made or deemed made or
delivered; or

 

(d)           The Servicer shall fail to perform or observe any of the
covenants set forth in clause (s) (Financial Covenants) of Exhibit IV
to the Agreement; or

 

(e)           The Servicer shall fail to perform or observe any other
term, covenant or agreement contained in the Agreement or any other Transaction
Document on its part to be performed or observed and any such failure shall
remain unremedied for thirty (30) days after the Servicer has notice or
knowledge thereof (or, with respect to a failure to deliver the Monthly Report
pursuant to the Agreement or the daily report pursuant to Section 4.2(b) of
the Agreement, such failure shall remain unremedied for two (2) Business
Days); or

 

(f)            The Servicer shall fail to pay any principal of or
premium or interest on any of its Debt which is outstanding in a principal
amount of at least ten million dollars ($10,000,000) in the aggregate when the
same becomes due and payable (whether by scheduled maturity, required
prepayment, acceleration, demand or otherwise), and such failure shall continue
after the applicable grace period, if any, specified in the agreement,
mortgage, indenture or instrument relating to such Debt; or any other event
shall occur or condition shall exist under any agreement, mortgage, indenture
or instrument relating to any such Debt and shall continue after the applicable
grace period, if any, specified in such agreement, mortgage, indenture or
instrument, if the effect of such event or condition is to accelerate, or to
permit the acceleration of, the maturity of such Debt; or any such Debt shall
be declared to be due and payable, or required to be prepaid (other than by a
regularly scheduled required prepayment), redeemed, purchased or defeased, or
an offer to repay, redeem, purchase or defease such Debt shall be required to
be made, in each case prior to the stated maturity thereof; or

 

(g)           The Servicer shall generally not pay its debts as such
debts become due, or shall admit in writing its inability to pay its debts
generally as such debts become due, or shall make a general assignment for the
benefit of creditors; or any proceeding shall be instituted by or against the
Servicer seeking to adjudicate it a bankrupt or insolvent, or seeking
liquidation, winding up, reorganization, arrangement, receivership, adjustment,
protection, relief, or composition of it or its debts under any law relating to
bankruptcy, insolvency or reorganization or relief of debtors, or seeking the
entry of an order for relief or the appointment of a receiver, trustee,
custodian or other similar official for it or for any substantial part of its
property and, in the case of any such proceeding instituted against it (but not
instituted by it), either (a) such proceeding shall remain undismissed or
unstayed for a period of sixty (60) days, or (b) in any such proceeding,
there is entered an 

 

I-22

 

order for relief against, or
there is appointed a receiver, trustee, custodian or other similar official
for, it or for any substantial part of its property; or the Servicer shall take
any corporate action to authorize any of the actions set forth above in this paragraph
(i); or

 

(h)           In the judgment of the Agent, there shall have occurred a
material adverse change in (x) the ability of the Servicer to adequately
service the Receivables or (y) the ability of the Purchaser to enforce or
otherwise realize upon its interest in the Receivables, the Related Security or
the Collections.

 

“Servicing
Fee” means the fee referred to in Section 4.6 of the Agreement.

 

“Servicing
Fee Reserve” at any time means the sum of (i) the unpaid Servicing Fee
accrued to such time, plus (ii) an amount equal to (a) the aggregate
Outstanding Balance of Pool Receivables at the time of computation multiplied
by (b) the product of (x) one percent (1%) and (y) a fraction
having two (2) times the Days Sales Outstanding as its numerator and three
hundred sixty (360) as its denominator.

 

“Settlement
Date” means the second (2nd) Business Day following each Monthly Reporting Date.

 

“Solvent”
means, with respect to any Person at any time, a condition under which:

 

(i)              the fair value and present fair saleable value of such
Person’s total assets is, on the date of determination, greater than such
Person’s total liabilities (including contingent and unliquidated liabilities)
at such time;

 

(ii)             the fair value and present fair saleable value of such
Person’s assets is greater than the amount that will be required to pay such
Person’s probable liability on its existing debts as they become absolute and
matured (“debts,” for this purpose, includes all legal liabilities,
whether matured or unmatured, liquidated or unliquidated, absolute, fixed, or
contingent);

 

(iii)            such Person is and shall continue to be able to pay all
of its liabilities as such liabilities mature; and

 

(iv)            such Person does not have unreasonably small capital with
which to engage in its current and in its anticipated business.

 

For
purposes of this definition:

 

(A)          the amount of a Person’s contingent or unliquidated
liabilities at any time shall be that amount which, in light of all the facts
and circumstances then existing, represents the amount which can reasonably be
expected to become an actual or matured liability;

 

(B)           the “fair value” of an asset shall be the amount which may
be realized within a reasonable time either through collection or sale of such
asset at its regular market value;

 

I-23

 

(C)           the “regular market value” of an asset shall be the amount
which a capable and diligent business person could obtain for such asset from
an interested buyer who is willing to Purchase such asset under ordinary
selling conditions; and

 

(D)          the “present fair saleable value” of an asset means the
amount which can be obtained if such asset is sold with reasonable promptness
in an arm’s-length transaction in an existing and not theoretical market.

 

“Spike
Factor” means on any Settlement Date (and any subsequent date until the
following Settlement Date), the product of (i) the excess, if any, of (a) the
highest Dilution Ratio for any Calculation Period during the twelve most recent
Calculation Periods over (b) the arithmetic average of the Dilution Ratios
for such twelve months, times (ii)(a) the highest Dilution Ratio
for any Calculation Period during the twelve most recent Calculation Periods, divided
by (b) the arithmetic average of the Dilution Ratios for such
twelve months.

 

“Stated
Termination Date” means the then current scheduled termination date of the
commitments of the Liquidity Banks under the Liquidity Agreement, as such date
may be extended from time to time in the sole discretion of the Liquidity
Banks.

 

“Sub-Servicer”
shall have the meaning set forth in Section 4.1(d) of the
Agreement.

 

“Subsidiary”
means, with respect to any Person, any corporation, partnership or other entity
of which at least a majority of the securities or other ownership interests
having by the terms thereof ordinary voting power to elect a majority of the
board of directors or other persons performing similar functions of such
corporation, partnership or other entity (irrespective of whether or not at the
time securities or other ownership interests of any other class or classes of
such corporation, partnership or other entity shall have or might have voting
power by reason of the happening of any contingency) is at the time directly or
indirectly owned or controlled by such Person or one or more Subsidiaries of
such Person or by such Person and one or more Subsidiaries of such Person.  Unless the context clearly requires
otherwise, all references to any Subsidiary means a Subsidiary of Manitowoc.

 

“Tangible
Net Worth” means, with respect to any Person, the net worth of such Person
after subtracting therefrom the aggregate amount of such Person’s intangible
assets, including, without limitation, goodwill, franchises, licenses, patents,
trademarks, trade names, copyrights, service marks and brand names.

 

“Termination
Date” means the earlier of (i) the Business Day which the Seller so
designates by notice to the Agent at least thirty (30) days in advance and (ii) the
Facility Termination Date.

 

“Termination
Day” means (i) each day on which the conditions set forth in Section 2
of Exhibit II to the Agreement are not satisfied and (ii) each
day which occurs on or after the Termination Date.

 

“Termination
Discount” means, on any date of determination, an amount determined
pursuant to the following formula:

 

I-24

 

C
x {(COF x 1.50) + UFR} x (2 x DSO/360)

 

	
  Where:

  
	
   

  	
   

  	
   

  
	
  C

  	
  =

  	
  the
  aggregate outstanding Capital on such date

  
	
   

  	
   

  	
   

  
	
  AD

  	
  =

  	
  the
  amount of Discount that accrues on the aggregate outstanding Capital on such
  date

  
	
   

  	
   

  	
   

  
	
  COF

  	
  =

  	
  AD x 360

  
	
   

  	
   

  	
  C

  
	
   

  	
   

  	
   

  
	
  DSO

  	
  =

  	
  Days
  Sales Outstanding on such date

  
	
   

  	
   

  	
   

  
	
  UFR

  	
  =

  	
  the
  “Utilization Fee Rate” (as defined in the Fee Letter on such date)

  

 

“Termination
Event” has the meaning specified in Exhibit V to the Agreement.

 

“Termination
Fee” means, for any Discount Accrual Period, the amount, if any, by which (i) the
additional Discount (calculated without taking into account any Termination Fee
or any shortened duration of such Discount Accrual Period pursuant to clause
(iii) of the definition thereof) which would have accrued during such
Discount Accrual Period on the reductions of Capital relating to such Discount
Accrual Period had such reductions remained as Capital, exceeds (ii) the
income, if any, received by the Purchaser from the Purchaser investing the
proceeds of such reductions of Capital, as determined by the Agent, which
determination shall be binding and conclusive for all purposes, absent manifest
error.

 

“Total
Reserve” means (a) the greater of the Total Reserve Percentage and
fifteen percent (15%) multiplied
by (b) the Net
Eligible Pool Balance.

 

“Total
Reserve Percentage” means the greater of (i) the sum of (a) the
Loss Reserve Percentage and (b) the Dilution Reserve Percentage or (ii) the
sum of (a) the Concentration Component and (b) the Dilution
Component.

 

“Transaction
Documents” means the Agreement, the Fee Letter, the Purchase and Sale
Agreement, each Company Note, the Lock-Box Agreements, the Collection Account
Agreement, the Intercreditor Agreement, the Liquidity Agreement, the Bond
Administration Agreement, each Joinder Agreement and all other certificates,
instruments, UCC financing statements, reports, notices, agreements and
documents executed or delivered under or in connection with the Agreement, in
each case as the same may be amended, amended and restated, supplemented or
otherwise modified from time to time in accordance with the Agreement.

 

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

 

“United
States Federal Government” means the government of the United States of
America, and any body or entity exercising executive, legislative, judicial,
regulatory or 

 

I-25

 

administrative
functions of the government of the United States of America. For avoidance of
doubt, this definition includes, without limitation, agencies of the government
of the United States of America that are subject to the Federal Assignment of
Claims Act.

 

“Unmatured
Purchase and Sale Termination Event” means any event which, with the giving
of notice or lapse of time, or both, would become a Purchase and Sale
Termination Event.

