Document:

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                                                                    Exhibit 10.1

                        AGREEMENT FOR WHOLESALE FINANCING
       (MANUFACTURED HOME PURCHASE MONEY, USED AND RENTAL CREDIT FACILITY)

     THIS AGREEMENT FOR WHOLESALE FINANCING (MANUFACTURED HOME PURCHASE MONEY,
USED AND RENTAL CREDIT FACILITY) (as amended from time to time, this
"AGREEMENT") is made as of March 1, 2006, by and between SUN HOME SERVICES,
INC., a Michigan corporation ("SHS" OR "BORROWER"), and TEXTRON FINANCIAL
CORPORATION, a Delaware corporation, as a the lender ("TFC"); the principal
place of business of SHS and its notification address is set forth in Part 1 on
the Schedule of Terms and Disclosures attached hereto.

                                    RECITALS:

     A. WHEREAS, SHS is an authorized dealer of manufactured homes of the types
set forth on Part 2 to the Schedule of Terms and Disclosures attached hereto
(each a "MANUFACTURED HOME") manufactured by the manufacturers set forth on said
Part 2 (individually, a "MANUFACTURER" and, collectively, the "MANUFACTURERS");

     B. WHEREAS, in its capacity as a dealer to such Manufacturers, SHS buys,
from time to time, new Manufactured Homes from such Manufacturers (each a "NEW
MANUFACTURED HOME") to be held by SHS as inventory for sale in the ordinary
course of SHS's business (each a "NEW MANUFACTURED HOME HELD FOR SALE"); SHS may
after such purchase (and prior to the first sale of such New Manufactured Home)
rent such New Manufactured Home in a Sun MH Community (as such term is defined
below) in the ordinary course of its business (any such New Manufactured Home
actually so rented is referred to herein as a "NEW RENTED MANUFACTURED HOME");

     C. WHEREAS, SHS also acquires from time to time in the ordinary course of
its business, used Manufactured Homes (by way of trade-ins; repossessions,
foreclosures or other similar enforcement actions; or purchases of pre-owned
Manufactured Homes located in, and from residents of, any of the Sun MH
Communities) (each a "USED MANUFACTURED HOME") to be held as inventory for sale
in the ordinary course of SHS's business (each a "USED MANUFACTURED HOME HELD
FOR SALE"); SHS may after such acquisition rent such Used Manufactured Home in a
Sun MH Community in the ordinary course of its business (any such Used
Manufactured Home actually so rented is referred to herein as a "USED RENTED
MANUFACTURED HOME");

     D. WHEREAS, SHS has entered into (or intends to enter into) manufactured
home lease agreements with individual consumers (each manufactured home lease
agreement is referred to herein as a "MH CONSUMER LEASE AGREEMENT") and each
individual lessee thereunder is referred to herein as a "MH CONSUMER LESSEE") in
respect of New Manufactured Homes or Used Manufactured Homes, as the case may
be; in certain cases, such MH Consumer Lease Agreements may permit the MH
Consumer Lessees thereunder to purchase from SHS the New Rented Manufactured
Homes or Used Rented Manufactured Homes, as the case may be, being leased
thereunder for a stipulated purchase price (each such purchase option under any
such MH Consumer Lease Agreement is referred to herein as a "MH CONSUMER LESSEE
PURCHASE OPTION");

     E. WHEREAS, New Rented Manufactured Homes and Used Rented Manufactured
Homes are referred to herein, collectively, as "RENTED MANUFACTURED HOMES;"

     F. WHEREAS, all SHS's now owned Manufactured Homes are, and all of SHS's
hereafter acquired Manufactured Homes that constitute Collateral (as such term
is defined below) will be, (I) unencumbered and free and clear of any lien or
security interest, except as otherwise provided for or permitted in this
Agreement, and (II) owned solely by SHS free and clear of any interest of any
other person (except as provided for in Recital D above);

     G. WHEREAS, SHS requests that TFC extend advances under this Agreement from
time to time to provide (i) purchase money financing, as provided for in Section
1 of this Agreement, in order for SHS to acquire

Final
Agreement for Wholesale Financing
(Manufactured Home Purchase Money, Used and Rental Credit Facility)

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New Manufactured Homes for Sale from Manufacturers (each funding by TFC, as
provided for in Section 1 below, of a request by SHS for an extension of credit
in respect of such a New Manufactured Homes for Sale to be acquired from a
Manufacturer is referred to herein, individually, as a "NEW MANUFACTURED HOME
SALE ADVANCE" and, collectively, as the "NEW MANUFACTURED HOME SALE ADVANCES")
and (ii) to provide financing, as provided for in Section 1 of this Agreement,
for New Manufactured Homes for Sale previously acquired and fully paid for by
SHS (referred to herein individually, as a "NEW MANUFACTURED HOME BULK SALE
ADVANCE" and, collectively, as the "NEW MANUFACTURED HOME BULK SALE ADVANCES;
New Manufactured Home Sale Advances and New Manufactured Home Bulk Sale Advances
are referred to herein collectively as "NEW MANUFACTURED HOME ACQUISITION
ADVANCES");

     H. WHEREAS, SHS requests that TFC extend advances under this Agreement from
time to time to provide financing, as provided for in Section 2 of this
Agreement, in order for SHS to refinance, if necessary, and convert New
Manufactured Homes Held for Sale into New Rented Manufactured Homes (each
funding by TFC, as provided for in Section 2 below, of a request by SHS for an
extension of credit in respect of such a New Rented Manufactured Home is
referred to herein, individually, as a "NEW RENTED MANUFACTURED HOME ADVANCE"
and, collectively, as the "NEW RENTED MANUFACTURED HOME ADVANCES");

     I. WHEREAS, SHS requests that TFC extend advances under this Agreement from
time to time to provide (i) acquisition financing, as provided for in Section 3
of this Agreement, in respect of Used Manufactured Homes Held for Sale (each
funding by TFC, as provided for in Section 3 below, of a request by SHS for an
extension of credit in respect of a Used Manufactured Homes Held for Sale is
referred to herein, individually, as a "USED MANUFACTURED HOME SALE ADVANCE"
and, collectively, as the "USED MANUFACTURED HOME SALE ADVANCES") and (ii) to
provide financing, as provided for in Section 3 of this Agreement, for Used
Manufactured Homes for Sale previously acquired and fully paid for by SHS
(referred to herein, individually, as a "USED MANUFACTURED HOME BULK SALE
ADVANCE" and, collectively, as the "USED MANUFACTURED HOME BULK SALE ADVANCES;"
Used Manufactured Home Sale Advances and the Used Manufactured Home Bulk Sale
Advances are referred to herein collectively as "USED MANUFACTURED HOME
ACQUISITION ADVANCES");

     J. WHEREAS, SHS requests that TFC extend advances under this Agreement from
time to time to provide financing, as provided for in Section 4 of this
Agreement, in order for SHS to refinance and convert Used Manufactured Homes
Held for Sale into Used Rented Manufactured Homes or to otherwise acquire
financing for other Used Rented Manufactured Homes (each funding by TFC, as
provided for in Section 4 below, of a request by SHS for an extension of credit
in respect of such a Used Rented Manufactured Home is referred to herein,
individually, as a "USED RENTED MANUFACTURED HOME ADVANCE" and, collectively, as
the "USED RENTED MANUFACTURED HOME ADVANCES");

     K. WHEREAS, New Manufactured Home Acquisition Advances and New Rented
Manufactured Home Advances are referred to herein, collectively, as "NEW
MANUFACTURED HOME ADVANCES;" Used Manufactured Home Acquisition Advances and
Used Rented Manufactured Home Advances are referred to herein, collectively, as
"USED MANUFACTURED HOME ADVANCES;" New Rented Manufactured Home Advances and
Used Rented Manufactured Home Advances are referred to herein, collectively, as
"RENTED MANUFACTURED HOME ADVANCES;" and New Manufactured Home Advances, Used
Manufactured Home Advances and Rented Manufactured Home Advances are referred to
herein, collectively and without duplication, as the "ADVANCES;"

     L. WHEREAS, one or more Affiliates (as such term is defined below) of SHS
own individual manufactured home homesites in the manufactured home communities
identified in Part 3 on the Schedule of Terms and Disclosures attached hereto
(each a "MH HOMESITE") and have entered into certain homesite leases with SHS
pursuant to which SHS leases such homesites for purposes of further subleasing
the same to MH Consumer Lessees under MH Consumer Lease Agreements who have
rented Manufactured Homes from SHS (with respect to each Manufactured Home, each
such MH Homesite is referred to herein as a "MH RENTAL HOMESITE;" and each lease
to SHS with respect to any such MH Rental Homesite or any other MH Homesite is
referred to herein as a

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"MH SHS HOMESITE LEASE;" each Affiliate of SHS that is the lessor with respect
to any such MH SHS Homesite Lease is referred to herein as a "MH COMMUNITY
HOMESITE LESSOR;" and each manufactured home community, as listed on said Part 3
(as said Part may be amended and supplemented pursuant to Section 19 below) is
referred to herein as a "SUN MH COMMUNITY");

     M. WHEREAS, SHS has established an administrative services arrangement and
agreement with each of the MH Community Homesite Lessors (individually a, "MH
SERVICING AGREEMENT" and, collectively, the "MH SERVICING AGREEMENTS"), pursuant
to which each such MH Community Homesite Lessor services on behalf of SHS the MH
Consumer Lease Agreements in respect of the Manufactured Homes located in the
Sun MH Community of such MH Community Homesite Lessor and collects the rental
payments made by the MH Consumer Lessees under such MH Consumer Lease Agreements
(the portion of such rental payments that pertains to the renting of such
Manufactured Homes as opposed to the renting of the MH Rental Homesites on which
such Manufactured Homes are located is referred to herein, collectively, as the
"MH CONSUMER LEASE AGREEMENT PAYMENTS");

     N. WHEREAS, SHS is, among other things, granting to TFC, as collateral
hereunder, a security interest in and lien on all of its right, title and
interest in all Manufactured Homes of SHS in respect of which one or more
Advances have been made and/or which form a part of the New Borrowing Base, the
Used Borrowing Base or the Rental Borrowing Base (as such terms are defined
below), wherever located (including, without limitation, those located in the
Sun MH Communities), all currently existing and hereafter created MH Consumer
Lease Agreements with respect to the renting of Manufactured Homes in respect of
which an Advance has been made, and all currently existing and future MH
Consumer Lease Agreement Payments under such MH Consumer Lease Agreements;

     O. WHEREAS, (I) if an Event of Default (as hereinafter defined) shall
exist, the MH Consumer Lease Agreement Payments received by SHS or by any MH
Community Homesite Lessor on behalf of SHS in respect of Rented Manufactured
Homes constituting Collateral in any month shall be paid by SHS or such MH
Community Homesite Lessor to TFC on the next Billing Statement Payment Date (as
such term is defined below) or on such other date elected by TFC for application
to the obligations of SHS hereunder, as provided for in Section 10 below, and
(II) if no Event of Default shall exist, such MH Consumer Lease Agreement
Payments shall be retained by SHS free and clear of any lien or security
interest of TFC therein to be used for working capital or any other purpose of
SHS;

     P. WHEREAS, the aggregate outstanding principal amount of all New
Manufactured Home Acquisition Advances will not exceed at any time the New
Borrowing Base (as such term is defined below);

     Q. WHEREAS, the aggregate outstanding principal amount of all Rented
Manufactured Home Advances will not exceed at any time the Rental Borrowing Base
(as such term is defined below);

     R. WHEREAS, the aggregate outstanding principal amount of all Used
Manufactured Home Acquisition Advances will not exceed at any time the Used
Borrowing Base (as such term is defined below);

     S. WHEREAS, SHS has not caused and will not in the future cause any
Manufactured Home owned by it and constituting Collateral to become a fixture to
any MH Homesite or otherwise to be treated as real property or a part of real
property under applicable state law; and

     T. WHEREAS, capitalized terms used in this Agreement shall have the
meanings assigned to them in Appendix I attached hereto.

     NOW, THEREFORE, in consideration of the premises and the agreements,
provisions and covenants herein contained, SHS and TFC agree as follows:

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     1. NEW MANUFACTURED HOME ACQUISITION ADVANCES. With respect to any New
     Manufactured Home to be acquired from a Manufacturer and otherwise to
     constitute a New Manufactured Home Held for Sale, as identified in a
     writing to TFC, SHS may request TFC to, and TFC will (subject to the
     satisfaction of the terms and conditions set forth herein and subject to
     Section 24 hereof), make a New Manufactured Home Sale Advance hereunder to
     or for the benefit of SHS, the amount of which shall not exceed 100% of the
     Manufacturer's original invoice price of such New Manufactured Home (net of
     all rebates, discounts, credits and volume incentive payments with respect
     thereto, but excluding from any such rebates, discounts, credits and volume
     incentive payments any advertising allowances not in excess of 5% of the
     relevant invoiced amount) (the original invoice price of such New
     Manufactured Home net of such rebates, discounts, credits and volume
     incentive payments, as provided above, is referred to herein as such New
     Manufactured Home's "NET INVOICE PRICE"). Each such New Manufactured Home
     shall be new, completed and otherwise be ready to be held for sale by SHS
     at one of the Sun MH Communities. SHS understands and agrees that all New
     Manufactured Homes to be acquired from a Manufacturer shall be deemed to be
     New Manufactured Homes Held for Sale. SHS understands and agrees that no
     New Manufactured Home Sale Advance will be made to SHS in respect of any
     New Manufactured Home Held for Sale if any of the conditions for the making
     of such New Manufactured Home Sale Advance set forth in Sections 5, 7 or 9
     hereof shall have not been satisfied or any Default or Event of Default
     shall exist immediately prior to or would exist immediately after the
     making of such Advance. No New Manufactured Home Sale Advances shall in any
     case be made after March 1, 2009 and only one New Manufactured Home
     Acquisition Advance shall be made with respect to any New Manufactured Home
     Held for Sale.

          With respect to one or more New Manufactured Homes constituting New
     Manufactured Homes Held for Sale, as identified in a writing to TFC, owned
     by SHS and all of whose purchase prices have been previously paid in full
     by SHS, SHS may request TFC to, and TFC will (subject to the satisfaction
     of the terms and conditions set forth herein), make a New Manufactured Home
     Bulk Sale Advance hereunder in respect thereof to or for the benefit of
     SHS, the amount of which shall not exceed the lesser of (A) the aggregate
     of the Net Invoice Prices of all such New Manufactured Homes Held for Sale
     or (B) the remainder of $40,000,000 minus the aggregate outstanding
     principal of all other Advances. Each of such New Manufactured Homes shall
     be new, completed and otherwise already being held for sale by SHS at one
     of the Sun MH Communities. SHS understands and agrees that no New
     Manufactured Home Bulk Sale Advance will be made if any of the conditions
     for the making of such Advance set forth in Sections 5, 7 or 9 hereof shall
     have not been satisfied or if Default or Event of Default shall exist
     immediately before or would exist immediately after the making of such
     Advance. No New Manufactured Home Bulk Sale Advances shall in any case be
     made after March 1, 2009 and only one New Manufactured Home Acquisition
     Advance shall be made with respect to any New Manufactured Home Held for
     Sale.

          If, at any time, the aggregate outstanding principal balance of all
     New Manufactured Home Acquisition Advances exceeds the lesser of (A) the
     aggregate of the Net Invoice Prices of all New Manufactured Home Held for
     Sale then owned and in the possession of SHS and in respect of which a New
     Manufactured Home Acquisition Advance has been made or (B) the remainder of
     $40,000,000 minus the aggregate outstanding principal of all Rented
     Manufactured Home Advances and Used Manufactured Home Acquisition Advances,
     then SHS shall pay such excess to TFC promptly upon written demand therefor
     (the lesser of subclause (a) and (b) above is referred to herein as the
     "NEW BORROWING BASE") and such payment shall be applied to the outstanding
     principal balance of the New Manufactured Home Acquisition Advances. SHS
     may not elect to treat for purposes of this Agreement any New Manufactured
     Home Held for Sale as a Used Manufactured Home Held for Sale or a Used
     Rented Manufactured Home but may convert any New Manufactured Home Held for
     Sale to a New Rented Manufactured Home (and consequently may use the same
     for the purposes of obtaining a New Rented Manufactured Home Advance under
     Section 2 below) by prior written notice to TFC and the payment in full of
     the outstanding principal balance of any New Manufactured Home Acquisition
     Advance (together with accrued and unpaid interest thereon) attributable in
     respect thereof.

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     2. NEW RENTED MANUFACTURED HOME ADVANCES. With respect to any New
     Manufactured Home converted from a New Manufactured Home Held for Sale to
     (and otherwise constituting) a New Rented Manufactured Home, as identified
     in a writing to TFC, SHS may request TFC to, and TFC will (subject to the
     satisfaction of the terms and conditions set forth herein and Section 24
     hereof), make a New Rented Manufactured Home Advance to or for the benefit
     of SHS, the amount of which will be limited to the sum of (I) 35% of the
     lesser of (Y) the book value of such New Rented Manufactured Home (book
     value being determined for such New Rented Manufactured Home as SHS's
     out-of-pocket acquisition cost therefor) or (Z) the NADA Base Structure
     Value of such New Rented Manufactured Home (determined as of the date of
     the making of such New Rented Manufactured Home Advance) plus (II) actual
     out-of-pocket set-up costs incurred by SHS with respect thereto. Each such
     New Rented Manufactured Home shall be new (and, for the avoidance of doubt,
     less than ten years old measured from the date of the original invoice from
     the Manufacturer in respect thereof), completed and be rented by SHS at one
     of the Sun MH Communities under a MH Consumer Lease Agreement that is not
     in default. SHS agrees to pay any portion of the original acquisition price
     of such New Rented Manufactured Home that is outstanding and to pay the
     outstanding principal balance of any New Manufactured Home Acquisition
     Advance (together with accrued and unpaid interest) made in respect of such
     New Rented Manufactured Home on or prior to the date on which such New
     Rented Manufactured Home Advance is made hereunder. SHS shall provide to
     TFC such evidence of the foregoing payments as TFC may reasonably request
     and TFC may require such evidence as a condition to advancing the proceeds
     of any such New Rented Manufactured Home Advance. SHS understands and
     agrees that each New Rented Manufactured Home Advance made to SHS in
     respect of any New Rented Manufactured Home will be subject to the
     satisfaction of the conditions in respect thereof set forth in Sections 5,
     7 and 9 hereof and further subject to no Default or Event of Default
     existing immediately prior to or after the extension of such Advance. No
     New Rented Manufactured Home Advance shall be made after March 1, 2009 and
     only one New Rented Manufactured Home Advance shall be made with respect to
     any New Rented Manufactured Home.

          If, at any time, the aggregate outstanding principal balance of all
     Rented Manufactured Home Advances exceeds the Rental Borrowing Base (as
     defined below) determined at such time, SHS shall pay such excess to TFC
     promptly upon written demand therefor. SHS may not elect to treat any New
     Rented Manufactured Home as a New Manufactured Home Held for Sale, a Used
     Rented Manufactured Home or a Used Rented Manufactured Home.

