Document:

EXECUTION
VERSION

    
      
        	
                 

              

      

    

     

    $24,800,000

     

    CREDIT
AGREEMENT

     

    Dated as
of January 29, 2010

     

    among

     

    COUNTRYPLACE ACCEPTANCE CORPORATION, as
Borrower,

     

    COUNTRYPLACE
MORTGAGE, LTD., as Borrower,

     

    COUNTRYPLACE
MORTGAGE HOLDINGS, LLC, as Borrower,

     

    PALM HARBOR HOMES, INC., as one of the
Guarantors,

     

    COUNTRYPLACE
ACCEPTANCE G.P., LLC, as one of the Guarantors,

     

    COUNTRYPLACE
ACCEPTANCE L.P., LLC, as one of the Guarantors,

     

    THE
LENDERS PARTY HERETO

     

    and

     

    VIRGO
SERVICE COMPANY LLC,

    as
Administrative Agent and Collateral Agent

    
      	
               

            

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      TABLE OF CONTENTS

      

      
        
          
            
              
                	 
      	 
      	
                        Page

                      
	 
      	 
      
	
                        ARTICLE I    
        DEFINITIONS, INTERPRETATION AND ACCOUNTING TERMS

                      	
                        1

                      
	 
      	 
      
	
                        Section 1.1

                      	
                        Defined
      Terms

                      	
                        1

                      
	
                        Section 1.2

                      	
                        UCC
      Terms

                      	
                        23

                      
	
                        Section 1.3

                      	
                        Accounting
      Terms and Principles

                      	
                        24

                      
	
                        Section 1.4

                      	
                        Payments

                      	
                        24

                      
	
                        Section 1.5

                      	
                        Interpretation

                      	
                        24

                      
	 
      	 
      	 
      
	
                        ARTICLE II   
        THE BORROWINGS

                      	
                        25

                      
	 
      	 
      
	
                        Section 2.1

                      	
                        The
      Commitments

                      	
                        25

                      
	
                        Section 2.2

                      	
                        Borrowing
      Procedures

                      	
                        25

                      
	
                        Section 2.3

                      	
                        Termination
      of the Commitments

                      	
                        25

                      
	
                        Section 2.4

                      	
                        Repayment
      of Loans

                      	
                        26

                      
	
                        Section 2.5

                      	
                        Optional
      Prepayments

                      	
                        26

                      
	
                        Section 2.6

                      	
                        Mandatory
      Prepayments

                      	
                        26

                      
	
                        Section 2.7

                      	
                        Interest

                      	
                        27

                      
	
                        Section 2.8

                      	
                        Fees

                      	
                        28

                      
	
                        Section 2.9

                      	
                        Application
      of Payments

                      	
                        28

                      
	
                        Section 2.10

                      	
                        Payments
      and Computations

                      	
                        29

                      
	
                        Section 2.11

                      	
                        Evidence
      of Debt

                      	
                        30

                      
	
                        Section 2.12

                      	
                        Suspension
      of Eurodollar Rate Option

                      	
                        31

                      
	
                        Section 2.13

                      	
                        Breakage
      Costs; Increased Costs; Capital Requirements

                      	
                        32

                      
	
                        Section 2.14

                      	
                        Taxes

                      	
                        33

                      
	
                        Section 2.15

                      	
                        Substitution
      of Lenders

                      	
                        36

                      
	 
      	 
      	 
      
	
                        ARTICLE III    CONDITIONS
      TO LOANS

                      	
                        36

                      
	 
      	 
      	 
      
	
                        Section 3.1

                      	
                        Conditions
      Precedent to Initial Loans

                      	
                        36

                      
	
                        Section 3.2

                      	
                        Conditions
      Precedent to Subsequent Loan

                      	
                        39

                      
	
                        Section 3.3

                      	
                        Conditions
      Precedent to Each Loan

                      	
                        40

                      
	
                        Section 3.4

                      	
                        Determinations
      of Borrowing Conditions

                      	
                        40

                      
	 
      	 
      	 
      
	
                        ARTICLE IV    REPRESENTATIONS
      AND WARRANTIES

                      	
                        40

                      
	 
      	 
      
	
                        Section 4.1

                      	
                        Corporate
      Existence; Compliance with Law

                      	
                        41

                      
	
                        Section 4.2

                      	
                        Loan
      Documents

                      	
                        41

                      
	
                        Section 4.3

                      	
                        Ownership
      of Group Members

                      	
                        42

                      
	
                        Section 4.4

                      	
                        Financial
      Statements

                      	
                        42

                      
	
                        Section 4.5

                      	
                        Material
      Adverse Effect

                      	
                        43

                      
	
                        Section 4.6

                      	
                        Solvency

                      	
                        43

                      
	
                        Section 4.7

                      	
                        Litigation

                      	
                        43

                      
	
                        Section 4.8

                      	
                        Taxes

                      	
                        43

                      
	
                        Section 4.9

                      	
                        Margin
      Regulations

                      	
                        44

                      
	
                        Section 4.10

                      	
                        No
      Burdensome Obligations; No Defaults

                      	
                        44

                      
	
                        Section 4.11

                      	
                        Investment
      Company Act

                      	
                        44

                      
	
                        Section 4.12

                      	
                        Foreign
      Assets Control Regulations, Etc

                      	
                        44

                      
	
                        Section 4.13

                      	
                        Labor
      Matters

                      	
                        44

                      
	
                        Section 4.14

                      	
                        ERISA

                      	
                        45

                      
	
                        Section 4.15

                      	
                        Environmental
      Matters

                      	
                        45

                      
	
                        Section 4.16

                      	
                        Intellectual
      Property

                      	
                        46

                      

              

            

          

        

      

       

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

       

      TABLE OF
CONTENTS

      (continued)

      

      
        
          
            
              	 
      	 
      	
                      Page

                    
	 
      	 
      	 
      
	
                      Section 4.17

                    	
                      Title;
      Real Property

                    	
                      46

                    
	
                      Section 4.18

                    	
                      Securitization
      Representations and Warranties

                    	
                      46

                    
	
                      Section 4.19

                    	
                      Full
      Disclosure

                    	
                      46

                    
	 
      	 
      
	
                      ARTICLE V     
      FINANCIAL COVENANTS

                    	
                      47

                    
	 
      	 
      	 
      
	
                      Section 5.1

                    	
                      Capital
      Expenditures

                    	
                      47

                    
	
                      Section 5.2

                    	
                      Maximum
      Loan to Value Ratio

                    	
                      47

                    
	 
      	 
      	 
      
	
                      ARTICLE VI   
      REPORTING COVENANTS

                    	
                      47

                    
	 
      	 
      
	
                      Section 6.1

                    	
                      Financial
      Statements

                    	
                      48

                    
	
                      Section 6.2

                    	
                      Other
      Events

                    	
                      51

                    
	
                      Section 6.3

                    	
                      Copies
      of Notices and Reports

                    	
                      51

                    
	
                      Section 6.4

                    	
                      Taxes

                    	
                      51

                    
	
                      Section 6.5

                    	
                      Labor
      Matters

                    	
                      51

                    
	
                      Section 6.6

                    	
                      ERISA
      Matters

                    	
                      52

                    
	
                      Section 6.7

                    	
                      Environmental
      Matters

                    	
                      52

                    
	
                      Section 6.8

                    	
                      Other
      Information

                    	
                      52

                    
	 
      	 
      	 
      
	
                      ARTICLE VII   AFFIRMATIVE
      COVENANTS

                    	
                      52

                    
	 
      	 
      
	
                      Section 7.1

                    	
                      Maintenance
      of Corporate Existence

                    	
                      53

                    
	
                      Section 7.2

                    	
                      Compliance
      with Laws, Etc

                    	
                      53

                    
	
                      Section 7.3

                    	
                      Payment
      of Obligations

                    	
                      53

                    
	
                      Section 7.4

                    	
                      Maintenance
      of Property

                    	
                      53

                    
	
                      Section 7.5

                    	
                      Maintenance
      of Insurance

                    	
                      53

                    
	
                      Section 7.6

                    	
                      Keeping
      of Books

                    	
                      53

                    
	
                      Section 7.7

                    	
                      Access
      to Books and Property

                    	
                      54

                    
	
                      Section 7.8

                    	
                      Environmental

                    	
                      54

                    
	
                      Section 7.9

                    	
                      Use
      of Proceeds

                    	
                      54

                    
	
                      Section 7.10

                    	
                      Additional
      Collateral and Guaranties

                    	
                      54

                    
	
                      Section 7.11

                    	
                      Deposit
      Accounts; Securities Accounts and Collateral Accounts

                    	
                      55

                    
	
                      Section 7.12

                    	
                      Payment
      of Taxes

                    	
                      56

                    
	
                      Section 7.13

                    	
                      Post-Closing
      Covenants

                    	
                      56

                    
	 
      	 
      	 
      
	
                      ARTICLE VIII  NEGATIVE
      COVENANTS

                    	
                      56

                    
	 
      	 
      
	
                      Section 8.1

                    	
                      Indebtedness

                    	
                      56

                    
	
                      Section 8.2

                    	
                      Liens

                    	
                      58

                    
	
                      Section 8.3

                    	
                      Investments

                    	
                      59

                    
	
                      Section 8.4

                    	
                      Asset
      Dispositions

                    	
                      60

                    
	
                      Section 8.5

                    	
                      Restricted
      Payments

                    	
                      61

                    
	
                      Section 8.6

                    	
                      Prepayment
      of Indebtedness

                    	
                      61

                    
	
                      Section 8.7

                    	
                      Fundamental
      Changes

                    	
                      62

                    
	
                      Section 8.8

                    	
                      Change
      in Nature of Business

                    	
                      62

                    
	
                      Section 8.9

                    	
                      Transactions
      with Affiliates

                    	
                      63

                    
	
                      Section 8.10

                    	
                      Third-Party
      Restrictions on Indebtedness, Liens, Investments or Restricted
      Payments

                    	
                      63

                    
	
                      Section 8.11

                    	
                      Modification
      of Certain Documents

                    	
                      64

                    
	
                      Section 8.12

                    	
                      Accounting
      Changes; Fiscal Year

                    	
                      64

                    

            

          

        

      

       

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

       

      TABLE OF
CONTENTS

      (continued)

      

      
        
          
            
              	 
      	 
      	
                      Page

                    
	 
      	 
      	 
      
	
                      Section 8.13

                    	
                      Margin
      Regulations

                    	
                      64

                    
	
                      Section 8.14

                    	
                      Compliance
      with ERISA

                    	
                      64

                    
	
                      Section 8.15

                    	
                      Hazardous
      Materials

                    	
                      64

                    
	 
      	 
      	 
      
	
                      ARTICLE IX   
      EVENTS OF DEFAULT

                    	
                      66

                    
	 
      	 
      
	
                      Section 9.1

                    	
                      Definition

                    	
                      66

                    
	
                      Section 9.2

                    	
                      Remedies

                    	
                      67

                    
	 
      	 
      	 
      
	
                      ARTICLE X    
      THE ADMINISTRATIVE AGENT

                    	
                      67

                    
	 
      	 
      
	
                      Section 10.1

                    	
                      Appointment
      and Duties

                    	
                      67

                    
	
                      Section 10.2

                    	
                      Binding
      Effect

                    	
                      68

                    
	
                      Section 10.3

                    	
                      Use
      of Discretion

                    	
                      68

                    
	
                      Section 10.4

                    	
                      Delegation
      of Rights and Duties

                    	
                      68

                    
	
                      Section 10.5

                    	
                      Reliance
      and Liability

                    	
                      69

                    
	
                      Section 10.6

                    	
                      Administrative
      Agent Individually

                    	
                      70

                    
	
                      Section 10.7

                    	
                      Lender
      Credit Decision

                    	
                      70

                    
	
                      Section 10.8

                    	
                      Expenses;
      Indemnities

                    	
                      70

                    
	
                      Section 10.9

                    	
                      Resignation
      of Administrative Agent

                    	
                      71

                    
	
                      Section 10.10

                    	
                      Release
      of Collateral or Guarantors

                    	
                      71

                    
	
                      Section 10.11

                    	
                      Additional
      Secured Parties

                    	
                      72

                    
	 
      	 
      	 
      
	
                      ARTICLE XI   
      MISCELLANEOUS

                    	
                      72

                    
	 
      	 
      
	
                      Section 11.1

                    	
                      Amendments,
      Waivers, Etc

                    	
                      72

                    
	
                      Section 11.2

                    	
                      Assignments
      and Participations; Binding Effect

                    	
                      74

                    
	
                      Section 11.3

                    	
                      Costs
      and Expenses

                    	
                      76

                    
	
                      Section 11.4

                    	
                      Indemnities

                    	
                      77

                    
	
                      Section 11.5

                    	
                      Survival

                    	
                      77

                    
	
                      Section 11.6

                    	
                      Limitation
      of Liability for Certain Damages

                    	
                      78

                    
	
                      Section 11.7

                    	
                      Lender-Creditor
      Relationship

                    	
                      78

                    
	
                      Section 11.8

                    	
                      Right
      of Setoff

                    	
                      78

                    
	
                      Section 11.9

                    	
                      Sharing
      of Payments, Etc

                    	
                      78

                    
	
                      Section 11.10

                    	
                      Co-Borrower
      Provisions

                    	
                      79

                    
	
                      Section 11.11

                    	
                      Marshaling;
      Payments Set Aside

                    	
                      80

                    
	
                      Section 11.12

                    	
                      Notices

                    	
                      81

                    
	
                      Section 11.13

                    	
                      Governing
      Law

                    	
                      81

                    
	
                      Section 11.14

                    	
                      Jurisdiction

                    	
                      81

                    
	
                      Section 11.15

                    	
                      Waiver
      of Jury Trial

                    	
                      82

                    
	
                      Section 11.16

                    	
                      Severability

                    	
                      82

                    
	
                      Section 11.17

                    	
                      Execution
      in Counterparts

                    	
                      82

                    
	
                      Section 11.18

                    	
                      Entire
      Agreement

                    	
                      82

                    
	
                      Section 11.19

                    	
                      Use
      of Name

                    	
                      83

                    
	
                      Section 11.20

                    	
                      Non-Public
      Information; Confidentiality

                    	
                      83

                    
	
                      Section 11.21

                    	
                      PATRIOT
      Act

                    	
                      84

                    

            

          

        

      

       

      
        
          
          

        

        
          iii

          
            

          

        

        
          
          

        

      

       

      TABLE OF
CONTENTS

      (continued)

       

      
        
          
            
              
                	
                        SCHEDULES

                      	 
      	 
      
	 
      	 
      	 
      
	
                        Schedule I

                      	
                        –

                      	
                        Commitments

                      
	
                        Schedule II

                      	
                        –

                      	
                        Addresses for
    Notices

                      
	
                        Schedule 4.1

                      	
                        –

                      	
                        Corporate
      Chart

                      
	
                        Schedule
      4.2

                      	
                        –

                      	
                        Consents

                      
	
                        Schedule 4.3

                      	
                        –

                      	
                        Ownership of Borrower and
      Subsidiaries

                      
	
                        Schedule 4.7

                      	
                        –

                      	
                        Litigation

                      
	
                        Schedule
      4.13

                      	
                        –

                      	
                        Labor Matters

                      
	
                        Schedule
      4.14

                      	
                        –

                      	
                        List of Plans

                      
	
                        Schedule
      4.15

                      	
                        –

                      	
                        Environmental
    Matters

                      
	
                        Schedule 8.1

                      	
                        –

                      	
                        Existing
    Indebtedness

                      
	
                        Schedule 8.2

                      	
                        –

                      	
                        Existing Liens

                      
	
                        Schedule 8.3

                      	
                        –

                      	
                        Existing
  Investments

                      
	 
      	 
      	 
      
	
                        EXHIBITS

                      	 
      	 
      
	 
      	 
      	 
      
	
                        Exhibit A

                      	
                        –

                      	
                        Form of
      Assignment

                      
	
                        Exhibit
      B

                      	
                        –

                      	
                        Form of Notice of
      Borrowing

                      
	
                        Exhibit
      C

                      	
                        –

                      	
                        Form
      of Compliance Certificate

                      
	
                        Exhibit
      D

                      	
                        –

                      	
                        Form of Guaranty and Security
      Agreement

                      

              

            

          

        

      

    

    
      
        
           

        

        
          iv

          
            

          

        

        
           

        

      

    

    

    This
Credit Agreement, dated as of January 29, 2010, is entered into among
COUNTRYPLACE ACCEPTANCE CORPORATION, a Nevada corporation (“CPA”), COUNTRYPLACE
MORTGAGE, LTD., a Texas limited partnership (“CPM”), COUNTRYPLACE
MORTGAGE HOLDINGS, LLC, a Delaware limited liability company (“Mortgage SPV”,
together with CPM and CPA, the “Borrowers” and each
individually a “Borrower”), PALM
HARBOR HOMES, INC., a Florida corporation (“Parent”),
COUNTRYPLACE ACCEPTANCE G.P., LLC, a Texas limited liability company (“GP LLC”),
COUNTRYPLACE ACCEPTANCE L.P., LLC, a Delaware limited liability company (“LP LLC”), the Lenders
(as defined below), and VIRGO SERVICE COMPANY, LLC, a Delaware limited liability
company (“Virgo”), as
administrative agent and collateral agent for the Lenders (in such capacity, and
together with its successors and permitted assigns, the “Administrative
Agent”).