 

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

 

“Utilization
Fee” has the meaning set forth in the Fee Letter.

 

“Utilization
Fee Rate” has the meaning set forth in the Fee Letter.

 

“Variable
Dilution” means any Dilution other than Contractual Dilution.

 

Other
Terms.  All accounting terms not
specifically defined herein shall be construed in accordance with GAAP.  All terms used in Article 9 of the UCC
in the State of New York, and not specifically defined herein, are used herein
as defined in such Article 9. 
Unless the context otherwise requires, “or” means “and/or,” and “including”
(and with correlative meaning “include” and “includes”) means including without
limiting the generality of any description preceding such term.

 

I-26

 

EXHIBIT II

 

CONDITIONS OF INVESTMENTS AND REINVESTMENTS

 

1.             Conditions Precedent to Effectiveness of this
Agreement.  The effectiveness of  this Agreement is subject to the following
conditions precedent that the Agent shall have received on or before the
Closing Date, each in form and substance (including the date thereof)
satisfactory to the Agent:

 

(a)           Counterparts of the Agreement, the Fee Letter and the
other Transaction Documents, signed by the parties thereto.

 

(b)           Certified copies of (i) the resolutions of the Board
of Directors of each of the Seller, the Servicer and the Originators
authorizing the execution, delivery, and performance by the Seller, the
Servicer and the Originators of the Transaction Documents to which they are a
party, (ii) all documents evidencing other necessary corporate action and
governmental approvals, if any, with respect to this Agreement and the other
Transaction Documents and (iii) the certificate of incorporation and
by-laws (or other constituent documents) of the Seller, the Servicer and the
Originators.

 

(c)           A certificate of the Secretary or Assistant Secretary of
each of the Seller, the Servicer and the Originators certifying the names and
true signatures of its officers authorized to sign the Agreement and the other
Transaction Documents to which it is a party. 
Until the Agent receives a subsequent incumbency certificate from the
Seller, the Servicer and the Originators in form and substance satisfactory to
the Agent, the Agent shall be entitled to rely on the last such certificate
delivered to it by the Seller, the Servicer and the Originators, as the case
may be.

 

(d)           Good standing certificates with respect to the Seller,
each of the Originators and the Servicer issued by the Secretaries of State (or
comparable office) of the States of such Person’s organization.

 

(e)           UCC financing statements or amendments thereto, duly filed
on or before the Closing Date under the UCC of all jurisdictions that the Agent
may deem necessary or desirable in order to perfect the interests of the
Purchaser contemplated by the Agreement and other Transaction Documents.

 

(f)            UCC financing statements, amendments thereto or
termination statements, if any, necessary to release or assign to the Purchaser
all ownership interests, security interests and other rights of any Person in the
Receivables (other than Excluded Receivables), Contracts or Related Security
previously granted by the Seller or any Originator.

 

(g)           Completed UCC requests for information, dated on or before
the Closing Date, listing all effective financing statements filed in the
jurisdictions referred to in subsection (f) above that name the Seller or
any Originator as debtor, together with copies of such other financing
statements (none of which shall cover any Receivables, Contracts or Related
Security), and similar search reports with respect to federal tax liens and
liens of the Pension Benefit Guaranty Corporation in such jurisdictions as the
Agent may request, showing no such liens on any of the Receivables, Contracts
or Related Security.

 

II-1

 

(h)           Favorable opinions of Quarles & Brady LLP, in
form and substance acceptable to the Agent, as to corporate, enforceability,
UCC and such other matters (including absence of conflict with the Credit
Agreement) as the Agent may reasonably request.

 

(i)            Favorable opinions of Quarles & Brady LLP, in
form and substance acceptable to the Agent, as to true sale and
non-consolidation matters.

 

(j)            A pro-forma Monthly Report.

 

(k)           Confirmation that the Amendment Fee defined in, and
payable pursuant to, the Fee Letter has been paid in full.

 

(l)            In the event that any lender, purchaser or agent under
any debt or purchase facility to which an Originator or the Servicer is a party
must consent to the execution, delivery or performance of the Transaction
Documents by such Originator or the Servicer, or to the consummation of any of
the transactions contemplated thereby, evidence that such consent has been
obtained.

 

(m)          Internal credit approval of NORD/LB with respect to the
transactions contemplated hereby.

 

(n)           To the extent required by the program documents governing
the Purchaser’s commercial paper program, confirmation from the Rating Agencies
to the effect that the Purchaser’s entry into this Agreement will not result in
a reduction of the ratings of such Notes.

 

(o)           Such other approvals, opinions or documents as the Agent
may reasonably request.

 

2.             Conditions Precedent to All Investments and
Reinvestments.  Each Investment
(including the initial Investment, but excluding the deemed Investment made as
of the Closing Date pursuant to Section 1.3(a)) and each
Reinvestment shall be subject to the further conditions precedent that:

 

(a)           in the case of each Investment, the Agent shall have
received, by the time of such Investment, in form and substance satisfactory to
the Agent, (x) a completed Monthly Report with respect to the period
ending on the close of business on the Business Day immediately preceding the
date of the related Investment Notice and a completed Monthly Report with respect
to the calendar month ended immediately prior to such Investment, and (y) all
other reports and information required to be delivered under this Agreement by
the Seller or the Servicer; and

 

(b)           on the date of such Investment or Reinvestment, as the case
may be, and both immediately before and immediately after giving effect
thereto, the following statements shall be true (and acceptance of the proceeds
of such Investment or Reinvestment shall be deemed a representation and
warranty by the Seller that such statements are then true):

 

II-2

 

(i)            the representations and warranties contained in Exhibit III
and Exhibit VI to the Agreement are true and correct on and as of
the date of such Investment or Reinvestment as though made on and as of such
date;

 

(ii)           each of the Originators, the Servicer and the Seller shall
have performed and observed all terms, covenants and agreements contained in
this Agreement or any other Transaction Document on its part to be performed or
observed;

 

(iii)          without limiting the foregoing, no event has occurred and is
continuing, or would result from such Investment or Reinvestment or from the
application of proceeds therefrom, that constitutes a Termination Event or an
Unmatured Termination Event;

 

(iv)          without limiting the foregoing, the Purchased Assets
Coverage Percentage shall not exceed one hundred percent (100%);

 

(v)           without limiting the foregoing, the Internal Revenue
Service shall not have filed notice of a lien pursuant to Section 6323 of
the Internal Revenue Code with regard to any asset of the Seller or any
Originator, and the Pension Benefit Guaranty Corporation shall not have filed
notice of a lien pursuant to Section 4068 of ERISA with regard to any
assets of the Seller or any Originator, unless, in either case, such lien shall
have been released prior to the date of such Investment or Reinvestment;

 

(vi)          the Facility Termination Date shall not have occurred; and

 

(vii)         after giving effect to such Investment or Reinvestment, the
aggregate outstanding Capital shall not exceed the Investment Limit.

 

II-3

 

EXHIBIT III

 

REPRESENTATIONS AND WARRANTIES

 

1.             Representations and Warranties of the Seller.  The Seller represents and warrants as
follows:

 

(a)           The Seller is a limited liability company duly formed,
validly existing and in good standing under the laws of the State of Nevada,
and is duly qualified to do business, and is in good standing, as a foreign
limited liability company in every jurisdiction where the nature of its
business requires it to be so qualified if any failure to be so qualified would
be reasonably likely to have a Material Adverse Effect.

 

(b)           The execution, delivery and performance by the Seller of
the Agreement and the other Transaction Documents to which it is a party,
including the Seller’s use of the proceeds of Investments, Reinvestments and
the Deferred Purchase Price, (i) are within the Seller’s limited liability
company powers, (ii) have been duly authorized by all necessary limited
liability company action on the part of the Seller, (iii) do not
contravene or result in a default under or conflict with (1) the Seller’s
articles of organization or limited liability company agreement, (2) any
law, rule or regulation applicable to the Seller, (3) any contractual
restriction binding on or affecting the Seller or its property or (4) any
order, writ, judgment, award, injunction or decree binding on or affecting the
Seller or its property unless, in each case, 
such contravention, default or conflict could not reasonably be expected
to have a Material Adverse Effect, and (iv) do not result in or require
the creation of any Adverse Claim upon or with respect to any of its
properties.  The Agreement and the other
Transaction Documents to which it is a party have been duly executed and delivered
by the Seller.

 

(c)           No authorization or approval or other action by, and no
notice to or filing with, any Governmental Authority or other Person is
required for the due execution, delivery and performance by the Seller of the
Agreement or any other Transaction Document to which it is a party other than
those previously obtained or UCC filings.

 

(d)           Each of the Agreement and the other Transaction Documents
to which it is a party constitutes the legal, valid and binding obligation of
the Seller enforceable against the Seller in accordance with its terms except
as enforceability may be limited by bankruptcy, insolvency, reorganization or
other similar laws affecting the enforcement of creditors’ rights generally and
by general principles of equity, regardless of whether such enforceability is
considered in a proceeding in equity or at law.

 

(e)           The Seller is the legal and beneficial owner of, and has
good and marketable title to the Receivables purporting to be in the
Receivables Pool and all Related Security with respect thereto, free and clear
of any Adverse Claim. Upon each Investment or Reinvestment under the Agreement
(including, without limitation, the deemed Investment occurring on the Closing
Date pursuant to Section 1.3(a)), the Purchaser shall acquire a
valid and enforceable perfected ownership or security interest in each Pool
Receivable then existing or thereafter arising, and in the Related Security and
Collections and other proceeds with respect thereto, free and clear of any
Adverse Claim.  The Agreement creates a
valid ownership or security interest in favor of the 

 

III-1

 

Purchaser in the Pool Assets, and the Purchaser has
a first priority perfected ownership or security interest in the Pool Assets,
free and clear of any Adverse Claims.  No
effective financing statement or other instrument similar in effect covering
any Contract or any Pool Receivable or the Related Security or Collections with
respect thereto or any Lock-Box Account is on file in any recording office,
except those filed in favor of the Seller and the Purchaser pursuant to this
Agreement and the other Transaction Documents.