     3. USED MANUFACTURED HOME ACQUISITION ADVANCES. With respect to any Used
     Manufactured Home to be acquired by SHS and to constitute a Used
     Manufactured Home Held for Sale, as identified in a writing to TFC, SHS may
     request TFC to, and TFC will (subject to the satisfaction of the terms and
     conditions set forth herein and Section 24 hereof), make a Used
     Manufactured Home Sale Advance hereunder to SHS, in an amount that will be
     limited to the lesser of (A) the out-of-pocket acquisition cost for such
     Used Manufactured Home Held for Sale paid by SHS and (B) the NADA Base
     Structure Value for such Used Manufactured Home Held for Sale determined at
     the time of the making of such Used Manufactured Home Sale Advance (such
     lesser amount for any Used Manufactured Home Held for Sale is referred to
     herein as such Used Manufactured Home's "MARKET PRICE"). SHS understands
     and agrees that each Used Manufactured Home Sale Advance shall be subject
     to the satisfaction of the conditions with respect thereto set forth in
     Sections 6, 8 and 9 hereof and to no Default or Event of Default existing
     hereunder immediately before or after the making of such Advance. No Used
     Manufactured Home Sale Advances shall be made after March 1, 2009 and only
     one Used Manufactured Home Acquisition Advance shall be made with respect
     to any Used Manufactured Home Held for Sale.

          With respect to one or more Used Manufactured Homes constituting Used
     Manufactured Homes Held for Sale, as identified in a writing to TFC, owned
     by SHS and all of whose acquisition prices have been previously paid in
     full by SHS, SHS may request TFC to, and TFC will (subject to the terms and
     conditions hereof), make a Used Manufactured Home Bulk Sale Advance
     hereunder to or for the benefit of SHS, the

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     amount of which shall not exceed the least of (I) the aggregate of the
     Market Prices of all such Used Manufactured Homes Held for Sale, (II) the
     remainder of $8,000,000 minus the aggregate outstanding principal of all
     Used Manufactured Home Acquisition Advances and (III) the remainder of
     $40,000,000 minus the aggregate outstanding principal of all Advances. No
     Used Manufactured Home Bulk Sale Advances shall be made after March 1, 2009
     and only one Used Manufactured Home Acquisition Advance shall be made with
     respect to any Used Manufactured Home Held for Sale.

          If, at any time, the aggregate outstanding principal balance of all
     Used Manufactured Home Acquisition Advances exceeds the least of (I) the
     aggregate of the Market Prices of all Used Manufactured Home Held for Sale
     then owned and in the possession of SHS and in respect of which an
     outstanding Used Manufactured Home Acquisition Advance shall have been
     made, (II) $8,000,000 and (III) the remainder of $40,000,000 minus the
     aggregate outstanding principal of all New Manufactured Home Acquisition
     Advances and Rented Manufactured Home Advance, then SHS shall pay such
     excess to TFC promptly upon written demand therefor (the least of
     subclauses (i), (ii) and (iii) above is referred to herein as the "USED
     SALES BORROWING BASE") and such payment shall be applied to the outstanding
     principal balance of the Used Manufactured Home Acquisition Advances. SHS
     may not elect to treat any Used Manufactured Home Held for Sale as a New
     Manufactured Home Held for Sale or a New Rented Manufactured Home but SHS
     may elect to convert any Used Manufactured Home Held for Sale to a Used
     Rented Manufactured Home (and consequently may use the same for the
     purposes of obtaining a Used Rented Manufactured Home Advance under Section
     4 below) by prior written notice to TFC and the payment of the outstanding
     principal balance of any Used Manufactured Home Acquisition Advance
     attributable in respect thereof together with any excess amount otherwise
     required to be paid by the immediately preceding sentence as a result of
     such conversion.

     4. USED RENTED MANUFACTURED HOME ADVANCE. With respect to any Used
     Manufactured Home converted from a Used Manufactured Home Held for Sale to
     (and otherwise constituting) a Used Rented Manufactured Home or with
     respect to any other Used Manufactured Home constituting a Used Rented
     Manufactured Home whose purchase price has been paid in full by SHS, in
     each case as identified in a writing to TFC, SHS may request TFC to, and
     TFC will (subject to the terms and conditions hereof and Section 24
     hereof), make a Used Rented Manufactured Home Advance to SHS, in an amount
     that will be limited to 35% of the sum of (A) the lesser of (Y) the book
     value of such Used Rented Manufactured Home (book value being determined
     for such Used Rented Manufactured Home as SHS's out-of-pocket acquisition
     cost therefore and shall not include any refurbishment costs with respect
     thereto) or (Z) the NADA Base Structure Value of such Used Rented
     Manufactured Home (determined as of the date of the making of such Used
     Rented Manufactured Home Advance) plus (B) actual out-of-pocket set-up
     costs incurred by SHS with respect thereto. Each such Used Rented
     Manufactured Home shall be less than ten years old (based on the date of
     the original invoice from the Manufacturer of such Used Rented Manufactured
     Home), be completed and be rented at one of the Sun MH Communities under a
     MH Consumer Lease Agreement that is not in default. SHS agrees to pay any
     portion of the original acquisition price of such Used Rented Manufactured
     Home that is outstanding and to pay the outstanding principal balance of
     any Used Manufactured Home Acquisition Advance (together with accrued and
     unpaid interest thereon) made in respect of such Used Rented Manufactured
     Home on or prior to the date on which such Used Rented Manufactured Home
     Advance is made hereunder. SHS shall provide to TFC such evidence of the
     foregoing payments as TFC may reasonably request and TFC may require such
     evidence as a condition to advancing the proceeds of any such Used Rented
     Manufactured Home Advance. SHS understands and agrees that each Used Rented
     Manufactured Home Advance shall be subject to the satisfaction of the
     conditions with respect thereto set forth in Sections 6, 8 and 9 hereof and
     subject to no Default or Event of Default existing immediately before or
     after the making of such Used Rented Manufactured Home Advance. No Used
     Rented Manufactured Home Advance shall be made after March 1, 2009 and only
     one Used Rented Manufactured Home Advance shall be made with respect to any
     Used Rented Manufactured Home.

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          If, at any time, the aggregate outstanding principal balance of all
     Rented Manufactured Home Advances exceeds the least of

               (A) for all Rented Manufactured Homes in respect of which an
          outstanding Rented Manufactured Home Advance shall have been made and
          being at such time less than ten years old (measured from the date of
          the original invoice from the Manufacturer in respect thereof) and
          subject to MH Consumer Lease Agreements which are not in default the
          result of (AA) 35% of the lesser of the (Y) aggregate book value of
          such Rented Manufactured Homes (book value being determined for each
          such Rented Manufactured Home as SHS's out-of-pocket acquisition cost
          therefor and shall not include any refurbishment costs with respect
          thereto but shall include deductions for all depreciation with respect
          thereto calculated on a straight-line basis assuming a 10 year
          remaining life measured from the date of the original invoice from the
          Manufacturer in respect of such Rented Manufactured Home to the date
          of any determination hereof) and (Z) the aggregate NADA Base Structure
          Value of such Rented Manufactured Homes (NADA Base Structure Value
          being determined for each such Rented Manufactured Home at any time
          this determination is made) plus (BB) actual out-of-pocket set-up
          costs incurred by SHS with respect thereto (if a significant portion
          of the Rented Manufactured Homes, in the aggregate and as determined
          by TFC in its reasonable determination, shall have suffered
          significant casualties or otherwise been significantly damaged prior
          to their respective acquisition and refurbishment by SHS and such
          casualties and/or damage (notwithstanding such refurbishment) lead TFC
          to conclude, in its reasonable determination, that such Rented
          Manufactured Homes collectively have a reduced market value lower than
          what would be customarily attributed to normal or ordinary wear and
          tear, TFC may further reduce the book value amount in clause
          (A)(aa)(y) above by a reserve which shall be established by TFC in its
          reasonable determination and upon prior written notice to SHS),

               (B) $20,000,000 and

               (C) the remainder of $40,000,000 minus the aggregate outstanding
          principal of all New Manufactured Home Acquisition Advances and Used
          Manufactured Home Acquisition Advances,

     SHS shall pay such excess to TFC promptly upon written demand therefor (the
     least of subclauses (A), (B) and (C) above is referred to herein as the
     "RENTAL BORROWING BASE") and such payment shall be applied to the
     outstanding principal balance of the Rented Manufactured Home Advances. SHS
     may not elect to treat any Used Rented Manufactured Home as a New
     Manufactured Home Held for Sale, a New Rented Manufactured Home or a Used
     Manufactured Home Held for Sale.

     5. CONDITIONS AND MECHANICS OF REQUESTING NEW MANUFACTURED HOME ADVANCES.
     SHS shall make a request for a New Manufactured Home Sale Advance by
     submitting, or causing to be submitted, to TFC an invoice from a
     Manufacturer for each New Manufactured Home in respect of which such an
     Advance is to be made and the submission of such invoice shall constitute
     SHS's representation and warranty to TFC that such invoice is true and
     correct, all of SHS's representations and warranties hereunder are true and
     correct as of the date of the submission of such invoice, no Default or
     Event of Default exists as of the date of the submission of such invoice or
     will exist as of the date of the funding of the New Manufactured Home Sale
     Advance being requested and that SHS has satisfied, or caused to be
     satisfied, all requirements under this Agreement in respect of the New
     Manufactured Home Sale Advance being requested (including, without
     limitation, the requirement that, after giving effect thereto, the
     aggregate outstanding principal amount of all New Manufactured Home
     Acquisition Advances shall not exceed the New Borrowing Base). SHS shall
     submit or cause to be submitted invoices to TFC by facsimile or other
     electronic transmission or other appropriate means of delivery.

          SHS shall make a request for a New Manufactured Home Bulk Sale Advance
     by submitting to TFC invoices from Manufacturers for each New Manufactured
     Home to be financed hereunder in respect thereof

                                       7

<PAGE>

     and the submission of such invoices shall constitute SHS's representation
     and warranty to TFC that such invoices are true and correct, all of SHS's
     representations and warranties hereunder are true and correct as of the
     date of the submission of such invoices, no Default or Event of Default
     exists as of the date of the submission of such invoices or will exist as
     of the date of the funding of the New Manufactured Home Bulk Sale Advance
     being requested and that SHS has satisfied, or caused to be satisfied, all
     requirements under this Agreement in respect of the New Manufactured Home
     Bulk Sale Advance being requested (including, without limitation, the
     requirement that, after giving effect thereto, the aggregate outstanding
     principal amount of all New Manufactured Home Acquisition Advances shall
     not exceed the New Borrowing Base). SHS shall submit invoices to TFC by
     facsimile or other electronic transmission or other appropriate means of
     delivery.

          SHS shall make a request for a New Rented Manufactured Home Advance by
     submitting to TFC an invoice from a Manufacturer for each New Rented
     Manufactured Home to be financed hereunder in respect thereof (together
     with other information pertaining to the NADA Base Structure Value for each
     New Rented Manufactured Home to be financed hereunder) and the submission
     of such invoice shall constitute SHS's representation and warranty to TFC
     that such invoice is true and correct, all of SHS's representations and
     warranties hereunder are true and correct as of the date of the submission
     of such invoice, no Default or Event of Default exists as of the date of
     the submission of such invoice or will exist as of the date of the funding
     of the New Rented Manufactured Home Advance being requested and that SHS
     has satisfied, or caused to be satisfied, all requirements under this
     Agreement in respect of the New Rented Manufactured Home Advance being
     requested (including, without limitation, the requirement that, after
     giving effect thereto, the aggregate outstanding principal amount of all
     Rented Manufactured Home Advances shall not exceed the Rental Borrowing
     Base). SHS shall submit invoices to TFC by facsimile or other electronic
     transmission or other appropriate means of delivery.

     6. CONDITIONS AND MECHANICS OF REQUESTING USED MANUFACTURED HOME ADVANCES.
     SHS shall make a request for a Used Manufactured Home Sale Advance by
     submitting, or causing to be submitted, to TFC an invoice, bill of sale or
     similar acquisition document together with such other information
     pertaining to SHS's acquisition cost, the NADA Base Structure Value, and
     the then net book value of or for each Used Manufactured Home to be
     financed hereunder in respect thereof and the submission of such
     documentation and information shall constitute SHS's representation and
     warranty to TFC that such documentation and information are true and
     correct, all of SHS's representations and warranties hereunder are true and
     correct as of the date of the submission of such documentation and
     information, no Default or Event of Default exists as of the date of the
     submission of such documentation and information or will exist as of the
     date of the funding of the Used Manufactured Home Advance being requested
     and that SHS has satisfied, or caused to be satisfied, all requirements
     under this Agreement in respect of the Used Manufactured Home Sale Advance
     being requested (including, without limitation, that, after giving effect
     thereto, the aggregate outstanding principal amount of all Used
     Manufactured Home Acquisition Advances shall not exceed the Used Borrowing
     Base). SHS shall submit the aforesaid documentation and information to TFC
     by facsimile or other electronic transmission or other appropriate means of
     delivery.

          SHS shall make a request for a Used Manufactured Home Bulk Sale
     Advance by submitting to TFC invoices, bills of sale or similar acquisition
     documents together with such other information pertaining to SHS's
     acquisition cost, the NADA Base Structure Value, and the then net book
     value of or for each Used Manufactured Home to be financed hereunder in
     respect thereof and the submission of such documentation and information
     shall constitute SHS's representation and warranty to TFC that such
     documentation and information are true and correct, all of SHS's
     representations and warranties hereunder are true and correct as of the
     date of the submission of such documentation and information, no Default or
     Event of Default exists as of the date of the submission of such
     documentation and information or will exist as of the date of the funding
     of the Used Manufactured Home Bulk Sale Advance being requested and that
     SHS has satisfied, or caused to be satisfied, all requirements under this
     Agreement in respect of the Used Manufactured Home Bulk Sale Advance being
     requested (including, without limitation, the requirement that, after
     giving effect

                                       8

<PAGE>

     thereto, the aggregate outstanding principal amount of all Used
     Manufactured Home Acquisition Advances shall not exceed the Used Borrowing
     Base). SHS shall submit the foregoing documentation and information to TFC
     by facsimile or other electronic transmission or other appropriate means of
     delivery.

          SHS shall make a request for a Used Rented Manufactured Home Advance
     by submitting, or causing to be submitted, to TFC an invoice, bill of sale
     or similar acquisition document together with such other information
     pertaining to SHS's acquisition cost, the NADA Base Structure Value, and/or
     depreciation of or for each Used Rented Manufactured Home to be financed
     hereunder in respect thereof and the submission of such documentation and
     information shall constitute SHS's representation and warranty to TFC that
     such documentation and information are true and correct, all of SHS's
     representations and warranties hereunder are true and correct as of the
     date of the submission of such documentation and information, no Default or
     Event of Default exists as of the date of the submission of such
     documentation and information or will exist as of the date of the funding
     of the Used Manufactured Home Advance being requested and that SHS has
     satisfied, or caused to be satisfied, all requirements under this Agreement
     in respect of the Used Rented Manufactured Home Advance being requested
     (including, without limitation, that, after giving effect thereto, the
     aggregate outstanding principal amount of all Rented Manufactured Home
     Advances shall not exceed the Rental Borrowing Base). SHS shall submit the
     aforesaid documentation and information to TFC by facsimile or other
     electronic transmission or other appropriate means of delivery.

     7. CONDITIONS AND MECHANICS OF MAKING AND FUNDING NEW MANUFACTURED HOME
     ADVANCES. To be eligible for a New Manufactured Home Advance, a
     Manufactured Home unit shall: (A) be a New Manufactured Home, (B) be
     adequately described on the invoice therefor and such invoice shall have
     been issued in the name of SHS and delivered to and received by TFC, (C) be
     approved by TFC, which approval shall not be unreasonably withheld or
     delayed (any such approval with respect to a New Manufactured Home and the
     New Manufactured Home Sale Advance to be made with respect thereto shall
     constitute a "booking" approval hereunder to be issued to the applicable
     Manufacturer; each such "booking" approval shall be in such form or
     pursuant to such procedures as TFC may establish from time to time and TFC
     may, in its sole discretion, batch requests by SHS and issue "booking"
     approvals in respect of such batched requests; the date of the issuance of
     a "booking approval" is sometimes referred to herein as a "BOOKING DATE"),
     (D) be Collateral hereunder and be encumbered by a first priority security
     interest in favor of TFC (and SHS hereby agrees to hold the original
     manufacturer statement of origin or certificate of title in respect of such
     Manufactured Home in trust solely for the benefit of TFC and to
     subsequently deliver the same to TFC upon receipt of a written request from
     TFC therefor) and such security interest shall, with respect to a New
     Manufactured Home Sale Advance constitute a purchase money security
     interest in favor of TFC in and to such Manufactured Home, (E) with respect
     to any New Manufactured Home Sale Advance in respect thereof, not have been
     delivered into the possession of SHS prior to the issuance of the "booking"
     approval in respect thereof and (F) if located on a MH Homesite, shall be
     covered by a satisfactory landlord waiver letter from the applicable MH
     Community Homesite Lessor. Subject to the foregoing and the satisfaction of
     the other conditions set forth herein (including, without limitation, those
     set forth in Section 1 above with respect to New Manufactured Home
     Acquisition Advances and Section 2 above with respect to New Rented
     Manufactured Home Advances), TFC agrees to fund a requested New
     Manufactured Home Sale Advance (after determining that all conditions to
     its extension have been satisfied) in respect of a New Manufactured Home
     being acquired directly from the Manufacturer at the time or times after
     the Booking Date in respect thereof with respect to which it has reached
     agreement with the applicable Manufacturer (the "MANUFACTURER FUNDING
     DATE") and to fund any other requested New Manufactured Home Advance (after
     determining that all conditions to its extension have been satisfied) to
     SHS within 2 business days after the date on which all of such conditions
     precedent have been satisfied, as set forth in Part 4 on the Schedule of
     Terms and Disclosures attached hereto (any funding of a New Rented
     Manufactured Home Advance to be net of any New Manufactured Home
     Acquisition Advance and other related obligations required to be paid in
     connection therewith). SHS hereby instructs TFC to pay the proceeds of any
     New Manufactured Home Sale Advance financing the direct acquisition of a
     Manufactured Home from the Manufacturer in respect

                                       9

<PAGE>

     thereof on the Manufacturer Funding Date in respect thereof to the
     applicable Manufacturer pursuant to payment arrangements agreed upon
     between such Manufacturer and TFC. SHS agrees that TFC may issue "booking"
     approvals for invoices that are directly communicated from the applicable
     Manufacturer to TFC and extend New Manufactured Home Sale Advances in
     respect thereof without the need of SHS's prior approval. SHS and TFC agree
     that New Manufactured Home Sales Advances shall constitute purchase money
     financing for the New Manufactured Homes Held for Sale related thereto.