     

    The
parties hereto agree as follows:

     

    ARTICLE I

    DEFINITIONS,
INTERPRETATION AND ACCOUNTING TERMS

     

    Section 1.1            Defined
Terms.  As used in this Agreement, the following terms have the
following meanings:

     

    “2005-1 and 2007-1
Dispositions” means the Disposition by CPH and acquisition by Mortgage
SPV, of the Class X Certificates and the Class R Certificates.

     

    “2005-1 Offering
Circular” means that certain Confidential Offering Circular, dated July
7, 2005, regarding approximately $118,440,000 Country Place Manufactured Housing
Contract Trust Pass-Through Certificates, Series 2005-1.

     

     “2005-1 Pooling and Servicing
Agreement” means that certain Pooling and Servicing Agreement, dated as
of July 1, 2005, among CountryPlace Securitization, LLC, a Delaware limited
liability company, as depositor, CPM, as seller and as servicer, Origen
Servicing, Inc., as backup servicer, and Citibank, N.A., a national banking
association, not in its individual capacity, but solely as trustee and
custodian.

     

    “2005-1
Securitization” means the securitization facility evidenced in part by
the 2005-1 Pooling and Servicing Agreement.

     

    “2005-1 Securitization
Documents” means the documents executed and delivered in connection with
the 2005-1 Securitization.

     

    “2005-1 Securitization Virgo
Trigger Event” means any of the following on any date of
determination:

     

    (a)           the
Average Sixty-Day Delinquency Ratio (as defined in the 2005-1 Pooling and
Servicing Agreement as in effect on the date hereof) as of the most recent
preceding Distribution Date (as defined in the 2005-1 Pooling and Servicing
Agreement as in effect on the date hereof, the “2005-1 Distribution
Date”) shall exceed 6.0%;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)           the
Current Realized Loss Ratio (as defined in the 2005-1 Pooling and Servicing
Agreement as in effect on the date hereof) as of the 2005-1 Distribution Date
shall exceed 3.5%; and

     

    (c)           the
Cumulative Realized Losses (as defined in the 2005-1 Pooling and Servicing
Agreement as in effect on the date hereof) as of the most recent preceding
2005-1 Distribution Date set forth below shall not exceed the percentages of the
Cut-Off Date Pool Principal Balance (as defined in the 2005-1 Pooling and
Servicing Agreement as in effect on the date hereof) set forth below for the
applicable 2005-1 Distribution Date:

     

    (i)           for
any 2005-1 Distribution Date occurring between the Closing Date and February
2011 (inclusive), 6.0%;

     

    (ii)          for
any 2005-1 Distribution Date occurring between March 2011 and February 2012
(inclusive), 8.0%;

     

    (iii)         for
any 2005-1 Distribution Date occurring between March 2012 and February 2013
(inclusive), 11.0%; or

     

    (iv)         for
any 2005-1 Distribution Date occurring on or after March 2013,
13.0%.

     

    “2007-1 Offering
Circular” means that certain Confidential Offering Circular, dated March
13, 2007, regarding approximately $101,937,000 Country Place Manufactured
Housing Contract Trust Pass-Through Certificates, Series 2007-1.

     

    “2007-1 Pooling and Servicing
Agreement” means that certain Pooling and Servicing Agreement, dated as
of March 1, 2007, among CountryPlace Securitization, LLC, a Delaware limited
liability company, as depositor, CPM, as seller and as servicer, Origen
Servicing, Inc., as backup servicer, and Citibank, N.A., a national banking
association, not in its individual capacity, but solely as trustee and
custodian.

     

    “2007-1
Securitization” means the securitization facility evidenced in part by
the 2007-1 Pooling and Servicing Agreement.

     

    “2007-1 Securitization
Documents” means the documents executed and delivered in connection with
the 2007-1 Securitization.

     

    “2007-1 Securitization Virgo
Trigger Event” means any of the following on any date of
determination:

     

    (a)           the
Average Sixty-Day Delinquency Ratio (as defined in the 2007-1 Pooling and
Servicing Agreement as in effect on the date hereof) as of the most recent
preceding Distribution Date (as defined in the 2007-1 Pooling and Servicing
Agreement as in effect on the date hereof, the “2007-1 Distribution
Date”) shall exceed 5.0%;

     

    (b)           the
Current Realized Loss Ratio (as defined in the 2007-1 Pooling and Servicing
Agreement as in effect on the date hereof) as of the most recent preceding
2007-1 Distribution Date beginning with the first 2007-1 Distribution Date
occurring after the first anniversary of the Closing Date shall exceed 3.5%;
and

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (c)           the
Cumulative Realized Losses (as defined in the 2007-1 Pooling and Servicing
Agreement as in effect on the date hereof) as of the most recent preceding
2007-1 Distribution Date set forth below shall not exceed the percentages of the
Cut-Off Date Pool Principal Balance (as defined in the 2007-1 Pooling and
Servicing Agreement as in effect on the date hereof) set forth below for the
applicable 2007-1 Distribution Date:

     

    (i)           for
any 2007-1 Distribution Date occurring between the Closing Date and October 2012
(inclusive), 6.5%;

     

    (ii)          for
any 2007-1 Distribution Date occurring between November 2012 and October 2013
(inclusive), 7.5%; or

     

    (iii)         for
any 2007-1 Distribution Date occurring on or after November 2013,
8.5%.

     

     “Affected Lender” has
the meaning specified in Section 2.15(a).

     

    “Affiliate” means,
with respect to any Person, each officer, director, general partner or
joint-venturer of such Person and any other Person that directly or indirectly
controls, is controlled by, or is under common control with, such Person; provided, however, that no
Secured Party shall be an Affiliate of any Borrower.  For purpose of
this definition, “control” means the
possession of either (a) the power to vote, or the beneficial ownership of,
10% or more of the Voting Stock of such Person or (b) the power to direct
or cause the direction of the management and policies of such Person, whether by
contract or otherwise.

     

    “Aggregate Value”
means, as of any date of determination, the sum of:

     

    (a)           the
remainder of (i) the Pool Principal Balance (as defined in the 2005-1 Pooling
and Servicing Agreement as in effect on the date hereof) as of the most recent
Distribution Date (as defined in the 2005-1 Pooling and Servicing Agreement as
in effect on the date hereof) minus (ii) the Class A Principal Balance (as
defined in the 2005-1 Pooling and Servicing Agreement as in effect on the date
hereof) as of such Distribution Date; and

     

    (b)           the
remainder of (i) the Pool Principal Balance (as defined in the 2007-1 Pooling
and Servicing Agreement as in effect on the date hereof) as of the most recent
Distribution Date (as defined in the 2007-1 Pooling and Servicing Agreement as
in effect on the date hereof) minus (ii) the Class A Principal Balance (as
defined in the 2007-1 Pooling and Servicing Agreement as in effect on the date
hereof) as of such Distribution Date; and

     

    (c)           the
Pool Principal Balance (as defined in the Mortgage Sale, Contribution and
Servicing Agreement) on such date of determination.

     

     “Agreement” means this
Credit Agreement.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    “Applicable
Margin” means,
with respect to Loans, 12%.

     

    “Approved Fund” means,
with respect to any Lender, any Person (other than a natural Person) that (a) is
or will be engaged in making, purchasing, holding or otherwise investing in
commercial loans and similar extensions of credit in the ordinary course of its
business and (b) is advised or managed by (i) such Lender, (ii) any Affiliate of
such Lender or (iii) any Person (other than an individual) or any Affiliate of
any Person (other than an individual) that administers or manages such
Lender.

     

    “Assignment” means an
assignment agreement entered into by a Lender, as assignor, and any prospective
assignee thereof and accepted by the Administrative Agent, in substantially the
form of Exhibit A.

     

    “Benefit Plan” means
any employee benefit plan as defined in Section 3(3) of ERISA (whether governed
by the laws of the United States or otherwise) to which any Group Member incurs
or otherwise has any obligation or liability, contingent or
otherwise.

     

    “Borrowing” means a
borrowing consisting of Loans made on the Closing Date by the Lenders according
to their respective Commitments.

     

    “Business Day” means
any day of the year that is not a Saturday, Sunday or a day on which banks are
required or authorized to close in New York City and, when determined in
connection with notices and determinations in respect of any Eurodollar Rate or
Loan or any funding, Interest Period or payment of any Loan, that is also a day
on which dealings in Dollar deposits are carried on in the London interbank
market.

     

    “Capital Expenditures”
means, for any Person for any period, the aggregate of all expenditures, whether
or not made through the incurrence of Indebtedness, by such Person and its
Subsidiaries during such period for the acquisition, leasing (pursuant to a
Capital Lease), construction, replacement, repair, substitution or improvement
of fixed or capital assets or additions to equipment, in each case required to
be capitalized under GAAP on a balance sheet of such Person and its Subsidiaries
consolidated in accordance with GAAP, excluding (a) interest capitalized during
construction and (b) any expenditure to the extent, for purpose of the
definition of Permitted Acquisition, such expenditure is part of the aggregate
amounts payable in connection with, or other consideration for, any Permitted
Acquisition consummated during or prior to such period.

     

    “Capital Lease” means,
with respect to any Person, any lease of, or other arrangement conveying the
right to use, any property (whether real, personal or mixed) by such Person as
lessee that has been or should be accounted for as a capital lease on a balance
sheet of such Person prepared in accordance with GAAP.

     

    “Capitalized Lease
Obligations” means, at any time, with respect to any Capital Lease, any
lease entered into as part of any Sale and Leaseback Transaction of any Person
or any synthetic lease, the amount of all obligations of such Person that is (or
that would be, if such synthetic lease or other lease were accounted for as a
Capital Lease) capitalized on a balance sheet of such Person prepared in
accordance with GAAP.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    “Cash Equivalents”
means (a) any readily-marketable securities (i) issued by, or directly,
unconditionally and fully guaranteed or insured by the United States federal
government or (ii) issued by any agency of the United States federal
government the obligations of which are fully backed by the full faith and
credit of the United States federal government, (b) any readily-marketable
direct obligations issued by any other agency of the United States federal
government, any state of the United States or any political subdivision of any
such state or any public instrumentality thereof, in each case having a rating
of at least “A-1” from S&P or at least “P-1” from Moody’s, (c) any
commercial paper rated at least “A-1” by S&P or
“P-1” by
Moody’s and issued by any Person organized under the laws of any state of the
United States, (d) any Dollar-denominated time deposit, insured certificate of
deposit, overnight bank deposit or bankers’ acceptance issued or accepted by (i)
any Lender or (ii) any commercial bank that is (A) organized under the laws
of the United States, any state thereof or the District of Columbia, (B)
“adequately capitalized” (as defined in the regulations of its primary federal
banking regulators) and (C) has Tier 1 capital (as defined in such regulations)
in excess of $250,000,000 and (e) shares of any United States money market fund
that (i) has substantially all of its assets invested continuously in the types
of investments referred to in clause (a), (b), (c) or (d) above with
maturities as set forth in the proviso below, (ii) has net assets in excess of
$500,000,000 and (iii) has obtained from either S&P or Moody’s the highest
rating obtainable for money market funds in the United States; provided, however, that the
maturities of all obligations specified in any of clauses (a), (b), (c) and (d) above shall not
exceed 365 days.

     

    “Change of Control”
means the occurrence of any of the following:  (a) a Parent Control
Event, (b) Parent shall cease to own and control legally and beneficially at
least 80% of the economic and voting rights associated with ownership of all
outstanding Voting Stock of all classes of Voting Stock of CPA, (c) CPA shall
cease to own and control, directly or indirectly, legally and beneficially all
of the economic and voting rights associated with ownership of all outstanding
Voting Stock of all classes of Voting Stock of any other Borrower or (d) a
“Change of Control” or any term of similar effect, as defined in any document
governing Indebtedness of any Group Member having a principal amount in excess
of $1,000,000 shall occur.

     

    “Class R Certificate”
means each of (i) the “Class R Certificate” as defined in the 2005-1 Pooling and
Servicing Agreement and (ii) the “Class R Certificate” as defined in the 2007-1
Pooling and Servicing Agreement.

     

    “Class X Certificate”
means each of (i) the “Class X Certificate” as defined in the 2005-1 Pooling and
Servicing Agreement and (ii) the “Class X Certificate” as defined in the 2007-1
Pooling and Servicing Agreement.

     

    “Closing Date” means
the first date on which any Loan is made.

     

    “Closing Date
Commitment” means that portion of the Commitments so designated on Schedule
I.

     

    “Code” means the U.S.
Internal Revenue Code of 1986.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    “Collateral” means all
property and interests in property and proceeds thereof now owned or hereafter
acquired by any Loan Party in or upon which a Lien is granted or purported to be
granted pursuant to any Loan Document.

     

    “Collateral Account”
means a deposit account or securities account in the name of any Borrower and
under the “control” (as defined in the applicable UCC) of the Administrative
Agent and (a) in the case of a deposit account, from which the Borrowers may not
make withdrawals except as permitted by the Administrative Agent and (b) in
the case of a securities account, with respect to which the Administrative Agent
shall be an entitlement holder, authorized to give entitlement orders with
respect thereto.

     

    “Commitment” means,
with respect to each Lender, the commitment of such Lender to make Loans to the
Borrowers, which commitment is in the amount set forth opposite such Lender’s
name on Schedule I under
the caption “Commitment”, as
amended to reflect Assignments.  The aggregate amount of the
Commitments on the date hereof equals $24,800,000.

     

    “Commitment Termination
Date” means the earliest of (a) August 1, 2010, (b) the date of
termination of the Commitments pursuant to Section 9.2 and (c) the date
on which the Obligations become due and payable pursuant to Section 9.2.

     

    “Compliance
Certificate” means a certificate substantially in the form of Exhibit
C.

     

    “Consolidated Cash Interest
Expense” means, with respect to any Person for any period, the
Consolidated Interest Expense of such Person for such period less the sum of, in
each case to the extent included in the definition of Consolidated Interest
Expense, (a) the amortized amount of debt discount and debt issuance costs, (b)
charges relating to write-ups or write-downs in the book or carrying value of
existing Consolidated Total Debt, (c) interest payable in evidences of
Indebtedness or by addition to the principal of the related Indebtedness and (d)
other non-cash interest.