 

(f)            Each Monthly Report, information, exhibit, financial
statement, document, book, record or report furnished or to be furnished at any
time by or on behalf of the Seller to the Agent or the Purchaser in connection
with the Agreement is or will be accurate in all material respects as of its
date or as of the date so furnished, and no such item contains or will contain
any untrue statement of a material fact.

 

(g)           The principal place of business and chief executive office
(as such terms are used in the UCC) of the Seller and the office where the
Seller keeps its records concerning the Receivables are located at the address
referred to in Section 1(b) of Exhibit IV.

 

(h)           The names and addresses of all the Lock-Box Banks,
together with the account numbers of the Lock-Box Accounts at such Lock-Box
Banks and any lock-boxes or post office boxes relating to such Lock-Box
Accounts, are specified in Schedule II to the Agreement (except as
otherwise consented by the Agent in accordance with clause (i) of Exhibit IV
to the Agreement) and all such Lock-Box Accounts, lock-boxes and post office
boxes are subject to Lock-Box Agreements. 
All Obligors have been directed to make all payments with respect to
each Contract to such a Lock-Box Account or to such a lock-box or post office
box.

 

(i)            The Seller is not in violation of any law, rule or
regulation or of any order of any court, arbitrator or Governmental Authority
that could be reasonably be expected to have a Material Adverse Effect.

 

(j)            No proceeds of any purchase or reinvestment will be used
by the Seller for any purpose that violates any applicable law, rule or
regulation, including, without limitation, Regulations T, U or X of the Federal
Reserve Board.

 

(k)           Each Receivable included in the calculation of the Net
Eligible Pool Balance is an Eligible Receivable as of the date of such
calculation.

 

(l)            No event has occurred and is continuing, or would result
from any Investment or Reinvestment or from the application of the proceeds
therefrom, which constitutes a Termination Event or an Unmatured Termination
Event.

 

(m)          The Seller has complied in all material respects with the
Credit and Collection Policy with regard to each Pool Receivable.

 

(n)           The Seller has complied with all of the terms, covenants
and agreements contained in the Agreement and the other Transaction Documents.

 

(o)           The Seller’s complete corporate name is set forth in the
preamble to the Agreement, and the Seller does not use and has not during the
last five (5) years used any other 

 

III-2

 

corporate name, trade name, doing-business name or
fictitious name, and except for names first used after the Closing Date and set
forth in a notice delivered to the Agent pursuant to Section 1(l)(vii) of
Exhibit IV.

 

(p)           The Seller has filed or caused to be filed all U.S.
federal income tax returns and all other returns, statements, forms and reports
for taxes, domestic or foreign, required to be filed by it and has paid all
taxes payable by it which have become due or any assessments made against it or
any of its Property and all other taxes, fees or other charges imposed on it or
any of its Property by any Governmental Authority (other than those the amount
or validity of which is currently being contested in good faith by appropriate
proceedings and with respect to which reserves in conformity with generally
accepted accounting principles have been provided on the books of the Seller).

 

(q)           The Seller is not an “investment company” within the
meaning of the Investment Company Act of 1940, as amended.

 

(r)            The consolidated balance sheet of Manitowoc as at March 31,
2010, a copy of which has been furnished to the Agent, fairly presents the
financial condition of Manitowoc in all material respects, as at such date, and
since the date of such balance sheet, there has been no material adverse change
in the financial condition of the Seller or Manitowoc or the ability of the
Seller or any Originator to perform their material obligations under the
Agreement or the other Transaction Documents to which it is a party or the
collectibility of the Pool Receivables, or which affects the legality, validity
or enforceability of the Agreement or the other Transaction Documents.

 

(s)           There is no pending action, suit or proceeding and, to the
Seller’s knowledge, no threatened action, suit or proceeding, affecting the
Seller, the Servicer or any Originator before any Governmental Authority or
arbitrator which could reasonably be expected, individually or in the
aggregate, to have a Material Adverse Effect or which questions the validity of
any of the transactions contemplated by any Transaction Document.

 

(t)            The facts and assumptions relating to the Seller set
forth in the opinions rendered by Quarles & Brady LLP pursuant to Exhibit II
to the Agreement and relating to true sale and non-consolidation matters, and
in the officer’s certificates referred to in such opinions, are true and
correct in all material respects.

 

(u)           The Seller’s federal tax identification number is
20-3841459.

 

(v)           The Seller is not in default under any of its contractual
obligations.

 

2.             Representations and Warranties of the Servicer.  The Servicer represents and warrants as
follows:

 

(a)           The Servicer is a corporation duly incorporated, validly
existing and in active status under the laws of the State of Wisconsin and is
duly qualified to do business, and is in good standing, as a foreign
corporation in every jurisdiction where the nature of its business requires it
to be so qualified unless any failure to be so qualified would not have a
Material Adverse Effect.

 

III-3

 

(b)           The execution, delivery and performance by the Servicer of
the Agreement and the other Transaction Documents to which it is a party, (i) are
within the Servicer’s corporate powers, (ii) have been duly authorized by
all necessary corporate action on the part of the Servicer, (iii) do not
contravene or result in a default under or conflict with (1) the Servicer’s
charter or by-laws, (2) any law, rule or regulation applicable to the
Servicer, (3) any contractual restriction binding on or affecting the
Servicer or its property or (4) any order, writ, judgment, award,
injunction or decree binding on or affecting the Servicer or its property,
unless in each case such continuation, default or conflict could not reasonably
be expected to have a Material Adverse Effect, and (iv) with respect to
the Servicer, do not result in or require the creation of any Adverse Claim
upon or with respect to any of its properties. 
Without limiting the foregoing, the transactions contemplated by the
Transaction Documents constitute a “Permitted Securitization” (as that term is
defined in the Credit Agreement). The Agreement and the other Transaction
Documents to which it is a party have been duly executed and delivered by the
Servicer.

 

(c)           No authorization or approval or other action by, and no
notice to or filing with, any Governmental Authority or other Person is
required for the due execution, delivery and performance by the Servicer of the
Agreement or any other Transaction Document to which it is a party, other than
those previously obtained.

 

(d)           Each of the Agreement and the other Transaction Documents
to which it is a party constitutes the legal, valid and binding obligation of
the Servicer enforceable against the Servicer in accordance with its terms
except as enforceability may be limited by bankruptcy, insolvency,
reorganization or other similar laws affecting the enforcement of creditor’s
rights generally and by general principles of equity, regardless of whether
such enforceability is considered in a proceeding in equity or at law.

 

(e)           The consolidated balance sheets of the Servicer and its
subsidiaries as at March 31, 2010, a copy of which has been furnished to
the Agent, fairly presents the financial condition of the Servicer and its
subsidiaries in all material respects, as at such date, and since March 31,
2010, no event has occurred that has had, or could be reasonably expected to
have, a Material Adverse Effect.

 

(f)            There is no pending action or proceeding and, to the
Servicer’s knowledge, no threatened action or proceeding, affecting the
Servicer before any Governmental Authority or arbitrator which could reasonably
be expected to have a Material Adverse Effect.

 

(g)           The Servicer has complied in all material respects with
the Credit and Collection Policy with regard to each Pool Receivable.

 

(h)           Each Monthly Report, information, exhibit, financial
statement, document, book, record or report furnished or to be furnished at any
time by or on behalf of the Servicer to the Agent in connection with the
Agreement is or will be accurate in all material respects as of its date or
(except as otherwise disclosed to the Agent at such time) as of the date so
furnished, and no such item contains or will contain any untrue statement of a
material fact.

 

III-4

 

(i)            The Servicer is not in violation of any law, rule or
regulation or of any order of any court, arbitrator or Governmental Authority
that could reasonably be expected to have a Material Adverse Effect.

 

(j)            Each Receivable included in the calculation of the Net
Eligible Pool Balance is an Eligible Receivable as of the date of such
calculation.

 

(k)           No event has occurred and is continuing, or would result
from an Investment, Reinvestment or payment of the Deferred Purchase Price or
from the application of proceeds therefrom, which constitutes a Termination
Event or an Unmatured Termination Event.

 

(l)            The Seller is the legal and beneficial owner of, and has
good and marketable title to the Receivables purporting to be in the
Receivables Pool and all Related Security with respect thereto, free and clear
of any Adverse Claim. Upon each Investment or Reinvestment under the Agreement
(including, without limitation, the deemed investment occurring on the Closing
Date pursuant to Section 1.3(a)), the Purchaser shall acquire a
valid and enforceable perfected ownership or security interest in each Pool
Receivable then existing or thereafter arising, and in the Related Security and
Collections and other proceeds with respect thereto, free and clear of any
Adverse Claim.  The Agreement creates a
valid ownership or security interest in favor of the Purchaser in the Pool
Assets, and the Purchaser has a first priority perfected ownership or security
interest in the Pool Assets, free and clear of any Adverse Claims.  No effective financing statement or other
instrument similar in effect covering any Contract or any Pool Receivable or
the Related Security or Collections with respect thereto or any Lock-Box
Account is on file in any recording office, except those filed in favor of the
Seller and the Purchaser pursuant to this Agreement and the other Transaction
Documents.

 

(m)          The names and addresses of all the Lock-Box Banks, together
with the account numbers of the Lock-Box Accounts at such Lock-Box Banks and
the numbers of any lock-boxes or post office boxes relating to such Lock-Box
Accounts, are specified in Schedule II to the Agreement (except as
otherwise consented by the Agent in accordance with clause (i) of Exhibit IV
to the Agreement) and all such Lock-Box Accounts and all such lock-boxes and
post office boxes are subject to Lock-Box Agreements.  All Obligors have been directed to make all
payments with respect to each Contract to such a Lock-Box Account or to such a
lock-box or post office box.

 

(n)           The Servicer has filed or caused to be filed all U.S.
federal income tax returns and all other returns, statements, forms and reports
for taxes, domestic or foreign, required to be filed by it and has paid all
taxes payable by it which have become due or any assessments made against it or
any of its Property and all other taxes, fees or other charges imposed on it or
any of its Property by any Governmental Authority other than: (i) those
the amount or validity of which is currently being contested in good faith by
appropriate proceedings and with respect to which reserves in conformity with
GAAP have been provided on the books of the Servicer; and (ii) in the case
of taxes (“designated taxes”) other than income or similar taxes, if the
failure to pay such designated taxes could not reasonably be expected to result
in a Material Adverse Effect.

