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    EXHIBIT 10.4

EMPLOYMENT AGREEMENT

         This Employment Agreement (this "Agreement") is by and between Umpqua Holdings Corporation ("Umpqua") and Barbara Baker ("Officer"), effective as of March
10, 2006. 

         1. PURPOSE AND DURATION OF AGREEMENT. The purpose of this Agreement is to set forth the terms of Officer's employment with Umpqua and
to provide Officer benefits in certain circumstances where Officer's employment is terminated or a Change in Control (defined below) occurs. This Agreement, including the severance provisions governed by ERISA, shall expire on September 15, 2008. This Agreement supersedes the Terms of Employment and Severance Agreement between Umpqua and Officer dated September
15, 2003. 

         2. EMPLOYMENT. Umpqua, either directly or through one of its wholly owned subsidiaries, employs the Officer and the Officer accepts
that employment on the terms and conditions contained in this Agreement. 

         3. NO TERM OF EMPLOYMENT. Notwithstanding the term of this Agreement, Umpqua may terminate Officer's employment at any time for any
lawful reason or for no reason at all, subject to the provisions of this Agreement. 

        4. DUTIES; POSITION. 

               
4.1 Position. Officer shall be employed as Executive Vice President/Cultural
Enhancement, and will perform such duties as may be designated by Umpqua's Board of Directors (the "Board") or Umpqua's Chief Executive Officer to whom Officer will directly report (the "Supervisor").

                4.2
Obligations of Officer

                        a. Officer agrees that to the best of Officer's ability and experience, Officer will at all times loyally and conscientiously perform all of the
duties and obligations required of Officer pursuant to the express and implicit terms of this Agreement and as directed by the Board or the Supervisor.

                        b. Officer shall devote Officer's entire working time, attention and efforts to Umpqua's business and affairs, shall faithfully and diligently serve Umpqua's interests and shall not engage
in any business or employment activity that is not on Umpqua's behalf (whether or not pursued for gain or profit) except for (a) activities approved in writing in advance by the Board and (b) passive investments that do not involve Officer providing
any advice or services to the businesses in which the investments are made. 

         5. BASE COMPENSATION. For services performed under this Agreement, Officer shall be entitled to $14,167 per month
($170,000 on annualized basis) ("Base Salary"), which Umpqua may increase in its sole discretion, as well as perquisites provided to Umpqua's officers. Officer shall be entitled to participate, under the terms of the respective
plans, in the bonus compensation plans, group health insurance, long-term disability insurance, as well as such other compensation or benefits as approved by the Board. Officer is entitled to four weeks vacation per year. 

         6. TERMINATION. Officer's employment may be terminated before the expiration of this
Agreement as described in this Section, in which event Officer's compensation and benefits shall terminate except as otherwise provided in this Agreement. 

                   6.1 For Cause. Upon Umpqua's termination of Officer's employment for Cause (as defined in Section 7.1 below) ("Termination For
Cause").

                   6.2 Without Cause. Upon Umpqua's termination of Officer's employment without Cause, with or without notice, at any time in Umpqua's
sole discretion, for any reason (other than for 

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Cause, death, or Disability) or for no reason ("Termination Without Cause"). A Change in Control does not in itself constitute Termination Without Cause. 

                   6.3 For Good Reason. Upon Officer's termination of the employment for Good Reason (as defined in Section 7.2 below) ("Termination For
Good Reason"). 

                6.4 
Death or Disability. Upon Officer's death or Disability (as defined in Section 7.3 below).  

                6.5 
Resignation. Upon Officer's voluntary resignation in writing, which shall be given to Umpqua at least 60 days prior to the effective date of such resignation ("Resignation"); provided, Resignation shall not be permitted if an event has occurred that would give rise to Termination for Cause.

        7. DEFINITIONS. 

               
7.1 Cause.
For the purposes of this Agreement, "Cause" for Officer's termination wil exist upon the occurrence of one or more of the following events:

                         a. Dishonest or fraudulent conduct by Officer with respect to the performance of Officer's duties with Umpqua; 

                         b. Conduct by Officer that materially discredits Umpqua or any of its subsidiaries or is materially detrimental to the reputation of Umpqua or any of its subsidiaries, including but not
limited to conviction or a plea of nolo contendere of Officer of a felony or crime involving moral turpitude; 

                         c. Officer's willful misconduct or gross negligence in performance of Officer's duties under this Agreement, including but not limited to Officer's refusal to comply in any material
respect with the legal directives of the Board or the Supervisor, if such misconduct or negligence has not been remedied or is not being remedied to the Board's reasonable satisfaction within thirty (30) days after written notice, including a
detailed description of the misconduct or negligence, has been delivered by the Board to Officer; 

                         d. An order or directive from a state or federal banking regulatory agency requesting or requiring removal of Officer or a finding by any such agency that Officer's performance threatens
the safety or soundness of Umpqua or any of its subsidiaries; or 

                         e. A material breach of Officer's fiduciary duties to Umpqua if such breach has not been remedied or is not being remedied to the Board's reasonable satisfaction within thirty (30) days
after written notice, including a detailed description of the breach, has been delivered by the Board to Officer. 

                   7.2 Good Reason. For purposes of this Agreement, "Good Reason" for Officer's resignation of employment will exist upon the occurrence
of one or more of the following events, without Officer's consent, if Officer has informed Umpqua in writing of the circumstances described below in this Section that could give rise to resignation for Good Reason and Umpqua has not removed the
circumstances within thirty (30) days of the written notice: 

                             (a) A material reduction of Officer's Base Salary, unless the reduction is in connection with, and commensurate with, reductions in the salaries of all or substantially all senior officers of Umpqua; or 

                             (b) A requirement for Officer to relocate to a facility or location more than 30 miles from the location where Officer is currently employed. 

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                   7.3 Disability. For purposes of this Agreement, "Disability" shall mean that (i) Officer has been unable to perform Officer's duties
under this Agreement as a result of Officer's incapacity due to physical or mental illness for at least 90 consecutive calendar days or 150 calendar days during any consecutive 12 month period and (ii) a physician selected by Umpqua and its insurers
and acceptable to Officer or Officer's legal representative (with such agreement on acceptability of the physician not to be unreasonably withheld), determines the incapacity to be (a) total and permanent and (b) prohibiting of Officer's ability to
perform the essential functions of Officer's position with or without reasonable accommodation. 

                   7.4 Change in Control. For purposes of this Agreement, a "Change in Control" shall be deemed to have occurred when any of the
following events take place: 

                             (a) Any person (including any individual or entity), or persons acting in concert, become(s) the beneficial owner of voting shares representing fifty percent (50%) or more of Umpqua; 

                             (b) A majority of the Board is removed from office by a vote of the Umpqua's shareholders over the recommendation of the Board then serving; or 

                             (c) Umpqua is a party to a plan of merger or plan of exchange and upon consummation of such plan, the shareholders of Umpqua immediately prior to the transaction do not own or continue to own (i) at least forty
percent (40%) of the shares of the surviving company (if the then current CEO of Umpqua continues as CEO of the surviving organization), or (ii) at least a majority of the shares of the surviving organization (if the then current CEO of Umpqua does
not continue as CEO of the surviving organization). 

         8. PAYMENT UPON TERMINATION. Upon termination of Officer's employment for any of the reasons set forth in Section 6 above, Officer
will receive payment for all Base Salary and benefits accrued as of the date of Officer's termination ("Earned Compensation"), which shall be paid by the end of the business day following termination or sooner if required by applicable law.

         9. SEVERANCE BENEFIT. In the event of Termination Without Cause or Termination for Good Reason, in addition to receiving Earned
Compensation, Officer will receive a severance benefit equal to the greater of (i) nine (9) months Base Salary, based on Officer's Base Salary just prior to termination or (ii) two weeks salary for every year of employment with Umpqua (the
"Severance Benefit"). Subject to Section 12.3 below, the Severance Benefit shall be paid in equal installments over the number of months of continued Base Salary, starting on the next regular payday following termination. Receipt of the Severance
Benefit is conditioned on Officer having executed the Separation Agreement in substantially the form attached hereto as Exhibit A and the revocation period having
expired without Officer having revoked the Separation Agreement. Receipt and continued receipt of the Severance Benefit is further conditioned on Officer not being in violation of any material term of this Agreement or in violation of any material
term of the Separation Agreement. Officer shall not be required to mitigate the amount of any payments under this Section (whether by seeking new employment or otherwise) and no such payment shall be reduced by earnings that Officer may receive from
any other source. 

         10. CHANGE IN CONTROL BENEFIT. After announcement of a proposed Change in Control and for
a period continuing for one year following a Change in Control, in the event of Termination Without Cause, Termination For Good Reason, or Resignation within 30 days after reassignment to a position that is not substantially equivalent, instead of
receiving the Severance Benefit set forth in Section 9 above, Officer shall receive 24 months Base Salary, based on Officer's Base Salary just prior to the termination of employment, as well as 200% of the incentive compensation Officer received for
services performed in the previous year (the aforementioned Base Salary and incentive are collectively referred to as the "Change in Control Benefit"). Subject to Section 12.3 below, the Change in Control Benefit shall be paid in equal installments
over 24 months, starting on the next regular payday following termination.

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Receipt of the Change in Control Benefit is conditioned on Officer having executed the Separation Agreement in substantially the form attached hereto as Exhibit A and the revocation period having expired without
Officer having revoked the Separation Agreement. Receipt and continued receipt of the Change in Control Benefit is further conditioned on Officer not being in violation of any material term of this Agreement or in violation of any material term of
the Separation Agreement. Officer shall not be required to mitigate the amount of any payments under this Section (whether by seeking new employment or otherwise) and no such payment shall be reduced by earnings that Officer may receive from any
other source.

         11. CHANGE IN CONTROL RETENTION INCENTIVE. If Officer remains employed for 12 months
following a Change in Control, Officer will receive twelve (12) months Base Salary and 100% of the incentive compensation Officer received for services performed in the previous year (the aforementioned Base Salary and incentive are collectively
referred to as the "Retention Incentive"). The Retention Incentive shall be paid in equal installments over twelve (12) months, starting on the next regular payday following the first anniversary of the Change in Control. Receipt of the Retention
Incentive is conditioned on Officer not being in violation of any material term of this Agreement. If Officer receives a benefit under this Section 11, such benefit shall cease when Officer begins to receive any benefit under Section 10. 

        12. LIMITATION ON BENEFITS. 

               
12.1 IRC 280G Adjustment.
If the benefit payments under this Agreement, either alone or together with other payments to which the Officer is entitled to receive from Umpqua, would constitute an "excess parachute payment" as defined in Section 280G of the Internal Revenue Code of 1986, as amended
(the "Code"), such benefit payments shall be reduced to the largest amount that will result in no portion of benefit payments under this Agreement being subject to the excise tax imposed by Section 4999 of the Code. The determination of any
reduction in the benefit payments pursuant to the foregoing provisions, shall be made by mutual agreement of Umpqua and Officer or if no agreement is possible, by the Umpqua's accountants. 

                   12.2 Limitation on Severance or Change in Control Benefit. Notwithstanding any other provision in this Agreement, Umpqua shall make
no payment of any benefit provided for herein to the extent that such payment would be prohibited by the provisions of Part 359 of the regulations of the Federal Deposit Insurance Corporation (the "FDIC") as the same may be amended from time to
time, and if such payment is so prohibited, the Umpqua shall use its best efforts to secure the consent of the FDIC or other applicable banking agencies to make such payments in the highest amount permissible, up to the amount provided for in this
Agreement. 

                   12.3 IRC 409A. To the extent the Severance Benefit or Change in Control Benefit is subject to Section 409A of the Code and Executive
is deemed to be a "specified employee" within the meaning of Section 409A(a)(2)(B)(i) of the Code, commencement of payment of the Severance Benefit shall be delayed for six (6) months following Executive's termination of employment and the first
installment payment made in the seventh month following termination of employment shall equal the aggregate installment payments Executive would have received during the first six months of the Installment Period (the "Aggregate Payments"), plus the
payment Executive is otherwise entitled to receive for the seventh month of the Installment Period. If Umpqua or Officer believe, at any time, that this Agreement does not comply with Section 409A, it will promptly advise the other party and will
negotiate reasonably and in good faith to amend the terms of the Agreement, with the most limited possible economic effect on Umpqua and Officer, such that it complies.

        13.
EXECUTIVE SEVERANCE PLAN

               
13.1 In General. Those provisions of this Agreement (including this Section) related to the Severance Benefit set forth in Section 9 and Change in Control Benefit set forth in Section 10 constitute part of the terms of the Umpqua Holdings Corporation Executive Severance Plan (the 

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"Executive Severance Plan") with respect to the Officer, and such terms and the general terms of the Executive Severance Plan established by Umpqua shall comprise the entirety of the Executive Severance Plan as it
applies to the Officer. Umpqua intends for the Plan to be considered a welfare benefit plan within the meaning of Section 3(1) of the Employee Retirement Income Security Act ("ERISA"), and a plan which is unfunded and maintained by the Umpqua solely
for the purpose of providing benefits for a select group of management or highly compensated employees within the meaning of ERISA Regulation Section 2520.104 -24. A copy of the Executive Severance Plan will be furnished to the Officer upon request.

                   13.2 Administration of Executive Severance Plan. Umpqua's Chief Executive Officer and Human Resources Director are each plan
administrators (the "Plan Administrator") of the Executive Severance Plan and the Plan Administrator shall have the discretionary authority to administer and construe the terms of the Executive Severance Plan, including the authority to decide if
Officer is entitled to the Severance Benefit, Change in Control Benefit, or Retention Incentive and the authority to determine if there is Termination For Cause or Termination For Good Reason. 

                   13.3 Claims Procedures. The Officer may file a claim for a payment under the Executive Severance Plan by filing a written request for
such a payment with the Plan Administrator. If the Plan Administrator prescribes a form for such a claim, the claim must be filed on such form. The claim should be sent to the attention of the Plan Administrator of the Executive Severance Plan at
the address set forth for Umpqua in Section 20. 

                   If the Plan Administrator denies the claim, in whole or in part, the Plan Administrator shall notify the Officer within 90 days of the Plan Administrator's receipt of the claim, unless the Plan Administrator
determines that special circumstances require an extension of time for processing the claim. If the Plan Administrator determines that an extension of time is required, written notice of the extension shall be furnished to Officer prior to the
termination of the initial 90-day period. Such extension notice shall indicate the special circumstances and the date by which the Plan Administrator expects to issue a determination with respect to the claim. The period of the extension will not
exceed 90 days beyond the termination of the original 90-day period. If the Plan Administrator does not provide written notice, Officer may deem the claim denied and seek review according to the appeals procedures set forth below. 

               
The notice of denial of Officer's claim shall state:

                        a.     the specific reasons for the denial; 

                        b.     specific references to pertinent provisions of the Executive Severance Plan on which the denial was based; 

                        c.     a description of any additional material or information needed for Officer to perfect his or her claim and an explanation of why the material or information is needed; and 

                        d.     a statement (1) that Officer may request a review upon written application to the Plan Administrator, review or receive (free of charge) pertinent Plan documents and records, and submit issues and comments in
writing, (2) that any appeal that Officer wishes to make of the adverse determination must be in writing to the Plan Administrator within sixty (60) days after the Officer receives notice of denial of benefits, and (3) that Officer may bring a civil
action under ERISA Section 502(a) following an adverse benefit determination upon review. 