     

    “Consolidated Current
Assets” means, with respect to any Person at any date, the
total  current assets (including accrued interest receivable, loan
receivables (net of financed loan fees and points, deferred revenue loan fees
and points and allowance for loan loss)) and other assets of such Person and its
Subsidiaries (consolidated in accordance with GAAP) at such date other than
cash, Cash Equivalents and any Indebtedness owing to such Person or any of its
Subsidiaries by Affiliates of such Person.

     

    “Consolidated Current
Liabilities” means, with respect to any Person at any date, all
liabilities of such Person and its Subsidiaries at such date that should be
classified as current liabilities, securitized financed debt and subordinated
debt on a balance sheet of such Person and its Subsidiaries (consolidated in
accordance with GAAP); provided, however, that “Consolidated Current
Liabilities” shall exclude the principal amount of the Loans then
outstanding.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    “Consolidated EBITDA”
means, with respect to any Person for any period, (a) the Consolidated Net
Income of such Person for such period plus (b) the sum of,
in each case to the extent included in the calculation of such Consolidated Net
Income but without duplication, (i) any provision for United States federal
income taxes or other taxes measured by net income, (ii) Consolidated Interest
Expense, amortization of debt discount and
commissions and other fees and charges associated with Indebtedness (except
amortization and expenses related to the consummation of the Borrowing on the
Closing Date and the payment of all fees, costs and expenses associated with the
foregoing), (iii) any loss from extraordinary items, (iv) any depreciation,
depletion and amortization expense, (v) any aggregate net loss on the
Disposition of property (other than accounts (as defined in the applicable UCC)
and inventory) outside the ordinary course of business and (vi) any other
non-cash expenditure, charge or loss for such period (other than any non-cash
expenditure, charge or loss relating to write-offs, write-downs or reserves with
respect to accounts and inventory), including the amount of any compensation
deduction as the result of any grant of Stock or Stock Equivalents to employees,
officers, directors or consultants and minus (c) the sum of,
in each case to the extent included in the calculation of such Consolidated Net
Income and without duplication, (i) any credit for United States federal income
taxes or other taxes measured by net income, (ii) any other non-cash gain,
including any reversal of a charge referred to in clause (b)(vi) above
by reason of a decrease in the value of any Stock or Stock Equivalent, and (iii)
any other cash payment in respect of expenditures, charges and losses that have
been added to Consolidated EBITDA of such Person pursuant to clause (b)(vi) above
in any prior period.

     

    “Consolidated Interest
Expense” means, for any Person for any period, (a) total interest expense
of such Person and its Subsidiaries (consolidated in accordance with GAAP) for
such period and including, in any event, (i) interest capitalized during such
period and net costs under Interest Rate Contracts for such period and (ii) all
fees, charges, commissions, discounts and other similar obligations (other than
reimbursement obligations) with respect to letters of credit, bank guarantees,
banker’s acceptances, surety bonds and performance bonds (whether or not
matured) payable by such Person and its Subsidiaries during such period minus (b) the sum of
(i) net gains of such Person and its Subsidiaries (consolidated in accordance
with GAAP) under Interest Rate Contracts for such period and (ii) interest
income of such Person and its Subsidiaries (consolidated in accordance with
GAAP) for such period.

     

    “Consolidated Net
Income” means, with respect to any Person, for any period, the net income
(or loss) of such Person and its Subsidiaries (consolidated in accordance with
GAAP) for such period; provided, however, that the
following shall be excluded:  (a) the net income of any other Person
in which such Person or one of its Subsidiaries has a joint interest with a
third-party (which interest does not cause the net income of such other Person
to be consolidated into the net income of such Person pursuant to GAAP), except
to the extent of the amount of dividends or distributions paid to such Person or
Subsidiary, (b) the net income of any Subsidiary of such Person that is, on the
last day of such period, subject to any restriction or limitation on the payment
of dividends or the making of other distributions, to the extent of such
restriction or limitation and (c) the net income of any other Person
arising prior to such other Person becoming a Subsidiary of such Person or
merging or consolidating into such Person or its Subsidiaries.

     

    “Consolidated Total
Debt” of any Person means all Indebtedness of a type described in clause (a), (b), (c)(i), (d) or (f) of the definition
thereof and all Guaranty Obligations with respect to any such Indebtedness, in
each case of such Person and its Subsidiaries (consolidated in accordance with
GAAP).

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    
       

      “Constituent
Documents” means, with respect to any Person, collectively and, in each
case, together with any modification of any term thereof, (a) the articles of
incorporation, certificate of incorporation, constitution or certificate of
formation of such Person, (b) the bylaws, operating agreement or joint venture
agreement of such Person, (c) any other constitutive, organizational or
governing document of such Person, whether or not equivalent, and (d) any other
document setting forth the manner of election or duties of the directors,
officers or managing members of such Person or the designation, amount or
relative rights, limitations and preferences of any Stock of such
Person.

       

      “Contractual
Obligation” means, with respect to any Person, any provision of any
Security issued by such Person or of any document or undertaking (other than a
Loan Document) to which such Person is a party or by which it or any of its
property is bound or to which any of its property is subject.

       

      “Control Agreement”
means, with respect to any deposit account, any securities account, commodity
account, securities entitlement or commodity contract, an agreement, in form and
substance satisfactory to the Administrative Agent, among the Administrative
Agent, the financial institution or other Person at which such account is
maintained or with which such entitlement or contract is carried and the Loan
Party maintaining such account, effective to grant “control” (as defined in the
applicable UCC) over such account to the Administrative Agent.

       

      “Corporate Chart”
means a document in form reasonably acceptable to the Administrative Agent and
setting forth, as of a date set forth therein, for each Person that is a Loan
Party, that is subject to Section 7.10 or
that is a Subsidiary or joint venture of any of them, (a) the full legal name of
such Person, (b) the jurisdiction of organization and any organizational number
and tax identification number of such Person, (c) the location of such Person’s
chief executive office (or, if applicable, sole place of business) and (d) the
number of shares of each class of Stock of such Person (other than Parent)
authorized, the number outstanding and the number and percentage of such
outstanding shares for each such class owned, directly or indirectly, by any
Loan Party or any Subsidiary of any of them.

       

      “CPH” means
CountryPlace Holdings, LLC, a Delaware limited liability company.

       

      “Default” means any
Event of Default and any event that, with the passing of time or the giving of
notice or both, would become an Event of Default.

       

      “Disclosure Documents”
means, collectively, (a) all confidential information memoranda and related
materials prepared in connection with the syndication of the Loans and (b) all
other documents filed by any Group Member with the United States Securities and
Exchange Commission.

       

      “Dispose” of or “Disposition” means,
with respect to any property, to sell, convey, transfer, assign, license, lease
or otherwise dispose of, any interest therein or to permit any Person to acquire
any such interest, including, in each case, through a Sale and Leaseback
Transaction or through a sale, factoring at maturity, collection of or other
disposal, with or without recourse, of any notes or accounts
receivable.  Conjugated forms thereof have correlative
meanings.

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

       

      “Dollars” and the sign
“$” each mean
the lawful money of the United States of America.

       

      “Domestic Person”
means any “United
States person” under and as defined in Section 770l(a)(30) of the
Code.

       

      “Environmental Laws”
means all Requirements of Law and Permits imposing liability or standards of
conduct for or relating to the regulation and protection of human health,
safety, the environment and natural resources, including the United States
Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C.
§§ 9601 et seq.), the Solid Waste Disposal Act (42 U.S.C. §§ 6901 et seq.), the
Hazardous Materials Transportation Act (49 U.S.C. §§ 5101 et seq.), the Federal
Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. §§ 136 et seq.), the Toxic
Substances Control Act (15 U.S.C. §§ 2601 et seq.), the Clean Air Act (42 U.S.C.
§§ 7401 et seq.), the Federal Water Pollution Control Act (33 U.S.C. §§ 1251 et
seq.), the Occupational Safety and Health Act (29 U.S.C. §§ 651 et seq.), the
Safe Drinking Water Act (42 U.S.C. §§ 300(f) et seq.), all regulations
promulgated under any of the foregoing, all analogous Requirements of Law and
Permits and any environmental transfer of ownership notification or approval
statutes, including the Industrial Site Recovery Act (N.J. Stat. Ann.
§§ 13:1K-6 et seq.).

       

      “Environmental
Liabilities” means all Liabilities (including costs of Remedial Actions,
natural resource damages and costs and expenses of investigation and feasibility
studies) that may be imposed on, incurred by or asserted against any Group
Member as a result of, or related to, any claim, suit, action, investigation,
proceeding or demand by any Person, whether based in contract, tort, implied or
express warranty, strict liability, criminal or civil statute or common law or
otherwise, arising under any Environmental Law or in connection with any
environmental, health or safety condition or with any Release and resulting from
the ownership, lease, sublease or other operation or occupation of property by
any Group Member, whether on, prior or after the date hereof.

       

      “ERISA” means the
United States Employee Retirement Income Security Act of 1974.

       

      “ERISA Affiliate”
means, collectively, any Group Member, and any Person under common control, or
treated as a single employer, with any Group Member, within the meaning of
Section 414(b), (c), (m) or (o) of the Code.

       

      “ERISA Event” means
any of the following:  (a) a reportable event described in
Section 4043(b) of ERISA (or, unless the 30-day notice requirement has been
duly waived under the applicable regulations, Section 4043(c) of ERISA) with
respect to a Title IV Plan, (b) the withdrawal of any ERISA Affiliate from
a Title IV Plan subject to Section 4063 of ERISA during a plan year in which it
was a substantial employer, as defined in Section 4001(a)(2) of ERISA,
(c) the complete or partial withdrawal of any ERISA Affiliate from any
Multiemployer Plan, (d) with respect to any Multiemployer Plan, the filing
of a notice of reorganization, insolvency or termination (or treatment of a plan
amendment as termination) under Section 4041A of ERISA, (e) the filing of a
notice of intent to terminate a Title IV Plan (or treatment of a plan amendment
as termination) under Section 4041 of ERISA, (f) the institution of proceedings
to terminate a Title IV Plan or Multiemployer Plan by the PBGC, (g) the failure
to make any required contribution to any Title IV Plan or Multiemployer Plan
when due, (h) the imposition of a lien under Section 412 of the Code or Section
302 or 4068 of ERISA on any property (or rights to property, whether real or
personal) of any ERISA Affiliate, (i) the failure of a Benefit Plan or any trust
thereunder intended to qualify for tax exempt status under Section 401 or 501 of
the Code or other Requirements of Law to qualify thereunder and (j) any other
event or condition that might reasonably be expected to constitute grounds under
Section 4042 of ERISA for the termination of, or the appointment of a trustee to
administer, any Title IV Plan or Multiemployer Plan or for the imposition of any
liability upon any ERISA Affiliate under Title IV of ERISA other than for PBGC
premiums due but not delinquent.

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

       

      “Eurodollar Base Rate”
means, with respect to any Interest Period for any Loan, the rate determined by
the Administrative Agent to be the offered rate for deposits in Dollars for the
applicable Interest Period appearing on the Dow Jones Markets Telerate Page 3750
as of 11:00 a.m. (London time) on the second full Business Day next
preceding the first day of each Interest Period.  In the event that
such rate does not appear on the Dow Jones Markets Telerate Page 3750 (or
otherwise on the Dow Jones Markets screen) at such time, the “Eurodollar Base Rate”
shall be determined by reference to such other comparable publicly available
service for displaying the offered rate for deposit in Dollars in the London
interbank market as may be selected by the Administrative Agent and, in the
absence of availability, such other method to determine such offered rate as may
be selected by the Administrative Agent in its sole discretion.

       

      “Eurodollar Rate”
means, with respect to any Interest Period and for any Loan, subject to Section 2.12(c), an
interest rate per
annum determined as the ratio of (a) the Eurodollar Base Rate with
respect to such Interest Period for such Loan to (b) the difference between the
number one and the Eurodollar Reserve Requirements with respect to such Interest
Period and for such Loan; provided that in no
event shall the Eurodollar Rate be less than 3.00% or greater than
4.50%.

       

      “Eurodollar Reserve
Requirements” means, with respect to any Interest Period and for any
Loan, a rate per
annum equal to the aggregate, without duplication, of the maximum rates
(expressed as a decimal number) of reserve requirements in effect two Business
Days prior to the first day of such Interest Period (including basic,
supplemental, marginal and emergency reserves) under any regulations of the
Federal Reserve Board or other Governmental Authority having jurisdiction with
respect thereto dealing with reserve requirements prescribed for eurocurrency
funding (currently referred to as “eurocurrency liabilities” in Regulation D of
the Federal Reserve Board) maintained by a member bank of the United States
Federal Reserve System.

       

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

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      “Excess Cash Flow”
means, for any period, Consolidated EBITDA of CPA for such period, (a) minus, without
duplication, (i) any cash principal payment or Prepayment Premium on the Loans
during such period other than any mandatory prepayment required pursuant to
Section 2.6(a)
because of the existence of Excess Cash Flow, (ii) any scheduled or other
mandatory cash principal payment made by any Borrower or any of its Subsidiaries
during such period on any Capitalized Lease Obligation or other Indebtedness
(but only, if such Indebtedness may be reborrowed, to the extent such payment
results in a permanent reduction in commitments thereof), (iii) any Capital
Expenditure made by such Person or any of its Subsidiaries during such period to
the extent permitted by this Agreement, excluding any such Capital Expenditure
to the extent financed through the incurrence of Capitalized Lease Obligations
or any long-term Indebtedness other than the Obligations and any Capitalized
Lease Obligations, (iv) the Consolidated Cash Interest Expense of such Person
for such period, (v) any cash losses from extraordinary items, (vi) any cash
payment made during such period to satisfy obligations for United States federal
income taxes or other taxes measured by net income and (vii) any increase in the
Working Capital of CPA during such period (measured as the excess of such
Working Capital at the end of such period over such Working Capital at the
beginning of such period) and (b) plus, without
duplication, (i) to the extent included in the calculation of Consolidated
EBITDA pursuant to clause (b)(i) of the
definition thereof, any provision for United States federal income taxes or
other taxes measured by net income, (ii) any decrease in the Working
Capital of CPA during such period (measured as the excess of such Working
Capital at the beginning of such period over such Working Capital at the end
thereof) and (iii) without duplication, any cash dividends, distributions,
contributions or loan proceeds received by CPA or CPM from any Loan Party, Group
Member or, directly or indirectly, from Standard Casualty.

       

      “Federal Funds Rate”
means, for any period, a fluctuating interest rate per annum equal for
each day during such period to the weighted average of the rates on overnight
federal funds transactions with members of the Federal Reserve System arranged
by federal funds brokers, as determined by the Administrative Agent in its sole
discretion.

       

      “Federal Reserve
Board” means the Board of Governors of the United States Federal Reserve
System and any successor thereto.

       

      “Fee Letter” means the
letter agreement, dated as of the date hereof, addressed to the Borrowers from
the Administrative Agent and accepted by the Borrowers, with respect to certain
fees to be paid from time to time to the Administrative Agent and its Related
Persons.

       

      “GAAP” means generally
accepted accounting principles in the United States of America, as in effect
from time to time, set forth in the opinions and pronouncements of the
Accounting Principles Board and the American Institute of Certified Public
Accountants, in the statements and pronouncements of the Financial Accounting
Standards Board and in such other statements by such other entity as may be in
general use by significant segments of the accounting profession that are
applicable to the circumstances as of the date of
determination.  Subject to Section 1.3, all
references to “GAAP” shall be to
GAAP applied consistently with the principles used in the preparation of the
financial statements described in Section 4.4(a).