 

(o)           The facts and assumptions relating to the Servicer set
forth in the opinions rendered by Quarles & Brady LLP pursuant to Exhibit II
to the Agreement and relating to true 

 

III-5

 

sale and non-consolidation matters, and in the
officer’s certificates referred to in such opinions, are true and correct.

 

III-6

 

EXHIBIT IV

 

COVENANTS

 

Covenants
of the Seller and the Servicer.  Until the Final Payout Date:

 

(a)           Compliance with Laws, Etc.  Each of the Seller and the Servicer shall
comply in all material respects with all applicable laws, rules, regulations
and orders, and preserve and maintain its company or corporate existence,
rights, franchises, qualifications, and privileges except to the extent that
the failure so to comply with such laws, rules and regulations or the
failure so to preserve and maintain such existence, rights, franchises,
qualifications, and privileges would not adversely affect the collectibility of
the Receivables or the enforceability of any related Contract or materially
adversely affect the ability of the Seller or the Servicer to perform its
obligations under any related Contract or under the Agreement or any other
Transaction Document.

 

(b)           Offices, Records and Books of Account, Etc.  The Seller (i) shall keep its principal
place of business, chief executive office and state of formation (as such terms
are used in the UCC) and the office where it keeps its records concerning the
Receivables at the address of the Seller set forth under its name on Schedule
I to the Agreement or, upon at least thirty (30) days’ prior written notice
of a proposed change to the Agent, at any other locations in jurisdictions
where all actions reasonably requested by the Agent to protect and perfect the
interest of the Purchaser in the Receivables and related items (including the
Pool Assets) of the Agreement have been taken and completed and (ii) shall
provide the Agent with at least sixty (60) days’ written notice prior to making
any change in (A) the Seller’s name or making any other change in the
Seller’s identity or company structure (including a merger) or (B) the
Seller’s jurisdiction of formation.  Each
notice to the Agent pursuant to this sentence shall set forth the applicable
change and the effective date thereof. 
The Seller or the Servicer on its behalf also will maintain and
implement administrative and operating procedures (including, without
limitation, an ability to recreate records evidencing Receivables and related
Contracts in the event of the destruction of the originals thereof), and keep
and maintain all documents, books, records, computer tapes and disks and other
information reasonably necessary or advisable for the collection of all
Receivables in the ordinary course of business (including, without limitation,
records adequate to permit the daily identification of each Receivable and all
Collections of and adjustments to each Receivable).  Without limiting the foregoing, the Servicer
shall maintain adequate computer and other systems in order to service the
Receivables.

 

(c)           Performance and Compliance with Contracts and Credit
and Collection Policy.  Each of the
Seller and the Servicer shall, at its expense, timely and fully perform and
comply with all material provisions, covenants and other promises required to
be observed by it under the Contracts related to the Receivables, and timely
and fully comply in all material respects with the Credit and Collection Policy
with regard to each Receivable and the related Contract.

 

(d)           Ownership Interest, Etc.  The Seller shall, at its expense, take all
action necessary or desirable to establish and maintain a valid and enforceable
ownership  or security interest in the
Pool Receivables and the Related Security and Collections and other proceeds
with respect thereto, and a first priority perfected ownership or security
interest in the Pool Assets, in each 

 

IV-1

 

case free and clear of any Adverse Claim, in favor
of the Purchaser, including, without limitation, taking such action to perfect,
protect or more fully evidence the interest of the Purchaser under the
Agreement as the Purchaser, through the Agent, may request.

 

(e)           Sales, Liens, Etc.  Except for retransfers of Pool Receivables to
the Originators in accordance with the Purchase and Sale Agreement, neither the
Seller nor the Servicer shall sell, assign (by operation of law or otherwise)
or otherwise dispose of, or create or suffer to exist any Adverse Claim upon or
with respect to, any Pool Asset (including the Seller’s interest in any
Receivable, Related Security or Collections, or upon or with respect to any
account to which any Collections of any Receivables are sent) or assign any
right to receive income in respect of any items contemplated by this paragraph
(e).

 

(f)            Extension or Amendment of Receivables.  Except as provided in the Agreement and the
Credit and Collection Policy, neither the Seller nor the Servicer shall extend
the maturity or adjust the Outstanding Balance or otherwise modify the terms of
any Pool Receivable in any material respect, or amend, modify or waive in any
material respect any term or condition of any related Contract.

 

(g)           Change in Business or Credit and Collection Policy.  Neither the Seller nor the Servicer shall
make any material change in the character of its business, or make any change
in the Credit and Collection Policy that would adversely affect the
collectibility of the Receivables Pool or the enforceability of any related
Contract or materially adversely affect the ability of the Seller or Servicer
to perform its obligations under any related Contract or under the
Agreement.  Neither the Seller nor the
Servicer shall make any material change in the Credit and Collection Policy
without the prior written consent of the Agent.

 

(h)           Audits.  Each
of the Seller and the Servicer shall, at the Seller’s or Servicer’s expense, as
applicable, at any time and from time to time (but, so long as no Termination
Event or Unmatured Termination Event has occurred and is continuing, not more
than once during any calendar year relating to the Crane Business of the
Originators and not more than once during any calendar year relating to the
Foodservice Business of the Originators), during regular business hours, upon
reasonable advance notice as requested by the Agent, permit the Agent, or its
agents or representatives, (i) to examine and make copies of and abstracts
from all books, records and documents (including, without limitation, computer
tapes and disks) in the possession or under the control of the Seller or the
Servicer relating to Receivables and the Related Security, including, without
limitation, the related Contracts and (ii) to visit the offices and
properties of the Seller and the Servicer for the purpose of examining such
materials described in clause (i) above, and to discuss matters
relating to Receivables and the Related Security or the Seller’s or Servicer’s
performance hereunder or under the Contracts with any of the officers,
employees, agents or contractors of the Seller or the Servicer having knowledge
of such matters.

 

(i)            Change in Lock-Box Banks, Lock-Box Accounts and
Payment Instructions to Obligors. 
Neither the Seller nor the Servicer shall add or terminate any bank as a
Lock-Box Bank or any account as a Lock-Box Account from those listed in Schedule
II to the Agreement, or make any change in its instructions to Obligors
regarding payments to be made to the Seller or the Servicer or payments to be
made to any Lock-Box Account (or related lock-box or post 

 

IV-2

 

office box), unless the Agent shall have consented
thereto in writing and the Agent shall have received copies of all agreements
and documents (including without limitation Lock-Box Agreements) that it may
request in connection therewith.

 

(j)            Lock-Box Accounts; Lock-Boxes; Post Office Boxes.  The Seller or the Servicer shall: (i) instruct
all Obligors of Pool Receivables to make payments of Receivables only to one or
more Lock-Box Accounts subject to Lock-Box Agreements or to lock-boxes or post
office boxes subject to Lock-Box Agreements to which only Lock-Box Banks have
access (and shall instruct the Lock-Box Banks to cause all items and amounts
relating to such Receivables received in such lock-boxes or post office boxes
to be removed and deposited into such Lock-Box Account on a daily basis); and (ii) 
deposit, or cause to be deposited, any Collections of Pool Receivables received
by the Seller or the Servicer into Lock-Box Accounts subject to Lock-Box
Agreements not later than one Business Day (or, in the case of amounts received
by the Seller or Servicer after 3:00 p.m. on any Business Day, the second
Business Day following such receipt) after receipt thereof.  Neither the Seller nor the Servicer will
deposit or otherwise credit, or cause or permit to be so deposited or credited,
to any Lock-Box Account cash or cash proceeds other than Collections of Pool
Receivables, unless each holder of a Lien or ownership interest in such cash or
cash proceeds is a party to the Intercreditor Agreement.

 

(k)           Marking of Records. 
At its expense, the Seller (or the Servicer on its behalf) shall mark
its master data processing records relating to Pool Receivables and related
Contracts, with a legend or other notation evidencing that the Pool Receivables
and related Contracts have been pledged, and the Purchased Assets have been
sold, in each case, to the Purchaser in accordance with the Agreement.

 

(l)            Reporting Requirements.  The Seller or the Servicer shall provide to
the Agent (in multiple copies, if requested by the Agent) the following:

 

(i)            as soon as available and in any event within sixty (60)
days after the end of the first three quarters of each fiscal year of the
Seller and Manitowoc (separately for each), consolidated balance sheets of the
Seller and Manitowoc, respectively, and (in the case of Manitowoc) its subsidiaries
as of the end of such quarter and statements of operations, cash flows and
shareholders’ equity of the Seller and Manitowoc, respectively, and (in the
case of Manitowoc) its subsidiaries for the period commencing at the end of the
previous fiscal year and ending with the end of such quarter, certified by the
chief financial officer of the Seller and Manitowoc as applicable, which
certificate shall state that said consolidated financial statements fairly
present the consolidated financial condition, results or operations and cash
flows of such Person in accordance with GAAP, as of the end of, and for, such
period (subject to normal year-end audit adjustments), as applicable;

 

(ii)           as soon as available and in any event within one hundred
twenty (120) days after the end of each fiscal year of the Seller and Manitowoc
(separately for each), consolidated statements of operations, cash flows and
stockholder’ equity of Seller and Manitowoc, respectively, and (in the case of
Manitowoc) its subsidiaries for such year and the related consolidated balance
sheets of Seller and Manitowoc, respectively, and (in the case of Manitowoc)
its subsidiaries as at the end of such year, accompanied by an 

 

IV-3

 

opinion of independent
certified public accountants of recognized national standing, which opinion
shall state that said consolidated financial statements fairly present the
consolidated financial conditions, results or operations and cash flows of
Seller and Manitowoc as applicable and (in the case of Manitowoc) its
subsidiaries as at the end of, and for, such fiscal year in accordance with
GAAP;

 

(iii)          on each Monday of each calendar week (or if such day is not
a Business Day, the next succeeding Business Day), a report, substantially in
the form of the Monthly Report described in the next paragraph, summarizing the
Receivables activity pertinent to the transactions contemplated by the
Transaction Documents since the last such report;

 