                 The notice of denial of benefits shall specify that Officer must forward any appeal to the Plan Administrator at the address provided in such notice. The notice may state that failure to appeal the action to the Plan
Administrator in writing within the sixty (60) day period will render the determination final, binding and conclusive. 

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                 If Officer appeals to the Plan Administrator, Officer may submit in writing whatever issues and comments he or she believes to be pertinent. The Plan Administrator shall reexamine all facts related to the appeal and
make a final determination about whether the denial of benefits is justified under the circumstances. The Plan Administrator shall advise Officer in writing of: 

                        a.     
its decision on appeal; 

                        b.     
the specific reasons for the decision; 

                        c.     
the specific provisions of the Plan on which the decision is based; and

                        d.     
Officer's right to receive, upon request and free of charge, reasonable access to,
and copies of, all relevant documents and
records.

                 Notice of the Plan Administrator's decision shall be given within sixty (60) days of Officer's written request for review, unless additional time is required due to special circumstances. In no event shall the Plan
Administrator render a decision on an appeal later than one hundred twenty (120) days after receiving a request for a review. If the Plan Administrator fails to provide a decision with respect to Officer's appeal within the 60 (or, if applicable,
120) day period Officer may deem his or her appeal denied and may pursue the arbitration remedy set forth below. 

                 In the event that Officer fails to pursue his or her administrative remedies as set forth above within the specified periods, he shall have no further right to the benefits subject to his or her claim and agrees by
executing this Agreement that he or she shall have no right to pursue such claim in arbitration or in a court of law. 

                 For purposes of this Claims Procedure under the Executive Severance Plan, Officer may act through a representative authorized in writing to act on his behalf, provided that such authorization is furnished to the Plan
Administrator. 

                 In the event that Umpqua denies the Officer's appeal of the denial of his or her claim, in whole or in part, Umpqua and Officer's may agree to submit the Plan Administrator's decision to binding arbitration in lieu of
Officer's right to pursue his claim in any court of law. 

        14.
NONCOMPETITION 

                14.1 Competition Restriction. During Officer's employment and for the period of time in
which Officer is entitled to payment of a Severance Benefit, Change in Control Benefit, or Retention Incentive, Officer shall not engage in any activity as an officer, director, owner (except for an ownership of less
than three percent (3%) of any publicly traded security), employee, consultant, or otherwise of a financial services company with an office or doing business within 50 miles of any office or branch of Umpqua or of any of its subsidiaries in
existence at the time of termination of Officer's employment. 

                   14.2 Consequence of Breach. If Officer breaches this covenant not to compete, Umpqua's
sole remedy is that Officer shall forfeit any remaining payments under the Severance Benefit, Change in Control Benefit, or Retention Incentive, to which Officer is entitled under this Agreement.

                   14.3 Subsequent Employer Notification. Officer agrees to give Umpqua, at the time of
termination of employment, a declaration under penalty of perjury of the name of Officer's new employer, if known, or if not known, that subsequent employer is not known. Officer further agrees to disclose to Umpqua, during the period of payment of
any benefit under this Agreement, the name of any subsequent employer, wherever located and regardless of whether such employer is a competitor of Umpqua.

         15. NON-SOLICITATION. For a period of two (2) years following termination of employment
(the "Restriction Period"), Officer shall not solicit any customer of Umpqua or of any of its subsidiaries for 

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services or products then provided by Umpqua or any of its subsidiaries. For purposes of this Section, "customers" are defined as (a) all customers serviced by Umpqua or any of Umpqua's subsidiaries at any time within
12 months before termination of Officer's employment, (b) all customers and potential customers whom Umpqua or any of Umpqua's subsidiaries, with the knowledge or participation of Officer, actively solicited at any time within 12 months before
termination of Officer's employment, and (c) all successors, owners, directors, partners and management personnel of the customers just described in (a) and (b). 

         16. NONRAIDING OF EMPLOYEES. Officer recognizes that Umpqua's workforce is a vital part of its business; therefore, Officer agrees
that for the Restriction Period, Officer will not to directly or indirectly solicit any employee to leave his or her employment with Umpqua or any of Umpqua's subsidiaries. This includes that Officer will not (a) disclose to any third party the
names, backgrounds or qualifications of any Umpqua or any of Umpqua subsidiary's employees or otherwise identify them as potential candidates for employment, or (b) personally or through any other person approach, recruit, interview or otherwise
solicit employees of Umpqua or any of Umpqua's subsidiaries to work for any other employer. For purposes of this Section, employees include all employees working for Umpqua or any of Umpqua's subsidiaries at the time of termination of Officer's
employment. 

         17. CONFIDENTIAL INFORMATION. The parties acknowledge that in the course of Officer's duties, Officer will have access to and become
familiar with certain proprietary and confidential information of Umpqua and its subsidiaries not known by its actual or potential competitors. Officer acknowledges that such information constitutes valuable, special, and unique assets of Umpqua's
business, even though such information may not be of a technical nature and may not be protected under trade secret or related laws. Officer agrees to hold in a fiduciary capacity and not use for Officer's benefit, nor reveal, communicate, or
divulge during the period of Officer's employment with Umpqua or at any time thereafter, and in any manner whatsoever, any such data and confidential information of any kind, nature, or description concerning any matters affecting or relating to
Umpqua's business, its customers, or its services, including information developed by Officer, alone or with others, or entrusted to Umpqua by its customers or others, to any person, firm, entity, or company other than Umpqua or persons, firms,
entities, or companies designated by Umpqua. Officer agrees that all memoranda, notes, records, papers, customer files, and other documents, and all copies thereof relating to Umpqua's operations or business, or matters related to any of Umpqua's
customers, some of which may be prepared by Officer, and all objects associated therewith in any way obtained by Officer, shall be Umpqua's property ("Umpqua Property"). Upon termination or at Umpqua's request, Officer shall promptly return all the
Umpqua Property to Umpqua. 

         18. REASONABLENESS OF RESTRICTION PERIOD; EQUITABLE RELIEF. Officer acknowledges and
agrees that the restrictive covenants in Sections 14, 15, 16, and 17 are fair and reasonable and are the result of negotiation between Umpqua and Officer (and Officer's counsel, if Officer has sought the benefit of counsel). Officer further
acknowledges and agrees that the covenants and obligations in this Agreement relate to special, unique, and extraordinary matters and that a violation of any of the terms of the covenants and obligations will cause irreparable injury to Umpqua, for
which adequate remedies are not available at law. Therefore, Officer agrees that Umpqua shall be entitled to an injunction, restraining order, or such other equitable relief as a court of competent jurisdiction may deem necessary or appropriate to
restrain the Officer from committing any violation of the covenants and obligations set forth in Sections 14.3, 15, 16 and 17 of this Agreement. These injunctive remedies are cumulative and are in addition to any other rights and remedies Umpqua may
have at law or in equity. If Umpqua institutes an action to enforce the provisions hereof, Officer hereby waives the claim or defense that an adequate remedy at law is available, and Officer agrees not to urge in any such action the claim or defense
that an adequate remedy at law exists. 

        19. 
DISPUTE RESOLUTION 

                19.1 Arbitration. Except where such matters are deemed governed by ERISA and are the subject to Section 13 above, the parties agree to submit any dispute arising under this Agreement to

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final, binding, private arbitration in Portland, Oregon. The disputes subject to arbitration include not only disputes involving the meaning or performance of the Agreement, but disputes about its negotiation,
drafting, or execution. The dispute will be determined by a single arbitrator and governed by then-existing rules of arbitration procedure in Multnomah County Circuit Court except as set forth herein. Instead of filing of a civil complaint in
Multnomah County Circuit Court, a party will commence the arbitration process by noticing the other party. The parties will choose an arbitrator who specializes in employment conflicts from the arbitration list for Multnomah County Circuit Court. If
the parties are unable to agree on an arbitrator within ten (10) days of receipt of the list of arbitrators, each party will select one attorney from the list, and those two attorneys shall select the arbitrator from the list (with each of the two
selecting attorneys then concluding their services and each being compensated by the party selecting each attorney, subject to recovery of such fees under Section 19.2) . The arbitrator may charge his or her standard arbitration fees rather than the
fees prescribed in the Multnomah County Circuit Court arbitration procedures. The arbitrator will have full authority to determine all issues, including arbitrability, to award any remedy, including permanent injunctive relief, and to determine any
request for attorneys' fees, costs and expenses in accordance with Section 19.2. There shall be no right of review in court. The arbitrator's award may be reduced to final judgment or decree in Multnomah County Circuit Court.

                   19.2 Expenses/Attorneys' Fees. The prevailing party shall be awarded all costs and expenses of the proceeding, including, but not
limited to, attorneys' fees, filing and service fees, witness fees, and arbitrators' fees. If arbitration is commenced, the arbitrator will have full authority and complete discretion to determine the "prevailing party" and the amount of costs and
expenses to be awarded. 

                   19.3 Injunctive Relief. Notwithstanding any other provision of this Agreement, an aggrieved party may seek a temporary restraining
order or preliminary injunction in Multnomah County Circuit Court to preserve the status quo during the arbitration proceeding, provided however, that the party seeking relief agrees that ultimate resolution of the dispute will still be determined
through arbitration and not through court process. The filing of the court action for injunctive relief shall not hinder or delay the arbitration process. 

         20. NOTICES. All notices, requests, demands, and other communications provided for by
this Agreement will be in writing and shall be deemed sufficient upon receipt, when delivered personally or by a nationally-recognized delivery service (such as Federal Express), or three (3) business days after being deposited in the U.S. mail as
certified mail, return receipt requested, with postage prepaid, if such notice is properly addressed. Unless otherwise changed in writing, notice shall be properly addressed to Officer if addressed to the address of Officer on Umpqua's books and
records at the time of mailing of such notice, and properly addressed to Umpqua if addressed to Umpqua Holdings Corporation, One SW Columbia, Suite 1200, Portland, Oregon 97258, Attention: Chief Executive Officer. 

        21. BENEFICIARIES.

                21.1 Beneficiary Designations. The Officer shall designate a beneficiary by filing
a
written designation with Umpqua. The Officer may revoke or modify the designation at any time by filing a new designation. However, designations will only be effective if signed by the Officer and received by Umpqua
during the Officer's lifetime. The Officer's beneficiary designation shall be deemed automatically revoked if the beneficiary predeceases the Officer or if the Officer names a spouse as beneficiary and the marriage is subsequently dissolved. If the
Officer dies without a valid beneficiary designation, all payments shall be made to the Officer's estate. 

                  21.2 Facility of Payment.  If a benefit is payable to a minor, to a person declared incompetent, or to a person incapable of handling the disposition of his or her property, Umpqua may pay such benefit to the
guardian, legal representative or person having the care or custody of such minor, incompetent person or incapable person. Umpqua may require proof of incompetence, minority or guardianship as it may deem appropriate prior to distribution of the
benefit. Such distribution shall completely discharge Umpqua from all liability with respect to such benefit. 

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        22. GENERAL PROVISIONS.

                22.1 Governing Law. The validity, interpretation, construction and performance of this Agreement shall be governed by federal ERISA, as it relates to the Severance Benefit and Change in Control Benefit as discussed in Section 13 above, and otherwise by the laws of the State of Oregon. 

                   22.2 Saving Provision. If any part of this Agreement is held to be unenforceable, it shall not affect any other part. If any part of
this Agreement is held to be unenforceable as written, it shall be enforced to the maximum extent allowed by applicable law.

                   22.3 Survival Provision. If any benefits provided in Sections 9, 10, or 11 of this Agreement are still owed, or claims pursuant to
Section 13 are still pending, at the time of termination of this Agreement, this Agreement shall continue in force, with respect to those obligations or claims, until such benefits are paid in full or claims are resolved in full. The noncompetition,
nonsolicitation, non-raiding, confidential information, and dispute resolution provisions of this Agreement shall survive after termination of this Agreement, and shall be enforceable regardless of any claim Officer may have against Umpqua.

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

                   22.5 Entire Agreement. This Agreement constitutes the sole agreement of the parties regarding Officer's benefits in the event of
termination or Change in Control and together with Umpqua's employee handbook governs the terms of Officer's employment. Where there is a conflict between the employee handbook and this Agreement, the terms of this Agreement shall govern.

                   22.6 Previous Agreements. This Agreement supersedes all prior oral and written agreements between the Officer and Umpqua, or any
affiliates or representatives of Umpqua regarding the subject matters set forth herein. 

                   22.7 Waiver/Amendment. No waiver of any provision of this Agreement shall be valid unless in writing, signed by the party against
whom the waiver is sought to be enforced. The waiver of any breach of this Agreement or failure to enforce any provision of this Agreement shall not waive any later breach. This Agreement may only be amended by a writing signed by the parties.

                   22.8 Assignment. Officer shall not assign or transfer any of Officer's rights pursuant to this Agreement, wholly or partially, to any
other person or to delegate the performance of its duties under the terms of this Agreement. The rights and obligations of Umpqua under this Agreement shall inure to the benefit of and be binding in each and every respect upon the direct and
indirect successors and assigns of Umpqua, regardless of the manner in which the successors or assigns succeed to the interests or assets of Umpqua. This Agreement shall not be terminated by the voluntary or involuntary dissolution of Umpqua, by any
merger, consolidation or acquisition where Umpqua is not the surviving corporation, by any transfer of all or substantially all of Umpqua's assets, or by any other change in Umpqua's structure or the manner in which Umpqua's business or assets are
held. Officer's employment shall not be deemed terminated upon the occurrence of one of the foregoing events. In the event of any merger, consolidation or transfer of assets, this Agreement shall be binding upon and shall inure to the benefit of the
surviving corporation or the corporation to which the assets are transferred. 

                 23. ADVICE OF COUNSEL. Officer acknowledges that, in executing this Agreement, Officer
has had the opportunity to seek the advice of independent legal counsel, and has read and understood all of the terms and provisions of this Agreement. This Agreement shall not be construed against any party by reason of the drafting or preparation
hereof. 

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UMPQUA HOLDINGS CORPORATION
	
 	
 
                                 		
By: 

/s/ Raymond P. Davis          

	
	
 
   	
 		
      Raymond P. Davis,
Chief Executive Officer  
	
 	
 	
 	
 	
 
	
 	
 	
 	
 	
OFFICER
	
 	
 	
 	
 	
      

/s/ Barbara Baker             

 

	
	
 	
 	
 	
 	
       Barbara Baker

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Exhibit A

EMPLOYMENT SEPARATION AGREEMENT AND RELEASE OF CLAIMS

         This is a confidential agreement (this "Separation Agreement") between you, _______________, and us, Umpqua Holdings Corporation. This Separation Agreement is dated for reference purposes _____________, 20___, which is the date we delivered this Separation Agreement to you for your consideration. For purposes of this Separation Agreement Umpqua Holdings Corporation together with each of its subsidiaries or affiliates is
referred to as "Umpqua." 

         1.  Termination of Employment.  Your employment terminates [or was terminated] on _______________, 20___ (the "Separation Date"). 