     8. CONDITIONS AND MECHANICS OF MAKING AND FUNDING USED MANUFACTURED HOME
     ADVANCES. To be eligible for a Used Manufactured Home Advance, a Used
     Manufactured Home unit must: (A) not be older than ten years, (B) be
     adequately described on the information and documentation delivered in
     respect thereof pursuant to Section 3 above and SHS must hold good and
     marketable title thereto, (C) be approved by TFC, which approval shall not
     be unreasonably withheld or delayed, (D) be Collateral hereunder and be
     encumbered by a first priority security interest in favor of TFC (and SHS
     hereby agrees to hold the original manufacturer statement of origin or
     certificate of title in respect of such Used Manufactured Home in trust
     solely for the benefit of TFC and to subsequently deliver the same to TFC
     upon receipt of a written request from TFC therefor) and (E) if located on
     a MH Homesite, shall be covered by a satisfactory landlord waiver letter
     from the applicable MH Community Homesite Lessor. Subject to the foregoing
     and the satisfaction of the other conditions set forth herein (including,
     without limitation, those set forth in Section 3 above with respect to Used
     Manufactured Home Acquisition Advances and Section 4 above with respect to
     Used Rented Manufactured Home Advances), TFC agrees to fund a requested
     Used Manufactured Home Advance within 2 business days after the date on
     which all of the foregoing conditions precedent have been satisfied (any
     funding of a Used Rental Manufactured Home Advance to be net of any Used
     Manufactured Home Acquisition Advance and other related obligations
     required to be paid in connection therewith). SHS hereby instructs TFC to
     pay the net proceeds of any Used Manufactured Home Advance to SHS as set
     forth in Part 4 on the Schedule of Terms and Disclosures attached hereto.
     Proceeds of a Used Manufactured Home Advance shall be used by SHS either to
     finance, in whole or part, the acquisition of a Used Manufactured Home
     (which financing SHS and TFC agree shall constitute purchase money
     financing) or for working capital purposes, as the case may be.

     9. FUNDINGS AND BORROWING BASES. No New Manufactured Home Acquisition
     Advance shall be funded hereunder and no "booking" approval in respect of a
     New Manufactured Home Sale Advance will be issued by TFC if, after giving
     effect to the extension of such New Manufactured Home Acquisition Advance
     or the issuance of such "booking approval," the aggregate principal amount
     of all New Manufactured Home Acquisition Advances outstanding and all then
     such pending "booking" approvals hereunder would exceed the New Borrowing
     Base. No Used Manufactured Home Acquisition Advance shall be funded
     hereunder by TFC if, after giving effect to the extension of such Used
     Manufactured Home Acquisition Advance, the aggregate principal amount of
     all Used Manufactured Home Acquisition Advances outstanding hereunder would
     exceed the Used Borrowing Base. No Rented Manufactured Home Advance shall
     be funded hereunder if, after giving effect to the extension of such Rented
     Manufactured Home Advance, the aggregate principal amount of all Rented
     Manufactured Home Advances outstanding would exceed the Rental Borrowing
     Base. For the avoidance of doubt, only a single Advance outstanding from
     time to time hereunder shall be made in respect of any one Manufactured
     Home constituting Collateral hereunder.

     10. RENTING OF MANUFACTURED HOMES. SHS represents and warrants that it is
     engaged in the business of renting Rented Manufactured Homes (and
     subleasing MH Rental Homesites) located in Sun MH Communities. TFC agrees
     that SHS may enter into a lease of any Manufactured Home constituting
     Collateral to a MH Consumer Lessee pursuant to a MH Consumer Lease
     Agreement in the ordinary course of SHS's business so long as no Default or
     Event of Default shall exist hereunder at the time SHS shall have entered
     into such lease and the following representations and warranties are true
     and correct with respect thereto. SHS represents and warrants (such
     representations and warranties being current and continuing representations
     and warranties with respect to MH Consumer Lease Agreements in existence on
     the date hereof with respect to Rented Manufactured Homes constituting
     Collateral and being applicable to

                                       10

<PAGE>

     prospective MH Consumer Lease Agreements in respect of Manufactured Homes
     constituting Collateral upon SHS's entering into the same and thereafter on
     a continuing basis) that (A) such leasing is on an arm's-length basis to MH
     Consumer Lessees pursuant to MH Consumer Lease Agreements (the forms of
     which have been delivered to TFC; SHS agrees that such forms and such MH
     Consumer Lease Agreements will not be materially changed, altered or
     modified by SHS without TFC's prior written consent), (B) such MH Consumer
     Lease Agreements (I) embody the entire agreement of the parties thereto
     relative to the subject matter thereof, (II) comply with all applicable
     governmental laws and regulations and all necessary consumer law
     disclosures have been made with respect thereto, (III) are enforceable
     against the applicable MH Consumer Lessees in accordance with their
     respective terms, and (IV) do not contain any purchase or renewal options
     or grant any rights to the MH Consumer Lessee thereunder (other than the
     right to lease the Rented Manufactured Home thereunder on the terms thereof
     and other than pursuant to any MH Consumer Lessee Purchase Option contained
     therein), except as otherwise approved in writing by TFC; (C) the MH Rental
     Homesites on which such Rented Manufactured Homes are located are subleased
     by such MH Consumer Lessees from SHS pursuant to MH Consumer Lease
     Agreements, and (D) neither the MH Community Homesite Lessors nor any
     mortgagee nor secured party thereof have any claim on, lien or security
     interest in, or right to obtain the Rented Manufactured Homes constituting
     Collateral or any MH Consumer Lease Agreement Payments with respect thereto
     (provided, however, that, pursuant to the MH Servicing Agreements, the
     application of rental payments from MH Consumer Lessees of Rented
     Manufactured Homes constituting Collateral to the payment of MH Consumer
     Lease Agreement Payments under their respective MH Consumer Lease
     Agreements shall be junior and subordinate to the application of such
     rental payments to the payment of homesite rent in respect of such Rented
     Manufactured Homes to the applicable MH Community Homesite Lessors under
     their respective MH SHS Homesite Leases and the payment to or reimbursement
     of the MH Community Homesite Lessors for their respective costs and
     expenses in providing servicing to SHS under their respective MH Servicing
     Agreements for such Rented Manufactured Homes).

          Upon receipt of a written request of TFC, SHS will execute and deliver
     to TFC an assignment, in form and content acceptable to TFC as well as
     proper for recordation in the real estate records of each applicable county
     or municipality in which a Sun MH Community is located, of all of the MH
     Consumer Lease Agreements with respect to Rented Manufactured Homes
     constituting Collateral and all MH Consumer Lease Agreement Payments in
     respect thereof (subject to the priority of application of rental payments
     as provided for in the applicable MH Servicing Agreements) as additional
     security for the obligations hereunder. SHS will comply with all of its
     warranties and other obligations under each MH Consumer Lease Agreement in
     respect of a Rented Manufactured Home constituting Collateral and will
     report in writing to TFC at such time or times as TFC may request, the
     location of such Rented Manufactured Homes, the name and address of each MH
     Consumer Lessee under each such MH Consumer Lease Agreement, the MH
     Consumer Lease Agreement Payments due thereunder on a monthly basis, the MH
     Community Homesite Lessor responsible for collecting such Payments and such
     other information as TFC may reasonably request; and upon the request of
     TFC, deliver all originals of each such MH Consumer Lease Agreement in the
     possession of SHS to TFC. Neither the leasing of any Manufactured Home
     constituting Collateral nor any MH Consumer Lease Agreement with respect
     thereto shall relieve SHS of any of its obligations to TFC under this
     Agreement, and the assignment of and security interest granted herein shall
     not be construed as authorizing SHS to do anything with any Manufactured
     Homes constituting Collateral other than to lease or sell the same in
     accordance with the provisions hereof. SHS will comply with all of its
     warranties and other obligations under each MH SHS Homesite Lease
     pertaining to a MH Rental Homesite on which a Rented Manufactured Home
     constituting Collateral is located. To the extent that SHS is required to
     remove a Rented Manufactured Home constituting Collateral from a MH Rental
     Homesite under the terms and conditions of the applicable MH SHS Homesite
     Lease or the applicable MH Servicing Agreement, SHS shall inform TFC of the
     relocation of such Rented Manufactured Home promptly after effecting the
     same; nothing in this sentence shall relieve SHS of its obligations under
     Section 23 hereof. SHS agrees to make available to TFC, upon its request,
     all rent roll and other related data affecting any Rented Manufactured
     Homes constituting Collateral and made available by SHS to the MH Community

                                       11

<PAGE>

     Homesite Lessors under their respective MH Servicing Agreements. SHS will
     deliver to TFC upon request therefor certified copies of all such MH
     Servicing Agreements and all amendments or modifications thereto.

          SHS agrees that TFC is not by this Agreement or otherwise assuming any
     of the obligations of SHS under any MH Consumer Lease Agreement or any MH
     SHS Homesite Lease. Subject to applicable law, SHS hereby grants to TFC the
     right (in SHS's name or otherwise, and, in any case, without affecting
     SHS's obligations to TFC hereunder) to take such actions or institute such
     proceedings as TFC may deem necessary or desirable to protect TFC's
     interests in Rented Manufactured Homes constituting Collateral and the MH
     Consumer Lease Agreements in respect thereof and, during the existence of
     any Default or Event of Default of which SHS shall have been given written
     notice by TFC, to notify each applicable MH Community Homesite Lessor to
     collect MH Consumer Lease Agreement Payments in respect thereof for the
     benefit of, and to remit the same to, TFC (subject to the priority of
     application of rental payments from such MH Consumer Lease Agreements to
     rent for the MH Rental Homesites on which such Rented Manufactured Homes
     are located and for costs and expenses of the applicable MH Community
     Homesite Lessor in respect of such Rented Manufactured Homes, all as
     provided for in the applicable MH Servicing Agreement). Except during the
     existence of a Default or Event of Default of which SHS shall have been
     given written notice by TFC, the MH Community Homesite Leassors under their
     respective MH Servicing Agreements shall have the right to accept
     collections on the aforesaid MH Consumer Lease Agreements on behalf and for
     the benefit of SHS; repossess, substitute or consent to the surrender of
     the aforesaid Rented Manufactured Homes; and/or modify the terms of the
     aforesaid MH Consumer Lease Agreements. For the avoidance of doubt, except
     during the existence of a Default or Event of Default of which SHS shall
     have been given written notice by TFC, SHS shall have the right to retain
     all MH Consumer Lease Agreement Payments in respect of Rented Manufactured
     Homes constituting Collateral hereunder collected by any MH Community
     Homesite Lessor on its behalf and paid to SHS or paid to a Guarantor for
     the benefit of SHS. After TFC shall have informed SHS and/or any MH
     Consumer Homesite Lessor of the existence of a Default or Event of Default
     and for so long thereafter as the same shall exist, SHS shall undertake (A)
     that no MH Communty Homesite Lessor will, without the prior written consent
     of TFC, pay MH Consumer Lease Agreement Payments in respect of Rented
     Manufactured Homes constituting Collateral to SHS or any Guarantor or other
     affiliate of SHS but shall instead hold the same in trust for TFC and pay
     the same to TFC (or pursuant to its instructions) on the next Billing
     Statement Payment Date or on such other date as TFC may elect in its sole
     discretion (and, if SHS shall have obtained such payments or credits for
     the same from any Guarantor, SHS shall pay over the same to TFC promptly
     upon demand therefor); (B) that neither it nor any MH Communty Homesite
     Lessor will, without the prior written consent of TFC, repossess,
     substitute or consent to the surrender of any Rented Manufactured Homes
     constituting Collateral; and/or (C) that neither it nor any MH Communty
     Homesite Lessor will, without the prior written consent of TFC, modify the
     terms of any MH Consumer Lease Agreements in respect of Rented Manufactured
     Homes constituting Collateral hereunder. SHS agrees to obtain a written
     acknowledgement from each MH Community Homesite Lessor under its respective
     MH Servicing Agreements that it is to pay to TFC (at its direction) all MH
     Consumer Lease Agreement Payments in respect of MH Consumer Leases of
     Rented Manufactured Homes constituting Collateral collected by it under its
     respective MH Servicing Agreement after TFC shall have informed SHS and
     such MH Community Homesite Lessor of the existence of a Default or Event of
     Default and for so long thereafter as the same shall exist (the duration of
     any such Default or Event of Default to be confirmed by TFC and each such
     MH Community Homesite Lessor is hereby authorized to rely on any such
     confirmations issued by TFC with respect thereto and SHS hereby irrevocably
     instructs each such MH Community Homesite Lessor to pay all of such MH
     Consumer Lease Agreement Payments directly to TFC in accordance with such
     written instructions as TFC may communicate to such MH Community Homesite
     Lessor). TFC shall apply all such MH Consumer Lease Agreement Payments
     received by it from or on behalf of SHS hereunder as follows: (A) first, to
     pay interest, fees and other finance charges of SHS then due and payable
     hereunder, (B) second, to pay the outstanding principal amount of Advances
     of SHS (in the inverse order of their respective maturities), (C) third, to
     pay any other obligations or indebtedness of SHS hereunder and (D) fourth,
     distribute the balance to SHS. SHS agrees, upon written request of TFC
     after the occurrence and during the continuance of an Event of Default, to
     notify, or cause each applicable MH Community Homesite

                                       12

<PAGE>

     Lessor under its respective MH Servicing Agreement to notify, the MH
     Consumer Lessees and all other obligors under the aforesaid MH Consumer
     Lease Agreements of the interest of TFC therein. SHS agrees to cause each
     MH Community Homesite Lessor to perform its undertakings under its
     respective MH Servicing Agreement or to perform the same itself and to
     otherwise perform its undertakings and obligations thereunder.

     11. SALE OF MANUFACTURED HOMES. SHS shall also have the right to sell any
     New Manufactured Home constituting Collateral that is a New Manufactured
     Home Held for Sale or a Used Manufactured Home Held for Sale to any
     third-party in the ordinary course of its business, provided that in any
     such case: (A) no Default or Event of Default exists hereunder and, after
     giving effect to such sale, no Default or Event of Default would exist
     hereunder, (B) any such sale is on an arm's-length basis, and (C) SHS shall
     hold all of the proceeds of any such sale in trust for, and shall promptly
     remit such proceeds and such other of its monies as may be necessary to pay
     the unpaid principal amount of the New Manufactured Home Acquisition
     Advance or Used Manufactured Home Acquisition Advance, as the case may be,
     attributable to such New Manufactured Home Held for Sale or Used
     Manufactured Home Held for Sale together with any payments then required
     under Section 1 above with respect to the New Borrowing Base or Section 3
     above with respect to the Used Borrowing Base to TFC as provided for in
     Part 5 of the Schedule of Terms and Disclosures attached hereto on the
     Disposition Payment Date in respect of such sale, and the security interest
     provided for herein in such proceeds shall continue in full force and
     effect in favor of TFC until all such payments are made; any such proceeds
     in excess of the unpaid principal balance of such New Manufactured Home
     Acquisition Advance or Used Manufactured Home Acquisition Advance, as the
     case may be, and any borrowing base payment required in connection
     therewith shall be retained by SHS free and clear of any lien or security
     interest of TFC hereunder after SHS makes the payments required by clause
     (c) above and assuming that no Default or Event of Default then exists. Any
     New Manufactured Home Held for Sale constituting Collateral or Used
     Manufactured Home Held for Sale constituting Collateral sold by SHS in
     compliance with this paragraph shall be deemed released from the security
     interest of TFC therein.

          SHS shall also have the right to sell any Rented Manufactured Home
     constituting Collateral to any MH Consumer Lessee under a MH Consumer Lease
     Agreement pursuant to a MH Consumer Lessee Purchase Option contained in
     such MH Consumer Lease Agreement, provided that in any such case: (I) any
     such sale is on an arm's-length basis in accordance with the terms of such
     MH Consumer Lessee Purchase Option, and (II) SHS shall hold all of the
     proceeds of any such sale in trust for, and shall use such proceeds and
     such other of its monies as may be necessary to promptly remit the unpaid
     principal amount of the Rented Manufactured Home Advance attributable to
     such Rented Manufactured Home together with any payments then required
     under Sections 2 or 4 above with respect to the Rental Borrowing Base to
     TFC as provided for in Part 5 of the Schedule of Terms and Disclosures
     attached hereto on the Disposition Payment Date in respect of such sale and
     the security interest provided for herein in such proceeds shall continue
     in full force and effect in favor of TFC until all such payments are made;
     any such proceeds in excess of the unpaid principal balance of such Rented
     Manufactured Home Advance and any required Rental Borrowing Base payment
     with respect thereto shall be retained by SHS free and clear of any lien or
     security interest of TFC hereunder after SHS makes the payments required by
     clause (ii) above unless a Default or Event of Default shall then exist, in
     which case such excess proceeds shall be paid to TFC for application to the
     obligations hereunder as provided for in Section 26 hereof. Any Rented
     Manufactured Home constituting Collateral sold by SHS in compliance with
     this paragraph shall be deemed released from the security interest of TFC
     therein. Except as provided above in this paragraph or except if such
     Rented Manufactured Home shall be reclassified as a New Manufactured Home
     Held for Sale or a Used Manufactured Home Held for Sale, as the case may
     be, SHS shall not sell any Rented Manufactured Home constituting Collateral
     without the prior written consent of TFC.

     12. PAYMENTS GENERALLY; CURTAILMENTS; APPLICATION OF PAYMENTS; DISPOSITION
     PAYMENT DATES. SHS promises to pay to TFC the outstanding principal amount
     of each New Manufactured Home Acquisition Advance made hereunder, together
     with interest and fees and finance charges in respect thereof, in each case

                                       13

<PAGE>

     pursuant to the terms and conditions set forth herein. SHS promises to pay
     to TFC the outstanding principal amount of each Used Manufactured Home
     Acquisition Advance made hereunder, together with interest and fees and
     finance charges in respect thereof, in each case pursuant to the terms and
     conditions set forth herein. SHS promises to pay to TFC the outstanding
     principal amount of each Rented Manufactured Home Advance made hereunder,
     together with interest and fees and finance charges in respect thereof, in
     each case pursuant to the terms and conditions set forth herein. The
     obligations of SHS owing hereunder to TFC in respect of New Manufactured
     Home Acquisition Advances, Used Manufactured Home Acquisition Advances and
     Rented Manufactured Home Advances shall be evidenced by the separate manual
     or data processing records maintained by TFC and, absent manifest error,
     shall be binding on SHS.