       

      “Governmental
Authority” means any nation, sovereign or government, any state or other
political subdivision thereof, any agency, authority or instrumentality thereof
and any entity or authority exercising executive, legislative, taxing, judicial,
regulatory or administrative functions of or pertaining to government, including
any central bank, stock exchange, regulatory body, arbitrator, public sector
entity, supra-national entity (including the European Union and the European
Central Bank) and any self-regulatory organization (including the National
Association of Insurance Commissioners).

       

      “Group Members” means,
collectively, each Borrower and each Subsidiary of each Borrower; provided that
neither CountryPlace Funding, a Delaware corporation, nor CountryPlace
Securitization, LLC, a Delaware limited liability company, shall constitute a
Group Member.

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

       

      “Group Members’
Accountants” means Ernst & Young LLP or other nationally-recognized
independent registered certified public accountants acceptable to the
Administrative Agent.

       

      “Guarantor” means
Parent, GP LLC, LP LLC and each other Person that enters into any Guaranty
Obligation with respect to any Obligation of any Loan Party.

       

      “Guaranty and Security
Agreement” means a guaranty and security agreement, in substantially the
form of Exhibit
D, among the Administrative Agent, the Borrowers and
the  Guarantors.

       

      “Guaranty Obligation”
means, as applied to any Person, any direct or indirect liability, contingent or
otherwise, of such Person for any Indebtedness, lease, dividend or other
obligation (the “primary obligation”)
of another Person (the “primary obligor”), if
the purpose or intent of such Person in incurring such liability, or the
economic effect thereof, is to guarantee such primary obligation or provide
support, assurance or comfort to the holder of such primary obligation or to
protect or indemnify such holder against loss with respect to such primary
obligation, including (a) the direct or indirect guaranty, endorsement (other
than for collection or deposit in the ordinary course of business), co-making,
discounting with recourse or sale with recourse by such Person of any primary
obligation, (b) the incurrence of reimbursement obligations with respect to any
letter of credit or bank guarantee in support of any primary obligation, (c) the
existence of any Lien, or any right, contingent or otherwise, to receive a Lien,
on the property of such Person securing any part of any primary obligation and
(d) any liability of such Person for a primary obligation through any
Contractual Obligation (contingent or otherwise) or other arrangement (i) to
purchase, repurchase or otherwise acquire such primary obligation or any
security therefor or to provide funds for the payment or discharge of such
primary obligation (whether in the form of a loan, advance, stock purchase,
capital contribution or otherwise), (ii) to maintain the solvency, working
capital, equity capital or any balance sheet item, level of income or cash flow,
liquidity or financial condition of any primary obligor, (iii) to make
take-or-pay or similar payments, if required, regardless of non-performance by
any other party to any Contractual Obligation, (iv) to purchase, sell or lease
(as lessor or lessee) any property, or to purchase or sell services, primarily
for the purpose of enabling the primary obligor to satisfy such primary
obligation or to protect the holder of such primary obligation against loss or
(v) to supply funds to or in any other manner invest in, such primary obligor
(including to pay for property or services irrespective of whether such property
is received or such services are rendered); provided, however, that “Guaranty Obligations”
shall not include (x) endorsements for collection or deposit in the ordinary
course of business and (y) product warranties given in the ordinary course of
business.  The outstanding amount of any Guaranty Obligation shall
equal the outstanding amount of the primary obligation so guaranteed or
otherwise supported or, if lower, the stated maximum amount for which such
Person may be liable under such Guaranty Obligation.

       

      “Hazardous Material”
means any substance, material or waste that is classified, regulated or
otherwise characterized under any Environmental Law as hazardous, toxic, a
contaminant or a pollutant or by other words of similar meaning or regulatory
effect, including petroleum or any fraction thereof, asbestos, polychlorinated
biphenyls and radioactive substances.

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

       

      “Hedging Agreement”
means any Interest Rate Contract, foreign exchange, swap, option or forward
contract, spot, cap, floor or collar transaction, any other derivative
instrument and any other similar speculative transaction and any other similar
agreement or arrangement designed to alter the risks of any Person arising from
fluctuations in any underlying variable.

       

      “Indebtedness” of any
Person means, without duplication, any of the following, whether or not
matured:  (a) all indebtedness for borrowed money, (b) all obligations
evidenced by notes, bonds, debentures or similar instruments, (c) all
reimbursement and all obligations with respect to (i) letters of credit, bank
guarantees or bankers’ acceptances or (ii) surety, customs, reclamation or
performance bonds (in each case not related to judgments or litigation) other
than those entered into in the ordinary course of business, (d) all obligations
to pay the deferred purchase price of property or services, other than trade
payables incurred in the ordinary course of business, (e) all obligations
created or arising under any conditional sale or other title retention
agreement, regardless of whether the rights and remedies of the seller or lender
under such agreement in the event of default are limited to repossession or sale
of such property, (f) all Capitalized Lease Obligations, (g) all obligations,
whether or not contingent, to purchase, redeem, retire, defease or otherwise
acquire for value any of its own Stock or Stock Equivalents (or any Stock or
Stock Equivalent of a direct or indirect parent entity thereof) prior to the
date that is 180 days after the Maturity Date, valued at, in the case of
redeemable preferred Stock, the greater of the voluntary liquidation preference
and the involuntary liquidation preference of such Stock plus accrued and unpaid
dividends, (h) all payments that would be required to be made in respect of any
Hedging Agreement in the event of a termination (including an early termination)
on the date of determination and (i) all Guaranty Obligations for obligations of
any other Person constituting Indebtedness of such other Person; provided, however, that the
items in each of clauses (a) through
(i) above shall
constitute “Indebtedness” of such
Person solely to the extent, directly or indirectly, (x) such Person is liable
for any part of any such item, (y) any such item is secured by a Lien on such
Person’s property or (z) any other Person has a right, contingent or otherwise,
to cause such Person to become liable for any part of any such item or to grant
such a Lien.

       

      “Indemnified Matter”
has the meaning specified in Section 11.4.

       

      “Indemnitee” has the
meaning specified in Section 11.4.

       

      “Initial Projections”
means those financial projections, dated January 2010, covering the fiscal years
ending in 2010 through 2011 and delivered to the Administrative Agent by the
Borrowers prior to the date hereof.

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

      “Intellectual
Property” means all rights, title and interests in or relating to
intellectual property and industrial property arising under any Requirement of
Law and all IP Ancillary Rights relating thereto, including (i) all rights,
title and interests (and all related IP Ancillary Rights) arising under any
Requirement of Law in or relating to (A) copyrights and all mask work,
database and design rights, whether or not registered or published, all
registrations and recordations thereof and all applications in connection
therewith (collectively, “Copyrights”),
(B) letters patent and applications therefor (collectively, “Patents”),
(C) trademarks, trade names, corporate names, company names, business
names, fictitious business names, trade styles, service marks, logos and other
source or business identifiers and, in each case, all goodwill associated
therewith, all registrations and recordations thereof and all applications in
connection therewith (collectively, “Trademarks”),
(D) Internet domain names (collectively, “Internet Domain
Names”) and (E) trade secrets (collectively, “Trade Secrets”), and
(ii) all Contractual Obligations (and all related IP Ancillary Rights),
whether written or oral, granting any right title and interest in or relating to
any of the foregoing (collectively, “IP
Licenses”).

       

      “Interest Period”
means, with respect to any Loan, (a) initially, the period commencing on the
Closing Date and ending on February 28, 2010 and (b) thereafter, each period
commencing on the last day of the immediately preceding Interest Period and
ending on the last day of the month ending after the month in which such
immediately preceding Interest Period ended; provided, however, that
(i) if any Interest Period would otherwise end on a day that is not a
Business Day, such Interest Period shall be extended to the next succeeding
Business Day, unless the result of such extension would be to extend such
Interest Period into another such Business Day that falls in the next calendar
month, in which case such Interest Period shall end on the immediately preceding
Business Day, and (ii) any Interest Period that begins on the last Business Day
of a calendar month (or on a day for which there is no numerically corresponding
day in the calendar month at the end of such Interest Period) shall end on the
last Business Day of a calendar month.

       

      “Interest Rate
Contracts” means all interest rate swap agreements, interest rate cap
agreements, interest rate collar agreements and interest rate
insurance.

       

      “Investment” means,
with respect to any Person, directly or indirectly, (a) to own, purchase or
otherwise acquire, in each case whether beneficially or otherwise, any
investment in, including any interest in, any Security of any other Person
(other than any evidence of any Obligation), (b) to purchase or otherwise
acquire, whether in one transaction or in a series of transactions, all or a
significant part of the property of any other Person or a business conducted by
any other Person or all or substantially all of the assets constituting the
business of a division, branch, brand or other unit operation of any other
Person, (c) to incur, or to remain liable under, any Guaranty Obligation for
Indebtedness of any other Person, to assume the Indebtedness of any other Person
or to make, hold, purchase or otherwise acquire, in each case directly or
indirectly, any deposit, loan, advance, commitment to lend or advance, or other
extension of credit (including by deferring or extending the date of, in each
case outside the ordinary course of business, the payment of the purchase price
for Dispositions of property or services to any other Person, to the extent such
payment obligation constitutes Indebtedness of such other Person), excluding
deposits with financial institutions available for withdrawal on demand, prepaid
expenses, accounts receivable and similar items created in the ordinary course
of business, (d) to make, directly or indirectly, any contribution to the
capital of any other Person or (e) to Dispose of any property for less than fair
market value (including a disposition of cash or Cash Equivalents in exchange
for consideration of lesser value); provided, however, that such
Investment shall be valued at the difference between the value of the
consideration for such Disposition and the fair market value of the property
Disposed of.

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

       

      “IP Ancillary Rights”
means, with respect to any other Intellectual Property, as applicable, all
foreign counterparts to, and all divisionals, reversions, continuations,
continuations-in-part, reissues, reexaminations, renewals and extensions of,
such Intellectual Property and all income, royalties, proceeds and Liabilities
at any time due or payable or asserted under or with respect to any of the
foregoing or otherwise with respect to such Intellectual Property, including all
rights to sue or recover at law or in equity for any past, present or future
infringement, misappropriation, dilution, violation or other impairment thereof,
and, in each case, all rights to obtain any other IP Ancillary
Right.

       

      “IRS” means the
Internal Revenue Service of the United States and any successor
thereto.

       

      “Lender” means any
financial institution or other Person that (a) is listed on the signature
pages hereof as a “Lender” or (b) from
time to time becomes a party hereto by execution of an Assignment, in each case
together with its successors.

       

      “Liabilities” means
all claims, actions, suits, judgments, damages, losses, liability, obligations,
responsibilities, fines, penalties, sanctions, costs, fees, taxes, commissions,
charges, disbursements and expenses, in each case of any kind or nature
(including interest accrued thereon or as a result thereto and fees, charges and
disbursements of financial, legal and other advisors and consultants), whether
joint or several, whether or not indirect, contingent, consequential, actual,
punitive, treble or otherwise.

       

      “Lien” means any
mortgage, deed of trust, pledge, hypothecation, assignment, charge, deposit
arrangement, encumbrance, easement, lien (statutory or other), security interest
or other security arrangement and any other preference, priority or preferential
arrangement of any kind or nature whatsoever, including any conditional sale
contract or other title retention agreement, the interest of a lessor under a
Capital Lease and any synthetic or other financing lease having substantially
the same economic effect as any of the foregoing.

       

      “Loan” has the meaning
specified in Section 2.1.

       

      “Loan Documents”
means, collectively, this Agreement, the Guaranty and Security Agreement, the
Warrant, the Registration Rights Agreement, the Mortgage Sale, Contribution and
Servicing Agreement, the Control Agreements, the Fee Letter and, when executed,
each document executed by a Loan Party and delivered to the Administrative
Agent, any Lender in connection with or pursuant to any of the foregoing or the
Obligations, together with any modification of any term, or any waiver with
respect to, any of the foregoing.

       

      “Loan Party” means
each Borrower and each Guarantor.

       

      “Loan to Value Ratio”
means, as of any date of determination, the ratio of (a) the aggregate principal
amount of the Loans on such date to (b) the Aggregate Value on such
date.

       

      “Material Adverse
Effect” means a material adverse effect on any of (a) the financial
condition, business, performance, operations, prospects or property of the Group
Members taken as a whole, (b) the ability of the Loan Parties, taken as a whole,
to perform their obligations under the Loan Documents, taken as a whole, and (c)
the validity or enforceability of any Loan Document in its entirety or the
material rights and remedies of the Administrative Agent, the Lenders and the
other Secured Parties under any Loan Document.

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

       

      “Material Environmental
Liabilities” means Environmental Liabilities exceeding $500,000 in the
aggregate.

       

      “Maturity Date” means
January 29, 2014.

       

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

       

      “Mortgage” means any
“Contract” as defined in the Mortgage Sale, Contribution and Servicing
Agreement.

       

      “Mortgage Disposition”
means the Disposition by CPM, and acquisition by Mortgage SPV, of the
Mortgages.

       

      “Mortgage Sale, Contribution
and Servicing Agreement” means that certain Sale, Contribution and
Servicing Agreement, dated as of the date hereof, among CPM, as seller and as
servicer, Mortgage SPV and the Administrative Agent.

       

      “Mortgage Trigger
Event” means any “Trigger Event” as defined in the Mortgage Sale,
Contribution and Servicing Agreement.

       

      “Multiemployer Plan”
means any multiemployer plan, as defined in Section 400l(a)(3) of ERISA, to
which any ERISA Affiliate incurs or otherwise has any obligation or liability,
contingent or otherwise.

       

      “Net Cash Proceeds”
means proceeds received in cash from (a) any Disposition of, or Property Loss
Event with respect to, property, net of (i) the customary out-of-pocket cash
costs, fees and expenses paid or required to be paid in connection therewith,
(ii) taxes paid or reasonably estimated to be payable as a result thereof and
(iii) any amount required to be paid or prepaid on Indebtedness (other than
the Obligations and Indebtedness owing to any Group Member) secured by the
property subject thereto or (b) any sale or issuance of Stock or incurrence of
Indebtedness, in each case net of brokers’, advisors’ and investment banking
fees and other customary out-of-pocket underwriting discounts, commissions and
other customary out-of-pocket cash costs, fees and expenses, in each case
incurred in connection with such transaction; provided, however, that any
such proceeds received by any Subsidiary of any Borrower that is not a Wholly
Owned Subsidiary of such Borrower shall constitute “Net Cash Proceeds”
only to the extent of the aggregate direct and indirect beneficial ownership
interest of the Borrowers therein.

       

      “Notice of Borrowing”
has the meaning specified in Section 2.2(a).

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

      “Obligations” means,
with respect to any Loan Party, all amounts, obligations, liabilities, covenants
and duties of every type and description owing by such Loan Party to the
Administrative Agent, any Lender, any other Indemnitee, any participant or any
SPV arising out of, under, or in connection with, any Loan Document, whether
direct or indirect (regardless of whether acquired by assignment), absolute or
contingent, due or to become due, whether liquidated or not, now existing or
hereafter arising and however acquired, and whether or not evidenced by any
instrument or for the payment of money, including, without duplication, (a) if
such Loan Party is a Borrower, all Loans, (b) all interest, whether or not
accruing after the filing of any petition in bankruptcy or after the
commencement of any insolvency, reorganization or similar proceeding, and
whether or not a claim for post-filing or post-petition interest is allowed in
any such proceeding, and (c) all other fees, expenses (including fees, charges
and disbursement of counsel), interest, commissions, charges, costs,
disbursements, indemnities and reimbursement of amounts paid and other sums
chargeable to such Loan Party under any Loan Document.