         2. Payments. In exchange for your agreeing to the release of claims and other terms in this Separation Agreement, we will pay you the Severance Benefit specified in Section
9 or the Change in Control Benefit specified in Section 10, as appropriate, of the Agreement between you and Umpqua dated __________________(the "Employment Agreement") on the dates provided therein (or on such other date or dates as may be
mutually agreed upon by you and Umpqua or our successor).  Such provisions of the Employment Agreement are incorporated herein by reference. You acknowledge that we are not obligated to make these payments to you unless you comply with the
noncompetition provision in Section 14 of the Employment Agreement, which is incorporated herein by reference and otherwise comply with the material terms of the Employment Agreement and of this Separation Agreement. 

         3. COBRA Continuation Coverage. Your normal employee participation in Umpqua's group health coverage will terminate on the Separation Date. Continuation of group health
coverage thereafter will be made available to you and your dependents pursuant to federal law (COBRA). Continuation of group health coverage after the Separation Date is entirely at your expense, as provided under COBRA. 

         4. Termination of Benefits.  Except as provided in Section 3 above, your participation in all employee benefit plans and programs ended on the Separation Date.  Your rights
under any pension benefit or other plans in which you may have participated will be determined in accordance with the written plan documents governing those plans. 

        5. Full Payment.  You acknowledge having received full payment of all compensation of any kind (including wages, salary, vacation,
sick leave, commissions, bonuses and incentive compensation) that you earned as a result of your employment by us. 

         6. No Further Compensation. Any and all agreements to pay you bonuses or other incentive compensation are terminated. You understand and agree that you have no right to
receive any further payments for bonuses or other incentive compensation. We owe no further compensation or benefits of any kind, except as described in Section 2 above. 

        7. Release of Claims.

                (a) You hereby release (i) Umpqua and its subsidiaries, affiliates, and benefit plans,
(ii) each of Umpqua's past and present shareholders, officers, directors, agents, employees, representatives, administrators, fiduciaries and attorneys, and (iii) the predecessors, successors, transferees and assigns of each of the persons and
entities described in this sentence, from any and all claims of any kind, known or unknown, that arose on or before the date you signed this Separation Agreement. 

                 (b) The claims you are releasing include, without limitation, claims of wrongful termination, claims of constructive discharge, claims arising out of employment agreements, representations or policies related to your
employment, claims arising under federal, state or local laws or ordinances prohibiting discrimination or harassment or requiring accommodation on the basis of age, race, color, national origin, religion, sex, disability, marital status, sexual
orientation or any other status, claims of failure to accommodate a disability or religious practice, claims for violation of public policy, claims of retaliation, claims of failure to assist you in applying for future position openings, claims of
failure to hire you for future position openings, claims for wages or compensation of any kind (including overtime claims), claims of tortious interference with contract or expectancy, claims of fraud or negligent misrepresentation, claims of breach
of privacy, defamation claims, claims of intentional or negligent infliction of emotional distress, claims of unfair labor practices, claims arising out of any claimed right to stock or stock options, claims for attorneys' fees or costs,

11

and any other claims that are based on any legal obligations that arise out of or are related to your employment relationship with us. 

                 (c) You specifically waive any rights or claims that you may have under the Oregon Civil Rights and Unlawful Employment Practices Statutes (ORS Chapter 659), the Oregon Wage and Hour Laws (ORS Chapter 652), the Civil
Rights Act of 1964 (including Title VII of that Act), the Equal Pay Act of 1963, the Age Discrimination in Employment Act of 1967 (ADEA), the Americans with Disabilities Act of 1990 (ADA), the Fair Labor Standards Act of 1938 (FLSA), the Family and
Medical Leave Act of 1993 (FMLA), the Worker Adjustment and Retraining Notification Act (WARN), the Employee Retirement Income Security Act of 1974 (ERISA), the National Labor Relations Act (NLRA), and all similar federal, state and local laws.

                 (d) You agree not to seek any personal recovery (of money damages, injunctive relief or otherwise) for the claims you are releasing in this Separation Agreement, either through any complaint to any governmental agency
or otherwise. You agree never to start any lawsuit or arbitration asserting any of the claims you are releasing in this Separation Agreement. You represent and warrant that you have not initiated any complaint, charge, lawsuit or arbitration
involving any of the claims you are releasing in this Separation Agreement. Should you apply for future employment with Umpqua, Umpqua has no obligation to consider you for future employment. 

                 (e) You represent and warrant that you have all necessary authority to enter into this Separation Agreement (including, if you are married, on behalf of your marital community) and that you have not transferred any
interest in any claims to your spouse or to any third party. 

                 (f) This Separation Agreement does not affect your rights, if any, to receive pension plan benefits, medical plan benefits, unemployment compensation benefits or workers' compensation benefits. This Separation
Agreement also does not affect your rights, if any, under agreements, bylaw provisions, insurance or otherwise, to be indemnified, defended or held harmless in connection with claims that may be asserted against you by third parties. 

                 (g) You understand that you are releasing potentially unknown claims, and that you have limited knowledge with respect to some of the claims being released. You acknowledge that there is a risk that, after signing
this Separation Agreement, you may learn information that might have affected your decision to enter into this Separation Agreement. You assume this risk and all other risks of any mistake in entering into this Separation Agreement. You agree that
this release is fairly and knowingly made. 

                 (h) You are giving up all rights and claims of any kind, known or unknown, except for the rights specifically given to you in this Separation Agreement. 

        8. No Admission of Liability. Neither this Separation Agreement nor the payments made under this Separation Agreement are an admission
of liability or wrongdoing by Umpqua. 

         9. Umpqua Materials. You represent and warrant that you have, or no later than the Separation Date will have, returned all keys, credit cards, documents and other materials
that belong to us, including but not limited to the Umpqua Property, as defined in Section 17 of the Employment Agreement, which definition is incorporated herein by reference. 

         10.  Nondisclosure Agreement.  You will comply with the covenant regarding confidential information in Section 17 of the Employment Agreement, which covenant is
incorporated herein by reference. 

         11. No Disparagement. You may not disparage Umpqua or Umpqua's business or products, and may not encourage any third parties to sue Umpqua. 

         12. Cooperation Regarding Other Claims. If any claim is asserted by or against Umpqua as to which you have relevant knowledge, you will reasonably cooperate with us in the
prosecution or defense of that claim, including by providing truthful information and testimony as reasonably requested by us. 

         13. Noncompetition; Nonsolicitation; No interference. During the Restriction Period, as defined in Section 15 of the Employment Agreement, you will comply with Sections 14,
15, and 16 of the Employment Agreement, incorporated herein by reference and Umpqua will have the right to enforce those provisions under the terms of Section 18 of the Employment Agreement, incorporated herein by

12

reference.  After the Restriction Period, you will not, apart from good faith competition, interfere with Umpqua's relationships with customers, employees, vendors, or others. 

         14. Independent Legal Counsel. You are advised and encouraged to consult with an attorney before signing this Separation Agreement. You acknowledge that you have had an
adequate opportunity to do so. 

         15. Consideration Period. You have 21 days from the date this Separation Agreement is given to you to consider this Separation Agreement before signing it. You may use as
much or as little of this 21-day period as you wish before signing. If you do not sign and return this Separation Agreement within this 21-day period, you will not be eligible to receive the benefits described in this Separation
Agreement.

        16.  Revocation Period and Effective Date.  You have 7 calendar days after signing this Separation Agreement to revoke it.  To revoke
this Separation Agreement after signing it, you must deliver a written notice of revocation to Umpqua's Chief Executive Officer before the 7-day period expires. This Separation Agreement shall not become effective until the 8th calendar day after you sign it. If you revoke this Separation Agreement it will not become effective or enforceable and you will not be entitled to the benefits described in this
Separation Agreement. 

         17. Governing Law. This Separation Agreement is governed by the laws of the State of Oregon that apply to contracts executed and to be performed entirely within the State
of Oregon. 

        18. 
Dispute Resolution.

               
(a) Except where such matters are deemed governed by ERISA or are the subject to Section 7 above, the parties agree to submit any dispute arising under this Separation Agreement to final, binding, private arbitration in Portland, Oregon. The disputes subject to arbitration include not only disputes
involving the meaning or performance of the Separation Agreement, but disputes about its negotiation, drafting, or execution. The dispute will be determined by a single arbitrator and governed by the then-existing rules of arbitration procedure in
Multnomah County Circuit Court except as set forth herein. Instead of filing of a civil complaint in Multnomah County Circuit Court, a party will commence the arbitration process by noticing the other party. The parties will choose an arbitrator who
specializes in employment conflicts from the arbitration list for Multnomah County Circuit Court. If the parties are unable to agree on an arbitrator within ten (10) days of receipt of the list of arbitrators, each party will select one attorney
from the list, and those two attorneys shall select the arbitrator from the list (with each of the two selecting attorneys then concluding their services and each being compensated by the party selecting each attorney, subject to recovery of such
fees under subsection (b) of this Section). The arbitrator may charge his or her standard arbitration fees rather than the fees prescribed in the Multnomah County Circuit Court arbitration procedures. The arbitrator will have full authority to
determine all issues, including arbitrability, to award any remedy, including permanent injunctive relief, and to determine any request for attorneys' fees, costs and expenses in accordance with subsection (b) of this Section. There shall be no
right of review in court. The arbitrator's award may be reduced to final judgment or decree in Multnomah County Circuit Court.

                   (b) The prevailing party shall be awarded all costs and expenses of the proceeding, including, but not limited to, attorneys' fees, filing and service fees, witness fees, and arbitrators' fees. If arbitration is
commenced, the arbitrator will have full authority and complete discretion to determine the "prevailing party" and the amount of costs and expenses to be awarded. 

                   (c) Notwithstanding any other provision of this Separation Agreement, an aggrieved party may seek a temporary restraining order or preliminary injunction in Multnomah County Circuit Court to preserve the status quo
during the arbitration proceeding, provided however, that the party seeking relief agrees that ultimate resolution of the dispute will still be determined through arbitration and not through court process. The filing of the court action for
injunctive relief shall not hinder or delay the arbitration process. 

        19. Saving Provision. If any part of this Separation Agreement is held to be unenforceable, it shall not affect any other part. If any
part of this Separation Agreement is held to be unenforceable as written, it shall be enforced to the maximum extent allowed by applicable law. 

13

        20. Final and Complete Agreement. Except for the Employment Agreement to the extent it is expressly incorporated herein by reference,
this Separation Agreement is the final and complete expression of all agreements between us on all subjects and supersedes and replaces all prior discussions, representations, agreements, policies and practices. You acknowledge you are not signing
this Separation Agreement relying on anything not set out herein. 

	
Umpqua Holdings Corporation 

By: ____________________________________

Title:___________________________________

I, the undersigned, having been advised to consult with an attorney, hereby agree to be bound by this Separation Agreement and confirm that I have read and understood each part of it. 

	
_________________________________________

Date ____________________________________ 

14RECEIVABLES SALE
AGREEMENT 

DATED AS OF MARCH 15,
2006 

BETWEEN 

GEHL COMPANY, 

AS ORIGINATOR 

AND 

GEHL RECEIVABLES II,
LLC, 

AS BUYER 

TABLE OF CONTENTS 

		Page
	
ARTICLE I AMOUNTS AND TERMS	  2
	
    SECTION 1.01. Purchase of Qualified Receivables	  2
	    SECTION 1.02. Payment for the Purchase	  4
	    SECTION 1.03. Purchase Price Credit Adjustments	  5
	    SECTION 1.04. Payments and Computations, Etc	  6
	    SECTION 1.05. Transfer of Records	  6
	    SECTION 1.06. Characterization	  7
	
ARTICLE II REPRESENTATIONS AND WARRANTIES	  8
	
    SECTION 2.01. Representations and Warranties of Originator	  8
	
ARTICLE III CONDITIONS OF PURCHASE	12
	
    SECTION 3.01. Conditions Precedent to Purchase	12
	    SECTION 3.02. Conditions Precedent to Subsequent Payments	12
	
ARTICLE IV COVENANTS	12
	
    SECTION 4.01. Affirmative Covenants of Originator	12
	    SECTION 4.02. Negative Covenants of Originator	17
	
ARTICLE V TERMINATION EVENTS	18
	
    SECTION 5.01. Termination Events	18
	    SECTION 5.02. Remedies	19
	
ARTICLE VI INDEMNIFICATION	20
	
    SECTION 6.01. Indemnities by Originator	20
	    SECTION 6.02. Other Costs and Expenses	22
	
ARTICLE VII MISCELLANEOUS	23
	
    SECTION 7.01. Waivers and Amendments	23
	    SECTION 7.02. Notices	23
	    SECTION 7.03. Protection of Ownership Interests of Buyer	23
	    SECTION 7.04. Confidentiality	24
	    SECTION 7.05. Bankruptcy Petition	25
	    SECTION 7.06. CHOICE OF LAW	25
	    SECTION 7.07. CONSENT TO JURISDICTION	25
	    SECTION 7.08. WAIVER OF JURY TRIAL	25
	    SECTION 7.09. Integration; Binding Effect; Survival of Terms	25
	    SECTION 7.10. Counterparts; Severability; Section References	26

i  

Exhibits and Schedules 

	Exhibit I	-	Definitions
	
Exhibit II	-	Principal Place of Business; Location(s) of Records; Federal Employer Identification Number; Other Names
	
Exhibit III	-	Lockboxes; Lockbox Account and Lockbox Account Bank
	
Exhibit IV	-	Form of Compliance Certificate
	
Exhibit V	-	Credit and Collection Policy
	
Exhibit VI	-	Form of Subordinated Note
	
Schedule A	-	Schedule of Receivables

ii 

RECEIVABLES SALE
AGREEMENT 

        This
RECEIVABLES SALE AGREEMENT, dated as of March 15, 2006, is by and between GEHL COMPANY, a
Wisconsin corporation (“Originator”), and GEHL RECEIVABLES II, LLC, a
Delaware limited liability company (“Buyer”). Unless defined elsewhere herein,
capitalized terms used in this Agreement shall have the meanings assigned to such terms in
Exhibit I. 

PRELIMINARY STATEMENTS 

        Originator
now owns, and from time to time hereafter will own, Receivables. Originator wishes to sell
and assign to Buyer, and Buyer wishes to purchase from Originator, all of
Originator’s right, title and interest in and to all of Originator’s Qualified
Receivables, together with the Related Security and Collections with respect thereto. 

        Originator
and Buyer intend the transactions contemplated hereby to be true sales of the Qualified
Receivables from Originator to Buyer, providing Buyer with the full benefits of ownership
of the Qualified Receivables, and Originator and Buyer do not intend these transactions to
be, or for any purpose to be characterized as, loans from Buyer to Originator. 