(iv)          as soon as available and in any event not later than the
Monthly Reporting Date, a Monthly Report as of the calendar month ended
immediately prior to such Monthly Reporting Date;

 

(v)           as soon as possible and in any event within two Business
Days after an officer of the Seller or the Servicer obtains knowledge of the
occurrence of a Termination Event or Unmatured Termination Event, a statement
of a Responsible Officer of the Seller or the Servicer setting forth details of
such Termination Event or event and the action that the Seller or the Servicer
has taken and proposes to take with respect thereto;

 

(vi)          promptly after the filing or receiving thereof, copies of
all reports and notices that the Seller or any Affiliate files under ERISA with
the Internal Revenue Service or the Pension Benefit Guaranty Corporation or the
U.S. Department of Labor or that the Seller or any Affiliate receives from any
of the foregoing or from any multiemployer plan (within the meaning of
Section 4001(a)(3) of ERISA) to which the Seller or any Affiliate is or
was, within the preceding five years, a contributing employer;

 

(vii)         at least sixty (60) days prior to any change in the Seller’s
name, jurisdiction of formation or any other change requiring the amendment of
a UCC financing statement in order to maintain the perfection of an ownership
and security interest, a notice setting forth such changes and the effective
date thereof;

 

(viii)        such other information respecting the
Receivables or the condition or operations, financial or otherwise, of the
Seller, the Servicer or any of their respective Affiliates as the Agent may
from time to time reasonably request;

 

(ix)           promptly after a Responsible Officer of the Seller or the
Servicer obtains notice or knowledge thereof, notice of any litigation,
investigation or proceeding which would be reasonably expected to have a
material adverse effect on the business, operations, assets, financial
condition or other condition of the Seller, any Originator or the Servicer; and

 

(x)            promptly after a Responsible Officer of the Seller or the
Servicer obtains notice or knowledge thereof, notice of a material adverse
change in the business, operations, assets, financial condition or other
condition of the Seller, any Originator or the Servicer.

 

IV-4

 

(m)          Separate Existence. Each of the Seller and the
Servicer hereby acknowledges that Purchaser and the Agent are entering into the
transactions contemplated by the Agreement and the Transaction Documents in
reliance upon the Seller’s identity as a legal entity separate from Servicer,
Manitowoc and the Originators. 
Therefore, the Seller and the Servicer shall at all times take all
reasonable steps to continue the Seller’s identity as a separate legal entity
and to make it apparent to third Persons that the Seller is an entity with
assets and liabilities distinct from those of the Servicer, Manitowoc, the
Originators and any other Person, and is not a division of the Servicer,
Manitowoc or the Originators or any other Person.  Without limiting the generality of the
foregoing and in addition to and consistent with the covenant set forth in paragraph (a) of
this Exhibit IV, the Seller and the Servicer shall take such
actions as shall be required in order that:

 

(i)            The Seller will be a limited purpose limited liability
company whose sole activities are restricted in its articles of organization to
purchasing Receivables from the Originators, entering into agreements for the
servicing of such Receivables, selling and pledging such Receivables (and
related Pool Assets) as contemplated by the Agreement and conducting such other
activities as it deems necessary or appropriate to carry out its primary
purpose;

 

(ii)           Not less than one member of the Seller’s Board of
Directors (the “Independent Director”) shall be an individual who (A) has
(1) prior experience as an Independent Director for a corporation or
limited liability company whose organizational documents required the unanimous
consent of all Independent Directors thereof before such entity could consent
to the institution of bankruptcy or insolvency proceedings against it or could
file a petition seeking relief under any applicable federal or state law
relating to bankruptcy and (2) at least three years of employment
experience and is currently employed with one or more entities that provide, in
the ordinary course of their respective businesses, advisory, management or
placement services to issuers of securitization or structured finance
instruments, agreements or securities and who are not (except as members of the
Seller’s Board of Directors) direct, indirect or beneficial stockholders,
officers, directors, employees, affiliates, associates, customers or suppliers
of the Seller, Manitowoc or any Originator or any of their respective
Affiliates (B) is not, and has not been for a period of five years prior
to his or her appointment as an Independent Director of Seller: (1) a
director, officer, employee, partner, manager, attorney, supplier or customer
of Manitowoc or any Affiliate thereof, (2) a stockholder (whether direct,
indirect or beneficial), associate, advisor or supplier of Manitowoc or any
Affiliate thereof, (3) a person related to any person referred to in clauses
(1) or (2) above, (4) a person or other entity
controlling or under common control with any such stockholder, partner,
manager, customer, supplier, employee, officer or director or (5) a
trustee, conservator or receiver for any member of Manitowoc or any Affiliate
thereof (it being understood that, as used in this definition, “control” means
the possession directly or indirectly of the power to direct or cause the
direction of management policies or activities of a person or entity whether
through ownership of voting securities, by contract or otherwise); provided,
however, that an individual shall not be deemed to be ineligible to be
an Independent Director solely because such individual serves or has served in
the capacity of an “independent director” or similar capacity for special
purpose entities formed by Manitowoc or any of its Affiliates and (C) is
agreed to by the Agent.  The limited
liability company agreement of the Seller shall provide (i) that the
Seller’s 

 

IV-5

 

Board of Directors shall not
approve, or take any other action to cause the commencement of a voluntary case
or other proceeding with respect to the Seller under any applicable bankruptcy,
insolvency, reorganization, debt arrangement, dissolution or other similar law,
or the appointment of or taking possession by, a receiver, liquidator,
assignee, trustee, custodian, or other similar official for the Seller unless
in each case the Independent Director shall approve the taking of such action
in writing prior to the taking of such action, (ii) for the same definition
of “Independent Director” as used herein and (iii) that the provisions
required by clauses (i) and (ii) above cannot be
amended without the prior written consent of each Independent Director and the
Agent.  The Independent Director’s
fiduciary duty shall be to the Seller (and its creditors) and not to the Seller’s
members in respect of any decision of the type described in the preceding
sentence.  In the event an Independent
Director resigns or otherwise ceases to be a director of the Seller, there
shall be selected a replacement Independent Director who (x) shall not be
an individual within the proscriptions of the first sentence of this subparagraph
(ii) or any individual who has any other type of professional
relationship with the Seller, Manitowoc or any Originator or any of their
respective Affiliates or any management personnel of any such Person or
Affiliate and (y) shall be acceptable to the Agent;

 

(iii)          No Independent Director shall at any time serve as a
trustee in bankruptcy for any Originator or any Affiliate thereof;

 

(iv)          Any employee, consultant or agent of the Seller will be
compensated from the Seller’s own bank accounts for services provided to the
Seller except as provided herein in respect of the Servicing Fee.  The Seller will engage no agents other than a
servicer for the Receivables, which servicer will be fully compensated for its
services to the Seller by payment of the Servicing Fee;

 

(v)           The Seller will not incur any material indirect or
overhead expenses for items shared between the Seller and the Originators or
any Affiliate thereof which are not reflected in the Servicing Fee or otherwise
appropriately allocated between such Persons based on usage in accordance with
the next sentence.  To the extent, if
any, that the Seller and the Originators or any Affiliate thereof share items
of expenses not reflected in the Servicing Fee, such as legal, auditing and
other professional services, such expenses will be allocated to the extent
practical on the basis of actual use or the value of services rendered, and
otherwise on a basis reasonably related to the actual use or the value of
services rendered, it being understood that Manitowoc shall pay all expenses
relating to the preparation, negotiation, execution and delivery of the
Transaction Documents, including, without limitation, legal and other fees;

 

(vi)          The Seller’s operating expenses will not be paid by any
Originator or any Affiliate thereof unless the Seller shall have agreed in
writing with such Person promptly to reimburse such Person for any such
payments;

 

(vii)         The Seller will have its own separate mailing address and
stationery;

 

(viii)        The Seller’s books and records will be
maintained separately from those of Servicer, Manitowoc and the Originators or
any respective Affiliate thereof;

 

IV-6

 

(ix)           Any financial statements of the Servicer, Manitowoc, any
Originator or any respective Affiliate thereof which are consolidated to
include the Seller will contain detailed notes clearly stating that the Seller
is a separate corporate entity and has sold ownership interests in the Seller’s
accounts receivable;

 

(x)            The Seller’s assets will be maintained in a manner that
identifies and segregates them from those of the Servicer, Manitowoc, the
Originators and any of their respective Affiliates;

 

(xi)           The Seller will strictly observe limited liability company
formalities in its dealings with the Servicer, Manitowoc, the Originators and
any respective Affiliate thereof, and funds or other assets of the Seller will
not be commingled with those of the Servicer, Manitowoc, the Originators or any
respective Affiliate thereof.  The Seller
shall not maintain joint bank accounts or other depository accounts to which
Servicer, Manitowoc, the Originators or any respective Affiliate thereof (other
than Manitowoc in its capacity as Servicer) has independent access.  None of the Seller’s funds will at any time
be pooled with any funds of the Servicer, Manitowoc, the Originators or any
respective Affiliate thereof;

 

(xii)          The Seller shall pay to the Originators the marginal
increase (or, in the absence of such increase, the market amount of its
portion) of the premium payable with respect to any insurance policy that
covers the Seller and any Affiliate thereof, but the Seller shall not, directly
or indirectly, be named or enter into an agreement to be named, as a direct or
contingent beneficiary or loss payee, under any such insurance policy, with
respect to any amounts payable due to occurrences or events related to the
Servicer, Manitowoc, the Originators or any respective Affiliate thereof; and

 

(xiii)         The Seller will maintain arm’s length
relationships with Servicer, Manitowoc, the Originators and any respective
Affiliate thereof and, except as contemplated by the Transaction Documents,
will have no other dealings, contractual, financial or otherwise, among
themselves.  Any Originator or any
Affiliate thereof that renders or otherwise furnishes services to the Seller will
be compensated by the Seller at market rates for such services.  Neither the Seller nor any Originator or any
Affiliate thereof will be or will hold itself out to be responsible for the
debts of the other or the decisions or actions respecting the daily business
and affairs of the other.