          With respect to each New Manufactured Home Acquisition Advance, SHS
     agrees that it shall pay to TFC principal curtailments on such date or
     dates such that, if each New Manufactured Home Held for Sale related to
     such New Manufactured Home Acquisition Advance were repurchased by the
     Manufacturer thereof on such date or dates under and in accordance with the
     terms of the repurchase agreement between TFC and such Manufacturer, TFC
     would recover between the repurchase price paid by such Manufacturer and
     the curtailments paid by SHS under this paragraph in respect of such New
     Manufactured Home Acquisition Advance the full amount of such New
     Manufactured Home Acquisition Advance (for example, if such repurchase
     agreement provided that 100% of a New Manufactured Home Sale Advance would
     be recoverable for the first six months after sale and then 50% would be
     recoverable for the next six months, a curtailment of 50% of such New
     Manufactured Home Sale Advance would be due and payable 180 days after the
     Booking Date of such New Manufactured Home Sale Advance; for example, if a
     repurchase agreement applicable to New Manufactured Home Held for Sale that
     supports a New Manufactured Home Bulk Sale Advance provides that 100% of
     the portion of such New Manufactured Home Bulk Sale Advance allocable to
     such New Manufactured Home Held for Sale (based on the Net Invoice Price of
     the affected New Manufactured Home Held for Sale in relationship to the
     total Net Invoice Prices of all Manufactured Homes Held for Sale supporting
     such New Manufactured Home Bulk Sale Advance) would be recoverable for the
     first six months after sale and then 60% would be recoverable for the next
     six months, a curtailment of 40% of such allocable share of such New
     Manufactured Home Bulk Sale Advance would be due and payable 180 days after
     the date of the extension of such New Manufactured Home Bulk Sale Advance).
     TFC shall inform SHS in each billing statement issued under Section 14
     hereof of the amount of any such curtailments then due and payable on the
     next Billing Statement Payment Date. For the avoidance of doubt and unless
     the outstanding principal balance of a New Manufactured Home Sale Advance
     shall have been paid earlier in connection with the sale of the New
     Manufactured Home Held for Sale related to such New Manufactured Home Sale
     Advance, as provided for in Section 11 hereof, or in connection with the
     destruction or damage to such New Manufactured Home Held for Sale, as
     provided in below in this Section 12, or in connection with a New Borrowing
     Base payment as provided in Section 1 hereof, the outstanding principal
     balance of such New Manufactured Home Sale Advance shall mature and be due
     and payable in full (together with all accrued and unpaid interest, fees
     and charges with respect thereto) on the earlier of the Maturity Date or
     the date on which the Manufacturer in respect of the New Manufactured Home
     Held for Sale related to such New Manufactured Home Sale Advance under the
     repurchase agreement between it and TFC is no longer obligated to
     repurchase such New Manufactured Home Held for Sale under any circumstances
     (for example, under the aforesaid example with respect to a New
     Manufactured Home Sale Advance, if the repurchase agreement in respect of
     the New Manufactured Home Held for Sale related to such New Manufactured
     Home Sale Advance provided that no further repurchases are permitted after
     twelve months from the purchase date of such New Manufactured Home Held for
     Sale, such New Manufactured Home Sale Advance would be due and payable one
     year after its Booking Date or, if earlier, the Maturity Date). If no
     repurchase agreement shall exist with respect to any New Manufactured Home
     Sale Advance or the terms thereof do not permit SHS and TFC to determine
     the amounts of any curtailments or the maturity date of such New
     Manufactured Home Sale Advance, then such New Manufactured Home Sale
     Advance shall have no curtailments and shall mature and be due and payable
     in full (together with all accrued and unpaid interest, fees and charges
     with respect thereto) on the earlier of the Maturity Date and the first
     anniversary of the Booking Date in respect thereof. For the avoidance of
     doubt and unless the outstanding

                                       14

<PAGE>

     principal balance of a New Manufactured Home Bulk Sale Advance shall have
     been paid earlier in connection with the sale of the New Manufactured Homes
     Held for Sale related to such New Manufactured Home Bulk Sale Advance, as
     provided for in Section 11 hereof, or in connection with the destruction or
     damage to such New Manufactured Homes Held for Sale, as provided in below
     in this Section 12, or in connection with a New Borrowing Base payment as
     provided in Section 1 hereof, the outstanding principal balance of such New
     Manufactured Home Bulk Sale Advance shall mature and be due and payable in
     full (together with all accrued and unpaid interest, fees and charges with
     respect thereto) on the earlier of the Maturity Date or the date on which
     any Manufacturer in respect of the New Manufactured Homes Held for Sale
     related to such New Manufactured Home Bulk Sale Advance under the
     repurchase agreement between it and TFC is no longer obligated to
     repurchase any one or more of such New Manufactured Homes Held for Sale
     under any circumstances (for example, under the aforesaid example with
     respect to a New Manufactured Home Bulk Sale Advance, if any repurchase
     agreement in respect of a New Manufactured Home Held for Sale supporting
     such New Manufactured Home Bulk Sale Advance provided that no further
     repurchase is permitted after twelve months from the purchase date of such
     New Manufactured Home Held for Sale, an allocable amount of such New
     Manufactured Home Bulk Sale Advance (based on the Net Invoice Price of the
     affected New Manufactured Home Held for Sale in relationship to the total
     Net Invoice Prices of all Manufactured Homes Held for Sale supporting such
     New Manufactured Home Bulk Sale Advance) would be due and payable on such
     12th month date or, if earlier, the Maturity Date). If no repurchase
     agreement shall exist with respect to any New Manufactured Home Bulk Sale
     Advance or the terms of any repurchase agreement with respect thereto do
     not permit SHS and TFC to determine the amounts of any curtailments or the
     maturity date of such New Manufactured Home Bulk Sale Advance, then such
     New Manufactured Home Acquisition Advance shall have no curtailments and
     shall mature and be due and payable in full (together with all accrued and
     unpaid interest, fees and charges with respect thereto) on the earlier of
     the Maturity Date and the first anniversary of the date of the extension
     thereof to SHS.

          With respect to each Used Manufactured Home Acquisition Advance
     obtained by SHS hereunder, no principal curtailments shall be due and
     payable. Unless paid earlier in connection with the sale of the Used
     Manufactured Home Held for Sale related to a Used Manufactured Home
     Acquisition Advance, as provided for in Section 11 hereof, or in connection
     with the destruction or damage to such Used Manufactured Home Held for
     Sale, as provided below in this Section 12, or in connection with a Used
     Borrowing Base payment as provided in Section 3 hereof, the outstanding
     principal balance of such Used Manufactured Home Acquisition Advance shall
     mature and be due and payable in full (together with all accrued and unpaid
     interest, fees and charges with respect thereto) on the earlier of the
     Maturity Date and the first anniversary date of the extension of such Used
     Manufactured Home Acquisition Advance to SHS.

          With respect to each Rented Manufactured Home Advance obtained by SHS
     hereunder, principal curtailments shall be due and payable as follows: on
     each anniversary date of the extension of such Rented Manufactured Home
     Advance an amount equal to the result of "A" divided by "B," where "A"
     equals the original principal amount of such Rented Manufactured Home
     Advance and "B" equals the number of years (rounded up to the nearest whole
     number if the fractional portion of such result equals or exceeds 0.50 and
     otherwise rounded down to the nearest whole number) between the date on
     which such Rented Manufactured Home Advance was made and the date which is
     the tenth anniversary of the original invoice from the Manufacturer in
     respect of the Rented Manufactured Home related to such Rented Manufactured
     Home Advance. Unless paid earlier in connection with the sale of the Rented
     Manufactured Home related to a Rented Manufactured Home Advance, as
     provided for in Section 11 hereof, or in connection with the destruction or
     damage to such Rented Manufactured Home, as provided below in this Section
     12, or in connection with a Rental Borrowing Base payment as provided in
     Sections 2 or 4 hereof, the outstanding principal balance of such Rented
     Manufactured Home Advance shall mature and be due and payable in full
     (together with all accrued and unpaid interest, fees and charges with
     respect thereto) on the earlier of (A) the date which is the tenth
     anniversary of the original invoice from the Manufacturer in respect of
     such Rented Manufactured Home and (B) the Maturity Date.

                                       15

<PAGE>

          With respect to any sale of a Manufactured Home constituting
     Collateral, SHS will pay TFC the payments required by Section 11 hereof on
     the Disposition Payment Date with respect thereto. With respect to any
     lost, stolen, destroyed or damaged Manufactured Home constituting
     Collateral, SHS will pay TFC the payments required by Section 21 or Section
     23 hereof on the date or dates provided for therein.

          SHS will: (AA) pay TFC as provided for herein even if any Manufactured
     Home financed hereunder or otherwise part of the Collateral hereof is
     defective or fails to conform to any warranties extended by any third
     party; (BB) not assert against TFC any claim or defense SHS has against any
     third party; and (CC) indemnify and hold TFC harmless against all claims
     and defenses asserted by any MH Consumer Lessee under any MH Consumer Lease
     Agreement or any buyer of any Manufactured Home financed hereunder or
     otherwise constituting a part of the Collateral but excluding, in any case,
     any such claim or defense that (YY) was directly caused by action taken by
     TFC or (ZZ) arose after TFC took possession of the applicable Manufactured
     Home except if such claim or defense had its origins prior to TFC's taking
     possession and/or did not arise from any action actually taken by TFC.

          Except as provided on the Maturity Date or as otherwise expressly
     provided for herein, all curtailments of Advances to be made in the
     ordinary course as provided above shall be due and payable on a Billing
     Statement Payment Date as provided for in Section 14 hereof. SHS will send
     all payments due hereunder to TFC as provided for in Part 5 on the Schedule
     of Terms and Disclosures.

          The proceeds of any sale permitted hereunder of any Manufactured Home
     constituting Collateral, any insurance proceeds in respect of any
     Manufactured Home constituting Collateral that is lost, stolen, destroyed
     or damaged beyond repair, and all MH Consumer Lease Agreement Payments in
     respect of Rented Manufactured Homes constituting Collateral hereunder
     received by SHS or any MH Community Homesite Lessor, as agent of SHS under
     any MH Servicing Agreement, will be held by SHS or such MH Community
     Homesite Lessor, as the case may be, in trust for the benefit of TFC, for
     application as provided in this Agreement, to the extent that such
     proceeds, insurance proceeds or MH Consumer Lease Agreement Payments are
     required to be paid to TFC pursuant to the terms hereof.

     13. CALCULATION OF CHARGES AND FEES. SHS will pay finance charges to TFC on
     the principal amount of the New Manufactured Home Acquisition Advances
     outstanding from time to time hereunder which have been made by TFC to or
     for the benefit of SHS at the following rates: (A) with respect to each New
     Manufactured Home Sale Advance that has been outstanding 720 days or less
     from the Booking Date in respect thereof, the per annum rate of interest
     equal to the Prime Rate from time to time in effect, (B) with respect to
     each New Manufactured Home Sale Advance that has been outstanding for more
     than 720 days from the Booking Date in respect thereof, the per annum rate
     of interest equal to the sum of the Prime Rate from time to time in effect
     plus 3.50%, (C) with respect to each New Manufactured Home Bulk Sale
     Advance that has been outstanding 720 days or less from the funding date in
     respect thereof, the per annum rate of interest equal to the Prime Rate
     from time to time in effect, and (D) with respect to each New Manufactured
     Home Bulk Sale Advance that has been outstanding for more than 720 days
     from the funding date in respect thereof, the per annum rate of interest
     equal to the sum of the Prime Rate from time to time in effect plus 3.50%.
     Interest on New Manufactured Homes Held for Sale shall commence to accrue
     on the applicable Booking Dates in respect thereof.

          SHS will pay finance charges to TFC on the principal amount of the
     Used Manufactured Home Acquisition Advances outstanding from time to time
     hereunder which have been made by TFC to or for the benefit of SHS at the
     following rates: (I) with respect to each Used Manufactured Home
     Acquisition Advance that has been outstanding 360 days or less from the
     funding date in respect thereof, the per annum rate of interest equal to
     the Prime Rate from time to time in effect plus 0.50%, and (II) with
     respect to each Used Manufactured Home Acquisition Advance that has been
     outstanding for more than 360 days from the funding date in respect
     thereof, the per annum rate of interest equal to the sum of the Prime Rate
     from time to time in effect plus 3.50%.

                                       16

<PAGE>

          SHS will pay finance charges to TFC on the principal amount of the
     Rented Manufactured Home Advances outstanding from time to time hereunder
     which have been made by TFC to or for the benefit of SHS at the following
     rates: (A) with respect to each Rented Manufactured Home Advance that has
     been outstanding 360 days or less from the funding date in respect thereof,
     the per annum rate of interest equal to the Prime Rate from time to time in
     effect plus 0.50%, and (B) with respect to each Rented Manufactured Home
     Advance that has been outstanding for more than 360 days from the funding
     date in respect thereof, the per annum rate of interest equal to the sum of
     the Prime Rate from time to time in effect plus 3.50%.

          Interest shall accrue on any past due principal, interest or other
     payment required to be paid hereunder (including, without limitation,
     amounts whose payment has been accelerated pursuant to Section 25 hereof)
     on and after the due date thereof at a per annum rate of interest equal to
     the sum of the Prime Rate from time to time in effect plus 3.50%. The
     finance charges based on the rates set forth above attributable to any
     Advance will be computed based on the actual number of days such Advance is
     outstanding and a year of 360 days. SHS will also pay to TFC (AA) 10% of
     the amount of each check (not to exceed $500 per check) returned unpaid for
     insufficient funds (an "NSF CHECK") (such payment covers TFC's estimated
     administrative costs in respect of such NSF check; it does not waive the
     Default or Event of Default caused by the NSF check), (BB) a $25 fee for
     each Used Manufactured Home Held For Sale supporting a Used Manufactured
     Home Acquisition Advance or otherwise included in the Used Sales Borrowing
     Base (such fee to be paid only once when such Used Manufactured Home held
     for Sale first became part of the Collateral) and (CC) a $25 fee for each
     Rented Manufactured Home supporting a Rented Manufactured Home Advance or
     otherwise included in the Rental Borrowing Base (such fee to be paid only
     once when such Rented Manufactured Home first became part of the
     Collateral). The foregoing fees in clauses (aa), (bb) and (cc) shall be due
     and payable on the first Billing Statement Payment Date occurring after the
     event triggering the same shall have occurred.

          SHS agrees to pay to TFC an unused credit line fee of 0.25% per annum
     on the average unused amount of the $40,000,000 credit line hereunder
     determined for each month (or portion thereof) falling during the period
     commencing on the Closing Date and ending on and including the Maturity
     Date. The "average unused amount of the $40,000,000 credit line provided
     for hereunder" shall be determined for any month (or portion thereof) by
     aggregating the unused amount of such facility for each day during such
     month (or portion thereof) and dividing such aggregated amount by the
     number of days in such month (or portion thereof). Such unused credit
     facility fee shall be calculated by using the number of days in such month
     (or portion thereof) and a year of 360 days and shall be payable in arrears
     on each Billing Statement Payment Date falling immediately after the month
     in respect of which such fee was calculated.

          It is the intention of the parties hereto that no Advances shall be
     made hereunder after the Maturity Date and that all Advances, financing
     charges, fees and other obligations outstanding hereunder shall be paid in
     full on the Maturity Date. Except as provided in the immediately preceding
     sentence or as otherwise expressly provided for herein, all financing
     charges and fees provided for in this Section 13 shall be due and payable
     monthly in arrears on a Billing Statement Payment Date as provided for in
     Section 14 hereof.

          SHS acknowledges that TFC intends to strictly conform to the
     applicable usury laws governing this Agreement. Regardless of any provision
     contained herein or in any other document executed or delivered in
     connection herewith, TFC shall not be deemed to have contracted for,
     charged or be entitled to receive, collect or apply as interest on this
     Agreement (whether termed interest, finance charges or maturity fees herein
     or deemed to be interest by judicial determination or operation of law),
     any amount in excess of the maximum amount allowed by applicable law, and,
     if TFC receives, collects or applies as interest any such excess, such
     amount which would be excessive interest will be applied first to the
     reduction of the unpaid principal balances of Advances under this
     Agreement, and, second, any remaining excess will be paid to SHS. In
     determining whether or not the interest paid or payable under any specific
     contingency exceeds the highest lawful rate, SHS and TFC shall, to the
     maximum extent permitted under applicable law: (AA)

                                       17

<PAGE>

     characterize any non-principal payment (other than payments which are
     expressly designated as interest payments, finance charges or maturity fees
     hereunder) as an expense or fee rather than as interest; and (BB) spread
     the total amount of finance charges and maturity fees throughout the entire
     term of this Agreement and the Advances so that the interest rate is
     uniform throughout such term.

     14. BILLING STATEMENT. TFC will send SHS a monthly billing statement
     identifying all amounts and charges due from SHS hereunder. The charges
     specified on each billing statement will be: (A) due and payable in full
     immediately on the 15th day of the month in which such billing statement is
     received (the "BILLING STATEMENT PAYMENT DATE"); and (B) an account stated,
     unless TFC receives SHS's written objection thereto within 10 days after
     such statement is received by SHS. If TFC does not receive, by the 25th day
     of any given month, payment of all amounts, charges and other fees shown on
     such month's billing statement, SHS will (to the extent not prohibited by
     law) pay to TFC a late fee ("LATE FEE") equal to 5% of the amount of such
     payments, charges or other amounts (payment of the Late Fee does not waive
     the Default or Event of Default caused by the late payment thereof and
     covers TFC's estimated administrative costs in respect thereof). TFC may
     adjust the billing statement at any time to conform to applicable law and
     this Agreement. All payments hereunder or pursuant to any monthly billing
     statement shall be made payable to TFC and delivered to TFC as set forth in
     Part 5 of the Schedules of Terms and Disclosures attached hereto (or as TFC
     may otherwise instruct SHS in writing reasonably in advance of any such
     payment). Application of payments received by TFC in respect of SHS's
     account may occur up to two business days after deposit into TFC's account
     to allow for clearance of funds, provided that application of payments via
     Federal Reserve wire transfer in immediately available funds shall be
     applied on the business day immediately following the date of receipt of
     such wire transfer.

     15. GRANT OF PURCHASE MONEY SECURITY INTEREST. In order to secure repayment
     of any Advance made by TFC to or for the benefit of SHS the proceeds of
     which enabled SHS to acquire rights in or the use of a Manufactured Home or
     to refinance any Advance that was used for such purpose and to also secure
     the payment of all finance charges and interest accrued thereon and all
     fees, charges and expenses hereunder in respect thereof as well as all
     other obligations of SHS hereunder or in any other agreement entered into
     in connection herewith, SHS hereby grants to TFC a security interest in
     each of such Manufactured Homes (which the parties hereto intend to be a
     purchase money security interest) and all proceeds thereof (including,
     without limitation, any MH Consumer Lease Agreement with respect thereto
     and all MH Consumer Lease Agreement Payments thereunder and all other
     proceeds in the form of goods, accounts, chattel paper, documents,
     instruments and/or general intangibles) to secure repayment of such Advance
     and all interest and finance charges accrued thereon and fees, charges and
     expenses in respect thereof and other obligations of SHS hereunder or in
     any other agreement entered into in connection herewith (collectively, the
     "PM COLLATERAL"). SHS acknowledges that TFC shall be entitled to a purchase
     money security interest in each of the aforesaid Manufactured Homes and the
     proceeds thereof and such items are and shall be purchase-money collateral.