       

      “Other Taxes” has the
meaning specified in Section 2.14(c).

       

      “Parent” has the
meaning specified in the caption hereto.

       

      “Parent Control Event”
means an event or series of events by which (a) any “person” or “group” (as such
terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of
1934, but excluding any employee benefit plan of such person or its
subsidiaries, and any person or entity acting in its capacity as trustee, agent
or other fiduciary or administrator of any such plan) becomes the “beneficial
owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of
1934, except that a person or group shall be deemed to have “beneficial
ownership” of all securities that such person or group has the right to acquire
(such right, an “option right”), whether such right is exercisable immediately
or only after the passage of time), directly or indirectly, of 30% or more of
the equity securities of Parent entitled to vote for members of the board of
directors or equivalent governing body of Parent on a fully-diluted basis (and
taking into account all such securities that such person or group has the right
to acquire pursuant to any option right); (b) during any period of 12
consecutive months, a majority of the members of the board of directors or other
equivalent governing body of Parent cease to be composed of individuals (i) who
were members of that board or equivalent governing body on the first day of such
period, (ii) whose election or nomination to that board or equivalent governing
body was approved by individuals referred to in clause (i) above constituting at
the time of such election or nomination at least a majority of that board or
equivalent governing body or (iii) whose election or nomination to that board or
other equivalent governing body was approved by individuals referred to in
clauses (i) and (ii) above constituting at the time of such election or
nomination at least a majority of that board or equivalent governing body
(excluding, in the case of both clause (ii) and clause (iii), any individual
whose initial nomination for, or assumption of office as, a member of that board
or equivalent governing body occurs as a result of an actual or threatened
solicitation of proxies or consents for the election or removal of one or more
directors by any person or group other than a solicitation for the election of
one or more directors by or on behalf of the board of directors); or (c) any
Person or two or more Persons acting in concert shall have acquired by contract
or otherwise, or shall have entered into a contract or arrangement that, upon
consummation thereof, will result in its or their acquisition of the power to
exercise, directly or indirectly, a controlling influence over the management or
policies of Parent, or control over the equity securities of Parent entitled to
vote for members of the board of directors or equivalent governing body of
Parent on a fully-diluted basis (and taking into account all such securities
that such Person or group has the right to acquire pursuant to any option right)
representing 35% or more of the combined voting power of such
securities.

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

       

      “Parent Convertible
Notes” means the 3.25% Convertible Senior Notes due 2024, issued by
Parent.

       

      “PBGC” means the
United States Pension Benefit Guaranty Corporation and any successor
thereto.

       

      “Permit” means, with
respect to any Person, any permit, approval, authorization, license,
registration, certificate, concession, grant, franchise, variance or permission
from, and any other Contractual Obligations with, any Governmental Authority, in
each case whether or not having the force of law and applicable to or binding
upon such Person or any of its property or to which such Person or any of its
property is subject.

       

      “Permitted
Acquisition” means any Proposed Acquisition satisfying each of the
following conditions:  (a) the aggregate amounts payable in connection
with, and other consideration for (in each case, including all transaction costs
and all Indebtedness, liabilities and Guaranty Obligations incurred or assumed
in connection therewith or otherwise reflected in a balance sheet of CPA and its
Subsidiaries (including without limitation the Proposed Acquisition Target)
consolidated in accordance with GAAP), such Proposed Acquisition and all other
Permitted Acquisitions consummated on or prior to the date of the consummation
of such Proposed Acquisition shall not exceed $5,000,000, (b) the Administrative
Agent shall have received reasonable advance notice of such Proposed Acquisition
including a reasonably detailed description thereof at least 30 days prior to
the consummation of such Proposed Acquisition (or such later date as may be
agreed by the Administrative Agent) and on or prior to the date of such Proposed
Acquisition, the Administrative Agent shall have received copies of the
acquisition agreement and related Contractual Obligations and other documents
(including financial information and analysis, environmental assessments and
reports, opinions, certificates and lien searches) and information reasonably
requested by the Administrative Agent and (c) as of the date of consummation of
any transaction as part of such Proposed Acquisition and after giving effect to
all transactions to occur on such date as part of such Proposed Acquisition, all
conditions set forth in Sections 3.3(b)(i)
and (ii) shall
be satisfied or duly waived and, after giving effect to such Permitted
Acquisition, the Group Members shall be in compliance with the financial
covenants set forth in Article V on a
pro forma basis, as described in Section 1.3, as of
the last day of the last fiscal quarter for which financial statements have been
delivered under Section 4.4 or 6.1.

       

      “Permitted
Indebtedness” means any Indebtedness of any Group Member that is not
prohibited by Section 8.1 or
any other provision of any Loan Document.

       

      “Permitted Investment”
means any Investment of any Group Member that is not prohibited by Section 8.3 or
any other provision of any Loan Document.

       

      “Permitted Lien” means
any Lien on or with respect to the property of any Group Member that is not
prohibited by Section 8.2 or
any other provision of any Loan Document.

      
        
           

        

        
          18

          
            

          

        

        
           

        

      

      “Permitted
Refinancing” means Indebtedness constituting a refinancing or extension
of Permitted Indebtedness that (a) has an aggregate outstanding principal amount
not greater than the aggregate principal amount of such Permitted Indebtedness
outstanding at the time of such refinancing or extension, (b) has a weighted
average maturity (measured as of the date of such refinancing or extension) and
maturity no shorter than that of such Permitted Indebtedness, (c) is not entered
into as part of a Sale and Leaseback transaction, (d) is not secured by any
property or any Lien other than those securing such Permitted Indebtedness and
(e) is otherwise on terms not materially less favorable to the Group Members,
taken as a whole, than those of such Permitted Indebtedness; provided, however, that,
notwithstanding the foregoing, no Guaranty Obligation for such Indebtedness
shall constitute part of such Permitted Refinancing unless similar Guaranty
Obligations with respect to such Permitted Indebtedness existed and constituted
Permitted Indebtedness prior to such refinancing or extension.

       

      “Permitted
Reinvestment” means, with respect to the Net Cash Proceeds of any
Disposition or Property Loss Event, to acquire (or make Capital Expenditures to
finance the acquisition, repair, improvement or construction of), to the extent
otherwise permitted hereunder, property useful in the business of any Borrower
or any of its Subsidiaries (including through a Permitted Acquisition) or, if
such Property Loss Event involves loss or damage to property, to repair such
loss or damage.

       

      “Person” means any
individual, partnership, corporation (including a business trust and a public
benefit corporation), joint stock company, estate, association, firm,
enterprise, trust, limited liability company, unincorporated association, joint
venture and any other entity or Governmental Authority.

       

      “Prepayment Premium”
means, with respect to any prepayment of Loans under Section 2.5 (i) made
on or after the first anniversary of the Closing Date and before the second
anniversary of the Closing Date, 3.00% of the amount of such prepayment, (ii)
made on or after the second anniversary of the Closing Date and before the third
anniversary of the Closing Date, 1.00% of the amount of such prepayment, and
(iii) made on or after the third anniversary of the Closing Date, 0.00% of the
amount of such prepayment.

       

      “Projections” means,
collectively, the Initial Projections and any document delivered pursuant to
Section 6.1(g).

       

      “Property Loss Event”
means, with respect to any property, any loss of or damage to such property or
any taking of such property or condemnation thereof.

       

      “Proposed Acquisition”
means (a) any proposed acquisition that is consensual and approved by the board
of directors of such Proposed Acquisition Target, of all or substantially all of
the assets or Stock of any Proposed Acquisition Target by any Borrower or any
Subsidiary of any Borrower (other than Mortgage SPV) or (b) any proposed merger
of any Proposed Acquisition Target with or into any Borrower or any Subsidiary
of any Borrower (and, in the case of a merger with any Borrower, with such
Borrower being the surviving corporation) (other than Mortgage
SPV).

       

      “Proposed Acquisition
Target” means any Person or any brand, line of business, division,
branch, operating division or other unit operation of any
Person.

      
        
           

        

        
          19

          
            

          

        

        
           

        

      

      “Pro Rata Share”
means, with respect to any Lender at any time, the percentage obtained by
dividing (a) the sum of the Commitments of such Lender (or, if such Commitments
are terminated, the outstanding principal amount of the Loans owing to such
Lender) then in effect by (b) the sum of the Commitments (or, if such
Commitments are terminated, the outstanding principal amount of the Loans) of
all Lenders then in effect; provided, however, that, if
there are no Commitments and no outstanding Loans, such Lender’s Pro Rata Share
shall be determined based on the Pro Rata Share most recently in effect, after
giving effect to any subsequent assignment and any subsequent non-pro rata
payments of any Lender pursuant to Section 2.15.

       

      “Register” has the
meaning specified in Section 2.11(b).

       

      “Registration Rights
Agreement” means the Registration Rights Agreement, dated as of the date
hereof, among Parent, Virgo - Redwood, LP, a
Delaware limited partnership, Virgo - Willow, LP, a Delaware limited
partnership, Virgo - Sierra, LP, a Delaware limited partnership, and Virgo
- Magnolia, LP, a Delaware limited partnership.

       

      “Reinvestment Prepayment
Amount” means, with respect to any Net Cash Proceeds on the Reinvestment
Prepayment Date therefor, the amount of such Net Cash Proceeds less any amount paid
or required to be paid by any Group Member to make Permitted Reinvestments with
such Net Cash Proceeds pursuant to a Contractual Obligation entered into prior
to such Reinvestment Prepayment Date with any Person that is not an Affiliate of
any Borrower.

       

      “Reinvestment Prepayment
Date” means, with respect to any portion of any Net Cash Proceeds of any
Disposition or Property Loss Event, the earliest of (a) the 180th day
after the completion of the portion of such Disposition or Property Loss Event
corresponding to such Net Cash Proceeds, (b) the date that is five Business Days
after the date on which the Borrowers shall have notified the Administrative
Agent of the Borrowers’ determination not to make Permitted Reinvestments with
such Net Cash Proceeds, (c) the occurrence of any Event of Default set forth in
Section 9.1(e)(ii)
and (d) five Business Days after the delivery of a notice by the Administrative
Agent or the Required Lenders to the Borrowers during the continuance of any
other Event of Default.

       

      “Related Person”
means, with respect to any Person, each Affiliate of such Person and each
director, officer, employee, agent, trustee, representative, attorney,
accountant and each insurance, environmental, legal, financial and other advisor
(including those retained in connection with the satisfaction or attempted
satisfaction of any condition set forth in Article III) and
other consultants and agents of or to such Person or any of its Affiliates,
together with, if such Person is the Administrative Agent, each other Person or
individual designated, nominated or otherwise mandated by or helping the
Administrative Agent pursuant to and in accordance with Section 10.4 or
any comparable provision of any Loan Document.

       

      “Release” means any
release, threatened release, spill, emission, leaking, pumping, pouring,
emitting, emptying, escape, injection, deposit, disposal, discharge, dispersal,
dumping, leaching or migration of Hazardous Material into or through the
environment.

       

      “Remedial Action”
means all actions required to (a) clean up, remove, treat or in any other way
address any Hazardous Material in the indoor or outdoor environment, (b) prevent
or minimize any Release so that a Hazardous Material does not migrate or
endanger or threaten to endanger public health or welfare or the indoor or
outdoor environment or (c) perform pre-remedial studies and investigations and
post-remedial monitoring and care with respect to any Hazardous
Material.

      
        
           

        

        
          20

          
            

          

        

        
           

        

      

       

      “Required Lenders”
means, at any time, Lenders having at such time in excess of 50% of the
aggregate Commitments (or, if such Commitments are terminated, the outstanding
principal amount of the Loans) then in effect.

       

      “Requirements of Law”
means, with respect to any Person, collectively, the common law and all federal,
state, local, foreign, multinational or international laws, statutes, codes,
treaties, standards, rules and regulations, guidelines, ordinances, orders,
judgments, writs, injunctions, decrees (including administrative or judicial
precedents or authorities) and the interpretation or administration thereof by,
and other determinations, directives, requirements or requests of, any
Governmental Authority, in each case whether or not having the force of law and
that are applicable to or binding upon such Person or any of its property or to
which such Person or any of its property is subject.

       

      “Responsible Officer”
means, with respect to any Person, any of the president, chief executive
officer, treasurer, assistant treasurer, controller, managing member or general
partner of such Person but, in any event, with respect to financial matters, any
such officer that is responsible for preparing the financial statements
delivered under Sections 4.4 and
6.1 and, with
respect to the documents delivered pursuant to Section 6.1(f),
documents delivered on the Closing Date and documents delivered pursuant to
Section 7.10,
the secretary or assistant secretary of such Person or any other officer
responsible for maintaining the corporate and similar records of such
Person.

       

      “Restricted Payment”
means (a) any dividend, return of capital, distribution or any other payment or
Disposition of property for less than fair market value, whether direct or
indirect (including through the use of Hedging Agreements, the making,
repayment, cancellation or forgiveness of Indebtedness and similar Contractual
Obligations) and whether in cash, Securities or other property, on account of
any Stock or Stock Equivalent of any Borrower or any of its Subsidiaries, in
each case now or hereafter outstanding, including with respect to a claim for
rescission of a Disposition of such Stock or Stock Equivalent and (b) any
redemption, retirement, termination, defeasance, cancellation, purchase or other
acquisition for value, whether direct or indirect (including through the use of
Hedging Agreements, the making, repayment, cancellation or forgiveness of
Indebtedness and similar Contractual Obligations), of any Stock or Stock
Equivalent of Parent, any Group Member or of any direct or indirect parent
entity of any Borrower, now or hereafter outstanding, and any payment or other
transfer setting aside funds for any such redemption, retirement, termination,
cancellation, purchase or other acquisition, whether directly or indirectly and
whether to a sinking fund, a similar fund or otherwise.

       

      “S&P” means
Standard & Poor’s Rating Services.

       

      “Sale and Leaseback
Transaction” means, with respect to any Person (the “obligor”), any
Contractual Obligation or other arrangement with any other Person (the “counterparty”)
consisting of a lease by such obligor of any property that, directly or
indirectly, has been or is to be Disposed of by the obligor to such counterparty
or to any other Person to whom funds have been advanced by such counterparty
based on a Lien on, or an assignment of, such property or any obligations of
such obligor under such lease.

      
        
           

        

        
          21

          
            

          

        

        
           

        

      

       

      “Secured Parties”
means the Lenders, the Administrative Agent, each other Indemnitee and any other
holder of any Obligation of any Loan Party.

       

      “Security” means all
Stock, Stock Equivalents, voting trust certificates, bonds, debentures,
instruments and other evidence of Indebtedness, whether or not secured,
convertible or subordinated, all certificates of interest, share or
participation in, all certificates for the acquisition of, and all warrants,
options and other rights to acquire, any Security.

       

      “Servicer” has the
meaning set forth in the Mortgage Sale, Contribution and Servicing
Agreement.

       

       “Solvent” means, with
respect to any Person as of any date of determination, that, as of such date,
(a) the value of the assets of such Person (both at fair value and present fair
saleable value) is greater than the total amount of liabilities (including
contingent and unliquidated liabilities) of such Person, (b) such Person is able
to pay all liabilities of such Person as such liabilities mature and (c) such
Person does not have unreasonably small capital.  In computing the
amount of contingent or unliquidated liabilities at any time, such liabilities
shall be computed at the amount that, in light of all the facts and
circumstances existing at such time, represents the amount that can reasonably
be expected to become an actual or matured liability.

       

      “SPV” means any
special purpose funding vehicle identified as such in a writing by any Lender to
the Administrative Agent.

       

      “Standard Casualty”
means Standard Casualty Company, a Texas corporation.