 

The Seller shall cause the facts and assumptions relating to the
Seller, and the Servicer shall cause the facts and assumptions relating to the
Servicer, in each case set forth in the opinions rendered by Quarles &
Brady LLP pursuant to Exhibit II to the Agreement and relating to
true sale and non-consolidation matters, and in the officer’s certificates
referred to in such opinions, to remain true and correct in all material
respects at all times.

 

(n)           Mergers, Acquisitions, Sales, etc.

 

(i)            The Seller shall not:

 

IV-7

 

(A)          be a party to any
merger or consolidation, or directly or indirectly purchase or otherwise
acquire, whether in one or a series of transactions, all or substantially all
of the assets or any stock of any class of, or any partnership or joint venture
interest or equity interest in, any other Person, or sell, transfer, assign,
convey or lease any of its property and assets (including, without limitation,
any Pool Receivable or any interest therein) other than pursuant to this
Agreement;

 

(B)           acquire Receivables
from any Person other than an Originator (and all such Receivables shall be
acquired pursuant to the Purchase and Sale Agreement);

 

(C)           make, incur or
suffer to exist an investment in, equity contribution to, loan, credit or
advance to, or payment obligation in respect of the deferred purchase price of
property from, any other Person, except for obligations incurred pursuant to
the Transaction Documents; or

 

(D)          create any direct or
indirect Subsidiary or otherwise acquire direct or indirect ownership of any
equity interests in any other Person; or

 

(E)           issue any membership
or equity interest any Person, or take any other action, that would cause a
Change in Control.

 

(ii)           The Servicer shall
not be a party to any merger or consolidation or sell, transfer, assign, convey
or lease all or substantially all of its property or assets.

 

(o)           Restricted Payments.

 

(i)            General Restriction.  Except in accordance with subparagraph (ii) below,
the Seller shall not (A) purchase or redeem any of its membership or other
equity interests, (B) declare or pay any dividend or set aside any funds
for any such purpose, (C) prepay, purchase or redeem any subordinated
indebtedness of the Seller, (D) lend or advance any funds or
(E) repay any loans or advances to, for or from any Originator.  Actions of the type described in this clause
(i) are herein collectively called “Restricted Payments”.

 

(ii)           Types of Permitted Payments.  Subject to the limitations set forth in clause
(iii) below, the Seller may make Restricted Payments so long as such
Restricted Payments are made only to the Originators and only in one or more of
the following ways:

 

(A)          Seller
may make cash payments (including prepayments) on the Company Notes in
accordance with their terms; and

 

(B)           if
no amounts are then outstanding under the Company Notes, the Seller may declare
and pay Dividends.

 

(iii)          Specific Restrictions.  The Seller may make Restricted Payments only
out of Collections paid or released to the Seller pursuant to Section 1.6
of the Agreement.  Furthermore, the
Seller shall not pay, make or declare any Restricted Payment (including 

 

IV-8

 

any Dividend) if, after
giving effect thereto, any Termination Event or Unmatured Termination Event
shall have occurred and be continuing.

 

(p)           Use of Seller’s Share of Collections.  The Seller shall apply the Collections that
are available to the Seller in accordance with the Agreement to make payments
in the following order of priority:  first,
the payment of its expenses (including, without limitation, the obligations
payable to Purchaser, the Affected Persons and the Agent under the Transaction
Documents), second, the payment of accrued and unpaid interest on the
Company Notes, third, the payment of the outstanding principal amount of
the Company Notes, and fourth, other legal and valid company purposes.

 

(q)           Amendments to Certain Documents.

 

(i)            Neither the Seller nor the Servicer shall amend,
supplement, amend and restate, or otherwise modify (or add any Person as a
party to) the Purchase and Sale Agreement, the Company Notes, any other
document executed under the Purchase and Sale Agreement, the Collection Account
Agreement, the Lock-Box Agreements or the Seller’s articles of organization or
limited liability company agreement or any other Transaction Document to which
it is a party, except (A) in accordance with the terms of such document,
instrument or agreement and (B) with the advance written consent of the
Agent.

 

(ii)           Neither the Seller nor the Servicer shall enter into or
otherwise become bound by any agreement, instrument, document or other
arrangement that restricts its right to amend, supplement, amend and restate or
otherwise modify, or to extend or renew, or to waive any right under, this
Agreement or any other Transaction Document.

 

(r)            Incurrence of Indebtedness.  The Seller shall not (i) create, incur
or permit to exist, any Debt (or any Buy-Back Obligations, as defined in the
Credit Agreement) or (ii) cause or permit to be issued for its account any
letters of credit or bankers’ acceptances, except for indebtedness incurred
pursuant to the Company Notes or incurred pursuant to or in connection with the
Agreement or otherwise permitted by the Agreement.

 

(s)           Financial Covenants.

 

(i)            Maximum Consolidated Total Leverage Ratio.  The Servicer will cause the Consolidated
Total Leverage Ratio at all times during the fiscal quarters of the Servicer
set forth below to be less than the ratio set forth opposite such fiscal
quarter below:

 

	
  Fiscal
  Quarter Ending

  	
   

  	
  Ratio

  
	
   

  	
   

  	
   

  
	
  June 30, 2009

  	
   

  	
  5.25:1.00

  
	
  September 30, 2009

  	
   

  	
  6.625:1.00

  
	
  December 31, 2009

  	
   

  	
  7.125:1.00

  
	
  March 31, 2010

  	
   

  	
  7.80:1.00

  
	
   

  	
   

  	
   

  
	
  June 30, 2010

  	
   

  	
  7.80:1.00

  

 

IV-9

 

	
  September 30, 2010

  	
   

  	
  7.25:1.00

  
	
  December 31, 2010

  	
   

  	
  6.625:1.00

  
	
  March 31, 2011

  	
   

  	
  6.50:1.00

  
	
   

  	
   

  	
   

  
	
  June 30, 2011

  	
   

  	
  6.375:1.00

  
	
  September 30, 2011

  	
   

  	
  6.25:1.00

  
	
  December 31, 2011

  	
   

  	
  5.75:1.00

  
	
  March 31, 2012

  	
   

  	
  5.75:1.00

  
	
   

  	
   

  	
   

  
	
  June 30, 2012

  	
   

  	
  5.25:1.00

  
	
  September 30, 2012

  	
   

  	
  4.75:1.00

  
	
  December 31, 2012

  	
   

  	
  4.50:1.00

  
	
  March 31, 2013

  	
   

  	
  4.50:1.00

  
	
   

  	
   

  	
   

  
	
  June 30, 2013

  	
   

  	
  4.25:1.00

  
	
  September 30, 2013

  	
   

  	
  3.75:1.00

  
	
  December 31, 2013,

  	
   

  	
  3.50:1.00

  
	
  and thereafter

  	
   

  	
   

  

 

(ii)           Maximum Consolidated Senior Secured Leverage Ratio.  The Servicer will cause the Consolidated
Senior Secured Leverage Ratio at all times during the fiscal quarters of the
Servicer set forth below to be less than the ratio set forth opposite such
fiscal quarter below:

 

	
  Fiscal
  Quarter Ending

  	
   

  	
  Ratio

  
	
   

  	
   

  	
   

  
	
  December 31, 2010

  	
   

  	
  5.00:1.00

  
	
  March 31, 2011

  	
   

  	
  5.00:1.00

  
	
   

  	
   

  	
   

  
	
  June 30, 2011

  	
   

  	
  5.00:1.00

  
	
  September 30, 2011

  	
   

  	
  5.00:1.00

  
	
  December 31, 2011

  	
   

  	
  4.25:1.00

  
	
  March 31, 2012

  	
   

  	
  4.25:1.00

  
	
   

  	
   

  	
   

  
	
  June 30, 2012

  	
   

  	
  4.00:1.00

  
	
  September 30, 2012

  	
   

  	
  3.75:1.00

  
	
  December 31, 2012

  	
   

  	
  3.50:1.00

  
	
  March 31, 2013

  	
   

  	
  3.25:1.00

  
	
   

  	
   

  	
   

  
	
  June 30, 2013

  	
   

  	
  3.25:1.00

  
	
  September 30, 2013

  	
   

  	
  3.25:1.00

  
	
  December 31, 2013,

  	
   

  	
  3.00:1.00

  
	
  and thereafter

  	
   

  	
   

  

 

(iii)          Minimum Consolidated Interest Coverage Ratio.  The Servicer will not permit the Consolidated
Interest Coverage Ratio for any fiscal quarter of the Servicer set

 

IV-10

 

forth below to be less than
or equal to the ratio set forth opposite such fiscal quarter below:

 

	
  Fiscal
  Quarter Ending

  	
   

  	
  Ratio

  
	
   

  	
   

  	
   

  
	
  June 30, 2009

  	
   

  	
  2.75:1.00

  
	
  September 30, 2009

  	
   

  	
  2.25:1.00

  
	
  December 31, 2009

  	
   

  	
  1.875:1.00

  
	
  March 31, 2010

  	
   

  	
  1.75:1.00

  
	
   

  	
   

  	
   

  
	
  June 30, 2010

  	
   

  	
  1.75:1.00

  
	
  September 30, 2010

  	
   

  	
  1.80:1.00

  
	
  December 31, 2010

  	
   

  	
  1.85:1.00

  
	
  March 31, 2011

  	
   

  	
  2.00:1.00

  
	
   

  	
   

  	
   

  
	
  June 30, 2011

  	
   

  	
  2.00:1.00

  
	
  September 30, 2011

  	
   

  	
  2.125:1.00

  
	
  December 31, 2011

  	
   

  	
  2.25:1.00

  
	
  March 31, 2012

  	
   

  	
  2.375:1.00

  
	
   

  	
   

  	
   

  
	
  June 30, 2012

  	
   

  	
  2.50:1.00

  
	
  September 30, 2012

  	
   

  	
  2.50:1.00

  
	
  December 31, 2012

  	
   

  	
  2.75:1.00

  
	
  March 31, 2013

  	
   

  	
  2.75:1.00

  
	
   

  	
   

  	
   

  
	
  June 30, 2013,

  	
   

  	
  3.00:1.00

  
	
  and thereafter

  	
   

  	
   

  

 

(t)            Additional Financing Statements; Performance by the
Agent.  The Seller hereby authorizes
the Agent or the Agent’s designee (which may be counsel for the Seller or
counsel for the Agent) to file one or more UCC financing or continuation
statements on or after the Closing Date, and amendments thereto and assignments
thereof, relative to all or any of the Pool Receivables and the Related
Security (and the other Pool Assets) whether now existing or hereafter
arising.  Without limiting the foregoing,
the Seller hereby authorizes the Agent to file any financing statement that (i) indicates
the property or collateral covered thereby (x) as all assets of the Seller
or words of similar effect, regardless of whether any particular asset in the
collateral falls within the scope of Article 9 of the UCC of the
jurisdiction in which such financing statement is filed, or (y) as being
of an equal or lesser scope or with greater detail, and (ii) contains any
other information permitted or required by Article 9 of the UCC of the
jurisdiction in which such financing statement is filed regarding the
sufficiency or filing office acceptance of any financing statement, including
whether the Seller is an organization, the type of organization and any
organizational identification number issued to the Seller.  If the Seller fails to perform any of its
agreements or obligations under the Agreement or any other Transaction
Documents, the Agent or its designee may (but shall not be required to) itself
perform, or cause performance of, such agreement or obligation, and the
expenses of the Agent

 

IV-11

 

or its designee incurred in connection therewith
shall be payable by the Seller as provided in Section 5.4 of the
Agreement.