        Following
the purchase of Qualified Receivables from Originator, Buyer will sell its right, title
and interest in and to such Qualified Receivables, together with the Related Security and
Collections with respect thereto, pursuant to that certain Receivables Purchase and Sale
Agreement dated as of the date hereof (as the same may from time to time hereafter be
amended, supplemented, restated or otherwise modified, the “Purchase and Sale
Agreement”) between Buyer and Gehl Funding II, LLC (“GFII”).
Following the sale the Qualified Receivables by Buyer to GFII under the Purchase and Sale
Agreement, GFII will sell undivided interests therein and in the associated Related
Security and Collections pursuant to that certain Receivables Purchase Agreement dated as
of the date hereof (as the same may from time to time hereafter be amended, supplemented,
restated or otherwise modified, the “Purchase Agreement”) among GFII,
Gehl Company, as Servicer (in such capacity, the “Servicer”), Park Avenue
Receivables Company, LLC (“Company”), the financial institutions from
time to time party thereto (together with Company, the “Purchasers”) and
JPMorgan Chase Bank, N.A. (“JPMorgan Chase”) or any successor agent
appointed pursuant to the terms of the Purchase Agreement, as agent for the Purchasers (in
such capacity, the “Agent”). 

ARTICLE I 
AMOUNTS AND
TERMS  

        SECTION
1.01.     Purchase of Qualified Receivables. 

        (a)              Subject
to the terms and conditions hereof, Originator agrees to sell, assign,
          transfer, set-over, contribute and otherwise convey to Buyer, without recourse
          (except to the extent expressly provided herein), and Buyer agrees to purchase
          or acquire from Originator, all of Originator’s right, title and interest
          in and to all Qualified Receivables existing as of the close of business on the
          Business Day immediately prior to the Initial Funding Date and all Qualified
          Receivables thereafter arising until the Termination Date, together, in each
          case, with all Related Security relating thereto and all Collections thereon.  

2 

        (b)              Effective
on the Initial Funding Date, in consideration for the Purchase Price           and upon
the terms and subject to the conditions set forth herein, Originator           does
hereby sell, assign, transfer, set-over and otherwise convey to Buyer,           without
recourse (except to the extent expressly provided herein), and Buyer           does
hereby purchase from Originator, all of Originator’s right, title and
          interest in and to (i) the Receivables set forth on the Schedule of Receivables
          (other than the Existing Receivables, as to which Originator has no, and claims
          no, interest), which are all Qualified Receivables existing as of the close of
          business on the Business Day immediately prior to the Initial Funding Date and
          (ii) the Receivables that shall be, from time to time, until the Termination
          Date, be added to or listed on the Schedule of Receivables, which are intended
          to be all Qualified Receivables thereafter arising through until the
Termination           Date, together, in each case, with all Related Security relating
thereto and all           Collections thereon. In accordance with the preceding sentence,
on the Initial           Funding Date Buyer shall acquire all of Originator’s right,
title and           interest in and to all Qualified Receivables existing as of the close
of           business on the Business Day immediately prior to the Initial Funding Date
and           thereafter arising through and including the Termination Date, together
with all           Related Security relating thereto and all Collections thereon; provided,
          that, Buyer shall be obligated to pay the Purchase Price therefor in accordance
          with Section 1.02. In connection with the payment of the Purchase Price
          for any Qualified Receivables purchased hereunder, Buyer may request that
          Originator deliver, and Originator shall deliver, such approvals, opinions,
          information, reports or documents as Buyer may reasonably request.  

        (c)              It
is the intention of the parties hereto that the Purchases of Qualified
          Receivables made hereunder shall constitute sales of “accounts”,
          “payment intangibles” or “chattel paper” (as each such term
          is defined in Article 9 of the UCC), which sales are absolute and irrevocable
          and provide Buyer with the full benefits of ownership of the Qualified
          Receivables. Except for the Purchase Price Credits owed pursuant to Section
          1.03, the sales of Qualified Receivables hereunder are made without
recourse           to Originator; provided, however, that (i) Originator
shall be           liable to Buyer for all representations, warranties and covenants made
by           Originator pursuant to the terms of the Transaction Documents to which
          Originator is a party, and (ii) such sales do not constitute and are not
          intended to result in an assumption by Buyer or any assignee thereof of any
          obligation of Originator or any other Person arising in connection with the
          Qualified Receivables, the related Contracts and/or other Related Security or
          any other obligations of Originator. In view of the intention of the parties
          hereto that the Purchase of Qualified Receivables made hereunder shall
          constitute sales of such Qualified Receivables rather than loans secured
          thereby, Originator agrees that it will, on or prior to the Initial Funding
Date           and in accordance with Section 4.01(e)(ii), mark its master data
          processing records, file cabinets and file folders relating to the Qualified
          Receivables with a legend acceptable to Buyer, GFII (as Buyer’s assignee)
          and to the Agent (as GFII’s assignee), evidencing that Buyer has purchased
          such Qualified Receivables as provided in this Agreement and to note in its
          financial statements that the Qualified Receivables have been sold to Buyer.
          Upon the request of Buyer, GFII (as Buyer’s assignee) or the Agent (as
          GFII’s assignee), Originator will file such financing or continuation
          statements, or amendments thereto or assignments thereof, and such other
          instruments or notices, as may be necessary or appropriate to perfect and
          maintain the perfection of Buyer’s ownership interest in the Qualified
          Receivables and the Related Security and Collections with respect thereto, or
as           Buyer, or GFII (as Buyer’s assignee) or the Agent (as GFII’s
assignee)           may reasonably request.  

3   

        SECTION
1.02.     Payment for the Purchase. 

        (a)              The
Purchase Price for the Purchase of Qualified Receivables in existence on the
          close of business on the Business Day immediate preceding the Initial Funding
          Date shall be payable in full by Buyer to Originator on the Initial Funding
          Date, and shall be paid to Originator in the following manner:  

	 	        (i)              by
delivery of immediately available funds, in an amount confirmed by the           parties
hereto on the Initial Funding Date; provided, that a portion of           such
funds shall be offset by amounts owed by Originator to Buyer or Originator
          shall contribute Qualified Receivables on account of the issuance of equity in
          the manner contemplated in the operating agreement of the Buyer and having a
          total value of not less than the Required Capital Amount, and  

	 	        (ii)             the
balance, by delivery of the proceeds of a subordinated revolving loan from
          Originator to Buyer (a “Subordinated Loan”) in an amount not
to           exceed the least of (i) the remaining unpaid portion of such Purchase Price,
          (ii) the maximum Subordinated Loan that could be borrowed without rendering
          Buyer’s Net Worth less than the Required Capital Amount and (iii) the
          maximum Subordinated Loan that could be borrowed without rendering the Net
Value           less than the aggregate outstanding principal balance of the Subordinated
Loan           hereunder (including the Subordinated Loan proposed to be made on such
date).           The Originator is hereby authorized by Buyer to endorse on the schedule
attached           to the Subordinated Note an appropriate notation evidencing the date
and amount           of each advance thereunder, as well as the date of each payment with
respect           thereto, provided that the failure to make such notation shall not
affect any           obligation of Buyer thereunder.  

Each Qualified Receivable coming into
existence after the Initial Funding Date shall be sold to Buyer on the first Settlement
Date following the date that such Qualified Receivable came into existence (or in the case
of any Eligible Receivable that is not transferred on such Settlement Date because the
Servicer has advised Originator on or before such Settlement Date that such Eligible
Receivable does not constitute a Qualified Receivable on such Settlement Date because the
transfer thereof will not cause the Net Receivables Balance to be increased on such
Settlement Date, the first Settlement Date upon which the Servicer advises the Originator
that the transfer of such Eligible Receivable would cause the Net Receivables Balance to
be increased) and the Purchase Price for such Qualified Receivable shall be due and owing
in full by Buyer to Originator or its designee on the Settlement Date that such Qualified
Receivable is transferred to the Buyer (except that Buyer may, with respect to any such
Purchase Price, offset against such Purchase Price any amounts owed by Originator to Buyer
hereunder and which have become due but remain unpaid) and shall be paid to Originator in
the manner provided in the following paragraphs (b) and (c). The conveyance of such
Qualified Receivables shall occur and take effect automatically upon the listing of each
such item in the Schedule of Receivables, without further action by any Person. 

4 

        (b)              With
respect to any Qualified Receivables coming into existence after the           Initial
Funding Date, of each Settlement Date, Buyer shall pay the Purchase           Price in
the following manner:  

            first,
by delivery of immediately  available  funds, to the extent of funds available to  Buyer
from its subsequent sale of the Qualified Receivables to the GFII under the Purchase and
Sale Agreement or other cash on hand;  

            second,
 by delivery of the proceeds of a  Subordinated  Loan,  provided that the making   of any
such Subordinated Loan shall be subject to the provisions set forth in Section
1.02(a)(ii); and  

            third,
 unless  Originator has declared the Termination  Date to have occurred  pursuant  to Section
5.02(b), at the election of the Originator (which may be a standing election), by
accepting a contribution to its capital pursuant to its operating agreement in an amount
equal to the remaining unpaid balance of such Purchase Price.  

Subject to the limitations set forth
in Section 1.02(a)(ii), Originator irrevocably agrees to advance each Subordinated
Loan requested by Buyer on or prior to the Termination Date. The Subordinated Loans shall
be evidenced by, and shall be payable in accordance with the terms and provisions of the
Subordinated Note. 

        (c)              From
and after the Termination Date, Originator shall not be obligated to (but           may,
at its option) (i) sell Qualified Receivables to Buyer unless Originator
          reasonably determines that the Purchase Price therefor will not be satisfied
          with funds available to Buyer from sales of the Qualified Receivables pursuant
          to the Purchase and Sale Agreement, Collections, proceeds of Subordinated Loans
          or otherwise or (ii) contribute Receivables to Buyer’s capital.  

        SECTION
1.03.     Purchase Price Credit Adjustments.  If on any day: 

        (a)              the
Outstanding Balance of a Qualified Receivable is:  

	 	        (i)              reduced
as a result of any defective or rejected goods or services, any discount           or any
adjustment or otherwise by Originator or, in the case of any Qualified
          Receivable acquired from a Dealer, by the applicable Dealer (other than cash
          Collections on account of the Qualified Receivables), or  

	 	        (ii)              reduced
or canceled as a result of a setoff in respect of any claim by any           Person
(whether such claim arises out of the same or a related transaction or an
          unrelated transaction), or  

        (b)              any
of the representations and warranties set forth in Article II are no
          longer true with respect to any Qualified Receivable,  

5 

then, in such event, Buyer shall be
entitled to a credit (each, a “Purchase Price Credit”) against the
aggregate Purchase Price otherwise payable hereunder for new Qualified Receivables in an
amount equal to the amount of such reduction or cancellation in the case of clause (a) or
the Outstanding Balance of such Receivable in the case of clause (b). If such Purchase
Price Credit exceeds the Original Balance of the Qualified Receivables coming into
existence on any day, then Originator shall pay the remaining amount of such Purchase
Price Credit in cash within 5 Business Days thereafter, provided that if the
Termination Date has not occurred, Originator shall be allowed to deduct the remaining
amount of such Purchase Price Credit from any indebtedness owed to it under the
Subordinated Note. Without limiting the generality of the foregoing, in connection with
the representations and warranties relating to good title, absence of Adverse Claims or
effectiveness of transfer of any Receivable transferred hereunder, Originator shall be
deemed to have breached such representation and warranty so that a Purchase Price Credit
shall be payable by Originator in the amount of the Outstanding Balance of any Qualified
Receivable if (i) a Dealer shall have originated such Qualified Receivable, (ii) such
Dealer shall have suffered an Insolvency Event at any time following the date such
Qualified Receivable was transferred hereunder and (iii) an action is brought in the
Dealer’s bankruptcy case seeking to claim an affected Qualified Receivable or
proceeds thereof as property of the estate, exercise any avoiding power of the bankruptcy
trustee, challenge good title to or ownership of such Qualified Receivable or proceeds,
assert any Adverse Claim on such Qualified Receivable or proceeds or otherwise challenge
the effectiveness or validity of such Dealer’s transfer of any Qualified Receivable
and either (A) no Gehl Entity answers such action on a timely basis, (B) no Gehl Entity
seeks the dismissal with prejudice of such action on a timely basis or submits a motion
for summary judgment of such action on a timely basis or (C) such action survives a motion
to dismiss or motion for summary judgment. 

        SECTION
1.04. Payments and Computations, Etc. All amounts to be paid or deposited by Buyer
hereunder shall be paid or deposited in accordance with the terms hereof on the day when
due in immediately available funds to the account of Originator designated from time to
time by Originator or as otherwise directed by Originator. If any payment owed by any
Person hereunder becomes due on a day that is not a Business Day, then such payment shall
be made on the next succeeding Business Day. If any Person fails to pay any amount
hereunder when due, interest shall accrue on such unpaid amount at the rate per annum
specified in clause (ii) of the definition of “Default Fee” until such amount
is paid in full and, such Person agrees to pay such interest on demand; provided,
however, that such rate shall not at any time exceed the maximum rate permitted by
applicable law. All computations of interest payable hereunder shall be made on the basis
of a year of 360 days for the actual number of days (including the first but excluding
the last day) elapsed.  

        SECTION
1.05.     Transfer of Records. 

        (a)              In
connection with the Purchases of Qualified Receivables hereunder, Originator
          hereby sells, transfers, assigns and otherwise conveys to Buyer all of
          Originator’s right and title to and interest in the Records relating to
all           Qualified Receivables sold hereunder, without the need for any further
          documentation in connection with the Purchases. In connection with such
          transfer, Originator hereby grants to each of Buyer, the GFII, the Agent and
the           Servicer an irrevocable, non-exclusive license to use, without royalty or
          payment of any kind, all software used by Originator to account for the
          Qualified Receivables, to the extent necessary to administer the Qualified
          Receivables, whether such software is owned by Originator or is owned by others
          and used by Originator under license agreements with respect thereto, provided that
should the consent of any licensor of Originator to such           grant of the license
described herein be required, Originator hereby agrees that           upon the request of
Buyer (or GFII as Buyer’s assignee or the Agent as           GFII’s assignee),
Originator will use its reasonable efforts to obtain the           consent of such
third-party licensor. The license granted hereby shall be           irrevocable, and
shall terminate on the date this Agreement terminates in           accordance with its
terms.  

6 

        (b)              Originator
(i) shall take such action requested by Buyer, GFII (as Buyer’s           Assignee)
and/or the Agent (as GFII’s assignee), from time to time           hereafter, that
may be necessary or appropriate to ensure that (A) Buyer and           Buyer’s
assigns under the Purchase and Sale Agreement and (B) GFII and           GFII’s
assigns under the Purchase Agreement have an enforceable ownership           interest in
the Records relating to the Qualified Receivables purchased from           Originator
hereunder, and (ii) shall use its reasonable efforts to ensure that           Buyer,
GFII, the Agent and the Servicer each has an enforceable right (whether           by
license or sublicense or otherwise) to use all of the computer software used           to
account for the Qualified Receivables and/or to recreate such Records.  

        SECTION
1.06.     Characterization. 