     16. GRANT OF SECURITY INTEREST. In order to secure the payment and
     performance by SHS of all present and future indebtedness and obligations
     of SHS hereunder or in any other agreement entered into in connection
     herewith, whether direct or indirect, primary or secondary, absolute or
     contingent, or otherwise, including but not limited to the Advances, the
     payment of all interest and finance charges accrued thereon and all fees,
     charges and expenses hereunder in respect thereof, SHS hereby grants to TFC
     a security interest in all of its right, title and interest in and to each
     Manufactured Home with respect to which an Advance shall have been made
     hereunder or which shall be included in the determination of the New
     Borrowing Base, the Used Borrowing Base or the Rental Borrowing Base,
     wherever located, in which SHS now or hereafter has rights, including, but
     not limited to, installed or related appliances or products therein; all
     present and future attachments, accessories and accessions thereto; all
     spare parts, replacements, substitutions and exchanges therefor; all
     trade-ins relating to such inventory; all fixtures in respect thereof; all
     rights of SHS under any MH Servicing Agreement with respect thereto; all
     rights of SHS under any MH SHS Homesite Lease with respect thereto; all MH
     Consumer Lease Agreements with respect thereto (together with any security

                                       18

<PAGE>

     deposits with respect thereto relating to such Manufactured Homes); all
     rights of SHS with respect to MH Consumer Lease Agreement Payments with
     respect thereto (provided, however, that, pursuant to the MH Servicing
     Agreements, the application of rental payments from MH Consumer Lessees of
     Rented Manufactured Homes constituting Collateral to the payment of MH
     Consumer Lease Agreement Payments under their respective MH Consumer Lease
     Agreements shall be junior and subordinate to the application of such
     rental payments to the payment of homesite rent in respect of such Rented
     Manufactured Homes to the applicable MH Community Homesite Lessors under
     their respective MH SHS Homesite Leases and the payment to or reimbursement
     of the MH Community Homesite Lessors for their respective costs and
     expenses in providing servicing to SHS under their respective MH Servicing
     Agreements for such Rented Manufactured Homes); all recourse to and rights
     of indemnification of SHS from MH Community Homesite Lessors in respect of
     any such Manufactured Home, any MH SHS Homesite Lease with respect thereto
     and/or any MH Servicing Agreement with respect thereto; all rights of SHS
     under each Marketing and Sales Agreement between a MH Community Homesite
     Lessor and SHS (as amended from time to time, individually a "MSA" and,
     collectively, the "MSAS") with respect thereto; and all proceeds of any of
     the foregoing (including proceeds in the form of goods, accounts, chattel
     paper, documents, instruments, deposit accounts and/or general intangibles)
     (collectively, the "GENERAL COLLATERAL").

          The PM Collateral and the General Collateral are referred to herein,
     collectively, as the "COLLATERAL." For the avoidance of doubt, the General
     Collateral shall include the PM Collateral. All of terms used in this
     Section 16 for which meanings are provided in the Uniform Commercial Code
     of the State of Rhode Island are used herein with such meanings.

     17. COLLATERAL ASSURANCES. SHS will execute and deliver all documents
     necessary to assist in perfecting the security interests granted herein and
     will bear all costs of recording and perfection, including, without
     limitation, the following: (A) if SHS shall at any time hold or acquire any
     promissory notes or tangible chattel paper as proceeds of Collateral, SHS
     shall, if requested by TFC, forthwith endorse, assign and deliver the same
     to TFC, accompanied by such instruments of transfer or assignment duly
     executed in blank as TFC may from time to time specify, (B) if any
     Collateral is at any time in the possession of a bailee (including, without
     limitation, any MH Community Homesite Lessor under any MH Servicing
     Agreement), SHS shall promptly notify TFC thereof and, at the request of
     TFC, shall promptly obtain an acknowledgement from the bailee, in form and
     substance satisfactory to TFC, that the bailee holds such Collateral for
     the benefit of TFC, and that such bailee agrees to comply, without further
     consent of SHS, with instructions from TFC as to such Collateral, (C) if
     SHS at any time holds or acquires an interest in any chattel paper
     (including, without limitation, the MH Consumer Lease Agreements) as
     proceeds of Collateral, SHS shall mark its records to reflect the security
     interests of TFC in such chattel paper and shall, at the request of TFC,
     take such other action as TFC may reasonably request (including placing
     legends on each of such MH Consumer Lease Agreements reflecting the
     security interest of TFC therein), (D) the preparation and recordation of
     any fixture filings with respect to any of the Collateral that TFC requests
     to be prepared and recorded (together with any costs or expenses in respect
     of UCC and lien searches in respect thereof), (E) the preparation and
     recordation of any Texas Inventory Finance Security Forms with the Texas
     Department of Housing and Community Affairs that TFC requests to be
     prepared and recorded (together with all "TIFF" searches in respect
     thereof) and (F) SHS further agrees, at the request of TFC to, where
     appropriate, (I) comply with any provision of any statute or regulation of
     the United States of America or any State thereof as to any Collateral if
     compliance with such provision is a condition to attachment, perfection or
     priority of, or ability of TFC to enforce, TFC's security interest in such
     Collateral, (II) use reasonable efforts to obtain governmental and other
     third party waivers, consents and approvals in form and substance
     satisfactory to TFC, and (III) obtain landlord waivers and affirmations
     from the MH Community Homesite Lessors in respect of the MH SHS Homesite
     Leases (for MH Rental Homesites on which Rented Manufactured Homes
     constituting Collateral are located and their respective MH Servicing
     Agreements and in respect of any other Manufactured Homes constituting
     Collateral that are or may be located in any MH Homesite) that grant to
     TFC, among other things, the right to enter upon any MH Homesite or MH
     Rental Homesite in order to remove a Manufactured Home constituting
     Collateral, confirm to TFC that they claim no landlord's lien in

                                       19

<PAGE>

     and to any such Manufactured Home, permit TFC to leave any such
     Manufactured Home on its MH Homesite or MH Rental Homesite so long as TFC
     causes the rental payments due under the applicable MH SHS Homesite Lease
     or otherwise to be made in respect thereof and allow TFC to cure defaults
     by SHS under any such MH SHS Homesite Lease or other leasing arrangement
     and under any MH Servicing Agreement.

          SHS hereby irrevocably authorizes TFC at any time and from time to
     time to file in any filing office in any Uniform Commercial Code
     jurisdiction any initial financing statements and amendments thereto
     (including, without limitation, any fixture filings and any Texas Inventory
     Finance Security Forms to be filed with the Texas Department of Housing and
     Community Affairs) that cover the Collateral. SHS also ratifies its
     authorization for TFC to have filed in any Uniform Commercial Code
     jurisdiction any like initial financing statements or amendments thereto if
     filed prior to the date hereof. TFC agrees that upon the termination of
     this Agreement, the cessation of any right of SHS to obtain Advances
     hereunder and the full and final payment by SHS of all of its obligations
     hereunder or otherwise secured hereby, TFC shall, upon request of SHS,
     reasonably promptly take all actions necessary to release or terminate any
     filing made hereunder.

     18. INVENTORY COLLATERAL TO REMAIN PERSONAL PROPERTY. SHS agrees that the
     Manufactured Homes constituting the Collateral shall at all times remain
     personal property and shall not become affixed to or form a part of any
     real estate and no filing or election has been made or will be made under
     applicable state law to cause such units to become part of any real estate
     or otherwise treated or recognized as real estate under applicable state
     law.

     19. AFFIRMATIVE UNDERTAKINGS, WARRANTIES AND REPRESENTATIONS. SHS warrants
     and represents to, and covenants and agrees with, TFC that: (A) SHS has
     good title to all of the Collateral; (B) except as provided for in Part 6
     on the Schedule of Terms and Disclosures attached hereto, the security
     interest in the Collateral is not now and will not become subordinate to
     the security interest, lien, encumbrance or claim of any other person; (C)
     SHS will at all times be duly organized, existing, and in good standing
     under the laws of the State of Michigan and will at all times be in good
     standing, qualified and licensed to do business in each state in which the
     nature of its business or property so requires (including, without
     limitation, being licensed to rent and sell manufactured homes); (D) SHS
     has the right and is duly authorized to enter into this Agreement; (E)
     SHS's execution of this Agreement does not constitute a breach of any
     agreement to which it is now or may hereafter become bound; (F) there are
     no actions or proceedings pending or, to the best of the knowledge of SHS,
     threatened against it which might result in any material adverse change in
     its financial or business condition or which could have a material adverse
     affect on the MH Consumer Lease Agreements constituting Collateral or the
     MH Consumer Lease Agreement Payments in respect thereof; (G) SHS will
     maintain the Collateral in good condition and repair; (H) SHS has duly
     filed and will duly file all tax returns required by law; (I) SHS has paid
     and will pay prior to delinquency all taxes, levies, assessments and
     governmental charges of any nature unless SHS is contesting the payment
     thereof in good faith and has established reserves (in accordance with
     GAAP) to cover such taxes, levies, assessments or governmental charges; (J)
     SHS will keep and maintain all of its books and records pertaining to the
     Collateral at its principal place of business designated in the first
     paragraph of this Agreement; (K) SHS will promptly supply TFC with such
     information concerning it as TFC hereafter may reasonably request; (L) all
     MH Consumer Lease Agreements constituting Collateral will be kept at SHS's
     principal place of business designated in the first paragraph of this
     Agreement or at the Sun MH Community where the Manufactured Home covered by
     such MH Consumer Lease Agreement is located; (M) SHS will give TFC ninety
     (90) days prior written notice of any change in its identity, name, form of
     business organization, ownership, management, principal place of business,
     state of organization, and before moving any books and records or the
     aforesaid MH Consumer Lease Agreements to any other location; (N) SHS will
     observe and perform all matters required by any lease, license, concession
     or franchise forming part of the Collateral (including, without limitation,
     under the MH Servicing Agreements and/or MH SHS Homesite Leases) in order
     to maintain all the rights of TFC thereunder; (O) SHS will advise TFC of
     the commencement of material legal proceedings against it with

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<PAGE>

     respect to which monetary damages, individually, in excess of $1,000,000
     could likely be recovered; (P) SHS will not locate any Manufactured Homes
     constituting Collateral anywhere other than in Sun MH Communities and will
     seek the written consent of TFC to amend Part 3 to the Schedule of Terms
     and Disclosures in order to add additional manufactured home communities to
     said Part (such consent not to be unreasonably withheld or delayed by TFC);
     (Q) SHS will comply with all applicable laws, unless noncompliance would
     not have a material adverse effect on the financial condition of SHS, the
     Collateral or SHS's ability to perform and carry out its obligations and
     undertakings hereunder, and will conduct its business in a manner which
     preserves and protects the Collateral and the earnings and incomes thereof,
     (S) each invoice, bill of sale or similar document submitted to TFC by SHS
     as a request for the financing of a Manufactured Home is true and correct
     in all material respects, (R) SHS has, to the extent required by its
     activities and businesses, fully complied with and will continue to fully
     comply with (I) all of the applicable provisions of (A) the Consumer Credit
     Protection Act, as amended, (B) all rules and regulations promulgated under
     the Consumer Credit Protection Act (including, without limitation,
     Regulations M and Z thereunder), and (C) all other applicable federal
     statutes and the rules and regulations promulgated thereunder pertaining to
     the renting, selling and financing of manufactured homes and (II) all of
     the applicable provisions of any law of any state or municipality (and the
     rules and regulations promulgated thereunder) relating to the renting,
     selling and financing of manufactured homes, including, without limitation,
     the laws, rules and regulations of the States of Florida, Michigan,
     Indiana, Texas, and Ohio, except where the failure to so comply would not
     have a material or adverse effect on the business, properties or financial
     condition of SHS or the ability of SHS to perform its undertakings
     hereunder and (S) neither the MH Community Homesite Lessors nor any
     mortgagee nor secured party thereof have any claim on, lien or security
     interest in, or right to obtain any New Manufactured Home Held for Sale or
     Used Manufactured Home Held for Sale constituting Collateral.

          SHS hereby indemnifies and holds TFC harmless against all claims and
     defenses asserted by any MH Consumer Lessee under any MH Consumer Lease
     Agreement constituting (or having constituted) Collateral or any buyer of
     any Manufactured Home financed hereunder or otherwise constituting (or
     having constituted) a part of the Collateral that arises, directly or
     indirectly, out of the failure of SHS to comply with any applicable laws,
     including, without limitation, the failure of SHS to fully comply with any
     of the applicable provisions of (1) the Consumer Credit Protection Act, as
     amended, (2) all rules and regulations promulgated under the Consumer
     Credit Protection Act (including, without limitation, Regulations M and Z
     thereunder), (3) all other applicable federal statutes and the rules and
     regulations promulgated thereunder pertaining to the renting, selling and
     financing of manufactured homes and (4) any applicable laws of any state or
     municipality (and the rules and regulations promulgated thereunder)
     relating to the renting, selling and financing of manufactured homes,
     including, without limitation, the laws, rules and regulations of the
     States of Florida, Michigan, Indiana, Texas, and Ohio.

     20. NEGATIVE COVENANTS. SHS will not at any time: (A) other than as
     provided in Sections 10 and 11 hereof, sell, lease or otherwise dispose of
     any Manufactured Homes constituting Collateral or sell, lease or otherwise
     dispose of any of the other Collateral; (B) pledge or encumber or otherwise
     grant a lien or security interest in and to (or allow any such lien or
     security interest to arise in respect of) any of the Collateral (except as
     provided for hereunder); or (C) merge or consolidate with another entity or
     otherwise change its legal structure or amalgamate unless TFC shall have
     given its prior written approval of the same (which approval will not be
     unreasonably withheld or delayed).

     21. INSURANCE. At all times during the term of this Agreement, SHS shall
     bear the entire risk of loss or destruction of, or damage to, its
     respective Collateral. SHS shall list the Collateral on its insurance
     schedule for its full replacement cost or actual cash value at its
     discretion, pursuant to an "all risk" property insurance policy with a
     company reasonably acceptable to TFC that names TFC as a "lender
     loss-payee" with respect to its Collateral and provides that TFC shall be
     provided with 30 days notice of cancellation. SHS will provide TFC with
     written evidence of such property insurance coverage and lender's
     loss-payee

                                       21

<PAGE>

     endorsement. SHS shall indemnify, defend and hold harmless TFC in respect
     of all claims, demands, suits and expenses on account of bodily injury,
     sickness or disease, including death, sustained by any person or persons,
     injury to or the destruction of property, and any and all other losses,
     accidents, claims, suits and expenses whatsoever and howsoever arising or
     incurred in the course of the business activities carried on by SHS and SHS
     shall maintain "Commercial General Liability Insurance" in a limit of not
     less than $10,000,000, with such deductibles as it sees fit (and, if
     practicable, shall have TFC named as an additional insured on such policy).
     If SHS is required to indemnify TFC, TFC agrees that SHS and its
     third-party administrator shall control the defense and TFC shall
     reasonably cooperate with the defense (all at the cost and expense of SHS).

          In the event of SHS's failure to secure and maintain insurance as
     herein required, TFC may, to protect and insure the Collateral and at is
     sole option, secure such insurance on behalf of SHS, and SHS hereby
     promises to pay to TFC on demand any amounts expended by TFC in securing
     such insurance as part of the obligations, the payment of which is secured
     by the Collateral pursuant to this Agreement. Insurance purchased by TFC
     may not include coverage beyond that required by this Section. The cost of
     such insurance may include premium expense. TFC's affiliates may act as
     insurance carrier, premium finance company and/or insurance administrator,
     and may be compensated through premium charges, commissions, premium
     rebates and fees. SHS acknowledges that any insurance obtained by TFC is
     solely for the benefit of TFC and may be more expensive than insurance
     obtained or obtainable by SHS. SHS hereby agrees that TFC may act as SHS's
     representative in making, adjusting, and settling claims under or canceling
     any insurance policies it places pursuant to this provision covering the
     Collateral, and endorsing SHS's name on any drafts, checks or other
     instruments drawn by an insurer of the Collateral. TFC will promptly
     discontinue any insurance purchased by it upon SHS's presentation of proper
     evidence of valid insurance meeting the requirements of this Section.

          With respect to any Manufactured Home constituting Collateral that is
     lost, stolen, destroyed or damaged beyond repair, SHS will (AA) pay to TFC
     the outstanding principal indebtedness owed in respect of any Advance made
     to it hereunder to finance the acquisition of such Manufactured Home so
     lost, stolen, destroyed or damaged on the first Billing Statement Payment
     Date occurring after the month in which such loss, theft, destruction or
     damage occurred and (BB) pay on such Billing Statement Payment Date all of
     the following excess amounts determined in respect of the last day of the
     month in which such loss, theft, destruction or damage occurred: (AAA) the
     amount by which the aggregate outstanding principal balance of the New
     Manufactured Home Acquisition Advances exceeds the New Borrowing Base,
     (BBB) the amount by which the aggregate outstanding principal balance of
     the Used Manufactured Home Acquisition Advances exceeds the Used Sales
     Borrowing Base and (CCC) the amount by which the aggregate outstanding
     principal balance of the Rented Manufactured Home Advances exceeds the
     Rental Borrowing Base, provided that if a Default or Event of Default shall
     then exist, SHS shall immediately pay, or cause to be paid, to TFC, without
     duplication, all insurance proceeds (net of any reasonable expenses in
     respect thereof) obtained with respect to such Manufactured Home together
     with all of the other foregoing amounts for application to the obligations
     hereunder as provided for in Section 26 hereof. TFC shall apply the amounts
     paid in respect of the excess amount payments to the Advances in respect
     thereof in such order of payment as TFC may determine in its sole
     discretion.

          To the extent that any Manufactured Home that constitutes Collateral
     hereunder is damaged in an amount in excess of $10,000 and, in SHS's
     estimation can be repaired or refurbished, SHS shall inform TFC in writing
     of such damage and of its undertaking to repair and refurbish such
     Manufactured Home, shall promptly commence the repair or refurbishment of
     such Manufactured Home, and shall notify TFC when such repairs and
     refurbishment are completed. If the foregoing repairs and refurbishments
     have not been completed within the 90-day period, SHS shall (A) pay off the
     outstanding principal amount of any Advance (together with all accrued and
     unpaid finance charges and other fees in respect thereof) related to such
     Manufactured Home on the Billing Statement Payment Date first occurring
     after the end of such period and (B) pay on such Billing Statement Payment
     Date all of the following excess amounts determined in respect

                                       22

<PAGE>

     of the last day of the month immediately preceding such Billing Statement
     Payment Date: (AA) the amount by which the aggregate outstanding balance of
     the New Manufactured Home Acquisition Advances exceeds the New Borrowing
     Base, (BB) the amount by which the aggregate outstanding balance of the
     Used Manufactured Home Acquisition Advances exceeds the Used Sales
     Borrowing Base and (CC) the amount by which the aggregate outstanding
     balance of the Rented Manufactured Home Advances exceeds the Rental
     Borrowing Base, provided that if a Default or Event of Default shall then
     exist, SHS shall immediately pay to TFC all such amounts. TFC shall apply
     the amounts paid in respect of the excess amounts payments to the Advances
     in respect thereof in such order of payment as TFC may determine in its
     sole discretion. TFC shall have the right to require such documentation as
     is reasonably available to verify the damages and SHS's actions to repair
     the same.