 

(u)           Commercial Tort Claims.  The Seller or the Servicer shall promptly,
and in any event within two (2) Business Days after the same is acquired
by the Seller, notify the Agent of any commercial tort claim (as defined in the
UCC) acquired by the Seller and, unless otherwise consented by the Agent, the
Seller shall enter into a supplement to the Agreement granting to the Purchaser
a security interest in such commercial tort claim.

 

IV-12

 

EXHIBIT V

 

TERMINATION EVENTS

 

Each
of the following shall be a “Termination Event”:

 

(a)           The Servicer, any Originator or the Seller shall fail to
make when due any payment or deposit to be made by it under the Agreement or
any other Transaction Document and such failure shall continue unremedied for
two (2) Business Days; or

 

(b)           Manitowoc (or any Affiliate thereof) shall fail to
transfer to any successor Servicer when required any rights, pursuant to the
Agreement, which Manitowoc (or such Affiliate) then has as Servicer; or

 

(c)           Any representation or warranty or certification made or
deemed made by the Seller, any Originator or the Servicer (or any of their
respective officers) under or in connection with the Agreement or any other
Transaction Document or any information or report delivered by the Seller or
the Servicer pursuant to the Agreement shall prove to have been incorrect or
untrue in any material respect when made or deemed made or delivered; or

 

(d)           The Seller, any Originator or the Servicer shall fail to
perform or observe any other term, covenant or agreement contained in the
Agreement or any other Transaction Document on its part to be performed or
observed, or the Seller shall fail to enforce any rights under any Transaction
Document against any Originator or shall give up any such rights, and any such
failure (or such giving up) shall remain unremedied for ten (10) Business
Days after the Seller, any Originator or the Servicer, as applicable, has
notice or knowledge thereof (or, with respect to a failure to deliver a Monthly
Report pursuant to the Agreement, such failure shall remain unremedied for two (2) Business
Days); or

 

(e)           The Seller, any Originator or the Servicer shall fail to
pay any principal of or premium or interest on any of its Debt (or Buy-Back
Obligations, as defined in the Credit Agreement) which is outstanding in a
principal amount of at least (x) in the case of any Originator or the
Servicer, ten million dollars ($10,000,000) or, in the case of the Seller, ten
thousand dollars ($10,000), in any case, in the aggregate when the same becomes
due and payable (whether by scheduled maturity, required prepayment,
acceleration, demand or otherwise), and such failure shall continue after the
applicable grace period, if any, specified in the agreement, mortgage,
indenture or instrument relating to such Debt; or any other event shall occur
or condition shall exist under any agreement, mortgage, indenture or instrument
relating to any such Debt and shall continue after the applicable grace period,
if any, specified in such agreement, mortgage, indenture or instrument, if the
effect of such event or condition is to accelerate, or to permit the
acceleration of, the maturity of such Debt; or any such Debt shall be declared
to be due and payable, or required to be prepaid (other than by a regularly
scheduled required prepayment), redeemed, purchased or defeased, or an offer to
repay, redeem, purchase or defease such Debt shall be required to be made, in
each case prior to the stated maturity thereof; or

 

(f)            The Agreement or any Investment or Reinvestment pursuant
to the Agreement (including, without limitation, the deemed Investment
occurring on the Closing Date pursuant to

 

V-1

 

Section 1.3(a) of the Agreement)
shall for any reason (other than pursuant to the terms hereof) (i) cease
to create, or cease to be, a valid and enforceable perfected ownership or
security interest in each Pool Receivable and the Related Security and
Collections and other proceeds with respect thereto, free and clear of any
Adverse Claim or (ii) cease to create with respect to the Pool Assets, or
the interest of the Purchaser with respect to the Pool Assets shall cease to
be, a valid and enforceable first priority perfected ownership or security
interest, free and clear of any Adverse Claim; or

 

(g)           The Seller, Manitowoc or any Originator or any Subsidiary
of Manitowoc or any Originator shall generally not pay its debts as such debts
become due, or shall admit in writing its inability to pay its debts generally
as such debts become due, or shall make a general assignment for the benefit of
creditors; or any proceeding shall be instituted by or against the Seller,
Manitowoc or any Originator seeking to adjudicate it a bankrupt or insolvent,
or seeking liquidation, winding up, reorganization, arrangement, receivership,
adjustment, protection, relief, or composition of it or its debts under any law
relating to bankruptcy, insolvency or reorganization or relief of debtors, or
seeking the entry of an order for relief or the appointment of a receiver,
trustee, custodian or other similar official for it or for any substantial part
of its property and, in the case of any such proceeding instituted against it
(but not instituted by it), either (a) such proceeding shall remain
undismissed or unstayed for a period of sixty (60) days, or (b) in any
such proceeding, there is entered an order for relief against, or the there is
appointed a receiver, trustee, custodian or other similar official for, it or
for any substantial part of its property) or the Seller, Manitowoc or any
Originator shall take any corporate action to authorize any of the actions set
forth above in this paragraph (g); or

 

(h)           As of the last day of any calendar month, the arithmetic
average for the most recent three calendar months of (A) the Default
Ratios shall exceed five and one-half percent (5.5%), or (B) the Dilution
Ratios shall exceed eight percent (8.0%); or

 

(i)            The Purchased Assets Coverage Percentage shall exceed one
hundred percent (100%) and such condition shall continue unremedied for more
than two (2) consecutive Business Days; or

 

(j)            A Change in Control shall occur with respect to Manitowoc
or the Seller; or

 

(k)           The Internal Revenue Service shall file notice of a lien
pursuant to Section 6323 of the Internal Revenue Code with regard to any
assets of the Seller or any Originator and such lien or any other lien filed
thereunder shall not have been released within ten (10) Business Days, or
the Pension Benefit Guaranty Corporation shall file notice of a lien pursuant
to Section 4068 of ERISA with regard to any of the assets of the Seller or
any Originator and such lien shall not have been released within five (5) Business
Days; or

 

(l)            A Servicer Default shall occur; or

 

(m)          A Purchase and Sale Termination Event shall occur; or

 

(n)                                 One or more
judgments for the payment of money in an aggregate amount in excess of ten
million dollars ($10,000,000) shall be rendered against Manitowoc, any
Subsidiary of Manitowoc or any combination thereof (or in excess of ten
thousand dollars ($10,000) shall be

 

V-2

 

rendered against the Seller) and the same shall
remain undischarged for a period of thirty (30) consecutive days during which
execution shall not be effectively stayed, or any action shall be legally taken
by a judgment creditor to attach or levy upon any assets of Manitowoc or any
Subsidiary of Manitowoc or the Seller to enforce any such judgment; or

 

(o)           [Reserved]; or

 

(p)           The “Receivables Indebtedness” (as such term is defined in
the Credit Agreement, as the Credit Agreement may be amended, amended and
restated, supplemented, or otherwise modified from time to time) exceeds the
amount thereof permitted under the Credit Agreement (as the Credit Agreement
may be amended, amended and restated, supplemented, or otherwise modified from
time to time); or

 

(q)           The aggregate uncollected amount of accounts receivable
sold pursuant to “Permitted Securitizations” and “Factoring Agreements” (as
such terms in quotation marks are defined in the Credit Agreement, as the
Credit Agreement may be amended, amended and restated, supplemented or
otherwise modified from time to time) exceeds the amount thereof permitted
under the Credit Agreement (as the Credit Agreement may be amended, amended and
restated, supplemented or otherwise modified from time to time); or

 

(r)            The net worth of the Seller is less than five million
dollars ($5,000,000); or

 

(s)           a Material Adverse Effect shall occur; or

 

(t)            any Originator for any reason ceases to transfer, or is
legally unable to transfer, Receivables to the Seller under the Purchase and
Sale Agreement, or the Seller ceases to acquire Receivables from the
Originators.

 

V-3

 

EXHIBIT VI

 

SUPPLEMENTAL REPRESENTATIONS, WARRANTIES AND COVENANTS

 

In
addition to the representations, warranties and covenants contained in Exhibits
III and IV of the Agreement, to induce the Purchaser and the Agent
to enter into the Agreement and, in the case of Purchaser, to make Investments
and Reinvestments, the Seller hereby represents, warrants, and covenants as
follows:

 

A.            The Receivables.

 

1.                                       The Agreement
creates a valid and continuing ownership or security interest (as defined in
the applicable UCC) in the Pool Receivables in favor of the Purchaser, which
ownership or security interest is prior to all other Adverse Claims, and is
enforceable as such as against creditors of and purchasers from the Seller.

 

2.                                       The Pool
Receivables constitute “accounts” within the meaning of the applicable UCC.

 

3.                                       The Seller owns
and has good and marketable title to the Pool Receivables free and clear of any
Adverse Claim.

 

4.                                       The Seller has
caused (and will cause each Originator to cause), within ten days after the
first transfer of Receivables by such Originator to the Seller, the filing of
all appropriate financing statements in the proper filing office in the
appropriate jurisdictions under applicable law in order to perfect the sale and
contribution of the Receivables from each Originator to the Seller pursuant to
the Purchase and Sale Agreement, and the ownership and security interests
transferred and granted by the Seller to the Purchaser under the Agreement.