       

       “Stock” means all
shares of capital stock (whether denominated as common stock or preferred
stock), equity interests, beneficial, partnership or membership interests, joint
venture interests, participations or other ownership or profit interests in or
equivalents (regardless of how designated) of or in a Person (other than an
individual), whether voting or non-voting.

       

      “Stock Equivalents”
means all securities convertible into or exchangeable for Stock or any other
Stock Equivalent and all warrants, options or other rights to purchase,
subscribe for or otherwise acquire any Stock or any other Stock Equivalent,
whether or not presently convertible, exchangeable or exercisable.

       

      “Subordinated Debt”
means any Indebtedness that is subordinated to the payment in full of the
Obligations on terms and conditions satisfactory to the Administrative
Agent.

       

      “Subsequent Borrowing
Date” shall have the meaning set forth in Section
3.2.

       

       “Subsequent
Commitment” means that portion of the Commitments so designated on Schedule
I.

      
        
           

        

        
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       “Subsidiary” means,
with respect to any Person, any corporation, partnership, joint venture, limited
liability company, association or other entity, the management of which is,
directly or indirectly, controlled by, or of which an aggregate of more than 50%
of the outstanding Voting Stock is, at the time, owned or controlled directly or
indirectly by, such Person or one or more Subsidiaries of such
Person.

       

      “Tax Affiliate” means,
(a) each Borrower and its Subsidiaries and (b) any Affiliate of any Borrower
with which such Borrower files or is eligible to file consolidated, combined or
unitary tax returns.

       

      “Taxes” has the
meaning specified in Section 2.14(a).

       

      “Title IV Plan” means
a pension plan subject to Title IV of ERISA, other than a Multiemployer Plan, to
which any ERISA Affiliate incurs or otherwise has any obligation or liability,
contingent or otherwise.

       

      “UCC” means the
Uniform Commercial Code of any applicable jurisdiction and, if the applicable
jurisdiction shall not have any Uniform Commercial Code, the Uniform Commercial
Code as in effect in the State of New York.

       

      “United States” means
the United States of America.

       

      “Voting Stock” means
Stock of any Person having ordinary power to vote in the election of members of
the board of directors, managers, trustees or other controlling Persons, of such
Person (irrespective of whether, at the time, Stock of any other class or
classes of such entity shall have or might have voting power by reason of the
occurrence of any contingency).

       

      “Warrant” means each
of Warrant No. C-3, C-4, C-5 and C-6, issued by Parent on the date
hereof.

       

       “Wholly Owned
Subsidiary” of any Person means any Subsidiary of such Person, all of the
Stock of which (other than nominal holdings and director’s qualifying shares) is
owned by such Person, either directly or through one or more Wholly Owned
Subsidiaries of such Person.

       

      “Withdrawal Liability”
means, at any time, any liability incurred (whether or not assessed) by any
ERISA Affiliate and not yet satisfied or paid in full at such time with respect
to any Multiemployer Plan pursuant to Section 4201 of ERISA.

       

      “Working Capital”
means, for any Person at any date, its Consolidated Current Assets at such date
minus its
Consolidated Current Liabilities at such date.

       

      Section 1.2            UCC
Terms.  The following terms have the meanings given to them in the
applicable UCC:  “commodity account”, “commodity contract”, “commodity
intermediary”, “deposit account”, “entitlement holder”, “entitlement order”,
“equipment”, “financial asset”, “general intangible”, “goods”, “instruments”,
“inventory”, “securities account”, “securities intermediary” and “security
entitlement”.

      
        
           

        

        
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      Section 1.3            Accounting Terms and
Principles.  (a) GAAP.  All
accounting determinations required to be made pursuant hereto shall, unless
expressly otherwise provided herein, be made in accordance with
GAAP.  No change in the accounting principles used in the preparation
of any financial statement hereafter adopted by CPA shall be given effect if
such change would affect a calculation that measures compliance with any
provision of Article V or
VIII unless the
Borrowers, the Administrative Agent and the Required Lenders agree to modify
such provisions to reflect such changes in GAAP and, unless such provisions are
modified, all financial statements, Compliance Certificates and similar
documents provided hereunder shall be provided together with a reconciliation
between the calculations and amounts set forth therein before and after giving
effect to such change in GAAP.

       

      (b)           Pro
Forma.  All components of financial calculations made to
determine compliance with Article V shall
be adjusted on a pro forma basis to include or exclude, as the case may be,
without duplication, such components of such calculations attributable to any
Permitted Acquisition consummated after the first day of the applicable period
of determination and prior to the end of such period, as determined in good
faith by the Borrowers based on assumptions expressed therein and that were
reasonable based on the information available to the Borrowers at the time of
preparation of the Compliance Certificate setting forth such
calculations.

       

      Section 1.4            Payments.  The
Administrative Agent may set up standards and procedures to determine or
redetermine the equivalent in Dollars of any amount expressed in any currency
other than Dollars and otherwise may, but shall not be obligated to, rely on any
determination made by any Loan Party.  Any such determination or
redetermination by the Administrative Agent shall be conclusive and binding for
all purposes, absent manifest error.  No determination or
redetermination by any Secured Party or Loan Party and no other currency
conversion shall change or release any obligation of any Loan Party or of any
Secured Party (other than the Administrative Agent and its Related Persons)
under any Loan Document, each of which agrees to pay separately for any
shortfall remaining after any conversion and payment of the amount as
converted.  The Administrative Agent may round up or down, and may set
up appropriate mechanisms to round up or down, any amount hereunder to nearest
higher or lower amounts and may determine reasonable de minimis payment
thresholds.

       

      Section 1.5            Interpretation.  (a)
Certain
Terms.  Except as set forth in any Loan Document, all
accounting terms not specifically defined herein shall be construed in
accordance with GAAP (except for the term “property”, which
shall be interpreted as broadly as possible, including, in any case, cash,
Securities, other assets, rights under Contractual Obligations and Permits and
any right or interest in any property).  The terms “herein”, “hereof” and similar
terms refer to this Agreement as a whole.  In the computation of
periods of time from a specified date to a later specified date in any Loan
Document, the terms “from” means “from and
including” and the words “to” and “until” each mean “to
but excluding” and the word “through” means “to
and including.”  In any other case, the term “including” when used
in any Loan Document means “including without limitation.”  The term
“documents”
means all writings, however evidenced and whether in physical or electronic
form, including all documents, instruments, agreements, notices, demands,
certificates, forms, financial statements, opinions and reports.  The
term “incur”
means incur, create, make, issue, assume or otherwise become directly or
indirectly liable in respect of or responsible for, in each case whether
directly or indirectly, and the terms “incurrence” and “incurred” and similar
derivatives shall have correlative meanings.

      
        
           

        

        
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      (b)           Certain
References.  Unless otherwise expressly indicated, references
(i) in this Agreement to an Exhibit, Schedule, Article, Section or clause
refer to the appropriate Exhibit or Schedule to, or Article, Section or clause
in, this Agreement and (ii) in any Loan Document, to (A) any agreement shall
include, without limitation, all exhibits, schedules, appendixes and annexes to
such agreement and, unless the prior consent of any Secured Party required
therefor is not obtained, any modification to any term of such agreement, (B)
any statute shall be to such statute as modified from time to time and to any
successor legislation thereto, in each case as in effect at the time any such
reference is operative and (C) any time of day shall be a reference to New
York time.  Titles of articles, sections, clauses, exhibits, schedules
and annexes contained in any Loan Document are without substantive meaning or
content of any kind whatsoever and are not a part of the agreement between the
parties hereto.  Unless otherwise expressly indicated, the meaning of
any term defined (including by reference) in any Loan Document shall be equally
applicable to both the singular and plural forms of such term.

       

      ARTICLE II

      THE
BORROWINGS

       

      Section 2.1            The
Commitments.  (a) On the terms and subject to the conditions
contained in this Agreement, each Lender severally, but not jointly, agrees to
make a loan (each a “Loan”) in Dollars to
the Borrowers on:

       

      (i)           the
Closing Date, in an amount not to exceed such Pro Rata Share of the Closing Date
Commitment, and

       

      (ii)          the
Subsequent Borrowing Date, in an aggregate principal amount at any time
outstanding for all such Loans by such Lender not to exceed such Lender’s Pro
Rata Share of the Subsequent Commitment.

       

      (b)           Amounts
of Loans repaid may not be reborrowed.

       

      Section 2.2            Borrowing
Procedures.  (a) Notice From the
Borrowers.  The Borrowing shall be made on notice given by the
Borrowers to the Administrative Agent not later than 11:00 a.m. on the
third Business Day prior to the date of the proposed Borrowing.  Such
notice may be made in a writing substantially in the form of Exhibit B (a “Notice of Borrowing”)
duly completed or by telephone if confirmed promptly, but in any event within
one Business Day and prior to the Borrowing, with such a Notice of
Borrowing.

       

      (b)           Notice to Each
Lender.  The Administrative Agent shall give to each Lender
prompt notice of the Administrative Agent’s receipt of a Notice of Borrowing
and, if Loans are properly requested in such Notice of Borrowing, prompt notice
of the applicable interest rate.  Each Lender shall, before
11:00 a.m. on the date of the proposed Borrowing, make available to the
Administrative Agent at its address referred to in Section 11.12,
such Lender’s Pro Rata Share of the proposed Borrowing.  Upon
fulfillment or due waiver of the applicable conditions set forth in Section 3.1, the
Administrative Agent shall make such funds available to the
Borrowers.

       

      Section 2.3            Termination of the
Commitments.  All outstanding Closing Date Commitments shall
terminate on the Closing Date (after giving effect to the Borrowing), and all
outstanding Subsequent Commitments shall terminate on the Commitment Termination
Date (after giving effect to any Subsequent Borrowing on such
date).

      
        
           

        

        
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      Section 2.4            Repayment of
Loans.  The Borrowers promise to repay the Loans on the
Maturity Date and, on the last day of each Interest Period occurring during each
period set forth below in the amounts set forth below for such
period:

       

      
        	
                 
      

              	
                (i)

              	
                Between
      and including the Closing Date and February 1, 2011, one-twelfth of 5.0%
      of the aggregate principal amount of the Loans outstanding on the first
      day of such period;

              

      

      

      
        	
                 
      

              	
                (ii)

              	
                Between
      and including February 2, 2011 and February 1, 2012, one-twelfth of 9.25%
      of the aggregate principal amount of the Loans outstanding on the first
      day of such period;

              

      

      

      
        	
                 
      

              	
                (iii)

              	
                Between
      and including February 2, 2012 and February 1, 2013, one -twelfth of 13.5%
      of the aggregate principal amount of the Loans outstanding on the first
      day of such period; and

              

      

      

      
        	
                 
      

              	
                (iv)

              	
                Between
      and including February 2, 2013 and February 1, 2014, one -twelfth of
      17.75% of the aggregate principal amount of the Loans outstanding on the
      first day of such period;

              

      

      

      Section 2.5            Optional
Prepayments.  The Borrowers may prepay the outstanding
principal amount of any Loan in whole or in part at any time on or after the
first anniversary of the Closing Date (together with the Prepayment Premium and
any breakage costs that may be owing pursuant to Section 2.13(a)
after giving effect to such prepayment); provided, however, that each
partial prepayment that is not of the entire outstanding amount shall be in an
aggregate amount that is an integral multiple of $1,000,000.

       

      Section 2.6            Mandatory
Prepayments.

       

      (a)           Excess Cash
Flow.  (i) The Borrowers shall pay or cause to be paid to the
Administrative Agent, for each month during which any 2005-1 Securitization
Virgo Trigger Event, any 2007-1 Securitization Virgo Trigger Event or any
Mortgage Trigger Event occurs or is continuing, an amount equal to 50% (or 100%,
if more than one such event shall be continuing during any month) of Excess Cash
Flow for such month.  Such amounts of Excess Cash Flow shall be paid
no later than the last day of the first Interest Period that begins after the
Interest Period during which such 2005-1 Securitization Virgo Trigger Event,
2007-1 Securitization Virgo Trigger Event or Mortgage Trigger Event is
continuing.

       

      (ii)          The
Borrowers shall pay or cause to be paid to the Administrative Agent, for any
month during which the Loan to Value Ratio exceeds the maximum Loan to Value
Ratio, for the period in which such month falls, set forth in Section 5.2, an
amount equal to the lesser of (A) 100% of Excess Cash Flow for such month, and
(B) the amount of Excess Cash Flow for such month necessary to cause the Loan to
Value Ratio to be less than or equal to the maximum Loan to Value Ratio for such
period.  If no amount of Excess Cash flow is sufficient to cause the
Loan to Value Ratio to be less than or equal to the maximum Loan to Value Ratio
for such period, Borrowers may pay or cause to be paid to the Administrative
Agent, from funds other than Excess Cash Flow, the least such higher amount as
shall suffice to cause the Loan to Value Ratio to be less than or equal to the
maximum Loan to Value Ratio for such period, and no Prepayment Premium shall be
due therewith.

      
        
           

        

        
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      (b)           Equity and Debt
Issuances. Upon receipt on or
after the Closing Date by any Loan Party or any of its Subsidiaries of Net Cash
Proceeds arising from (i) the issuance or Disposition by CPM or Parent of its
own Stock (other than any issuance of common Stock of CPM or Parent occurring in
the ordinary course of business to any director, member of the management or
employee of such Person or its Subsidiaries), the Borrowers shall immediately
pay or cause to be paid to the Administrative Agent an amount equal to 35% of
such Net Cash Proceeds or (ii) the incurrence by CPM of Indebtedness described
in Section
8.1(b)(viii), the Borrowers shall immediately pay or cause to be paid to
the Administrative Agent an amount equal to 50% of such Net Cash
Proceeds.

       

      (c)           Asset Dispositions and
Property Loss Events. Upon receipt on or
after the Closing Date by any Loan Party or any of its Subsidiaries of Net Cash
Proceeds arising from (i) any Disposition by CPM of any of its property
(other than Dispositions of its own Stock, sales of inventory in the ordinary
course of business and sales of assets that are obsolete or no longer in use or
significant to CPM’s business) or (ii) any Property Loss Event with respect to
any property of CPM to the extent resulting, in the aggregate with all other
such Property Loss Events, in the receipt by any of them of Net Cash Proceeds in
excess of $1,000,000, the Borrowers shall immediately pay or cause to be paid to
the Administrative Agent an amount equal to 50% of such Net Cash Proceeds; provided, however, that, upon
any such receipt, as long as no Event of Default shall be continuing, any Group
Member may make Permitted Reinvestments with such Net Cash Proceeds and the
Borrowers shall not be required to make or cause such payment to the extent (x)
such Net Cash Proceeds are intended to be used to make Permitted Reinvestments
and (y) on each Reinvestment Prepayment Date for such Net Cash Proceeds, the
Borrowers shall pay or cause to be paid to the Administrative Agent an amount
equal to the Reinvestment Prepayment Amount applicable to such Reinvestment
Prepayment Date and such Net Cash Proceeds.

       

      (d)           Mortgage
Repurchase.  Upon receipt by any Loan Party of any “Repurchase
Price” (as defined in the Mortgage Sale, Contribution and Servicing Agreement)
pursuant to Section 3.5(a) of the Mortgage Sale, Contribution and Servicing
Agreement, the Borrowers shall immediately pay or cause to be paid to the
Administrative Agent an amount equal to 100% of such Repurchase
Price.

       

      (e)           Application of
Payments.  Any payments made to the Administrative Agent
pursuant to this Section 2.6
shall be applied to the Obligations in accordance with Section 2.9(b).

       

      Section 2.7            Interest.  (a)
Rate.  All
Loans and the outstanding amount of all other Obligations shall bear interest,
in the case of Loans, on the unpaid principal amount thereof from the date such
Loans are made and, in the case of such other Obligations, from the date such
other Obligations are due and payable until, in all cases, paid in full, except
as otherwise provided in Section 2.7(c) below,
at a rate per
annum equal to the sum of the Eurodollar Rate as in effect for the
applicable Interest Period and the Applicable Margin.