          Upon the full and final payment of all indebtedness and obligations of
     SHS hereunder and the termination of all commitments and lending facilities
     hereunder, TFC will deliver to SHS any and all insurance proceeds received
     by it under any casualty insurance policy referred to above (net of any
     costs and expenses paid by TFC with respect thereto).

     22. FINANCIAL STATEMENTS. SHS shall deliver to TFC, within 90 days after
     the close of each fiscal year of SHS, SHS's balance sheet, statement of
     income, changes in cash flows and other related financial statements
     ("FINANCIAL STATEMENTS"), prepared in accordance with generally accepted
     accounting principles and certified by the chief financial officer of SHS
     as presenting fairly the financial condition of SHS as of the date thereof
     and for the period then ended. SHS will deliver to TFC, within 90 days
     after the close of each fiscal quarter of SHS, copies of SHS's quarterly
     Financial Statements certified by the chief financial officer of SHS as
     presenting fairly the financial condition of SHS as of the date thereof and
     for the period then ended. SHS will deliver to TFC, weekly in arrears in a
     electronic format which is compatible with and exportable to TFC's
     commercial loan tracking systems, a status report for all of the
     Manufactured Homes constituting the Collateral, which report shall provide
     such detail and determinations as shall be mutually agreed between SHS and
     TFC prior to the Closing Date and as set forth in Part 8 to the Schedule of
     Terms and Disclosures attached hereto (the "WEEKLY ELECTRONIC MH INVENTORY
     REPORT").

     23. AUDITS. In connection with any Audits to be performed under this
     Section 23, SHS grants TFC an irrevocable license to enter SHS's business
     locations (including, without limitation, any MH Homesites or MH Rental
     Homesites leased by SHS under any MH SHS Homesite Lease) during normal
     business hours without notice (except as expressly provided below) to SHS
     to: (A) account for and inspect all Collateral of SHS (including, without
     limitation, all Manufactured Homes and all manufacturer statements of
     origin or certificates of title); for so long as no Default or Event of
     Default shall exist, TFC agrees to give SHS 48 hours prior notice of any
     such inspection with respect to manufacturer statements of origin or
     certificates of title; (B) verify SHS's compliance with this Agreement; and
     (C) examine and copy SHS's books and records related to the Collateral of
     SHS; for so long as no Default or Event of Default shall exist, TFC agrees
     to give SHS 48 hours prior notice of any such inspection with respect to
     manufacturer statements of origin or certificates of title. In connection
     with any Audits to be performed under this Section 23, SHS agrees to
     provide TFC with such information as TFC reasonably requests to
     substantiate SHS's invoice price, Net Invoice Prices, Market Prices and net
     book value determinations and to allow TFC reasonable access to SHS's
     books, records and personnel from time to time during normal business hours
     to verify such information. In order to assess SHS's compliance with the
     provisions of this Agreement, TFC shall be entitled to audit and floorcheck
     or cause to be audited or floorchecked the Manufactured Home inventory of
     SHS, SHS's books and records and the other Collateral as frequently as TFC
     considers it prudent to do so (in each case, an "AUDIT"). During each
     calendar month for so long as this Agreement is in effect and no Default or
     Event of Default shall be in existence, TFC shall conduct Audits such that
     TFC shall have floorchecked, audited and/or reviewed all Manufactured Homes
     constituting Collateral hereunder (and any MH Consumer Lease Agreements,
     manufacturer statements of origin, and certificates of title in respect
     thereof), SHS's books and records and the other Collateral every twelve
     (12) months, provided that, if, in the reasonable determination of TFC,
     material discrepancies exist between the results of such Audits and the

                                       23

<PAGE>

     Weekly Electronic MH Inventory Reports (which material discrepancies SHS
     shall have not been able to explain to the reasonable satisfaction of TFC),
     TFC may increase the frequency of its Audits such that all Manufactured
     Homes constituting Collateral hereunder (and any MH Consumer Lease
     Agreements, manufacturer statements of origin, and certificates of title in
     respect thereof), SHS's books and records and the other Collateral shall be
     floorchecked, audited and/or reviewed every six (6) months or such shorter
     period of time as TFC shall determine in its reasonable discretion. If a
     Default or Event of Default shall exist, TFC may, in its sole discretion,
     conduct Audits as frequently as it deems necessary in respect of the
     Collateral (including, without, limitation, the Manufactured Homes
     constituting Collateral hereunder; any MH Consumer Lease Agreements, any
     manufacturer statements of origin, and/or any certificates of title in
     respect thereof; and the books and records of SHS). SHS shall cooperate
     fully with TFC in connection with each Audit. If no Default or Event of
     Default shall exist during any Audit, SHS shall remit to TFC an audit fee
     (the "AUDIT FEE") for each such Audit conducted in respect of a Sun MH
     Community or other situs of Collateral or books and records of SHS equal to
     $500 per such Audit. If any Default or Event of Default shall exist during
     any Audit, SHS shall remit to TFC the Audit Fee for each Audit conducted in
     respect of a Sun MH Community or other situs of Collateral or books and
     records equal to $500 plus TFC's actual out-of-pocket expenses incurred in
     respect of each such Audit. If, as a result of any Audit, it shall be
     determined by TFC that a Manufactured Home constituting Collateral is not
     in the possession of SHS in a Sun MH Community or in the possession of a MH
     Consumer Lessee under a MH Consumer Lease Agreement and located on a MH
     Rental Homesite in a Sun MH Community, then SHS shall immediately, upon
     receipt of a written demand therefor from TFC, pay to TFC (I) the
     outstanding principal indebtedness owed for any Advance made to it
     hereunder related to such Manufactured Home on the first Billing Statement
     Payment Date occurring after the month in which such determination was made
     or, if a Default or Event of Default shall then exist, upon written demand
     from TFC, whichever is earlier, and (II) pay on such Billing Statement
     Payment Date all of the following excess amounts determined in respect of
     the last day of the month in which such determination was made: (A) the
     amount by which the aggregate outstanding principal balance of the New
     Manufactured Home Acquisition Advances exceeds the New Borrowing Base, (B)
     the amount by which the aggregate outstanding principal balance of the Used
     Manufactured Home Acquisition Advances exceeds the Used Sales Borrowing
     Base and (C) the amount by which the aggregate outstanding principal
     balance of the Rented Manufactured Home Advances exceeds the Rental
     Borrowing Base. TFC shall apply the amounts paid in respect of the
     aforesaid excess amounts to the Advances in respect thereof in such order
     of payment as TFC may determine in its sole discretion.

     24. COVENANTS. SHS agrees that the failure of the Guarantors and their
     consolidated subsidiaries (including, without limitation, SHS) to maintain
     the financial covenants set forth in that certain Credit Agreement, dated
     as of September 30, 2004, among the Guarantors, the various financial
     institutions party thereto and Standard Federal Bank National Association,
     as administrative agent, as in effect from time to time ("CREDIT
     AGREEMENT"), as of the last day of each fiscal quarter of the Guarantors,
     based on the publicly released consolidated financial statements of the
     Guarantors, shall be treated as an Event of Default as provided in Section
     25(b) hereof, provided, if any such financial covenant shall be modified or
     waived by the parties to such Credit Agreement and TFC shall have not
     consented to the same in writing at the time of any such amendment and
     waiver, then, unless TFC shall have subsequently so consented, the making
     or extension of any Advances hereunder shall immediately and without notice
     to SHS become discretionary in the sole and absolute determination of TFC.
     For the avoidance of doubt, TFC agrees that any waiver or modification of
     the aforesaid financial covenants in the Credit Agreement by the parties
     thereto shall be effective hereunder except that TFC has the right, in its
     sole discretion, as a result thereof to convert this Agreement to a fully
     discretionary lending facility on the part of TFC. If the Credit Agreement
     shall be terminated by the parties thereto, the financial covenants
     provided for therein at the time of such termination shall nonetheless
     continue to be effective under this Section 24.

     Not later than 50 calendar days after the last day of each fiscal quarter
     of the Guarantors, or 90 calendar days after the last day of each fiscal
     year of the Guarantors, SHS shall submit to TFC a certificate stating that
     the Guarantors are in compliance with the aforesaid financial covenants
     (or, if applicable, disclosing any non-

                                       24

<PAGE>

     compliance therewith) and shall show such supporting information as TFC may
     reasonably request. Each certificate will also certify that no Event of
     Default under Section 25(o) then exists. Each certificate shall be in form
     and substance reasonably satisfactory to TFC and signed by the chief
     financial officer or chief accounting officer of the Guarantors (or such
     other officer as is acceptable to TFC in its sole discretion).

     25. DEFAULT. SHS will be in immediate default under this Agreement (and an
     Event of Default shall exist hereunder at such time) if: (A) any payment
     obligation of SHS to TFC and/or any affiliate of TFC under this Agreement
     or any agreement related hereto is not paid within 3 business days of the
     due date thereof, including, without limitation, any payment required under
     Sections 1, 2, 3, 4, 11, 12, 13, 21 and/or 23 hereof; (B) SHS breaches any
     covenant under (I) Section 19(c) or Section 21 and the same is not cured
     within the earlier of 30 days from the date of any such breach or 10 days
     of TFC's delivery of written notice thereof to SHS or (II) Section 24
     hereof; (C) any sale of or disposition of the Collateral is made by SHS
     other than in compliance with Sections 10 or 11 hereof, or SHS breaches any
     covenant under Section 20 hereof and, in any such case, such noncompliance
     or breach is not cured within 10 days of the earlier to occur of (I)
     written notice from TFC to SHS of such noncompliance or breach or (II)
     knowledge of such noncompliance or breach by a responsible officer of SHS;
     (D) SHS defaults in the performance of or compliance with any agreement or
     undertaking contained herein or in any other instrument or agreement
     delivered by SHS to TFC or any affiliate of TFC in connection with this
     Agreement (other than those referred to in clauses (a), (b) and (c) of this
     Section 25) and such default is not cured within 30 days of the earlier to
     occur of (I) written notice from TFC to SHS of such default or (II)
     knowledge of such default or breach by a responsible officer of SHS; (E)
     any representation or warranty made or deemed to be made by SHS herein or
     in any statement, document or report made or delivered to TFC in connection
     herewith shall prove to have been untrue, incorrect or misleading in any
     material respect; (F) SHS or any Guarantor ceases to do business as a going
     concern; (G) either or both of the Guarantors cease to own, directly or
     indirectly, all of the preferred stock of SHS; (H) Sun Communities
     Operating Limited Partnership, a Michigan limited partnership ceases to
     own, directly or indirectly, all of voting and other capital stock of SHS;
     (I) SHS or any Guarantor becomes insolvent or bankrupt, makes an assignment
     for the benefit of creditors or consents to the appointment of a trustee or
     receiver; a trustee or a receiver is appointed for SHS or any Guarantor for
     a substantial part of its property without its consent and such trustee or
     receiver is not removed within a period of sixty (60) days; bankruptcy,
     reorganization or insolvency proceedings are instituted by or against SHS
     or any Guarantor and are not dismissed within a period of sixty (60) days;
     (J) all or any material part of the Collateral is attached, levied or
     seized upon in any proceeding; (K) there occurs a default by SHS, any
     Guarantor or any other affiliate of SHS under any other agreement with TFC
     and/or any affiliate of TFC, and any applicable grace period with respect
     thereto has expired; (L) SHS fails to pay any indebtedness in excess of
     $1,000,000 owing to any person other than TFC or any affiliate of TFC when
     due or otherwise defaults under any agreement in respect of such
     indebtedness which would permit such person (with the lapse of time or the
     giving of notice or both) to accelerate the payment of such indebtedness or
     otherwise require such indebtedness, in whole or part, to be paid prior to
     its stated maturity; (M) any Guarantor fails to make any payment in respect
     of any indebtedness owing to any person other than TFC or any affiliate of
     TFC when due or otherwise defaults under any agreement in respect of such
     indebtedness which would permit such person (with the lapse of time or the
     giving of notice or both) to accelerate the payment of such indebtedness or
     otherwise require such indebtedness, in whole or part, to be paid prior to
     its stated maturity, provided that such indebtedness either individually or
     cumulatively with all other such indebtedness has an aggregate outstanding
     principal amount of at least $2,000,000; (N) (I) any MH Servicing Agreement
     covering a material number of Rented Manufactured Homes constituting
     Collateral shall be terminated, rescinded or revoked or materially amended
     or modified without the prior written consent of TFC and/or any MSA
     covering a material number of Manufactured Homes constituting Collateral
     shall be terminated, rescinded or revoked or materially amended or modified
     without the prior written consent of TFC; (O) (I) any MH Servicing
     Agreement that covers a material number of Rented Manufactured Homes
     constituting Collateral is materially breached by the MH Community Homesite
     Lessor thereunder or by SHS and/or (II) any MSA that covers a material
     number of Manufactured Homes

                                       25

<PAGE>

     constituting Collateral is materially breached by the MH Community Homesite
     Lessor thereunder or by SHS; (P) a final judgment for the payment of money
     in excess of $1,000,000 is rendered against SHS or or in excess of
     $2,000,000 is rendered against any Guarantor and is not, bonded, discharged
     or stayed within thirty (30) days after the entry thereof or is not
     discharged within thirty (30) days after the expiration of any such stay;
     (Q) the total fines, penalties and damages paid by the Guarantors or any
     subsidiary thereof (including, without limitation, SHS) to the United
     States government or any agency thereof, to any State government or any
     agency thereof, and/or to any third-party, in each case, in connection with
     any investigation, determination, settlement or litigation arising out of
     or in connection with the Federal governmental investigation described in
     Part 9 of the Schedule of Terms and Disclosures attached hereto or the
     matters referred or related to therein exceeds $5,000,000; or (R) any
     Guarantor revokes, terminates or attempts to revoke or terminate the
     Guaranty.

          During the existence of any Event of Default, TFC may, at any time and
     without notice or demand to SHS, take any one or more of the following
     actions: (1) declare all or any part of the indebtedness and obligations of
     SHS hereunder immediately due and payable, together with all costs and
     expenses of TFC's collection activity, including, without limitation, all
     attorneys' fees; (2) exercise any or all rights under applicable law
     (including, without limitation, the right to possess, transfer and dispose
     of the Collateral and to enforce the payment of any and all obligations
     (including, without limitation, any deficiency obligations) of SHS
     hereunder; and/or (3) terminate any additional financing hereunder.

     26. RIGHTS OF TFC UPON DEFAULT. Upon the occurrence of an Event of Default
     hereunder, and at any time thereafter, TFC shall have all of the rights and
     remedies of a secured party under the Uniform Commercial Code of the State
     of Rhode Island and any other applicable laws, including the right to
     collect from SHS any deficiency remaining after disposition of the
     Collateral and to collect all MH Consumer Lease Agreement Payments under
     the MH Consumer Lease Agreements (in respect of Rented Manufactured Homes
     constituting Collateral) from the applicable MH Community Homesite Lessor
     or directly from the MH Consumer Lessees (upon notification or otherwise).
     SHS agrees that TFC may, by itself or through an agent, without notice to
     any person and without judicial process of any kind, enter into any
     premises or upon any land owned, leased or otherwise under the apparent
     control of SHS where TFC believes the Collateral may be (including, without
     limitation, any MH Homesite or MH Rental Homesite), and disassemble, render
     unusable and/or repossess all or any items of the Collateral (to the extent
     not rented under a MH Consumer Lease Agreement). SHS expressly waives all
     rights to possession of the Collateral after default. SHS shall, upon
     demand by TFC, assemble the Collateral (to the extent not rented under a MH
     Consumer Lease Agreement) and return it to TFC at a place designated by
     TFC. TFC will give SHS reasonable notice of the time and place of any
     public sale of the Collateral or of the time after which any private sale
     of the Collateral or any other intended disposition thereof is to be made.
     The requirement of reasonable notice shall be met if such notice is mailed
     to the notice address of SHS shown herein at least ten (10) days before the
     time of the sale or other disposition of the Collateral. SHS agrees that
     TFC may apply by appropriate judicial proceedings for appointment of a
     receiver for the Collateral, or any part thereof, and SHS hereby consents
     to any such appointment. SHS agrees that the repurchase of any Manufactured
     Home included in the Collateral by a Manufacturer shall constitute a
     commercially reasonable private sale of such Collateral by TFC. Expenses of
     retaking, holding, preparing for sale, selling and the like shall include
     attorney's fees and other legal expenses. SHS understands that TFC's rights
     are cumulative and not alternative.

          In connection with TFC's exercise of its rights under this Section 26,
     SHS (I) irrevocably waives, to the extent it may lawfully do so, any right
     it may have to a judicial hearing in advance of the enforcement of any of
     TFC's rights and remedies hereunder, including, without limitation, its
     right to take immediate possession of the Collateral and to exercise its
     rights and remedies with respect thereto following an Event of Default, and
     (II) irrevocably waives, to the extent it may lawfully do so, any right it
     may have under any applicable valuation and exemption laws. TFC shall not
     be deemed to have waived any of its rights or remedies in respect of the
     obligations of SHS hereunder or the Collateral unless such waiver shall be
     in writing and signed by TFC. No delay or omission on the part of TFC in
     exercising any right or remedy shall

                                       26

<PAGE>

     operate as a waiver of such right or remedy or any other right or remedy.
     TFC shall not be required to marshal any Collateral for, or other
     assurances of payment of, the obligations of SHS or to resort to such
     Collateral or other assurances of payment in any particular order. SHS
     hereby agrees, to the extent that it may lawfully do so, that it will not
     invoke any law relating to the marshalling of collateral which might cause
     delay in or impede the enforcement of TFC's rights and remedies under this
     Agreement or under any other instrument related thereto and, to the extent
     that it lawfully may, SHS hereby irrevocably waives the benefits of all
     such laws. SHS shall pay to TFC on demand any and all expenses, including
     attorneys' fees and disbursements, incurred or paid by TFC in protecting,
     preserving or enforcing TFC's rights and remedies under or in respect of
     any of the Collateral. After deducting all of said expenses, the residue of
     any proceeds of collection or sale or other disposition of the Collateral
     shall, to the extent actually received in cash, be applied to the payment
     of the obligations of SHS hereunder in such order or preference as TFC may
     determine, proper allowance and provision being made for any such
     obligations not then due. Upon the final payment and satisfaction in full
     of all of the obligations of SHS hereunder and after making any payments
     required by Sections 9-608(a)(1)(C) or 9-615(a)(3) of the Uniform
     Commercial Code of the State of Rhode Island, if any, any excess shall be
     returned to SHS. In the absence of final payment and satisfaction in full
     of all of such obligations, SHS shall remain liable for any deficiency.