 

B.                                     The Lock-Box
Accounts and the Collection Account.

 

1.                                       Each of the
Lock-Box Accounts and the Collection Account constitute “deposit accounts”
within the meaning of the applicable UCC.

 

2.                                       The Seller owns
and has good and marketable title to the Lock-Box Accounts and the Collection
Account free and clear of any Adverse Claim.

 

3.                                       The Seller has
delivered to the Purchaser a fully executed Lock-Box Agreement relating to each
Lock-Box Account and the Collection Account Agreement relating to the
Collection Account, in each case, pursuant to which the applicable Lock-Box
Bank and/or Collection Account Bank, as the case may be, has agreed, following
notice from the Agent, to comply with all instructions originated by the Agent
(on behalf of the Purchaser) directing the disposition of funds in such
Lock-Box Account or the Collection Account, as the case may be, without further
consent by the Seller or the Servicer.

 

4.                                       The Seller has
established procedures such that any Permitted Investments purchased with funds
(other than funds remitted to the Seller in accordance with Section 1.6
of this Agreement) withdrawn from the Lock-Box Accounts and/or the Collection
Account will

 

VI-1

 

be either (i) credited
to a “securities account” (within the meaning of the applicable UCC) over which
the Purchaser will have a first priority perfected security interest,
(ii) purchased in the name of the Purchaser, or (iii) held in another
manner sufficient to establish the Purchaser’s first priority perfected
security interest over such Permitted Investments.

 

C.                                     Priority.

 

1.                                       Other than the
transfer of the Receivables to the Seller and the Purchaser under the Purchase
and Sale Agreement and the Agreement, respectively, and/or the ownership or
security interest transferred or granted to the Seller and the Purchaser
pursuant to the Purchase and Sale Agreement and this Agreement, respectively,
neither the Seller nor any Originator has pledged, assigned, sold, granted a
security interest in, or otherwise conveyed any of the Pool Receivables, any
Lock-Box Account, any related lock-box or post office box, the Collection
Account or any subaccount thereof, except for any such pledge, grant or other
conveyance which has been released or terminated.  Neither the Seller nor any Originator has
authorized the filing of, or is aware of any financing statements against
either the Seller or such Originator that include a description of Receivables
or any Lock-Box Account, the Collection Account or any subaccount thereof,
other than any financing statement (i) relating to the sale thereof by the
Originators to the Seller under the Purchase and Sale Agreement, (ii) relating
to the ownership or security interest granted to the Purchaser under the
Agreement, or (iii) that has been released or terminated.

 

2.                                       The Seller is
not is aware of any judgment, ERISA or tax lien filings against either the
Seller or any Originator.

 

3.                                       Neither the
Lock-Box Accounts nor the Collection Account are in the name of any Person
other than the Seller or the Purchaser. 
Neither the Seller nor the Servicer has consented to any bank
maintaining such accounts to comply with instructions of any Person other than
the Purchaser or the Agent on its behalf.

 

4.                                       Notwithstanding
any other provision of the Agreement or any other Transaction Document, the
representations contained in this Exhibit VI shall survive, continue, and
remain in full force and effect in each case until the Final Payout Date.

 

5.                                       The parties to
the Agreement: (i) shall not, without obtaining a confirmation of S&P’s
then-current rating of the Notes, waive any of the representations set forth in
this Exhibit VI; (ii) shall provide S&P with prompt written
notice of any breach of any representations set forth in this Exhibit VI,
and shall not, without obtaining a confirmation of the then-current rating of
the Notes (as determined after any adjustment or withdrawal of the ratings
following notice of such breach) from S&P waive a breach of any of the
representations set forth in this Exhibit VI.

 

6.                                       In order to
evidence the interests of the Purchaser under the Agreement, the Servicer
shall, from time to time take such action, or execute and deliver such
instruments (other than filing financing statements) as may be necessary or
advisable (including, without

 

VI-2

 

limitation, such actions as
are reasonably requested by the Purchaser or the Agent) to maintain and
perfect, as a first-priority interest, the Purchaser’s ownership or security
interest in the Pool Receivables, Related Security and Collections with respect
thereto.  The Servicer shall, from time
to time and within the time limits established by law, prepare and present to
the Agent for the Agent’s authorization and approval all financing statements,
amendments, continuations or initial financing statements in lieu of a
continuation statement, or other filings necessary to continue, maintain and
perfect the Purchaser’s ownership or security interest as a first-priority
interest.  The Agent’s approval of such
filings shall authorize the Servicer to file such financing statements under
the UCC without the signature of the Seller, any Originator or the Purchaser
where allowed by applicable law. Notwithstanding anything else in the
Transaction Documents to the contrary, the Servicer shall not have any
authority to file a termination, partial termination, release, partial release,
or any amendment that deletes the name of a debtor or excludes collateral of
any such financing statements, without the prior written consent of the Agent.

 

VI-3

 

SCHEDULE I

NOTICES

 

	
  If to Seller:

  
	
   

  
	
  Manitowoc Funding, LLC

  
	
  c/o The Manitowoc Company, Inc.

  
	
  2400 South 44th Street

  
	
  Manitowoc, Wisconsin 54220

  
	
  Attention:

  	
  Dean
  Nolden

  
	
   

  	
   

  
	
  with a copy to the Servicer

  
	
   

  
	
  If to Servicer:

  
	
   

  
	
  The Manitowoc Company, Inc.

  
	
  2400 South 44th Street

  
	
  Manitowoc, Wisconsin 54220

  
	
  Attention:

  	
  Dean
  Nolden

  
	
  Telephone:

  	
  (920)
  652-1755

  
	
  Facsimile:

  	
  (920)
  652-9775

  
	
   

  	
   

  
	
  If to Agent:

  
	
   

  
	
  Norddeutsche Landesbank Girozentrale

  
	
  1114 Avenue of the Americas

  
	
  New York, New York 10036

  
	
  Attention:

  	
  Asset
  Backed Finance

  
	
  Telephone:

  	
  (212)
  812-6946

  
	
  Facsimile:

  	
  (212)
  812-6860

  
	
   

  	
   

  
	
  If to Purchaser:

  
	
   

  
	
  Hannover Funding Company LLC

  
	
  c/o Global Securitization Services, LLC

  
	
  445 Broad Hollow Road

  
	
  Suite 239

  
	
  Melville, New York 11747

  
	
  Attention:

  	
  Tony
  Wong

  
	
  Telephone:

  	
  (631)
  930-7207

  
	
  Facsimile:

  	
  (212)
  302-8767

  

 

 

SCHEDULE II

LOCK-BOX BANKS, LOCK-BOX ACCOUNTS, LOCK-BOXES AND POST OFFICE BOXES

 

	
   

  	
   

  	
   

  	
   

  	
  Lock-Boxes or

  
	
  Lock-Box
  Banks

  	
   

  	
  Lock-Box Accounts

  	
   

  	
  Post Office Boxes

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The
  Northern Trust

  	
   

  	
   

  	
   

  	
   

  
	
  Company

  	
   

  	
  30142765

  	
   

  	
  93501

  
	
   

  	
   

  	
  34496768

  	
   

  	
  96365

  
	
   

  	
   

  	
  30296768

  	
   

  	
  92545

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Manufacturers
  and Traders

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Trust
  Company

  	
   

  	
  368636

  	
   

  	
  N/A

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Wachovia
  Bank, National

  	
   

  	
   

  	
   

  	
   

  
	
  Association

  	
   

  	
  2090002602825

  	
   

  	
  951613

  
	
   

  	
   

  	
  2090002602799

  	
   

  	
  951679

  
	
   

  	
   

  	
  2090002602799

  	
   

  	
  932445

  
	
   

  	
   

  	
  2090002602757

  	
   

  	
  53288

  
	
   

  	
   

  	
  2090002602757

  	
   

  	
  932442

  
	
   

  	
   

  	
  2090002602731

  	
   

  	
  79242

  
	
   

  	
   

  	
  2090002602731

  	
   

  	
  53268

  
	
   

  	
   

  	
  2090002602728

  	
   

  	
  951606

  

 

 

SCHEDULE III

TRADE NAMES

 

None

 

 

SCHEDULE IV

CREDIT AND COLLECTION POLICY

 

(Attached)

 

 

ANNEX A

 

FORM OF INVESTMENT NOTICE

 

[Date]

 

Norddeutsche
Landesbank Girozentrale

1114
Avenue of the Americas

New
York, New York  10036

Attention:  Asset Backed Finance

 

Re:                               Manitowoc Funding, LLC —
Investment Notice

 

Ladies
and Gentlemen:

 

Please
refer to the Second Amended and Restated Receivables Purchase Agreement dated
as of June 30, 2010 (as amended, amended and restated, supplemented or
otherwise modified from time to time, the “Agreement”) among Manitowoc
Funding, LLC, as Seller, The Manitowoc Company, Inc., as Servicer,
Norddeutsche Landesbank Girozentrale, as Agent and Hannover Funding Company
LLC, as Purchaser.  Capitalized terms
defined in the Agreement and used herein without definition have the meanings
set forth in the Agreement.

 

Pursuant
to Section 1.2(a) of the Agreement:

 

1.             The Seller hereby gives notice to
the Agent of a proposed Investment with the requested amount of Capital and
Investment Date below:

 

	
  ·

  	
  Amount
  of Capital:

  	
  $[    ]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ·

  	
  Investment
  Date:

  	
  [    ]

  	
   

  

 

2.             The Seller hereby represents and
warrants that:

 

·                                          the Net
Outstanding Balances of the Receivables in the Net Eligible Pool is $                .

·                                          the Eligible
Unapplied Cash and Credits is
$                      .

·                                          the Net
Eligible Pool Balance is
$                      .

·                                          After giving
effect to such requested Investment, the Purchased Assets Coverage Percentage
will be $                    .

 

A-1

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MANITOWOC
  FUNDING, LLC,

  
	
   

  	
  as
  Seller

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

A-2

 

ANNEX B

 

FORM OF MONTHLY REPORT

 

B-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]