      
        
           

        

        
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      (b)           Payments.  Interest
accrued shall be payable in arrears (i) if accrued on the principal amount of
any Loan, (A) at maturity (whether by acceleration or otherwise), (B) upon the
payment or prepayment of the principal amount on which such interest has accrued
and (C) on the last day of each Interest Period applicable to such Loan and (ii)
if accrued on any other Obligation, on demand after the time such Obligation is
due and payable (whether by acceleration or otherwise).

       

      (c)           Default
Interest.  Notwithstanding the rates of interest specified in
Section 2.7(a)
above or elsewhere in any Loan Document, effective immediately upon the
occurrence of any Event of Default and for as long as such Event of Default
shall be continuing, the principal balance of all Obligations (including any
Obligation that bears interest by reference to the rate applicable to any other
Obligation) then due and payable shall bear interest at a rate that is 2.0%
per annum in
excess of the interest rate applicable to such Obligations from time to time,
payable on demand or, in the absence of demand, on the date that would otherwise
be applicable.

       

      (d)           No Usury Intended; Usury
Savings Clause.  In no event shall interest contracted for,
charged or received hereunder, plus any other charges in connection herewith
which constitute interest, exceed the maximum interest permitted by applicable
law.  The amounts of such interest or other charges previously paid to
the Lenders in excess of the amounts permitted by applicable law shall be
applied by the Lenders to reduce the principal of the Loans, or, at the option
of the Lenders, be refunded.  To the extent permitted by applicable
law, determination of the legal maximum amount of interest shall at all times be
made by amortizing, prorating, allocating and spreading in equal parts during
the period of the full stated term of the Obligations, all interest at any time
contracted for, charged or received from the Borrowers in connection with the
Obligations, so that the actual rate of interest on account of the Loans is
uniform throughout the term hereof.

       

      Section 2.8            Fees.  The
Borrowers shall pay to the Administrative Agent and its Related Persons its
reasonable and customary fees and expenses in connection with any payments made
pursuant to Section 2.13(a)
and the additional fees described in the Fee Letter.

       

      Section 2.9            Application of
Payments.  (a) Application of Voluntary
Prepayments.  Unless otherwise provided in this Section 2.9 or
elsewhere in any Loan Document, all payments and any other amounts received by
the Administrative Agent from or for the benefit of the Borrowers shall be
applied to repay the Obligations the Borrowers designate.

       

      (b)           Application of Mandatory
Prepayments.  Subject to the provisions of Section 2.9(c) below
with respect to the application of payments during the continuance of an Event
of Default, any payment made by the Borrowers to the Administrative Agent
pursuant to Section 2.6 or
any other prepayment of the Obligations required to be applied in accordance
with this Section
2.9(b) shall be applied first, to repay the
outstanding principal balance of the Loans and, then, any excess
shall be retained by the Borrowers.

      
        
           

        

        
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      (c)           Application of Payments
During an Event of Default.  Each Guarantor and each Borrower
hereby irrevocably waives, and agrees to cause each Loan Party and each other
Group Member to waive, the right to direct the application during the
continuance of an Event of Default of any and all payments in respect of any
Obligation and any proceeds of Collateral and agrees that, notwithstanding the
provisions of Section
2.9(a) above, the Administrative Agent may, and, upon either (A) the
direction of the Required Lenders or (B) the acceleration of any Obligation
pursuant to Section 9.2,
shall, apply all payments in respect of any Obligation, all funds on deposit in
any Collateral Account and all other proceeds of Collateral (i) first, to pay
Obligations in respect of any actual out-of-pocket cost or expense
reimbursements, fees or indemnities then due and payable to the Administrative
Agent in accordance with the Loan Documents, (ii) second, to pay
Obligations in respect of any actual out-of-pocket cost or expense
reimbursements, fees or indemnities then due and payable to the Lenders in
accordance with the Loan Documents, (iii) third, to pay
interest then due and payable in respect of the Loans, (iv) fourth, ratably to
the remaining unpaid principal of the Obligation (in order that will minimize
any fees and expenses payable pursuant to Section 2.13), and
fifth, to the
ratable payment of all other Obligations.

       

      (d)           Application of Payments
Generally.  All repayments of Loans shall be applied to reduce
ratably the remaining installments of such outstanding principal amounts of the
Loans in the stated order of their maturities.  If sufficient amounts
are not available to repay all outstanding Obligations described in any priority
level set forth in this Section 2.9, the
available amounts shall be applied, unless otherwise expressly specified herein,
to such Obligations ratably based on the proportion of the Secured Parties’
interest in such Obligations.  Any priority level set forth in this
Section 2.9 that
includes interest shall include all such interest, whether or not accruing after
the filing of any petition in bankruptcy or the commencement of any insolvency,
reorganization or similar proceeding, and whether or not a claim for post-filing
or post-petition interest is allowed in any such proceeding.

       

      Section 2.10          Payments and
Computations.  (a) Procedure.  The
Borrowers shall make each payment under any Loan Document not later than
2:00 p.m. on the day when due to the Administrative Agent by wire transfer
to the following account (or at such other account or by such other means to
such other address as the Administrative Agent shall have notified the Borrowers
in writing within a reasonable time prior to such payment) in immediately
available Dollars and without setoff or counterclaim:

       

      Citibank,
N.A.

      666 5th
Ave NY, NY 10103

      ABA:
021000089

      Credit
Account # : 9960049646

      In the
Name of: Virgo Service Company, LLC

       

      The
Administrative Agent shall promptly thereafter cause to be distributed
immediately available funds relating to the payment of principal, Prepayment
Premium, interest or fees to the Lenders, in accordance with the application of
payments set forth in Section 2.9.  The
Lenders shall make any payment under any Loan Document in immediately available
Dollars and without setoff or counterclaim.  Payments received by the
Administrative Agent after 2:00 p.m. shall be deemed to be received on the
next Business Day.

      
        
           

        

        
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      (b)           Computations of Interests
and Fees.  All computations of interest and of fees shall be
made by the Administrative Agent on the basis of a year of 360 days, in each
case for the actual number of days (including the first day but excluding the
last day) occurring in the period for which such interest and fees are
payable.  Each determination of an interest rate or the amount of a
fee hereunder shall be made by the Administrative Agent (including
determinations of a Eurodollar Rate in accordance with the definitions of
“Eurodollar Rate”) and shall be conclusive, binding and final for all purposes,
absent manifest error.

       

      (c)           Payment
Dates.  Whenever any payment hereunder shall be stated to be
due on a day other than a Business Day, the due date for such payment shall be
extended to the next succeeding Business Day without any increase in such
payment as a result of additional interest or fees; provided, however, that such
interest and fees shall continue accruing as a result of such extension of
time.

       

      (d)           Advancing
Payments.  Unless the Administrative Agent shall have received
notice from the Borrowers to the Lenders prior to the date on which any payment
is due hereunder that the Borrowers will not make such payment in full, the
Administrative Agent may assume that the Borrowers have made such payment in
full to the Administrative Agent on such date and the Administrative Agent may,
in reliance upon such assumption, cause to be distributed to each Lender on such
due date an amount equal to the amount then due such Lender.  If and
to the extent that the Borrowers shall not have made such payment in full to the
Administrative Agent, each Lender shall repay to the Administrative Agent on
demand such amount distributed to such Lender together with interest thereon (at
the Federal Funds Rate for the first Business Day and thereafter, at the rate
applicable to Loans) for each day from the date such amount is distributed to
such Lender until the date such Lender repays such amount to the Administrative
Agent.

       

      Section 2.11          Evidence of
Debt.  (a) Records of
Lenders.  Each Lender shall maintain in accordance with its
usual practice accounts evidencing Indebtedness of the Borrowers to such Lender
resulting from each Loan of such Lender from time to time, including the amounts
of principal and interest payable and paid to such Lender from time to time
under this Agreement.  In addition, each Lender having sold a
participation in any of its Obligations or having identified an SPV as such to
the Administrative Agent, acting as agent of the Borrowers solely for this
purpose and solely for tax purposes, shall establish and maintain at its address
referred to in Section 11.12
(or at such other address as such Lender shall notify the Borrowers) a record of
ownership, in which such Lender shall register by book entry (A) the name and
address of each such participant and SPV (and each change thereto, whether by
assignment or otherwise) and (B) the rights, interest or obligation of each
such participant and SPV in any Obligation and in any right to receive any
payment hereunder.

       

      (b)           Records of Administrative
Agent.  The Administrative Agent, acting as agent of the
Borrowers solely for tax purposes and solely with respect to the actions
described in this Section 2.11,
shall establish and maintain at its address referred to in Section 11.12
(or at such other address as the Administrative Agent may notify the Borrowers)
(A) a record of ownership (the “Register”) in which
the Administrative Agent agrees to register by book entry the interests
(including any rights to receive payment hereunder) of the Administrative Agent
and each Lender in the Loans, each of their obligations under this Agreement to
participate in each Loan, and any assignment of any such interest, obligation or
right and (B) accounts in the Register in accordance with its usual
practice in which it shall record (1) the names and addresses of the Lenders
(and each change thereto pursuant to Sections 2.15
and 11.2), (2)
the Commitments of each Lender, (3) the amount of each Loan and each funding of
any participation described in clause (A) above, (4)
the amount of any principal or interest due and payable or paid, and (5) any
other payment received by the Administrative Agent from any Borrower and its
application to the Obligations.

      
        
           

        

        
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      (c)           Registered
Obligations.  Notwithstanding anything to the contrary
contained in this Agreement, the Loans are registered obligations, the right,
title and interest of the Lenders and their assignees in and to such Loans shall
be transferable only upon notation of such transfer in the Register and no
assignment thereof shall be effective until recorded therein.  This
Section 2.11 and
Section 11.2
shall be construed so that the Loans are at all times maintained in “registered form”
within the meaning of Sections 163(f), 871(h)(2) and 881(c)(2) of the Code
and any related regulations (and any successor provisions).

       

      (d)           Prima Facie
Evidence.  The entries made in the Register and in the accounts
maintained pursuant to Sections 2.11(a) and
(b) above
shall, to the extent permitted by applicable Requirements of Law, be prima facie
evidence of the existence and amounts of the obligations recorded therein; provided, however, that no
error in such account and no failure of any Lender or the Administrative Agent
to maintain any such account shall affect the obligations of any Loan Party to
repay the Loans in accordance with their terms.  In addition, the Loan
Parties, the Administrative Agent, the Lenders shall treat each Person whose
name is recorded in the Register as a Lender for all purposes of this
Agreement.  Information contained in the Register with respect to any
Lender shall be available for inspection by the Borrowers, the Administrative
Agent, such Lender at any reasonable time and from time to time upon reasonable
prior notice.

       

      Section 2.12          Suspension of Eurodollar
Rate Option.  Notwithstanding any provision to the contrary in
this Article II, the
following shall apply:

       

      (a)           Interest Rate
Unascertainable, Inadequate or Unfair.  In the event that (A)
the Administrative Agent determines that adequate means do not exist for
ascertaining the applicable interest rates by reference to which the Eurodollar
Rate is determined or (B) the Required Lenders notify the Administrative Agent
that the Eurodollar Rate for any Interest Period will not adequately reflect the
cost to the Lenders of making or maintaining such Loans for such Interest Period
due to a change in or in the interpretation of, any Requirement of Law, the
Administrative Agent shall promptly so notify the Borrowers and the Lenders,
whereupon the obligation of each Lender to make or to continue Loans based upon
the Eurodollar Rate shall be suspended as provided in Section 2.12(c) below
until the Administrative Agent shall notify the Borrowers that the Required
Lenders have determined that the circumstances causing such suspension no longer
exist.

      
        
           

        

        
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      (b)           Illegality.  If
any Lender determines that the introduction of, or any change in or in the
interpretation of, any Requirement of Law after the date of this Agreement shall
make it unlawful, or any Governmental Authority shall assert that it is
unlawful, for any Lender or its applicable lending office to make Loans based
upon the Eurodollar Rate or to continue to fund or maintain Loans based upon the
Eurodollar Rate, then, on notice thereof and demand therefor by such Lender to
the Borrowers through the Administrative Agent, the obligation of such Lender to
make or to continue Loans based upon the Eurodollar Rate shall be suspended as
provided in Section
2.12(c) below until such Lender shall, through the Administrative Agent,
notify the Borrowers that it has determined that it may lawfully make Loans
based upon the Eurodollar Rate.

       

      (c)           Effect of
Suspension.  If the obligation of any Lender to make or to
continue Loans based upon the Eurodollar Rate is suspended, the “Eurodollar
Rate” shall be deemed to be a fixed rate of interest equal to 3.75% per
annum.

       

      Section 2.13          Breakage Costs; Increased
Costs; Capital Requirements.  (a) Breakage
Costs.  The Borrowers shall compensate each Lender, upon demand
from such Lender to such Borrower (with copy to the Administrative Agent), for
all Liabilities (including, in each case, those incurred by reason of the
liquidation or reemployment of deposits or other funds acquired by such Lender
to prepare to fund, to fund or to maintain the Loans of such Lender to the
Borrowers but excluding any loss of the Applicable Margin on the relevant Loans)
that such Lender may incur (A) to the extent that the proposed Borrowing of
Loans does not occur due to no fault of Administrative Agent or any Lender on a
date specified therefor in the Notice of Borrowing or in a similar request made
by telephone by the Borrowers, (B) to the extent that any Loan is paid (whether
through a scheduled, optional or mandatory prepayment) on a date that is not the
last day of the applicable Interest Period or (C) as a consequence of any
failure by the Borrowers to repay Loans when required by the terms
hereof.  For purposes of this Section 2.13(a), each
Lender shall be deemed to have funded each Loan made by it using a matching
deposit or other borrowing in the London interbank market.

       

      (b)           Increased
Costs.  If at any time any Lender determines that, after the
date hereof, the adoption of, or any change in or in the interpretation,
application or administration of, or compliance with, any Requirement of Law
(other than any imposition or increase of Eurodollar Reserve Requirements) from
any Governmental Authority shall have the effect of (i) increasing the cost to
such Lender of making, funding or maintaining any Loan or to agree to do so or
of participating, or agreeing to participate, in extensions of credit or (ii)
imposing any other cost to such Lender with respect to compliance with its
obligations under any Loan Document, then, upon demand by such Lender (with copy
to the Administrative Agent), the Borrowers shall pay to the Administrative
Agent for the account of such Lender amounts sufficient to compensate such
Lender for such increased cost.

       

      (c)           Increased Capital
Requirements.  If at any time any Lender determines that, after
the date hereof, the adoption of, or any change in or in the interpretation,
application or administration of, or compliance with, any Requirement of Law
(other than any imposition or increase of Eurodollar Reserve Requirements) from
any Governmental Authority regarding capital adequacy, reserves, special
deposits, compulsory loans, insurance charges against property of, deposits with
or for the account of, Obligations owing to, or other credit extended or
participated in by, any Lender or any similar requirement (in each case other
than any imposition or increase of Eurodollar Reserve Requirements) shall have
the effect of reducing the rate of return on the capital of such Lender’s (or
any corporation controlling such Lender) as a consequence of its obligations
under or with respect to any Loan Document to a level below that which, taking
into account the capital adequacy policies of such Lender or corporation, such
Lender or corporation could have achieved but for such adoption or change, then,
upon demand from time to time by such Lender (with a copy of such demand to the
Administrative Agent), the Borrowers shall pay to the Administrative Agent for
the account of such Lender amounts sufficient to compensate such Lender for such
reduction.