        (a)              If,
notwithstanding the intention of the parties expressed in Section           1.01(c),
any sale or contribution by Originator to Buyer of Qualified           Receivables
hereunder shall be characterized as a secured loan and not a sale or           such sale
shall for any reason be ineffective or unenforceable (any of the           foregoing
being a “Recharacterization”), then this Agreement           shall be
deemed to constitute a security agreement under the UCC and other           applicable
law. For this purpose and without being in derogation of the           parties’ intention
that the sale of Qualified Receivables hereunder shall           constitute a true sale
thereof, Originator hereby grants to Buyer a valid and           perfected security
interest in all of Originator’s right, title and           interest in, to and under
all Qualified Receivables now existing and hereafter           arising, all Collections,
all Related Security and Records with respect thereto,           all other rights and
payments relating to the Qualified Receivables and all           proceeds of the
foregoing, and all other assets in which Buyer has acquired, may           hereafter
acquire and/or purports pursuant to the terms and provisions of this           Agreement
to have acquired an interest under this Agreement to secure all           payment and
performance obligations of Originator hereunder (including (a) the           obligation
to remit all Collections with respect to the Qualified Receivables to           the Buyer
and (b) the obligation to transfer Receivables to the Buyer with a           value at
least equal to the Qualified Receivables, Collections thereon and the           Related
Security with respect thereto) which security interest shall be prior to           all
other Adverse Claims thereto. After the occurrence of a Termination Event,
          Buyer and its assigns shall have, in addition to the rights and remedies which
          they may have under this Agreement, all other rights and remedies provided to a
          secured creditor after default under the UCC and other applicable law, which
          rights and remedies shall be cumulative. In the case of any Recharacterization,
          each of the Originator and the Buyer represents and warrants as to itself that
          each remittance of Collections and other property by the Originator to the
Buyer           hereunder will have been (i) in payment of a debt incurred by the
Originator in           the ordinary course of business or financial affairs of the
Originator and the           Buyer and (ii) made in the ordinary course of business or
financial affairs of           the Originator and the Buyer.  

        (b)              Originator
hereby authorizes Buyer (and any of its assigns), within the meaning           of Section
9-509 of any applicable enactment of the UCC, as secured party, to           file,
without the signature of the debtor, the UCC financing statements           contemplated
hereby.  

7 

        (c)              Originator
acknowledges (i) that Buyer, pursuant to the Purchase and Sale           Agreement, shall
assign to the GFII all of its rights, remedies, powers and           privileges
hereunder, (ii) that the GFII, pursuant to the Purchase Agreement,           shall assign
to the Agent, for the benefit of the Agent, the Purchasers and the           Hedge
Providers under the Purchase Agreement, such rights, remedies, powers and
          privileges and (iii) that the Agent may further assign such rights, remedies,
          powers and privileges to the extent permitted in the Purchase Agreement.
          Originator agrees that the GFII, as the assignee of Buyer, and the Agent, as
the           assignee of the GFII, shall, subject to the terms of the Purchase and Sale
          Agreement and the Purchase Agreement respectively, have the right to enforce
          this Agreement and to exercise directly all of Buyer’s rights and remedies
          under this Agreement (including, without limitation, the right to give or
          withhold any consents or approvals of Buyer to be given or withheld hereunder,
          and, in any case, without regard to whether specific reference is made to
          Buyer’s assigns in the provisions of this Agreement which set forth such
          rights and remedies) and Originator agrees to cooperate fully with the GFII,
the           Agent and the Purchasers in the exercise of such rights and remedies.
Originator           further agrees to give to the GFII and the Agent copies of all
notices it is           required to give to Buyer hereunder.  

ARTICLE II
 
REPRESENTATIONS AND WARRANTIES  

        SECTION
2.01.     Representations  and  Warranties of  Originator.  Originator  hereby
 represents  and warrants to Buyer and its assigns as of the date hereof and on the date
of each Purchase hereunder that: 

        (a)    Corporate
Existence and Power. Originator is (1) a corporation duly           organized,
validly existing and in good standing under the laws of the State of           Wisconsin,
and (2) is duly qualified to do business and is in good standing as a           foreign
corporation, and has and holds all corporate power and all governmental
          licenses, authorizations, consents and approvals required to carry on its
          business in each jurisdiction in which its business is conducted except where
          the failure to so qualify could not reasonably be expected to have a Material
          Adverse Effect. Originator is organized solely under the laws of the State of
          Wisconsin.  

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

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

8 

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

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

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

        (g)    Accuracy
of Information. All information heretofore furnished by           Originator or any
of its Affiliates to Buyer (or its assigns) for purposes of or           in connection
with this Agreement, any of the other Transaction Documents or any           transaction
contemplated hereby or thereby is, and all such information           hereafter furnished
by Originator or any of its Affiliates to Buyer (or its           assigns) will be, true
and accurate in every material respect on the date such           information is stated
or certified and does not and will not contain any           material misstatement of
fact or omit to state a material fact or any fact           necessary to make the
statements contained therein not misleading.  

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

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

9 

        (j)    Perfection.
This Agreement, together with the filing of the financing           statements
contemplated hereby, is effective to, and shall, upon each Purchase           hereunder,
transfer to Buyer (and Buyer shall acquire from Originator) legal and           equitable
title to, with the right to sell and encumber each Qualified           Receivable
existing and hereafter arising, together with the Related Security           and
Collections with respect thereto, free and clear of any Adverse Claim,           except
as created by the Transactions Documents. There have been duly filed all
          financing statements or other similar instruments or documents necessary under
          the UCC (or any comparable law) of all appropriate jurisdictions to perfect
          Buyer’s ownership interest in the Qualified Receivables, the Related
          Security and the Collections.  

        (k)    Places
of Business. The principal places of business and chief executive           office of
Originator and the offices where it keeps all of its Records are           located at the
address listed on Exhibit II or such other locations of           which Buyer has
been notified in accordance with Section 4.02(a) in           jurisdictions where
all action required by Section 4.02(a) has been taken           and completed.
Originator’s Federal Employer Identification Number is           correctly set forth
on Exhibit II.  

        (l)    Collections.
The requirements set forth in Section 4.01(j) have at           all times been
satisfied and duly performed. The name and address of the Lockbox           Account Bank,
together with the account number of the Lockbox Account at the           Lockbox Account
Bank and the post office box number of the Lockbox, are listed           on Exhibit III.
Originator has instructed all Obligors of Qualified           Receivables to pay all
Collections with respect thereto directly to the Lockbox,           the Lockbox Account
or the Collection Account. Originator has not granted any           Person, other than
the Collateral Agent (in the case of the Lockbox, the Lockbox           Account) as
contemplated by the Intercreditor Agreement, control (within the           meaning of
Section 9-104 of the applicable UCC) of the Lockbox, the Lockbox           Account or the
Collection Account, or the right to take control (within the           meaning of Section
9-104 of the applicable UCC) of the Lockbox, the Lockbox           Account or the
Collection Account at a future time or upon the occurrence of a           future event.
The Intercreditor Agreement remains in full force and effect.  

        (m)    Material
Adverse Effect. Since December 31, 2004 or as disclosed in           Securities and
Exchange Commission filings made prior to the date hereof, no           event has
occurred that would have a material adverse effect on (i) the           financial
condition or operations of Originator or the Originator and its           Subsidiaries
taken as a whole or (ii) the ability of Originator to perform its           obligations
under the Transaction Documents. Since February 2, 2006, no event           has occurred
that would have a material adverse effect on the collectibility of           the
Qualified Receivables generally or any material portion of the Qualified
          Receivables.  

        (n)    Names.
In the past five (5) years, Originator has not used any corporate           names, trade
names or assumed names other than “Gehl Finance” and the           name in
which it has executed this Agreement and has not been organized in any
          jurisdiction other than the State of Wisconsin.  

        (o)    Ownership
of Buyer. Originator owns, directly or indirectly, 100% of the           issued and
outstanding membership interests of Buyer, free and clear of any           Adverse Claim.
Such capital stock is validly issued, fully paid and           nonassessable, and there
are no options, warrants or other rights to acquire           securities of Buyer.  

10 

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

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

        (r)    Compliance
with Credit and Collection Policy. Originator has complied in           all material
respects with the Credit and Collection Policy with regard to each           Qualified
Receivable and the related Contract, and has not made any material           change to
such Credit and Collection Policy.  

        (s)    Payments
to Originator. With respect to each Qualified Receivable           transferred to
Buyer hereunder, the Purchase Price received by Originator           constitutes
reasonably equivalent value in consideration therefor and such           transfer was not
made for or on account of an antecedent debt. No transfer by           Originator of any
Qualified Receivable hereunder is or may be voidable under any           section of the
Bankruptcy Reform Act of 1978 (11 U.S.C. §§ 101 et           seq.), as
amended.  

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

        (u)    Qualified
Receivables. Each Receivable transferred to the Buyer pursuant           to this
Agreement was an “Qualified Receivable” on the date of such           transfer.  

        (v)    Accounting.
The manner in which Originator accounts for the transactions           contemplated by
this Agreement does not jeopardize the legal true sale analysis.  

        (w)    No
Adverse Selection. To the extent that Originator has retained           Receivables
that would be Eligible Receivables, if transferred, but which have           not been
transferred to Buyer hereunder (whether by reason of overconcentrations           or
otherwise), Originator has not selected those Receivables to be transferred
          hereunder in any manner that materially adversely affects Buyer or its assigns.  

11 

        (x)    Compliance
with Representations. On and as of the date of each Purchase           hereunder,
Originator hereby represents and warrants that all of the other           representations
and warranties set forth in this Article II are true and           correct on and
as of each such date (and after giving effect to all Qualified           Receivables in
existence on each such date) as though made on and as of each           such date.  

        (y)    Receivable
File. Originator has delivered to the Servicer the Receivable           File for each
Qualified Receivable transferred pursuant hereto.  

        (z)    No
Breach. The execution and delivery by Originator of this Agreement and           each
other Transaction Document to which it is a party, and the performance of           its
obligations hereunder and thereunder do not contravene or violate the terms           of
the Credit Agreement (including, without limitation, the terms of Section 8.7
          thereof). The transactions contemplated by this Agreement and each of the other
          Transaction Documents constitute a “Qualified Securitization
          Transaction.” 

ARTICLE III 
CONDITIONS
OF PURCHASE  

        SECTION
3.01. Conditions Precedent to Purchase. The initial Purchase under this Agreement
is subject to the conditions precedent that all of the conditions to the initial purchase
under the Purchase Agreement shall have been satisfied or waived in accordance with the
terms thereof.  

        SECTION
3.02. Conditions Precedent to Subsequent Payments. Buyer’s obligation to pay
for Qualified Receivables coming into existence after the Initial Funding Date shall be
subject to the further conditions precedent that (a) the Termination Date shall not have
occurred, (b) Buyer (or its assigns) shall have received such other approvals, opinions
or documents as it or they may reasonably request and (c) on the date of any Purchase,
the Originator shall have provided (1) the Buyer and the Servicer with a supplement the
Schedule of Receivables identifying the Qualified Receivables to be transferred on such
date and (2) the Servicer with the Receivable Files for each of the Qualified Receivables
to be transferred on such date. Originator’s obligation to sell Qualified
Receivables coming into existence after the Initial Funding Date shall be subject to the
further conditions precedent that (a) the Termination Date shall not have occurred, and
(b) Buyer shall have the ability to and shall pay the purchase price therefor as provided
in Article I hereof.  

ARTICLE IV  
COVENANTS  

        SECTION
4.01.     Affirmative  Covenants  of  Originator.  Until the date on which  this
 Agreement  terminates  in accordance with its terms, Originator hereby covenants as set
forth below: 

        (a)    Financial
Reporting. Originator will maintain, for itself and each of its
          Subsidiaries, a system of accounting established and administered in accordance
          with GAAP, and furnish to Buyer (and its assigns):  

12 

	 	        (i)    Annual
Reporting. As soon as available, and in any event within 90 days           after the
last day of each fiscal year of the Originator, a copy of the           consolidated
balance sheet of Originator and its Subsidiaries as of the last day           of the
fiscal year then ended and the consolidated statements of income,           retained
earnings, and cash flows of Originator and its Subsidiaries for the           fiscal year
then ended, and accompanying notes thereto, each in reasonable           detail showing
in comparative form the figures for the previous fiscal year,           accompanied by an
unqualified opinion of PricewaterhouseCoopers LLP or another           firm of
independent public accountants of recognized national standing, selected           by the
Servicer and reasonably satisfactory to the Buyer and its assigns, to the
          effect that the consolidated financial statements have been prepared in
          accordance with GAAP and present fairly in all material respects in accordance
          with GAAP the consolidated financial condition of the Originator and its
          Subsidiaries as of the close of such fiscal year and the results of their
          operations and cash flows for the fiscal year then ended and that an
examination           of such accounts in connection with such financial statements has
been made in           accordance with generally accepted auditing standards and,
accordingly, such           examination included such tests of the accounting records and
such other           auditing procedures as were considered necessary in the
circumstances.  

	 	        (ii)    Quarterly
Reporting. As soon as available, and in any event within 45           days after the
last day of each fiscal quarter of Originator (other than the           last fiscal
quarter of each fiscal year), a copy of the consolidated balance           sheet of the
Originator and its Subsidiaries as of the last day of such fiscal           quarter and
the consolidated statements of income, retained earnings, and cash           flows of the
Originator and its Subsidiaries for the fiscal quarter and for the           fiscal
year-to-date period then ended, each in reasonable detail showing in
          comparative form the figures for the corresponding date and period in the
          previous fiscal year, prepared by Originator in accordance with GAAP (subject
to           the absence of footnote disclosures and year-end audit adjustments) and
          certified to by its chief financial officer or another officer of Originator
          acceptable to the Buyer and its assigns.  

	 	        (iii)    Compliance
Certificate. (A) Together with the financial statements           required hereunder,
a compliance certificate in substantially the form of Exhibit IV signed by
Originator’s Authorized Officer and dated the           date of such annual
financial statement or such quarterly financial statement,           as the case may be
and (B) at the time of delivery of any compliance certificate           required to be
delivered under the Credit Agreement, a copy of such compliance           certificate.  

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

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

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

13 

	 	        (vii)    Change
in Credit and Collection Policy. At least twenty (20) days prior           to the
effectiveness of any material change in or material amendment to the           Credit and
Collection Policy, a copy of the Credit and Collection Policy then in           effect
and a notice (A) indicating such proposed change or amendment, and (B) if           such
proposed change or amendment could be expected to adversely affect the
          collectibility of the Qualified Receivables, requesting the Buyer’s
consent           thereto.  

	 	        (viii)    Other
Information. Promptly, from time to time, such other information,
          documents, records or reports relating to the Qualified Receivables or the
          condition or operations, financial or otherwise, of Originator as Buyer (or its
          assigns) may from time to time reasonably request in order to protect the
          interests of Buyer (and its assigns) under or as contemplated by this
Agreement.  

        (b)    Notices.
Originator will notify the Buyer (or its assigns) in writing of           any of the
following promptly upon learning of the occurrence thereof,           describing the same
and, if applicable, the steps being taken with respect           thereto:  

	 	        (i)    Termination
Events or Potential Termination Events. The occurrence of           each Termination
Event and each Potential Termination Event, by a statement of           an Authorized
Officer of Originator.  

	 	        (ii)    Judgment
and Proceedings. The entry of any judgment or decree against           Originator or
any of its Subsidiaries not satisfied or dismissed if the           aggregate amount of
all judgments and decrees then outstanding against           Originator and its
Subsidiaries exceeds $1,000,000.  