          SHS grants TFC an irrevocable power of attorney, which shall become
     effective upon the occurrence of an Event of Default, to: instruct each MH
     Community Homesite Lessor under its respective MH Servicing Agreement to
     pay to TFC any or all of the MH Consumer Lease Agreement Payments under the
     MH Consumer Lease Agreements constituting Collateral and to otherwise
     preserve and protect the other Collateral; execute or endorse on SHS's
     behalf any checks, financing statements, instruments, certificates of title
     and manufacturer statements of origin pertaining to the Collateral; supply
     any omitted information and correct errors in any documents between or
     among TFC and SHS; initiate and settle any insurance claim pertaining to
     the Collateral of SHS to the extent not done by SHS as contemplated in
     Section 21 above; and do anything to preserve and protect the Collateral of
     SHS and TFC's rights and interest therein.

     27. WAIVER. TFC may, in its sole discretion, waive a default or cure a
     default at SHS's expense. Any such waiver in any particular instance or any
     waiver of a particular default shall not be a waiver of any other defaults
     at the same time or at any other time. No modification or change in this
     Agreement, or supplement hereto, shall bind TFC unless in writing and
     signed by an authorized officer of TFC.

     28. TERM; MATURITY DATE. This Agreement shall have a term (the "TERM")
     commencing on the date hereof and ending on March 1, 2009 (the "MATURITY
     DATE"). All obligations hereunder outstanding on the Maturity Date shall
     mature and automatically become due and payable, including, without
     limitation, all outstanding Advances, all accrued and unpaid interest
     and/or finance charges and all fees, costs and expenses. SHS agrees to pay
     all such obligations so maturing on the Maturity Date. Notwithstanding the
     Term of this Agreement, no booking approvals shall be issued less than 30
     days prior to the Maturity Date.

          SHS may terminate this Agreement in whole, but not in part, at any
     time by written notice received by TFC. If SHS terminates this Agreement,
     SHS agrees to give TFC 60 days prior written notice of such termination
     (and during such notice period, SHS will continue to pay all sums due under
     the Agreement, including, but not limited to the payment of the fees set
     forth in Section 13 hereof and Advances may be requested hereunder in
     accordance with the terms and conditions hereof except that the issuance of
     booking approvals may be ceased by TFC within a reasonable period of time
     prior to the effective termination date of this Agreement). SHS will not be
     relieved from any obligation to TFC arising out of Advances or booking
     approvals made before the effective termination date of this Agreement. The
     total outstanding balance due under this Agreement as of the effective date
     of termination will be due and payable upon the effective termination date
     of this Agreement (which shall include, without limitation, all unpaid
     principal in respect of any outstanding Advances, all accrued and unpaid
     interest, finance charges and fees in respect thereof and all costs and
     expenses to be paid by SHS hereunder) together with the following
     termination fees: (I) if the effective date of termination shall occur on
     or prior to the first anniversary of the date of this Agreement, a

                                       27

<PAGE>

     fee of $800,000 and (II) if the effective date of termination shall occur
     after the first anniversary of the date of this Agreement and on or prior
     to the second anniversary of the date of this Agreement, a fee of $400,000.
     TFC will retain all of its respective rights, interests and remedies
     hereunder until SHS has fully and finally paid all of its obligations owing
     hereunder. All waivers of SHS set forth within this Agreement will survive
     any termination of this Agreement.

     29. BINDING EFFECT. SHS shall not assign its interest in this Agreement
     without the prior written consent of TFC. This Agreement will protect and
     bind the respective heirs, representatives, successors and assigns of SHS
     and TFC.

     30. NOTICES. Except as otherwise stated herein, all notices, requests and
     documents will be sufficiently given or served if mailed or delivered: (A)
     to SHS at the place of business specified in Part 1 on the Schedule of
     Terms and Disclosures attached hereto or such other address as SHS may
     hereafter specify in writing to TFC and (B) to TFC as specified in Part 10
     on the Schedule of Terms and Disclosures attached hereto or such other
     address as TFC may hereafter specify in writing to the other parties
     hereto.

     31. NO ORAL AGREEMENTS. ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY,
     EXTEND CREDIT OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT INCLUDING
     PROMISES TO EXTEND OR RENEW SUCH DEBTS ARE NOT ENFORCEABLE. TO PROTECT SHS
     AND TFC FROM MISUNDERSTANDING OR DISAPPOINTMENT, ALL AGREEMENTS COVERING
     SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND
     EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN THE PARTIES, EXCEPT AS
     SPECIFICALLY PROVIDED HEREIN OR AS THE PARTIES MAY LATER AGREE IN WRITING
     TO MODIFY IT. THERE ARE NO UNWRITTEN AGREEMENTS BETWEEN THE PARTIES.

     31. OTHER WAIVERS. SHS irrevocably waives notice of TFC's acceptance of
     this Agreement, presentment, demand, protest, nonpayment, nonperformance,
     and dishonor.

     32. SEVERABILITY. If any provision of this Agreement or its application is
     invalid or unenforceable, the remainder of this Agreement will not be
     impaired or affected and will remain binding and enforceable.

     33. RECEIPT OF AGREEMENT. SHS acknowledges that it has received a true and
     complete copy of this Agreement. SHS acknowledges that it has read and
     understood this Agreement. Notwithstanding anything herein to the contrary:
     (A) TFC may rely on any facsimile copy, electronic data transmission or
     electronic data storage of this Agreement, billing statement, invoice,
     financial statements or other reports, and (B) such facsimile copy,
     electronic data transmission or electronic data storage will be deemed an
     original, and the best evidence thereof for all purposes, including,
     without limitation, under this Agreement or any other agreement among TFC
     and SHS, and for all evidentiary purposes before any court.

     34. MISCELLANEOUS. Time is of the essence regarding SHS's performance of
     its obligations to TFC hereunder notwithstanding any course of dealing or
     custom on TFC's part to grant extensions of time. SHS's liability under
     this Agreement is direct and unconditional and will not be affected by the
     release or nonperfection of any security interest granted hereunder. TFC
     will have the right to refrain from or postpone enforcement of this
     Agreement or any other agreements between TFC and SHS without prejudice and
     the failure to strictly enforce these agreements will not be construed as
     having created a course of dealing between or among TFC and SHS contrary to
     the specific terms of the agreements or as having modified, released or
     waived the same. The express terms of this Agreement will not be modified
     by any course of dealing, usage of trade, or custom of trade which may
     deviate from the terms hereof. This Agreement may be amended or modified or
     provisions waived only in a writing signed by TFC and SHS. The Section
     titles

                                       28

<PAGE>

     used in this Agreement are for convenience only and do not define or limit
     the contents of any Section. The recitals in this Agreement are hereby
     incorporated herein and made a part hereof.

     35. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUIED IN
     ACCORDANCE WITH, THE LAWS OF THE STATE OF RHODE ISLAND, WITHOUT REFERENCE
     TO APPLICABLE CONFLICT OF LAW PRINCIPLES. EACH OF THE PARTIES HERETO
     CONSENTS TO THE NON-EXCLUSIVE JURISDICTION OF RHODE ISLAND COURTS IN
     CONNECTION WITH THE RESOLUTION OF ANY DISPUTES CONCERNING THE MATTERS
     CONTEMPLATED HEREIN.

                                       29

<PAGE>

     IN WITNESS WHEREOF, TFC and SHS have executed this Agreement as of the date
first set forth hereinabove.

                                        TEXTRON FINANCIAL CORPORATION

                                        By: /s/ Brian Courtney
                                            ------------------------------------
                                        Print Name: Brian Courtney
                                        Title: SVP, Credit and Operations

                                        SUN HOME SERVICES, INC.

                                        By: /s/ Brian Fannon
                                            ------------------------------------
                                        Print Name: Brian Fannon
                                        Title: Executive Vice President

       [Signature Page to Agreement for Wholesale Financing (Manufactured
             Home Purchase Money, Used and Rental Credit Facility)]

                                       30

<PAGE>

                             APPENDIX I: DEFINITIONS

ADVANCES - Recital K of this Agreement.

AFFILIATE -- means any person controlling, controlled by or under common control
with another person. For purposes of this definition, "control" means the
possession, directly or indirectly, of the power to direct or cause direction of
the management and policies of any person, whether through ownership of common
or preferred stock or other equity interests, by contract or otherwise.

AGREEMENT - first paragraph of this Agreement.

AUDIT - Section 23 of this Agreement.

AUDIT FEE - Section 23 of this Agreement.

BILLING STATEMENT PAYMENT DATE - Section 14 of this Agreement.

BOOKING DATE - Section 7 of this Agreement.

BORROWER - first paragraph of this Agreement.

CLOSING DATE - means March 21, 2006.

COLLATERAL - Section 16 of this Agreement.

CREDIT AGREEMENT - Section 24 of this Agreement.

DEFAULT -- means an event or condition the occurrence of which would, with the
lapse of time or the giving of notice or both, become an Event of Default.

DISPOSITION PAYMENT DATE means, with respect to any sale of a Manufactured Home
constituting Collateral referred to in Section 11 hereof for which a payment is
required to be made by SHS to TFC thereunder, the earlier of (I) the date which
is 7 calendar days after the date of any such sale and (II) the date on which
the sum of (A) all outstanding payments required to be made under Section 11 in
respect of such sales, (B) all outstanding payments required to be made under
Section 12 in respect of any lost, stolen, destroyed or damaged beyond repaid
Manufactured Homes constituting Collateral, (C) all curtailments or payments at
maturity required to be paid under Section 12 and (D) all borrowing base
payments required under Sections 1 through 4 then due and payable first, in the
aggregate, exceeds after such sale 5% of the aggregate principal amount of the
Advances then outstanding, provided that, if a Default or Event of Default shall
exist, Disposition Payment Date shall mean the date on which any of the proceeds
of such sale is received.

EVENT OF DEFAULT - means an event or condition set forth in Section 25 of this
Agreement, after giving effect to any lapse of time, cure or grace period or the
giving of any notice required, in each case by said Section, to expire or be
given.

FINANCIAL STATEMENTS - Section 22 of this Agreement.

GENERAL COLLATERAL - Section 16 of this Agreement.

                                       31

<PAGE>

GUARANTORS - means each of Sun Communities, Inc., a Maryland corporation, and
Sun Communities Operating Limited Partnership, a Michigan limited partnership.
The Guarantors are jointly and severally liable under the Guaranty.

GUARANTY - means that certain joint and several Guaranty of even date herewith
executed and delivered to TFC by the Guarantors, as amended from time to time.

HEIRS - the heirs, legatees, descendants and blood relatives of M. Shiffman, as
identified in Part ___ of the Schedule of Terms and Disclosures attached hereto.

LATE FEE - Section 14 of this Agreement.

LCCP - Section 33 of this Agreement.

MANUFACTURED HOME - Recital A of this Agreement.

MANUFACTURER/MANUFACTURERS - Recital A of this Agreement.

MANUFACTURER FUNDING DATE - Section 7 of this Agreement

MARKET PRICE - Section 3 of this Agreement.

MATURITY DATE - Section 28 of this Agreement.

MH COMMUNITY HOMESITE LESSOR - Recital L of this Agreement.

MH CONSUMER LEASE AGREEMENT - Recital D of this Agreement.

MH CONSUMER LEASE AGREEMENT PAYMENTS - Recital M of this Agreement.

MH CONSUMER LESSEE - Recital D of this Agreement.

MH CONSUMER LESSEE PURCHASE OPTION - Recital D of this Agreement.

MH HOMESITE - Recital L of this Agreement.

MH RENTAL HOMESITE - Recital L of this Agreement.

MH SERVICING AGREEMENT - Recital M of this Agreement.

MH SHS HOMESITE LEASE - Recital L of this Agreement.

MSA - Section 16 of this Agreement.

NADA BASE STRUCTURE VALUE -- means, at any time with respect to any Manufactured
Home, the Base Structure Value of a Home in Average Condition of similar year,
make, model and equipment as listed in an N.A.D.A. Guide published by the NADA
Appraisal Guides Company for used manufactured homes, provided that, for
purposes of determining such valuation, any optional equipment shall be excluded
and there shall be no deduction from or reduction in such valuation for any
damage or casualty that has been repaired.

NEW BORROWING BASE - Section 1 of this Agreement.

                                       32

<PAGE>

NET INVOICE PRICE - Section 1 of this Agreement.

NEW MANUFACTURED HOME - Recital B of this Agreement.

NEW MANUFACTURED HOME ACQUISITION ADVANCE - Recital G of this Agreement.

NEW MANUFACTURED HOME ADVANCES - Recital K of this Agreement.

NEW MANUFACTURED HOME BULK SALE ADVANCE - Recital G of this Agreement.

NEW MANUFACTURED HOME SALE ADVANCE - Recital G of this Agreement.

NEW RENTED MANUFACTURED HOME - Recital B of this Agreement.

NEW RENTED MANUFACTURED HOME ADVANCE - Recital H of this Agreement.

NEW MANUFACTURED HOME HELD FOR SALE - Recital B of this Agreement.

NSF CHECK - Section 13 of this Agreement.

PM COLLATERAL - Section 15 of this Agreement.

PRIME RATE -- means, for any month, the prevailing "prime rate" as quoted in the
Wall Street Journal on the last day of such calendar month.

RENTAL BORROWING BASE - Section 2 of this Agreement.

RENTED MANUFACTURED HOMES - Recital E of this Agreement.

RENTED MANUFACTURED HOME ADVANCE - Recital K of this Agreement.

SHS - first paragraph of this Agreement.

SUN MH COMMUNITY - Recital L of this Agreement.

TANGIBLE NET WORTH - Section 24 of this Agreement.

TERM - Section 28 of this Agreement.

TFC - first paragraph of this Agreement.

USED BORROWING BASE - Section 3 of this Agreement.

USED MANUFACTURED HOME - Recital C of this Agreement.

USED MANUFACTURED HOME ACQUISITION ADVANCE - Recital I of this Agreement.

USED MANUFACTURED HOME ADVANCES - Recital K of this Agreement.

USED MANUFACTURED HOME BULK SALE ADVANCE - Recital I of this Agreement.

                                       33

<PAGE>

USED MANUFACTURED HOME HELD FOR SALE - Recital C of this Agreement.

USED MANUFACTURED HOME SALE ADVANCE - Recital I of this Agreement.

USED RENTED MANUFACTURED HOME - Recital C of this Agreement.

USED RENTED MANUFACTURED HOME ADVANCE - Recital J of this Agreement.

WEEKLY ELECTRONIC MH INVENTORY REPORT - Section 22 of this Agreement.

                                       34exv10w1

 

Exhibit 10.1

JEFFERIES GROUP, INC.

2003 Incentive Compensation Plan

Restricted Stock Units Agreement

This Restricted Stock Units Agreement (the “Agreement”) confirms the grant on ___(the
“Grant Date”) by Jefferies Group, Inc., a Delaware corporation (the “Company”), to ___
(“Employee”) of Restricted Stock Units (the “Units”), including rights to Dividend Equivalents as
specified herein, as follows:

	 	 	 
	Number granted:

	 	___Units
	 
	 	 
	How Units Vest:

	 	___% of the Units, if not previously forfeited, will vest on each
of ___, provided that Employee continues to be employed by the Company or a
subsidiary on each vesting date (each, a “Stated Vesting Date”). In addition, if not
previously forfeited, the Units will become vested earlier upon the occurrence of
certain events relating to Termination of Employment to the extent provided in Section
4 of the Terms and Conditions of Restricted Stock Units attached hereto (the “Terms and
Conditions”). The terms “vest” and “vesting” mean that the Units have become
non-forfeitable, except for forfeitures specified under Section 7.4 of the Plan. If
Employee has a Termination of Employment prior to the Stated Vesting Date and the Units
are not otherwise deemed vested by that date, the Units will be immediately forfeited
except as otherwise provided in Section 4 of the Terms and Conditions.
	 
	 	 
	Settlement:

	 	[Settlement of vested Units will occur on April 30, 2011, or as promptly as
possible upon the death or Disability of Employee or Termination of Employment by the
Company not for Cause following a Change in Control, except settlement shall be
deferred in certain cases in accordance with Section 8(a) of the Terms and Conditions
(the “Settlement Date”).] [Settlement of vested Units will occur promptly following any
vesting event, except settlement shall be deferred in certain cases in accordance with
Section 8(a) of the Terms and Conditions (the “Settlement Date”).]
	 
	 	 
	 

	 	Units granted hereunder will be settled by delivery of one Share for
each Unit being settled (together with any cash or Shares resulting
from Dividend Equivalents). Any settlement required to be made
“promptly” under this Agreement shall in all cases be made not later
than 60 days after the event that triggers such settlement.

     The Units are subject to the terms and conditions of the 2003 Incentive Compensation Plan (the
“Plan”), and this Agreement, including the Terms and Conditions attached hereto. The number of
Units, the kind of shares deliverable in settlement of Units, and other terms relating to the Units
are subject to adjustment in accordance with Section 5 of the Terms and Conditions and Section 5.3
of the Plan.

     Employee acknowledges and agrees that (i) Units are nontransferable, except as provided in
Section 3 of the Terms and Conditions and Section 9.2 of the Plan, (ii) Units, and certain amounts
of gain realized upon settlement of Units, are subject to forfeiture, whether during employment or
following a Termination of Employment, in the event Employee fails to meet applicable requirements
relating to non-solicitation, confidentiality, and related matters with respect to the Company and
its subsidiaries and affiliates (together, “Group,” and each entity included in Group being a
“Group Entity”), as set forth in Section 7.4 of the Plan and (iii) sales of shares delivered in
settlement of Units will be subject to the Company’s policies regulating trading by employees if
the recipient is then an employee of the Company.

 

 

     IN WITNESS WHEREOF, JEFFERIES GROUP, INC. has caused this Agreement to be executed by its
officer thereunto duly authorized, and Employee has duly executed this Agreement, by which each has
agreed to the terms of this Agreement.

	 	 	 	 	 	 	 
	Employee	 	JEFFERIES GROUP, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	[Employee Name]
	 	 	 	 	 	 

 

 

TERMS AND CONDITIONS OF RESTRICTED STOCK UNITS

     The following Terms and Conditions apply to the Units granted to Employee by JEFFERIES GROUP,
INC. (the “Company”), and Units (if any) resulting from Dividend Equivalents, as specified in the
Restricted Stock Units Agreement to which these Terms and Conditions are attached (and of which
these Terms and Conditions form a part). Certain terms of the Units, including the number of Units
granted, vesting date(s) and Settlement Date, are set forth on the preceding pages, referred to as
the Cover Page in these Terms and Conditions. The Cover Page and these Terms and Conditions are
collectively referred to as the “Agreement.”

     1. General. The Units are granted to Employee under the Company’s 2003 Incentive Compensation
Plan (the “Plan”). A copy of the Plan and information regarding the Plan, including documents that
constitute the “Prospectus” for the Plan under the Securities Act of 1933, can be viewed and
printed out from the Company’s secure Intranet website, www.corp.jefco.com (go to People Services,
then to Plan Documents). All of the applicable terms, conditions and other provisions of the Plan
are incorporated by reference herein. Capitalized terms used in this Agreement but not defined
herein shall have the same meanings as in the Plan. If there is any conflict between the
provisions of this document and mandatory provisions of the Plan, the provisions of the Plan
govern, otherwise, the terms of this document shall prevail. By accepting the grant of the Units,
Employee agrees to be bound by all of the terms and provisions of the Plan (as presently in effect
or later amended), the rules and regulations under the Plan adopted from time to time, and the
decisions and determinations of the Company’s Compensation Committee (the “Committee”) made from
time to time, provided that no such Plan amendment, rule or regulation or Committee decision or
determination shall materially and adversely affect the rights of the Employee with respect to the
Units.