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

	 	        (iv)    Defaults
Under Other Agreements. The occurrence of a default or an event           of default
under any other financing arrangement pursuant to which Originator is           a debtor
or an obligor.  

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

14 

        (d)    Audits.
Originator will furnish to Buyer (and its assigns) from time to           time such
information with respect to it and the Receivables as Buyer (or its           assigns)
may reasonably request. Originator will, from time to time during           regular
business hours as requested by Buyer (or its assigns), upon reasonable           prior
notice and at the sole cost of Originator, permit Buyer (or its assigns)           or
their respective agents or representatives, (i) to examine and make copies of
          and abstracts from all Records in the possession or under the control of
          Originator relating to the Qualified Receivables and the Related Security,
          including, without limitation, the related Contracts, and (ii) to visit the
          offices and properties of Originator for the purpose of examining such
materials           described in clause (i) above, and to discuss matters relating to
          Originator’s financial condition or the Qualified Receivables and the
          Related Security or Originator’s performance under any of the Transaction
          Documents or Originator’s performance under the Contracts and, in each
          case, with any of the officers or employees of Originator having knowledge of
          such matters; provided, that, unless either (i) an Amortization Event
          shall have occurred and be continuing at the time any such audit is requested
by           the Buyer (or its assigns), or (ii) the audits previously conducted at the
          expense of the Originator during such calendar year have not produced audit
          results reasonably satisfactory to the Buyer (or its assigns), Originator shall
          not be required to reimburse the Buyer (or its assigns) for the costs or
          expenses in respect of more than one audit during any calendar year.  

        (e)    Keeping
and Marking of Records and Books.  

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

	 	        (ii)              Originator
will (A) on or prior to the Initial Funding Date, mark its master           data
processing records related to the Qualified Receivables, file cabinets
          containing Receivable Files related to the Qualified Receivables, file folders
          containing Receivable Files and other books and records relating to the
          Qualified Receivables with a legend, acceptable to Buyer (or its assigns) and
          (B) upon the request of the Buyer (or its assigns) after the occurrence of an
          Amortization Event, mark each Contract with a legend acceptable to the Buyer
and           its assigns and (C) deliver to Buyer (or its assigns) or Servicer on behalf
of           Buyer all Contracts (including, without limitation, all multiple originals
of           any such Contract) relating to the Qualified Receivables.  

        (f)    Compliance
with Contracts and Credit and Collection Policy. Originator           will timely and
fully (i) perform and comply with all material provisions,           covenants and other
promises required to be observed by it under the Contracts           related to the
Qualified Receivables, and (ii) comply in all material respects           with the Credit
and Collection Policy in regard to each Qualified Receivable and           the related
Contract. Originator will pay when due any taxes payable in           connection with the
Qualified Receivables, exclusive of taxes on or measured by           income or gross
receipts of Buyer and its assigns.  

15 

        (g)    Ownership.
Originator will take all necessary action to establish and           maintain,
irrevocably in Buyer, legal and equitable title to the Qualified           Receivables,
the Related Security and the Collections, free and clear of any           Adverse Claims
other than Adverse Claims in favor of Buyer (and its assigns)           (including,
without limitation, the filing of all financing           statements or other
similar instruments or documents necessary under the UCC (or           any comparable
law) of all appropriate jurisdictions to perfect Buyer’s           interest in such
Qualified Receivables, Related Security and Collections and           such other action
to perfect, protect or more fully evidence the interest of           Buyer as Buyer (or
its assigns) may reasonably request).  

        (h)    Purchasers’ Reliance.
Originator acknowledges that Agent and the           Purchasers are entering into the
transactions contemplated by the Purchase           Agreement and the other Transaction
Documents in reliance upon Buyer’s and           the GFII’s identity as a legal
entity that is separate from Originator and           any Affiliates thereof. Therefore,
from and after the date of execution and           delivery of this Agreement, Originator
will take all reasonable steps including,           without limitation, all steps that
Buyer and GFII or any assignee of Buyer or           GFII may from time to time
reasonably request to maintain Buyer’s and           GFII’s identity as a
separate legal entity and to make it manifest to third           parties that each of
Buyer and GFII is an entity with assets and liabilities           distinct from those of
Originator and any Affiliates thereof and not just a           division of Originator.
Without limiting the generality of the foregoing and in           addition to the other
covenants set forth herein, Originator (i) will not hold           itself out to third
parties as liable for the debts of Buyer or GFII nor purport           to own the
Qualified Receivables and other assets acquired by Buyer or GFII,           (ii) will
take all other actions necessary on its part to (including in its           capacity as
owner of 100% of the membership interests of Buyer) ensure that (A)           GFII is at
all times in compliance with the covenants set forth in Section           7.1(i) of
the Purchase Agreement and (B) Buyer is at all times in compliance           with Section
4.01(h) of the Purchase and Sale Agreement and (iii) will           conduct all
transactions with Buyer and GFII in connection with the transactions
          contemplated herein or otherwise to be conducted strictly on an           arm’s-length
basis.  

        (i)    Collections.
In the event any payments relating to Qualified Receivables           are remitted
directly to Originator or any Affiliate of Originator, Originator           will remit
(or will cause all such payments to be remitted) directly to the           Lockbox
Account Bank or the Collection Account Bank for deposit into the Lockbox
          Account or the Collection Account within two (2) Business Days following
receipt           thereof and, at all times prior to such remittance, Originator will
itself hold           or, if applicable, will cause such payments to be held in trust for
the           exclusive benefit of Buyer and its assigns. Originator will not grant the
right           to take control of the Lockbox, the Lockbox Account or Collection Account
at a           future time or upon the occurrence of a future event to any Person, except
to           Buyer (or its assigns) as contemplated by this Agreement, the Purchase and
Sale           Agreement, the Purchase Agreement, the Lockbox Account Agreement and the
          Intercreditor Agreement. The Originator hereby grants the Buyer (and its
          assigns) the right to deliver a “Notice” at any time to the
Collateral           Agent pursuant to the terms of the Intercreditor Agreement.
Originator will           instruct all Obligors of Qualified Receivables to pay all
Collections with           respect thereto directly to the Lockbox, the Lockbox Account
or the Collection           Account.  

        (j)    Taxes.
Originator will file all tax returns and reports required by law           to be filed by
it and promptly pay all taxes and governmental charges at any           time owing,
except where such taxes are being contested in good faith and in           respect of
which Originator shall have established adequate reserves and no           enforcement
proceeding has been commenced.  

16 

        (k)    Accounting.
Originator will account for the transactions contemplated by           this Agreement in
its financial statements in a manner that is consistent with           the parties’ characterization
of such transactions as true sales as           described in Section 1.01(c).  

        SECTION
4.02. Negative Covenants of Originator. Until the date on which this Agreement
terminates in accordance with its terms, Originator hereby covenants that:  

        (a)    Name
Change, Offices and Records. Originator will not make any change to           its
name (within the meaning of Section 9-507(c) of any applicable enactment of           the
UCC), identity, or jurisdiction of organization, unless (i) at least           forty-five
(45) days prior to the effective date of any such change, Originator           provides
written notice thereof to Buyer, GFII and the Agent, (ii) at least ten           (10)
days prior to such effective date, delivers to Buyer, GFII and the Agent           such
financing statements (Forms UCC-1 and UCC-3) which Buyer, GFII or the Agent           may
reasonably request to reflect such change, together with such other           documents
and instruments that Buyer, GFII or the Agent may reasonably request           in
connection therewith, (iii) at least ten (10) days prior to such effective
          date, has taken all other steps to ensure that Buyer, GFII and the Agent, for
          the benefit of itself and the Purchasers, continue to have a first priority
          perfected ownership in the Qualified Receivables, the Related Security related
          thereto and any Collections thereon and (iv) in the case of any change in its
          jurisdiction of organization, if requested by Buyer, GFII or Agent, the Buyer,
          GFII and Agent shall have received, prior to such change, an opinion of
counsel,           in form and substance reasonably satisfactory to Buyer, GFII and the
Agent, as           to such incorporation and Originator’s valid existence and good
standing           and the perfection and preservation of priority of Buyer’s and
GFII’s           ownership interest in, and the Agent’s ownership or security
interest in,           the Qualified Receivables, the Related Security and Collections.  

        (b)    Change
in Payment Instructions to Obligors. Originator will not terminate           any bank
as the Lockbox Account Bank, or make any change in the instructions to           Obligors
regarding payments to be made to the Lockbox, the Lockbox Account or           the
Collection Account, unless Buyer (and its assigns) shall have received, at
          least ten (10) days before the proposed effective date therefor, (i) written
          notice of such addition, termination or change and (ii) (A) in the case of a
new           Collection Account, an executed Collection Account Agreement with respect
to the           new Collection Account or (B) in the case of a new Lockbox or Lockbox
Account,           an executed Lockbox Account Agreement with respect to the new Lockbox
Account or           Lockbox.  

        (c)    Modifications
to Contracts and Credit and Collection Policy. Originator           will not make any
change to the Credit and Collection Policy that could decrease           the credit
quality of any newly created Qualified Receivables. Except as           otherwise
permitted in its capacity as Servicer pursuant to Article VIII          of the
Purchase Agreement, Originator will not extend, amend or otherwise modify           the
terms of any Qualified Receivable or any Contract related thereto.  

17 

        (d)    Sales,
Liens. Originator will not sell, assign (by operation of law or           otherwise)
or otherwise dispose of, or grant any option with respect to, or           create or
suffer to exist any Adverse Claim upon (including, without limitation,           the
filing of any financing statement) or with respect to, any Qualified
          Receivable, Related Security or Collections on any Qualified Receivable, or
upon           or with respect to any Contract under which any Qualified Receivable
arises, or           the Lockbox, Lockbox Account or Collection Account, or assign any
right to           receive income with respect thereto (other than, in each case, the
creation of           the interests therein in favor of Buyer provided for herein or in
the case of           the Lockbox and the Lockbox Account, in favor of third parties and
the           Collateral Agent in respect of the Lockbox and Lockbox Account as
contemplated           in the Intercreditor Agreement and the Lockbox Account Agreement),
and           Originator will defend the right, title and interest of Buyer in, to and
under           any of the foregoing property (other than the Lockbox and Lockbox Account
as           provided in the Intercreditor Agreement), against all claims of third
parties           claiming through or under Originator. Originator shall not create or
suffer to           exist any mortgage, pledge, security interest, encumbrance, lien,
charge or           other similar arrangement on any of its inventory, unless the holder
of such           Adverse Claim has provided a release or otherwise disclaimed any
interest in the           Qualified Receivables, Related Security and Collections thereon
to the           satisfaction of the Buyer and its assigns.  

        (e)    No
Adverse Selection. To the extent that Originator has retained           Receivables
that would be Eligible Receivables if transferred but which have not           been
transferred to Buyer hereunder, Originator will not select those           Receivables to
be transferred hereunder in any manner that materially adversely           affects Buyer.  

        (f)    Accounting
for Purchase. Originator will not, and will not permit any           Affiliate to,
account for or treat (whether in financial statements or           otherwise) the
transactions contemplated hereby in any manner other than the           sale of the
Qualified Receivables and the Related Security by Originator to           Buyer or in any
other respect account for or treat the transactions contemplated           hereby in any
manner other than as a sale of the Qualified Receivables and the           Related
Security by Originator to Buyer except to the extent that such           transactions are
not recognized as sales in accordance with GAAP.  

ARTICLE V 
TERMINATION
EVENTS  

        SECTION
5.01.     Termination  Events.  The occurrence of any one or more of the following
 events shall constitute a Termination Event: 

        (a)              Originator
shall fail to pay or remit any amount to be paid or remitted by it           under any
Transaction Document to which it is a party when due and such failure           shall
continue for more than two (2) Business Days.  

        (b)              Originator
shall fail to observe or perform (i) any covenant set forth in Section 4.01(b)(i),
(b)(iv), (g) or (i) or Section 4.02 or           of any provision in
any Transaction Document dealing with the use, disposition           or remittance of the
proceeds of Collections or instructions to Obligors of the           Qualified
Receivables or (ii) any other provision hereof or of any other           Transaction
Document which is not remedied within ten (10) Business Days after           the earlier
of (i) the date on which such failure shall first become known to           any officer
of Originator or (ii) written notice thereof is given to Originator           by the
Buyer (or any of its assigns).  

        (c)              Any
representation or warranty made by Originator herein or in any other
          Transaction Document or in any certificate or report furnished to the Buyer or
          any of its assigns pursuant hereto or thereto or in connection with any
          transaction contemplated hereby or thereby proves untrue in any material
respect           as of the date of the issuance or making or deemed making thereof
(unless, in           the case of any breach of representation or warranty that results
in a Purchase           Price Credit hereunder, such breach has been cured in accordance
with Section           1.03 hereof).  

18 

        (d)              Any
of the following:  

	 	        (A)                      The
failure of the Originator to pay any Indebtedness when due or within any
               applicable grace period which Indebtedness individually or in the
aggregate                exceeds $1,000,000 (“Material Indebtedness”);  

	 	        (B)                      The
default by the Originator in the performance of any term, provision or
               condition contained in any agreement (other than a Transaction Document)
under                which any Material Indebtedness was created or is governed, the
effect of which                is to cause, or to permit the holder or holders of
Material Indebtedness to                cause Material Indebtedness to become due prior
to its stated maturity; or any                Material Indebtedness shall be declared to
be due and payable or required to be                prepaid (other than by a regularly
scheduled payment) prior to the date of                maturity thereof; or  

	 	        (C)                      Any
event of default (or similar event) under or in connection with the Credit
               Agreement.  

        (e)              (i)
Originator or any of its Subsidiaries shall generally not pay its debts as           such
debts become due or shall admit in writing its inability to pay its debts
          generally or shall make a general assignment for the benefit of creditors; or
          any proceeding shall be instituted by or against Originator or any of its
          Subsidiaries seeking to adjudicate it bankrupt or insolvent, or seeking
          liquidation, winding up, reorganization, arrangement, 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 or other similar
          official for it or any substantial part of its property and such proceeding or
          appointment continues undischarged or such proceeding or appointment continues
          undismissed or unstayed for a period of 60 days or (ii) Originator or any of
its           Subsidiaries shall take any corporate action to authorize or ratify any of
the           actions set forth in the foregoing clause (i) of this subsection (e).  

        (f)              A
Change of Control shall occur.  

        (g)              One
or more final judgments for the payment of money in an amount in excess of
          $5,000,000, individually or in the aggregate, shall be entered against the
          Originator on claims not covered by insurance or as to which the insurance
          carrier has denied its responsibility, and such judgment shall continue
          unsatisfied and in effect for thirty (30) consecutive days without a stay of
          execution.  

        SECTION
5.02.     Remedies. 

19 

        (a)              Upon
the occurrence and during the continuation of a Termination Event, Buyer           may
take any of the following actions: (i) declare the Termination Date to have
          occurred, whereupon the Termination Date shall forthwith occur, without demand,
          protest or further notice of any kind, all of which are hereby expressly waived
          by Originator; provided, however, that upon the occurrence of
          Termination Event described in Section 5.01(e), or of an actual or
deemed           entry of an order for relief with respect to Originator under the
Federal           Bankruptcy Code, the Termination Date shall automatically occur,
without demand,           protest or any notice of any kind, all of which are hereby
expressly waived by           Originator and (ii) to the fullest extent permitted by
applicable law, declare           that any amounts then due and owing by Buyer to
Originator shall bear interest           at the rate per annum specified in clause (ii)
of the definition of           “Default Fee”. The aforementioned rights and
remedies shall be in           addition to all other rights and remedies of Buyer and its
assigns available           under this Agreement, by operation of law, at equity or
otherwise, all of which           are hereby expressly preserved, including, without
limitation, all rights and           remedies provided under the UCC, all of which rights
shall be cumulative.  

        (b)              On
any date on which a sale of Qualified Receivables is proposed to be made and
          Buyer is unable to pay the Purchase Price therefor, Originator may suspend its
          performance and await Buyer’s ability to perform, or by written notice,
          declare the Termination Date to have occurred.  

ARTICLE VI
 
INDEMNIFICATION  

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

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

	 	        (ii)              Indemnified
Amounts to the extent the same constitutes recourse for or otherwise           includes
losses in respect of Qualified Receivables that are uncollectible on           account of
the insolvency, bankruptcy, lack of creditworthiness, or other           failure (without
cause or justification), or inability to perform its           obligations on the part of
the related Obligor; or  

	 	        (iii)              (A)
taxes imposed by the jurisdiction in which such Indemnified Party’s
          jurisdiction of organization, operation or management and control, on or
          measured by the overall net income or revenues of such Indemnified Party to the
          extent that the amount of or computation of such taxes is consistent with the
          Intended Characterization, (B) any withholding tax imposed on the payments to
          any Indemnified Party to the extent such taxes that the amount of or
computation           of such taxes is consistent with the Intended Characterization, and
(C) any tax           that would not have been imposed but for the delay or failure by
such           Indemnified Party (following a written request by the Originator, except
that           this Agreement shall constitute an initial written request by the
Originator) in           providing to the Seller U.S. IRS Form W-8BEN, W-8IMY, W-8ECI or
W-8EXP           (whichever is applicable) that is required to be provided by such
Indemnified           Party to avoid or reduce such taxes;  

20 

provided, however, that
nothing contained in this sentence shall limit the liability of Originator or limit the
recourse of Buyer to Originator in respect of any amounts otherwise specifically provided
to be paid by Originator under the terms of this Agreement. Without limiting the
generality of the foregoing indemnification, but subject to the limitations in clauses
(i), (ii) and (iii) above, Originator shall indemnify the Indemnified Parties for
Indemnified Amounts relating to or resulting from: 

	 	        (i)              any
representation or warranty made by Originator (or any officers of           Originator)
under or in connection with this Agreement, any other Transaction           Document or
any other information or report delivered by Originator pursuant           hereto or
thereto, which shall have been false or incorrect when made or deemed           made;  

	 	        (ii)              the
failure by Originator, to comply with any applicable law, rule or regulation
          with respect to any Qualified Receivable or Contract related thereto, or the
          nonconformity of any Qualified Receivable or Contract included therein with any
          such applicable law, rule or regulation or any failure of Originator to keep or
          perform any of its obligations, express or implied, with respect to any
          Contract;  

	 	        (iii)              any
failure of Originator to perform its duties, covenants or other obligations           in
accordance with the provisions of this Agreement or any other Transaction
          Document;  

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

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

	 	        (vi)              the
commingling of Collections of Qualified Receivables at any time with other
          funds;  

	 	        (vii)              any
investigation, litigation or proceeding related to or arising from this
          Agreement or any other Transaction Document, the transactions contemplated
          hereby, the use of the proceeds of the Purchase, the ownership of the Qualified
          Receivables or any other investigation, litigation or proceeding relating to
          Originator in which any Indemnified Party becomes involved as a result of any
of           the transactions contemplated hereby;  

21 

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

	 	        (ix)              any
Termination Event described in Section 5.01(e);  

	 	        (x)              any
failure to vest and maintain vested in Buyer, or to transfer to Buyer, legal
          and equitable title to, and ownership of, the Qualified Receivables, the
Related           Security and the Collections, free and clear of any Adverse Claim;  

	 	        (xi)              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 Qualified Receivable, the Related
          Security and Collections with respect thereto, and the proceeds of any thereof,
          whether at the time of the Purchase or at any subsequent time;  

	 	        (xii)              any
action improperly taken, any omission of any action required to be taken, or
          any other action elected to be taken by Originator which reduces or impairs the
          rights of the Buyer (or any of its assigns) with respect to any Qualified
          Receivable or the value of any such Qualified Receivable;  

	 	        (xiii)              any
attempt by any Person (other than the Arranger, the Agent or any Purchaser)           to
void the Purchase hereunder under statutory provisions or common law or
          equitable action; and  

	 	        (xiv)              the
failure of the Originator to provide the original Receivable File for each
          Qualified Receivable to the Servicer.  

        SECTION
6.02. Other Costs and Expenses. Originator shall pay to Buyer on demand all costs
and out-of-pocket expenses in connection with the preparation, execution, delivery and
administration of this Agreement, the transactions contemplated hereby and the other
documents to be delivered hereunder. Originator shall pay to Buyer on demand any and all
costs and expenses of Buyer, if any, including reasonable counsel fees and expenses in
connection with the enforcement of this Agreement and the other documents (including any
amendments hereto or thereto) delivered hereunder and in connection with any
restructuring or workout of this Agreement or such documents, or the administration of
this Agreement following a Termination Event.  

22 

ARTICLE VII
 
MISCELLANEOUS  

        SECTION
7.01.     Waivers and Amendments. 

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

        (b)              No
provision of this Agreement may be amended, supplemented, modified or waived
          except in writing signed by Originator and Buyer and, (i) to the extent
required           under the Purchase and Sale Agreement, the GFII and (ii) to the extent
required           under the Purchase Agreement, the Agent and the Financial Institutions
or the           Required Financial Institutions.  

        SECTION
7.02. Notices. Except as provided below, all communications and notices provided
for hereunder shall be in writing (including bank wire, telecopy or electronic facsimile
transmission or similar writing) and shall be given to the other parties hereto at their
respective addresses or telecopy numbers set forth on the signature pages hereof or at
such other address or telecopy number as such Person may hereafter specify for the
purpose of notice to each of the other parties hereto. Each such notice or other
communication shall be effective (i) if given by telecopy, upon the receipt thereof, (ii)
if given by mail, three (3) Business Days after the time such communication is deposited
in the mail with first class postage prepaid or (iii) if given by any other means, when
received at the address specified in this Section 7.02.  

        SECTION
7.03.     Protection of Ownership Interests of Buyer. 

        (a)              Originator
agrees that from time to time, at its expense, it will promptly           execute and
deliver all instruments and documents, and take all actions, that           may be
necessary or desirable, or that Buyer (or its assigns) may request, to           perfect,
protect or more fully evidence the interests of Buyer in the Qualified
          Receivables, the Related Security, the Collections, the Lockbox and the Lockbox
          Account, or to enable Buyer (or its assigns) to exercise and enforce their
          rights and remedies hereunder. At any time, Buyer (or its assigns) may, at
          Originator’s sole cost and expense, direct Originator to notify the
          Obligors of Qualified Receivables of the ownership interests of Buyer under
this           Agreement and may also direct that payments of all amounts due or that
become           due under any or all Qualified Receivables be made directly to Buyer or
its           designee.  

        (b)              If
Originator fails to perform any of its obligations hereunder, Buyer (or its
          assigns) may (but shall not be required to) perform, or cause performance of,
          such obligation, and Buyer’s (or such assigns’) costs and expenses
          incurred in connection therewith shall be payable by Originator as provided in
Section 6.02. Originator irrevocably authorizes Buyer (and its assigns)
          at any time and from time to time in the sole discretion of Buyer (or its
          assigns), and appoints Buyer (and its assigns) as its attorney(es)-in-fact, to
          act on behalf of Originator (i) to execute on behalf of Originator as debtor
and           to file financing statements and amendments thereto necessary or desirable
in           Buyer’s (or its assigns’) sole discretion to perfect and to
maintain           the perfection and priority of the interest of Buyer in the Qualified
          Receivables, Related Security and Collections and (ii) to file a carbon,
          photographic or other reproduction of this Agreement or any financing statement
          with respect to the Qualified Receivables as a financing statement in such
          offices as Buyer (or its assigns) in their sole discretion deem necessary or
          desirable to perfect and to maintain the perfection and priority of Buyer’s
          interests in the Qualified Receivables, Related Security and Collections. This
          appointment is coupled with an interest and is irrevocable.  

23 

        SECTION
7.04. Confidentiality. Each party hereto shall maintain and shall cause each of
its employees and officers to maintain the confidentiality of this Agreement and the
other confidential or proprietary information with respect to the other parties hereto
and their respective businesses obtained by it or them in connection with the
structuring, negotiating and execution of the transactions contemplated herein, except
that Information may be disclosed (a) to its and its Affiliates’ directors,
officers, employees and agents, including accountants, legal counsel and other advisors
to the extent any such Person has a need to know such Information (it being understood
that the Persons to whom such disclosure is made will first be informed of the
confidential nature of such Information and instructed to keep such Information
confidential), (b) to the extent requested by any regulatory authority (including
any self-regulatory authority, such as the National Association of Insurance
Commissioners), (c) to the extent required by applicable laws or regulations or by
any subpoena or similar legal process, (d) to any other party hereto, (e)  in
connection with the exercise of any remedies hereunder or under any other Transaction
Document or any suit, action or proceeding relating to this Agreement or any other
Transaction Document or the enforcement of rights hereunder or thereunder, (f) subject
to an agreement containing provisions substantially the same as those of this section, to
(A) any assignee of or participant in, or any prospective assignee of or participant
in, any of its rights or obligations under this Agreement or (B) any actual or
prospective counterparty (or its advisors) to any swap or derivative transaction relating
to any Gehl Entity and its obligations, (g) with the prior written consent of Gehl
(in the case of any Information relating to the business or operation of any Gehl Entity)
or the Agent (in the case of any Information relating to the Agent, the Company or the
other Purchasers or the commercial or pricing terms hereof), (h) to the extent such
Information (A) becomes publicly available other than as a result of a breach of
this Section or (B) becomes available to the parties hereto on a non-confidential
basis from a source other than a Gehl Entity or any of their directors, officers,
employees or agents, including accountants, legal counsel and other advisors, or (i) by
the Agent, the Company or the Arranger to any rating agency, Commercial Paper dealer or
provider of a surety, guaranty or credit or liquidity enhancement to Company and to any
officers, directors, employees, outside accountants and attorneys of any of the foregoing
(it being understood that the Persons to whom such disclosure is made will first be
informed of the confidential nature of such Information and instructed to keep such
Information confidential). For purposes of this Section, “Information” means
all information received from a Gehl Entity relating to a Gehl Entity or any of their
respective businesses, other than any such information that is available to the parties
hereto on a non-confidential basis prior to disclosure by a Gehl Entity, provided that,
in the case of information received from a Gehl Entity after the date hereof, such
information is clearly identified at the time of delivery as confidential.  

24 

        SECTION
7.05.     Bankruptcy Petition. 

        (a)              Originator
and Buyer each hereby covenants and agrees that, prior to the date           that is one
year and one day after the payment in full of all outstanding senior
          Indebtedness of Company, it will not institute against, or join any other
Person           in instituting against, Company any bankruptcy, reorganization,
arrangement,           insolvency or liquidation proceedings or other similar proceeding
under the laws           of the United States or any state of the United States.  

        (b)              Originator
hereby covenants and agrees that, prior to the date that is one year           and one
day after the payment in full of all outstanding senior Indebtedness of           Buyer,
it will not institute against, or join any other Person in instituting           against,
Buyer or GFII any bankruptcy, reorganization, arrangement, insolvency           or
liquidation proceedings or other similar proceeding under the laws of the
          United States or any state of the United States.  

        SECTION
7.06. CHOICE OF LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAW OF THE STATE OF NEW YORK.  

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

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

        SECTION
7.09.     Integration; Binding Effect; Survival of Terms. 

25 

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

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

        SECTION
7.10. Counterparts; Severability; Section References. This Agreement may be
executed in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original and all of
which when taken together shall constitute one and the same Agreement. Any provisions of
this Agreement which are prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or unenforceability
without invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such
provision in any other jurisdiction. Unless otherwise expressly indicated, all references
herein to “Article,” “Section,” “Schedule” or “Exhibit”shall
mean articles and sections of, and schedules and exhibits to, this Agreement.  

[signature page follows] 

26  

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

		GEHL COMPANY, as Originator
	

 	By:  /s/ James J. Monnat
		Name:  James J. Monnat
		Title:  Treasurer
	
 	Address:  Gehl Company
		                  143 Water Street
		                  West Bend, WI 53095
	

 	GEHL RECEIVABLES II, LLC, as Buyer
	

 	By:  /s/ James J. Monnat
		Name:  James J. Monnat
		Title:  Treasurer
	
 	Address:  Gehl Receivables II, LLC
		                  143 Water Street
		                  West Bend, WI 53095

Signature Page to
Receivables Sale Agreement 

Exhibit I 

Definitions 

        This
is Exhibit I to the Agreement (as hereinafter defined). As used in the Agreement
and the Exhibits, Schedules and Annexes thereto, capitalized terms have the meanings set
forth in this Exhibit I (such meanings to be equally applicable to the singular and
plural forms thereof). If a capitalized term is used in the Agreement, or any Exhibit,
Schedule or Annex thereto, and not otherwise defined therein or in this Exhibit I,
such term shall have the meaning assigned thereto in Exhibit I to the Purchase
Agreement. 

        “Agent”
has the meaning set forth in the Preliminary Statements to the Agreement. 

        “Agreement”
means this Receivables Sale Agreement, dated as of March 15, 2006, between Originator and
Buyer, as the same may be amended, restated, supplemented or otherwise modified from time
to time. 

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

        “Calculation
Period” means each calendar month or portion thereof which elapses during the
term of the Agreement. The first Calculation Period shall commence on the date of the
initial Purchase of Qualified Receivables hereunder and the final Calculation Period shall
terminate on the Termination Date. 

        “Collections”
means, with respect to any Receivable, all cash collections and other cash proceeds in
respect of such Receivable, including, without limitation, all yield, Finance Charges or
other related amounts accruing in respect thereof and all cash proceeds of Related
Security with respect to such Receivable. 

        “Company”
has the meaning set forth in the Preliminary Statements to the Agreement. 

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

        “Discount
Factor” means a percentage calculated to provide Buyer with a reasonable return
on its investment in the Qualified Receivables after taking account of (i) the time value
of money based upon the anticipated dates of collection of the Qualified Receivables and
the cost to Buyer of financing its investment in the Qualified Receivables during such
period and (ii) the risk of nonpayment by the Obligors. Originator and Buyer may agree
from time to time to change the Discount Factor based on changes in one or more of the
items affecting the calculation thereof, provided that any change to the Discount
Factor shall take effect as of the commencement of a Calculation Period, shall apply only
prospectively and shall not affect the Purchase Price payment in respect of Purchase which
occurred during any Calculation Period ending prior to the Calculation Period during which
Originator and Buyer agree to make such change. 