     2. Account for Employee. The Company shall maintain a bookkeeping account for Employee (the
“Account”) reflecting the number of Units then credited to Employee hereunder as a result of such
grant of Units and any crediting of additional Units to Employee pursuant to payments equivalent to
dividends paid on Common Stock under Section 5 hereof (“Dividend Equivalents”).

     3. Nontransferability. Until Units are settled in accordance with the terms of this
Agreement, Employee may not sell, transfer, assign, pledge, margin or otherwise encumber or dispose
of Units or any rights hereunder to any third party other than by will or the laws of descent and
distribution, except for transfers to a Beneficiary or as otherwise permitted and subject to the
conditions under Section 9.2 of the Plan.

     4. Termination Provisions. The following provisions will govern the vesting and forfeiture of
the Units in the event of Employee’s Termination of Employment and/or occurrence of a
post-termination Forfeiture Event (as defined below), unless otherwise determined by the Committee
(subject to Section 9(a) hereof):

     (a) Death or Disability. In the event of Employee’s death or Termination of Employment
due to Disability (as defined below), all Units then outstanding, if not previously vested,
will immediately vest, and all Units (if not previously settled) will be settled in
accordance with the settlement terms set out on the Cover Page, giving effect to any valid
deferral election of Employee then in effect. The foregoing notwithstanding, any
distribution resulting from a Disability that does not constitute an “unforeseeable
emergency” under Section 409A(a)(2)(B)(ii) of the Internal Revenue Code (the “Code”) or as
to which Employee became “Disabled” as defined under Code Section 409A(a)(2)(B)(i) will be
subject to the six-month delay rule in Section 8(a)(i), if applicable.

     (b) Involuntary Termination by the Company not for Cause (and not subject to Section
4(c)). In the event of Employee’s Termination of Employment by the Company not for

 

 

Cause
(other than a Termination not for Cause following a Change in Control), Units not
previously vested shall not then be forfeited provided that Employee executes a
settlement agreement and release in such form as may be requested by the Company, but
thereafter all unvested Units shall be forfeited if there occurs a Forfeiture Event prior to
the Settlement Date which would have applied in the absence of such Termination of
Employment. Upon such a Termination of Employment, the then-outstanding Units that are
vested at the date of Termination (if not already settled) and that become vested thereafter
will be settled in accordance with the settlement terms set out on the Cover Page, giving
effect to any valid deferral election of Employee then in effect. A “Forfeiture Event” shall
be deemed to occur if, following Employee’s Termination by the Company not for Cause,
Employee renders services for any organization or engages (either as owner, investor,
partner, stockholder, employer, employee, consultant, advisor, or director) directly or
indirectly, in any business which is or becomes competitive with the Company, its
subsidiaries or affiliates. However, following Employee’s Termination by the Company not
for Cause, Employee shall be free to purchase stock or other securities of an organization
or business so long as it is listed upon a recognized securities exchange or traded
over-the-counter and such investment does not represent a greater than five percent equity
interest in the organization or business.

     (c) Termination Following a Change in Control. If, following a Change in Control,
Employee’s employment is terminated not for Cause by the Company or its successor, all of
the then-outstanding Units not vested at the date of Termination will immediately vest and
will be settled promptly thereafter, subject to the six-month delay rule in Section 8(a)(i),
if applicable. If a Change in Control occurs followed by Termination of Employment by the
Company not for Cause and a determination is made by the Company pursuant to Sections 280G
and 4999 of the Code that a “golden parachute” excise tax will be payable in connection with
compensation to Employee hereunder, Employee’s right to accelerated vesting of the Units
upon the Change in Control, to the extent such right results in “parachute payments” (as
such term is defined in Code Section 280G), shall be limited to the extent just necessary to
avoid the excise tax. This limitation shall be applied in a manner that maximizes the
number of Units as to which accelerated vesting can apply (or, stated conversely, any
limitation on acceleration of vesting shall apply first to those Units with the lengthiest
remaining vesting period, which Units would result in the highest “parachute payments”).

     (d) Termination by Employee for any Reason or by the Company for Cause. In the event
of a Termination of Employment by the Employee for any reason (other than due to death or
Disability) or by the Company for Cause, the portion of the then-outstanding Units not
vested at the date of Termination will be forfeited, and the portion of the then-outstanding
Units that is vested at the date of Termination (if not already settled) will be settled on
the Settlement Date specified on the Cover Page unless forfeited pursuant to the provisions
of Section 7.4 of the Plan, except that any valid deferral election of Employee shall be
given effect.

     (e) Certain Definitions. The following definitions apply for purposes of this
Agreement, whether or not Employee has an employment agreement or other agreement with the
Company, or any of its subsidiaries or affiliates (the Company and any subsidiary or
affiliate each being a “Group Entity”) containing the same or similar defined terms:

     (i) “Cause” means Employee’s:

	 	 	 	Neglect, failure or refusal to timely perform the duties of
Employee’s employment (other than by reason of a physical or mental
illness or impairment), or Employee’s gross negligence in the
performance of his or her duties;

 

 

	 	 	 	Material breach of any agreements, covenants and representations made
in any employment agreement or other agreement with the Company or
any of its subsidiaries or affiliates or violation of internal
policies or procedures as are in effect as of the date such action is
taken, including but not limited to the Company’s Code of Ethics and
Standards of Employee Conduct, as amended from time to time;
	 
	 	 	 	Violation of any law, rule, regulation or by-law of any governmental
authority (state, federal or foreign), any securities exchange or
association or other regulatory or self-regulatory body or agency
applicable to Employee, the Company, its subsidiaries or affiliates
or any material general policy or directive of the Company, its
subsidiaries or affiliates;
	 
	 	 	 	Conviction of, or plea of guilty or nolo contendere to, a crime
involving moral turpitude, dishonesty, fraud or unethical business
conduct, or any felony of any nature whatsoever;
	 
	 	 	 	Failure to obtain or maintain any registration, license or other
authorization or approval that Employee is required to maintain or
that the Company, its subsidiaries or affiliates reasonably believes
is required in order for Employee to perform his or her duties,
provided, however, that Employee shall be given written notice of any
such registration, license or other authorization or approval that he
or she is required to obtain and a reasonable period of time to
obtain such registration, license, or other authorization or
approval; or
	 
	 	 	 	Willful failure to execute a directive of the board of directors of
the Company or any of its subsidiaries or affiliates, the Executive
Committee of any of the Company’s subsidiaries or affiliates, or
Employee’s supervisor (unless such directive would result in the
commission of an act which is illegal or unethical) or commission of
an act against the directive of such Board, such Executive Committee
or Employee’s supervisor.

     (ii) A “Change in Control” shall be deemed to have occurred if any of the
following conditions shall have been satisfied after the Grant Date:

	 	 	 	Any person (as defined in section 3(a)(9) of the Securities Exchange
Act of 1934, as such term is modified in Section 13(d)), other than
(i) an employee plan established by the Company or any of its
subsidiaries; or (ii) any group of Company employees holding shares
subject to agreements relating to the voting of such shares becomes a
beneficial owner, directly or indirectly, of more than 51% of the
voting stock of the Company;
	 
	 	 	 	The consummation of a merger or consolidation of the Company with any
other corporation or any other entity, or the issuance of voting
securities in connection with a merger or consolidation of the
Company, if the holders of the Company’s voting securities
immediately prior to such transaction hold in the aggregate less than
a majority of the then outstanding voting securities of the Company
(or any successor company

 

 

	 	 	 	or entity) entitled to vote generally in
the election of the directors of the Company (or such other company
or entity) after such transaction;
	 
	 	 	 	The sale or disposition by the Company of all or substantially all of
its assets in which one person or more than one person acting as a
group acquires assets from the Company that have a total gross fair
market value equal to more than 50% of the total gross fair market
value of all of the assets of the Company immediately prior to such
acquisition; or
	 
	 	 	 	A change in the composition of the Board of Directors of the Company
such that individuals who, as of the date of this agreement,
constitute the Board of Directors of the Company (the “Incumbent
Board”) cease for any reason to constitute at least a majority of the
Board of Directors of the Company; provided, however, that any
individual becoming a member of the Board of Directors of the Company
subsequent to the date of this agreement whose election, or
nomination for election by the shareholders of the Company, was
approved by a vote of at least a majority of the directors then
constituting the Incumbent Board shall be considered as if that
individual were a member of the Incumbent Board.

     (iii) “Disability” means that Employee has commenced receipt of long-term
disability benefits under the Company’s long-term disability policy as in effect at
the date of Employee’s termination of employment.

     (iv) “Termination” or “Termination of Employment” means the event by which
Employee ceases to be employed by a Group Entity and immediately thereafter is not
employed by any other Group Entity.

     5. Dividend Equivalents and Adjustments.

     (a) Dividend Equivalents. Subject to Section 5(d), Dividend Equivalents will be
credited on Units (other than Units that, at the relevant record date, previously have been
settled or forfeited) and deemed reinvested in additional Units, to the extent and in the
manner as follows:

     (i) Cash Dividends. If the Company declares and pays a dividend or
distribution on Shares in the form of cash, then a number of additional Units shall
be credited to Employee’s Account as of the last day of the calendar quarter in
which such dividend or distribution was paid equal to the number of Units credited
to the Account as of the record date for such dividend or distribution multiplied by
cash amount of the dividend or distribution paid on each outstanding share of Common
Stock at such payment date, divided by the Fair Market Value of a share of Common
Stock at the date of such crediting; provided, however, that in the case of an
extraordinary cash dividend or distribution the Company may provide for such
crediting at the dividend or distribution payment date instead of the last day of
the calendar quarter.

     (ii) Non-Common Stock Dividends. If the Company declares and pays a dividend
or distribution on Common Stock in the form of property other than shares of Common
Stock, then a number of additional Units shall be credited to Employee’s Account as
of the payment date for such dividend or distribution equal to the number of Units
credited to the Account as of the record date for such dividend or distribution
multiplied by the Fair Market Value of such property actually paid as a dividend or

 

 

distribution on each outstanding share of Common Stock at such payment date, divided
by the Fair Market Value of a share of Common Stock at such payment date.

     (iii) Common Stock Dividends and Splits. If the Company declares and pays a
dividend or distribution on Common Stock in the form of additional shares of Common
Stock, or there occurs a forward split of Common Stock, then a number of
additional Units shall be credited to Employee’s Account as of the payment date for
such dividend or distribution or forward split equal to the number of Units credited
to the Account as of the record date for such dividend or distribution or split
multiplied by the number of additional shares of Common Stock actually paid as a
dividend or distribution or issued in such split in respect of each outstanding
share of Common Stock.

     (b) Adjustments. The number of Units credited to Employee’s Account shall be
appropriately adjusted, in order to prevent dilution or enlargement of Employee’s rights
with respect to Units or to reflect any changes in the number of outstanding shares of
Common Stock resulting from any event referred to in Section 5.3 of the Plan, taking into
account any Units credited to Employee in connection with such event under Section 5(a)
hereof, and any performance conditions relating to the Units may be likewise adjusted in the
discretion of the Committee.

     (c) Risk of Forfeiture and Settlement of Units Resulting from Dividend Equivalents and
Adjustments. Units which directly or indirectly result from Dividend Equivalents on or
adjustments to a Unit granted hereunder and which do not result from a dividend or
distribution on Shares in the form of cash shall be subject to the same risk of forfeiture
(including Section 7.4 of the Plan) as applies to the granted Unit and, if not forfeited,
will be settled at the same time as the granted Unit. Units which directly or indirectly
result from Dividend Equivalents on or adjustments to a Unit granted hereunder and which
result from an ordinary dividend or distribution on Shares in the form of cash shall not be
subject to forfeiture and will be settled at the same time as the granted Unit (or if the
granted Unit is forfeited, then at the time the granted Unit would have been settled if it
were not forfeited). Units which directly or indirectly result from Dividend Equivalents on
or adjustments to a Unit granted hereunder and which result from an extraordinary dividend
or distribution on Shares in the form of cash shall, unless otherwise determined by the
Company at the time of such extraordinary dividend or distribution, be subject to the same
risk of forfeiture (including additional forfeiture terms of Section 7.4 of the Plan) as
applies to the granted Unit and, if not forfeited, will be settled at the same time as the
granted Unit.

     (d) Changes to Manner of Crediting Dividend Equivalents. The provisions of Section
5(a) notwithstanding, the Company may vary the manner and timing of crediting dividend
equivalents for administrative convenience, including, for example, by crediting cash
dividend equivalents rather than additional Units.

     6. Additional Forfeiture Provisions. Employee agrees that, by signing this Agreement and
accepting the grant of the Units, the forfeiture conditions set forth in Section 7.4 of the Plan
shall apply to all Units hereunder and to gains realized upon the settlement of the Units.

     7. Employee Representations and Warranties and Release. As a condition to any non-forfeiture
of the Units at or after Termination of Employment and to any settlement of the Units, the Company
may require Employee (i) to make any representation or warranty to the Company as may be required
under any applicable law or regulation, to make a representation and warranty that no Forfeiture
Event has occurred or is contemplated, and that otherwise the requirements of Section 7.4(d) of the
Plan and Section 7 above have been met, and (ii) to execute a release of claims against the Company
arising before the date of such release, in such form as may be specified by the Company.

 

 

     8. Other Terms Relating to Units.

     (a) Deferral of Settlement; Compliance with Code Section 409A. Settlement of any Unit,
which otherwise would occur at the Settlement Date, will be deferred in certain cases if and
to the extent Employee is permitted to participate in the Stock Option Gain and Stock Award
Deferral Program or otherwise permitted to defer the Units and Employee makes a valid
deferral election relating to the Units. Deferrals, whether elective or mandatory under the
terms of this Agreement, shall comply with requirements under Code Section 409A. Deferrals
will be subject to such other restrictions and terms as may be specified by the Company
prior to deferral. It is understood that Code Section 409A and regulations thereunder may
require any elective deferral to comply with Section 409A(a)(4)(C). Other provisions of this
Agreement notwithstanding, under U.S. federal income tax laws and Treasury Regulations
(including proposed regulations) as presently in effect or hereafter implemented, (i) a
distribution in settlement of Units to Employee triggered by a Termination of Employment
will occur only if the Termination constitutes a “separation from service” within the
meaning of Code Section 409A(a)(2)(A)(i) and, if at the time of such separation from service
Employee is a “specified employee” under Code Section 409A(a)(2)(B)(i) and a delay in
distribution is required in order that Employee will not be subject to a tax penalty under
Code Section 409A, such distribution in settlement of Units will occur at the date six
months after Termination of Employment; and (ii) any rights of Employee or retained
authority of the Company with respect to Units hereunder shall be automatically modified and
limited to the extent necessary so that Employee will not be deemed to be in constructive
receipt of income relating to the Units prior to the distribution and so that Employee shall
not be subject to any penalty under Code Section 409A.

     (b) Fractional Units and Shares. The number of Units credited to Employee’s Account
shall include fractional Units calculated to at least three decimal places, unless otherwise
determined by the Committee. Unless settlement is effected through a broker or agent that
can accommodate fractional shares (without requiring issuance of a fractional share by the
Company), upon settlement of the Units Employee shall be paid, in cash, an amount equal to
the value of any fractional share that would have otherwise been deliverable in settlement
of such Units.

     (c) Tax Withholding. Employee shall make arrangements satisfactory to the Company, or,
in the absence of such arrangements, a Group Entity may deduct from any payment to be made
to Employee any amount necessary, to satisfy requirements of federal, state, local, or
foreign tax law to withhold taxes or other amounts with respect to the lapse of the risk of
forfeiture (including FICA due upon such lapse) or the settlement of the Units. Unless
Employee has made separate arrangements satisfactory to the Company, the Company may elect
to withhold shares deliverable in settlement of the Units having a fair market value (as
determined by the Committee) equal to the amount of such tax liability required to be
withheld in connection with the settlement of the Units, but the Company shall not be
obligated to withhold such Shares. The Company may specify a reasonable deadline (for
example, 90 days before the Settlement Date) by which separate arrangements must be made for
payment of withholding taxes other than through withholding of shares.

     (d) Statements. An individual statement of Employee’s Account will be issued to
Employee at such times as may be determined by the Company. Such a statement shall reflect
the number of Units credited to Employee’s Account, transactions therein during the period
covered by the statement, and other information deemed relevant by the Committee. Such a
statement may be combined with or include information regarding other plans and compensatory
arrangements for employees. Employee’s statements shall be deemed a part of this Agreement,
and shall evidence the Company’s obligations in respect of Units, including the number of
Units credited as a result of Dividend Equivalents (if any). Any statement containing an
error shall not,

 

 

however, represent a binding obligation to the extent of such error,
notwithstanding the inclusion of such statement as part of this Agreement.

     9. Miscellaneous.

     (a) Binding Agreement; Written Amendments. This Agreement shall be binding upon the
heirs, executors, administrators, and successors of the parties. This Agreement and the
Plan, and any deferral election separately filed with the Company relating to this
Award, constitute the entire agreement between the parties with respect to the Units, and
supersede any prior agreements or documents with respect thereto. No amendment, alteration,
suspension, discontinuation, or termination of this Agreement which may impose any
additional obligation upon the Company or materially impair the rights of Employee with
respect to the Units shall be valid unless in each instance such amendment, alteration,
suspension, discontinuation, or termination is expressed in a written instrument duly
executed in the name and on behalf of the Company and, if Employee’s rights are being
materially impaired, by Employee.

     (b) No Promise of Employment. The Units and the granting thereof shall not constitute
or be evidence of any agreement or understanding, express or implied, that Employee has a
right to continue as an officer or employee of the Company for any period of time, or at any
particular rate of compensation.

     (c) Unfunded Plan. Any provision for distribution in settlement of Employee’s Account
hereunder shall be by means of bookkeeping entries on the books of the Company and shall not
create in Employee or any Beneficiary any right to, or claim against any, specific assets of
the Company, nor result in the creation of any trust or escrow account for Employee. With
respect to any entitlement of Employee or any Beneficiary to any distribution hereunder,
Employee or such Beneficiary shall be a general creditor of the Company.

     (d) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO CONFLICTS OF LAWS
PRINCIPLES.

     (e) Legal Compliance. Employee agrees to take any action the Company reasonably deems
necessary in order to comply with federal and state laws, or the rules and regulations of
the New York Stock Exchange, the NASD, or any other stock exchange, or any other obligation
of the Company or Employee relating to the Units or this Agreement.

     (f) Notices. Any notice to be given the Company under this Agreement shall be
addressed to the Company at 520 Madison Avenue, 12th Floor, New York, NY 10022, attention:
Corporate Secretary, and any notice to the Employee shall be addressed to the Employee at
Employee’s address as then appearing in the records of the Company.

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