1 

        “Existing
Receivable” has the meaning assigned to it in the Receivables Sale and Assignment
Agreement. 

        “Initial
Funding Date” means the date of the initial Incremental Purchase under the
Purchase Agreement. 

        “Intended
Characterization” means the characterization for income tax purposes described in
Section 13.14(e) of the Purchase Agreement. 

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

        “Net
Value” means, as of any date of determination, an amount equal to the sum of (i)
the aggregate Outstanding Balance of the Pool Receivables at such time, minus (ii)
the sum of (A) the aggregate Capital outstanding at such time, plus (B) the
Enhancement Amount. 

        “Net
Worth” means as of the last Business Day of each Calculation Period preceding any
date of determination, the excess, if any, of (i) the value of Buyer’s equity
interest in Gehl Receivables II, LLC determined by calculation of the excess, if any, of
(a) the aggregate Outstanding Balance of the Pool Receivables at such time, over
(b) the sum of the aggregate Capital outstanding at such time, minus (ii) the
aggregate outstanding principal balance of the Subordinated Loan hereunder (including any
Subordinated Loan proposed to be made on the date of determination). 

        “Original
Balance” means, with respect to any Qualified Receivable, the Outstanding Balance
of such Qualified Receivable on the date it was purchased by Buyer. 

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

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

        “Purchase”
means each purchase or contribution under the Agreement by Buyer from Originator of the
Qualified Receivables, the Related Security and the Collections related thereto, together
with all related rights in connection therewith. 

        “Purchase
Agreement” has the meaning set forth in the Preliminary Statements to the
Agreement. 

        “Purchase
and Sale Agreement” has the meaning set forth in the Preliminary Statements to
the Agreement. 

        “Purchase
Price” means, with respect to any Purchase on any date, the aggregate price to be
paid by Buyer to Originator for such Purchase in accordance with Section 1.02 of
the Agreement for the Qualified Receivables, Collections and Related Security being sold
to Buyer on such date, which price shall equal (i) the product of (x) the Original Balance
of such Qualified Receivables, multiplied by (y) one minus the Discount
Factor then in effect, minus (ii) any Purchase Price Credits to be credited against the
Purchase Price otherwise payable in accordance with Section 1.03 of the Agreement. 

2 

        “Purchase
Price Credit” has the meaning set forth in Section 1.03 of the Agreement. 

        “Purchaser”
means Company or a Financial Institution, as applicable. 

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

        “Qualified
Receivable” means Specified Receivable identified on the Schedule of Receivables
(other than any Specified Receivable identified to the Originator by the Servicer on or
before each Settlement Date occurring after the date that such Specified Receivable came
in to existence which, if transferred to the Buyer under this Agreement and to the GFII
pursuant to the Purchase and Sale Agreement, would not result in an increase in the Net
Receivables Balance on each such Settlement Date). 

        “Recharacterization”
has the meaning assigned to it in Section 1.06(a). 

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

	 	        (i)              all
of Originator’s interest in the Financed Equipment, the Dealer           Agreements
(to the extent related to a particular Qualified Receivable), the           Dealer
Recourse (to the extent related to a particular Qualified Receivable),           the
Receivables Insurance Policies and all other insurance contracts with           respect
thereto  

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

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

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

	 	        (v)              all
Records related to such Qualified Receivable, and  

	 	        (vi)              all
income or proceeds of any of the foregoing.  

        “Required
Capital Amount” means, as of any date of determination, the product of (i) 9.0%
and (ii) the Aggregate Capital on such date of determination. 

3 

        “Schedule
of Receivables” means the master schedule of all Pool Receivables which, as of
the Initial Funding Date, is attached hereto as Schedule A, as the same shall be
amended or supplemented on each date that any Qualified Receivables are transferred by
Originator to Buyer pursuant to this Agreement, which may be a single schedule for this
Agreement, the Receivables Purchase and Sale Agreement, the Receivables Sale and
Assignment Agreement and the Purchase Agreement. 

        “Settlement
Date” means, in any calendar week, the Friday of such week, or, if such Friday is
not a Business Day, the next succeeding Business Day. 

        “Specified
Receivable” means each Receivable that satisfies all of the criteria and
requirements set forth in the definition of “Eligible Receivable” set forth in
Exhibit I to the Purchase Agreement other than those criteria and requirements relating to
(i) the transfer of such Receivable pursuant to this Agreement or the Purchase and Sale
Agreement or (ii) any actions by, or qualifications of, the Buyer or the Existing Owner. 

        “Subordinated
Loan” has the meaning set forth in Section 1.02(a) of the Agreement. 

        “Subordinated Note”
means a promissory note in substantially the form of Exhibit VI hereto as more
fully described in Section 1.02 of the Agreement, as the same may be amended,
restated, supplemented or otherwise modified from time to time. 

        “Termination
Date” means the earliest to occur of (i) the Facility Termination Date, (ii) the
Business Day immediately prior to the occurrence of a Termination Event set forth in
Section 5.01(e), (iii) the Business Day specified in a written notice from Buyer to
Originator following the occurrence of any other Termination Event, and (iv) the date
which is thirty Business Days after Buyer’s receipt of written notice from Originator
that it wishes to terminate the facility evidenced by this Agreement. 

        “Termination
Event” has the meaning set forth in Section 5.01 of the Agreement. 

        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. 

4 

Exhibit II 

Places of Business: 

	 	
143
Water Street
West Bend, WI 53095 

Locations of Records: 

	 	
143
Water Street
West Bend, WI 53095 

Federal Employer
Identification Number: 

	 	
39-0300430 

Corporate, Partnership
Trade and Assumed Names: 

	 	
Gehl
Finance 

5 

Exhibit III 

Exhibit IV 

Form of Compliance
Certificate  

        This
Compliance Certificate is furnished pursuant to that certain Receivables Sale Agreement
dated as of March 15, 2006, between Gehl Company (“Originator”) and Gehl
Receivables II, LLC (the “Agreement”). Capitalized terms used and not
otherwise defined herein are used with the meanings attributed thereto in the Agreement. 

        THE
UNDERSIGNED HEREBY CERTIFIES THAT: 

        1.              I
am the duly elected ______________ of Originator.  

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

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

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

        The
foregoing certifications, together with the computations set forth in Schedule I hereto
and the financial statements delivered with this Certificate in support hereof, are made
and delivered this ____day of ____________, ______. 

	 	
____________________________
                                                                       
       [Name]

7 

Exhibit V 

Credit and Collection
Policy 

[attached] 

8 

Exhibit VI 

Form of Subordinated
Note 

SUBORDINATED NOTE 

March 15, 2006 

        1.    Note.
FOR VALUE RECEIVED, the undersigned, Gehl Receivables II, LLC, a           Delaware
limited liability company (“SPV”), hereby           unconditionally
promises to pay to the order of Gehl Company, a Wisconsin           corporation (“Originator”),
in lawful money of the United           States of America and in immediately available
funds, on the date following the           Termination Date which is one year and one day
after the date on which (i) the           Outstanding Balance of all Receivables sold
under the “Sale Agreement”          referred to below has been reduced to zero
and (ii) Originator has paid to the           Buyer all indemnities, adjustments and
other amounts which may be owed           thereunder in connection with the Purchases
(the “Collection           Date”), the aggregate unpaid principal sum
outstanding of all           “Subordinated Loans” made from time to time by
Originator to SPV           pursuant to and in accordance with the terms of that certain
Receivables Sale           Agreement dated as of March 15, 2006 between Originator and
SPV (as amended,           restated, supplemented or otherwise modified from time to
time, the           “Sale Agreement”). Reference to Section 1.02 of
the Sale           Agreement is hereby made for a statement of the terms and conditions
under which           the loans evidenced hereby have been and will be made. All terms
which are           capitalized and used herein and which are not otherwise specifically
defined           herein shall have the meanings ascribed to such terms in the Sale
Agreement.  

        2.    Interest.
SPV further promises to pay interest on the outstanding unpaid           principal amount
hereof from the date hereof until payment in full hereof at a           rate equal to the
Prime Rate; provided, however, that if SPV shall           default in the
payment of any principal hereof, SPV promises to pay, on demand,           interest at
the rate of the Prime Rate plus 2.00% per annum on any such unpaid           amounts,
from the date such payment is due to the date of actual payment.           Interest shall
be payable on the first Business Day of each month in arrears; provided, however,
that SPV may elect on the date any interest           payment is due hereunder to defer
such payment and upon such election the amount           of interest due but unpaid on
such date shall constitute principal under this           Subordinated Note. The
outstanding principal of any loan made under this           Subordinated Note shall be
due and payable on the Collection Date and may be           repaid or prepaid at any time
without premium or penalty.  

        3.    Principal
Payments. Originator is authorized and directed by SPV to enter           on the grid
attached hereto, or, at its option, in its books and records, the           date and
amount of each loan made by it which is evidenced by this Subordinated           Note and
the amount of each payment of principal made by SPV, and absent           manifest error,
such entries shall constitute prima facie evidence of the           accuracy of the
information so entered; provided that neither the failure           of Originator
to make any such entry or any error therein shall expand, limit or           affect the
obligations of SPV hereunder.  

9 

        4.    Subordination.
The indebtedness evidenced by this Subordinated Note is           subordinated to the
prior payment in full of all of Gehl Funding II, LLC’s           (SPV’s
assignee) recourse obligations under that certain Receivables           Purchase
Agreement dated as of March 15, 2006 by and among Gehl Funding II, LLC,
          Originator, as Servicer, various “Purchasers” from time to time party
          thereto, and JPMorgan Chase Bank, N.A., as the “Agent” (as amended,
          restated, supplemented or otherwise modified from time to time, the
          “Purchase Agreement”). The subordination provisions contained
          herein are for the direct benefit of, and may be enforced by, Gehl Funding II,
          LLC, the Agent and the Purchasers and/or any of their respective assignees
          (collectively, the “Senior Claimants”) under the Purchase
          Agreement. Until the date on which all “Capital” outstanding under
the           Purchase Agreement has been repaid in full and all other obligations of
Gehl           Funding II, LLC and/or the Servicer thereunder and under the “Fee
          Letter” referenced therein (all such obligations, collectively, the
          “Senior Claim”) have been indefeasibly paid and satisfied in
          full, Originator shall not demand, accelerate, sue for, take, receive or accept
          from SPV, directly or indirectly, in cash or other property or by set off or
any           other manner (including, without limitation, from or by way of collateral)
any           payment or security of all or any of the indebtedness under this
Subordinated           Note or exercise any remedies or take any action or proceeding to
enforce the           same; provided, however, that (i) Originator hereby
agrees that it           will not institute against SPV any proceeding of the type
described in Section 5.01(e) of the Sale Agreement unless and until the Collection
          Date has occurred and (ii) nothing in this paragraph shall restrict SPV from
          paying, or Originator from requesting, any payments under this Subordinated
Note           so long as Gehl Funding II, LLC is not required under the Purchase
Agreement to           set aside for the benefit of, or otherwise pay over to, the funds
used for such           payments to any of the Senior Claimants and further provided that
the making of           such payment would not otherwise violate the terms and provisions
of the           Purchase Agreement. Should any payment, distribution or security or
proceeds           thereof be received by Originator in violation of the immediately
preceding           sentence, Originator agrees that such payment shall be segregated,
received and           held in trust for the benefit of, and deemed to be the property
of, and shall be           immediately paid over and delivered to the Agent for the
benefit of the Senior           Claimants.  

        5.    Bankruptcy;
Insolvency. Upon the occurrence of any proceeding of the type           described in
Section 5.01(e) of the Sale Agreement involving SPV as           debtor, then and
in any such event the Senior Claimants shall receive payment in           full of all
amounts due or to become due on or in respect of Capital and the           Senior Claim
(including “CP Costs” and “Yield” as defined           and as
accruing under the Purchase Agreement after the commencement of any such
          proceeding, whether or not any or all of such CP Costs or Yield is an allowable
          claim in any such proceeding) before Originator is entitled to receive payment
          on account of this Subordinated Note, and to that end, any payment or
          distribution of assets of SPV of any kind or character, whether in cash,
          securities or other property, in any applicable insolvency proceeding, which
          would otherwise be payable to or deliverable upon or with respect to any or all
          indebtedness under this Subordinated Note, is hereby assigned to and shall be
          paid or delivered by the Person making such payment or delivery (whether a
          trustee in bankruptcy, a receiver, custodian or liquidating trustee or
          otherwise) directly to the Agent for application to, or as collateral for the
          payment of, the Senior Claim until such Senior Claim shall have been paid in
          full and satisfied.  

        6.    Amendments.
This Subordinated Note shall not be amended or modified           except in accordance
with Section 7.01 of the Sale Agreement. The terms           of this Subordinated
Note may not be amended or otherwise modified without the           prior written consent
of Gehl Funding II, LLC and the Agent.  

10 

        7.    GOVERNING
LAW. THIS SUBORDINATED NOTE SHALL BE INTERPRETED AND THE RIGHTS           AND
LIABILITIES OF THE PARTIES HERETO DETERMINED IN ACCORDANCE WITH THE LAWS AND
          DECISIONS OF THE STATE OF NEW YORK. WHEREVER POSSIBLE EACH PROVISION OF THIS
          SUBORDINATED NOTE SHALL BE INTERPRETED IN SUCH MANNER AS TO BE EFFECTIVE AND
          VALID UNDER APPLICABLE LAW, BUT IF ANY PROVISION OF THIS SUBORDINATED NOTE
SHALL           BE PROHIBITED BY OR INVALID UNDER APPLICABLE LAW, SUCH PROVISION SHALL BE
          INEFFECTIVE TO THE EXTENT OF SUCH PROHIBITION OR INVALIDITY, WITHOUT
          INVALIDATING THE REMAINDER OF SUCH PROVISION OR THE REMAINING PROVISIONS OF
THIS           SUBORDINATED NOTE.  

        8.    Waivers.
All parties hereto, whether as makers, endorsers, or otherwise,           severally waive
presentment for payment, demand, protest and notice of dishonor.           Originator
additionally expressly waives all notice of the acceptance by any           Senior
Claimant of the subordination and other provisions of this Subordinated           Note
and expressly waives reliance by any Senior Claimant upon the subordination           and
other provisions herein provided.  

        9.    Assignment.
This Subordinated Note may not be assigned, pledged or           otherwise transferred to
any party other than Originator without the prior           written consent of the Agent,
and any such attempted transfer shall be void.  

	 	
GEHL
RECEIVABLES II, LLC

	 	
By:_____________________________
                                                     
      Title:

11 

Schedule 

to 

SUBORDINATED NOTE 

SUBORDINATED LOANS AND
PAYMENTS OF PRINCIPAL 

	Date	Amount of	Amount of	Unpaid	Notation made
		Subordinated	Principal	Principal	by
		Loan	Paid	Balance	
	
	
	
	
	

	
	
	
	
	

	
	
	
	
	

	
	
	
	
	

	
	
	
	
	

	
	
	
	
	

	
	
	
	
	

	
	
	
	
	

	
	
	
	
	

	
	
	
	
	

	
	
	
	
	

12 

Schedule A 

Schedule of Receivables
as of the date of this Agreement  

(attached) 

13

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