      
        
           

        

        
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      (d)           Compensation
Certificate.  Each demand for compensation under this Section 2.13
shall be accompanied by a certificate of the Lender claiming such compensation,
setting forth in reasonable detail the manner in which such amounts to be paid
hereunder shall have been determined, which certificate shall be conclusive,
binding and final for all purposes, absent manifest error.  In
determining such amount, such Lender may use any reasonable averaging and
attribution methods.  Each Lender shall give prompt notice to the
Borrower and the Administrative Agent of any event of which it has knowledge,
occurring after the date hereof, that it has determined will require
compensation by Borrower pursuant to this Section 2.13;
provided, however, that failure by such Lender to give such notice shall not
constitute a waiver of such party’s right to demand compensation
hereunder.

       

      Section 2.14          Taxes.  (a)
Payments Free and
Clear of Taxes.  Except as otherwise provided in this Section 2.14,
each payment by any Loan Party under any Loan Document shall be made free and
clear of all present or future taxes, levies, imposts, deductions, charges or
withholdings and all liabilities with respect thereto (and without deduction for
any of them) (collectively “Taxes”) other than
(i) Taxes measured by net income (including branch profits taxes) and franchise
taxes imposed in lieu of net income taxes, in each case imposed on any Secured
Party as a result of a present or former connection between such Secured Party
and the jurisdiction of the Governmental Authority imposing such Tax or any
political subdivision or taxing authority thereof or therein (other than such
connection arising from any Secured Party having executed, delivered or
performed its obligations or received a payment under, or enforced, any Loan
Document), (ii) U.S. federal withholding Taxes that are imposed on amounts
payable to a Secured Party to the extent that the obligation to withhold amounts
existed on the date that such Secured Party became a “Secured Party” under this
Agreement in the capacity under which such Secured Party makes a claim under
Section
2.14(b), except in each case to the extent such Secured Party is a direct
or indirect assignee (other than pursuant to Section 2.15) of any
other Secured Party that was entitled, at the time the assignment of such other
Secured Party became effective, to receive additional amounts under Section 2.14(b) or
(iii) Taxes that are directly attributable to the failure (other than as a
result of a change in any Requirement of Law) by any Secured Party to deliver
the documentation required to be delivered pursuant to Section 2.14(f) below
(collectively, “Excluded Taxes” and
all such non-Excluded Taxes, “Non-Excluded
Taxes”).

       

      (b)           Additional
Payments.  If any Taxes shall be required by law to be deducted
from or in respect of any amount payable under any Loan Document to any Secured
Party (i) in the case of Non-Excluded Taxes (as defined in Section 2.14(a)
above), such amount shall be increased as necessary to ensure that, after all
required deductions for Non-Excluded Taxes are made (including deductions
applicable to any increases to any amount under this Section 2.14),
such Secured Party receives on, an after-Tax basis, the amount it would have
received had no such deductions been made, (ii) the relevant Loan Party shall
make such deductions, (iii) the relevant Loan Party shall timely pay the full
amount deducted to the relevant taxing authority or other authority in
accordance with applicable Requirements of Law and (iv) within 30 days
after such payment is made, the relevant Loan Party shall deliver to the
Administrative Agent an original or certified copy of a receipt evidencing such
payment.

      
        
           

        

        
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      (c)           Other
Taxes.  In addition, each Borrower agrees to pay, and
authorizes the Administrative Agent to pay in its name, any stamp, documentary,
excise or property tax, charges or similar levies imposed by any applicable
Requirement of Law or Governmental Authority and all Liabilities with respect
thereto (including by reason of any delay in payment thereof), in each case
arising from the execution, delivery or registration of, or otherwise with
respect to, any Loan Document or any transaction contemplated therein
(collectively, “Other
Taxes”).  Within 30 days after the date of any payment of Taxes
or Other Taxes by any Loan Party, the Borrowers shall furnish to the
Administrative Agent, at its address referred to in Section 11.12,
the original or a certified copy of a receipt evidencing payment
thereof.  If the Administrative Agent or other Secured Party shall
become aware that it is entitled to claim a refund from a Governmental Authority
in respect of Non-Excluded Taxes or Other Taxes as to which it has been
indemnified by a Borrower, or with respect to which a Borrower has paid
additional amounts, pursuant to this Section 2.14, it
shall promptly notify such Borrower of the availability of such refund claim
(provided, however, that failure to give such notice shall not constitute a
waiver of such party’s right to demand compensation hereunder) and shall, within
30 days after receipt of a request by such Borrower, make a claim to such
Governmental Authority for such refund at such Borrower’s expense.  If
such party receives a refund in respect of any Non-Excluded Taxes or Other Taxes
as to which it had been indemnified by a Borrower or with respect to which such
Borrower had paid additional amounts pursuant to this Section 2.14, it
shall within 30 days from the date of such receipt, pay over such refund to such
Borrower.

       

      (d)           Indemnification.  The
Borrowers shall reimburse and indemnify, within 30 days after receipt of demand
therefor (with copy to the Administrative Agent), each Secured Party for all
Non-Excluded Taxes and Other Taxes (including any Non-Excluded Taxes and Other
Taxes imposed by any jurisdiction on amounts payable under this Section 2.14)
paid by such Secured Party and any Liabilities arising therefrom or with respect
thereto, whether or not such Non-Excluded Taxes or Other Taxes were correctly or
legally asserted.  A certificate of the Secured Party (or of the
Administrative Agent on behalf of such Secured Party) claiming any compensation
under this Section
2.14(d), setting forth the amounts to be paid thereunder and delivered to
the Borrowers with copy to the Administrative Agent, shall be conclusive,
binding and final for all purposes, absent manifest error.  In
determining such amount, the Administrative Agent and such Secured Party may use
any reasonable averaging and attribution methods.

       

      (e)           Mitigation.  Any
Lender claiming any additional amounts payable pursuant to this Section 2.14
shall use its reasonable efforts (consistent with its internal policies and
Requirements of Law) to change the jurisdiction of its lending office if such a
change would reduce any such additional amounts (or any similar amount that may
thereafter accrue) and would not, in the sole determination of such Lender, be
otherwise disadvantageous to such Lender.

      
        
           

        

        
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      (f)           Tax
Forms.  (i) Each of the Administrative Agent, each Lender, each
SPV and each participant, in each case that is not a Domestic Person (each a
“Non-U.S. Lender
Party”) that, at any of the following times, is entitled to an exemption
from United States withholding tax or, after a change in any Requirement of Law,
is subject to such withholding tax at a reduced rate under an applicable tax
treaty, shall (w) on or prior to the date such Non-U.S. Lender Party becomes a
“Non-U.S. Lender Party” hereunder, (x) upon reasonable request of Borrowers
or Administrative Agent, on or prior to the date on which any such form or
certification expires or becomes obsolete, (y) after the occurrence of any event
requiring a change in the most recent form or certification previously delivered
by it pursuant to this clause (i) and
(z) from time to time if otherwise reasonably requested by the Borrowers or the
Administrative Agent (or, in the case of a participant or SPV, the relevant
Lender), provide the Administrative Agent and the Borrowers (or, in the case of
a participant or SPV, the relevant Lender) with two properly completed originals
of each of the following, as applicable:  (A) Forms W-8ECI (claiming
exemption from U.S. withholding tax because the income is effectively connected
with a U.S. trade or business), W-8BEN (claiming exemption from, or a reduction
of, U.S. withholding tax under an income tax treaty) or any successor forms, (B)
in the case of a Non-U.S. Lender Party claiming exemption under Sections 871(h)
or 881(c) of the Code, Form W-8BEN (claiming exemption from U.S. withholding tax
under the portfolio interest exemption) or any successor form and a certificate
in form and substance acceptable to the Administrative Agent that such Non-U.S.
Lender Party is not (1) a “bank” within the meaning of Section 881(c)(3)(A) of
the Code, (2) a “10 percent shareholder” of any Borrower within the meaning of
Section 881(c)(3)(B) of the Code or (3) a “controlled foreign corporation”
described in Section 881(c)(3)(C) of the Code or (C) any other applicable
document prescribed by the IRS properly certifying as to the entitlement of such
Non-U.S. Lender Party to such exemption from United States withholding tax or
reduced rate with respect to all payments to be made to such Non-U.S. Lender
Party under the Loan Documents.  Unless the Borrowers and the
Administrative Agent have received forms or other documents satisfactory to them
indicating that payments under any Loan Document to or for a Non-U.S. Lender
Party are not subject to United States withholding tax, the Loan Parties and the
Administrative Agent shall withhold amounts required to be withheld by
applicable Requirements of Law from such payments at the applicable statutory
rate.

       

      (i)           Each
of the Administrative Agent, each Lender, each SPV and each participant, in each
case that is a Domestic Person (each a “U.S. Lender Party”)
shall (A) on or prior to the date such U.S. Lender Party becomes a “U.S. Lender
Party” hereunder, (B) upon reasonable request of Borrowers or Administrative
Agent, on or prior to the date on which any such form or certification expires
or becomes obsolete, (C) after the occurrence of any event requiring a change in
the most recent form or certification previously delivered by it pursuant to
this Section
2.14(f) and (D) from time to time if otherwise reasonably requested by
the Borrowers or the Administrative Agent (or, in the case of a participant or
SPV, the relevant Lender), provide the Administrative Agent and the Borrowers
(or, in the case of a participant or SPV, the relevant Lender) with two properly
completed originals of Form W-9 (certifying that such U.S. Lender Party is
entitled to an exemption from U.S. backup withholding tax) or any successor
form.

       

      (ii)          Each
Lender having sold a participation in any of its Obligations or identified an
SPV as such to the Administrative Agent shall collect from such participant or
SPV the documents described in this Section 2.14(f) and
provide them to the Administrative Agent.

      
        
           

        

        
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      Section 2.15          Substitution of
Lenders.  (a) Substitution
Right.  In the event that any Lender that is not an Affiliate
of the Administrative Agent (an “Affected Lender”),
(i) makes a claim under Section 2.13(b) or
(c), (ii)
notifies the Borrowers pursuant to Section 2.12(b)
that it becomes illegal for such Lender to continue to fund or make any Loan,
(iii) makes a claim for payment pursuant to Section 2.14(b),
(iv) fails to fund its portion of the Commitment as required hereunder, or (v)
does not consent to any amendment, waiver or consent to any Loan Document for
which the consent of the Required Lenders is obtained but that requires the
consent of other Lenders, the Borrowers may either pay in full such Affected
Lender with respect to amounts due with the consent of the Administrative Agent
or substitute for such Affected Lender any Lender or any Affiliate or Approved
Fund of any Lender or any other Person acceptable (which acceptance shall not be
unreasonably withheld or delayed) to the Administrative Agent (in each case, a
“Substitute
Lender”).

       

      (b)           Procedure.  To
substitute such Affected Lender or pay in full the Obligations owed to such
Affected Lender, the Borrowers shall deliver a notice to the Administrative
Agent and such Affected Lender.  The effectiveness of such payment or
substitution shall be subject to the delivery to the Administrative Agent by the
Borrowers (or, as may be applicable in the case of a substitution, by the
Substitute Lender (as defined in Section 2.15(a)
above) of (i) payment for the account of such Affected Lender, of, to the extent
accrued through, and outstanding on, the effective date for such payment or
substitution, all Obligations owing to such Affected Lender and (ii) in the case
of a substitution, (A) payment of the assignment fee set forth in Section 11.2(c)
and (B) an assumption agreement in form and substance satisfactory to the
Administrative Agent whereby the Substitute Lender shall, among other things,
agree to be bound by the terms of the Loan Documents.

       

      (c)           Effectiveness.  Upon
satisfaction of the conditions set forth in Section 2.15(b)
above, the Administrative Agent shall record such substitution or payment in the
Register, whereupon (i) in the case of any payment in full, such Affected
Lender’s Commitments shall be terminated and (ii) in the case of any
substitution, (A) such Affected Lender shall sell and be relieved of, and the
Substitute Lender shall purchase and assume, all rights and claims of such
Affected Lender under the Loan Documents, except that the Affected Lender shall
retain such rights expressly providing that they survive the repayment of the
Obligations and the termination of the Commitments, (B) the Substitute
Lender shall become a “Lender” hereunder and
(C) such Affected Lender shall execute and deliver to the Administrative Agent
an Assignment to evidence such substitution; provided, however, that the
failure of any Affected Lender to execute any such Assignment shall not render
such sale and purchase (or the corresponding assignment) invalid.

       

      ARTICLE III

      CONDITIONS
TO LOANS

       

      Section 3.1            Conditions Precedent to
Initial Loans.  The obligation of each Lender to make any Loan
on the Closing Date is subject to the satisfaction or due waiver of each of the
following conditions precedent:

       

      (a)           Certain
Documents.  The Administrative Agent shall have received on or
prior to the Closing Date each of the following, each dated the Closing Date
unless otherwise agreed by the Administrative Agent, in form and substance
satisfactory to the Administrative Agent and each Lender:

      
        
           

        

        
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      (i)          this
Agreement duly executed by Guarantors and the Borrowers;

       

      (ii)         the
Guaranty and Security Agreement, duly executed by each Guarantor and each
Borrower, together with (A) copies of UCC, Intellectual Property and other
appropriate search reports and of all effective prior filings listed therein,
together with evidence of the termination of such prior filings and other
documents with respect to the priority of the security interest of the
Administrative Agent in the Collateral, in each case as may be reasonably
requested by the Administrative Agent, (B) all documents representing all
Securities being pledged pursuant to such Guaranty and Security Agreement and
related undated powers or endorsements duly executed in blank and (C) all
Control Agreements that, in the reasonable judgment of the Administrative Agent,
are required for the Loan Parties to comply with the Loan Documents as of the
Closing Date, each duly executed by, in addition to the applicable Loan Party,
the applicable financial institution;

       

      (iii)        the
Warrant, duly executed by Parent;

       

      (iv)        the
Registration Rights Agreement, duly executed by Parent;

       

      (v)         the
Fee Letter, duly executed by the Borrowers;

       

      (vi)        copies
of the 2005-1 Securitization Documents and the 2007-1 Securitization
Documents;

       

      (vii)       copies
of each document executed in connection with the 2005-1 and 2007-1 Dispositions,
including all documentation described in Sections 9.02(b) and (c) of the 2005-1
Pooling and Servicing Agreement and the 2007-1 Pooling and Servicing
Agreement;

       

      (viii)      the
Mortgage Sale, Contribution and Servicing Agreement, duly executed by Mortgage
SPV and Servicer, and copies of each other document executed in connection with
the Mortgage Disposition;

       

      (ix)      
  a solvency certificate of a Responsible Officer of CPA and
CPM;

       

      (x)        
 duly executed favorable opinion of Locke Lord Bissell & Liddell LLP,
counsel to the Loan Parties, in New York, Texas, Nevada and Florida, addressed
to the Administrative Agent and the Lenders and addressing such matters as the
Administrative Agent may reasonably request;

       

      (xi)         a
copy of each Constituent Document of each Loan Party that is on file with any
Governmental Authority in any jurisdiction, certified as of a recent date by
such Governmental Authority, together with, if applicable, certificates
attesting to the good standing of such Loan Party in such jurisdiction and each
other jurisdiction where such Loan Party is qualified to do business as a
foreign entity or where such qualification is necessary (and, if appropriate in
any such jurisdiction, related tax certificates);

      
        
           

        

        
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      (xii)        a
certificate of the secretary or other officer of each Loan Party in charge of
maintaining books and records of such Loan Party certifying as to (A) the names
and signatures of each officer of such Loan Party authorized to execute and
deliver any Loan Document, (B) the Constituent Documents of such Loan Party
attached to such certificate are complete and correct copies of such Constituent
Documents as in effect on the date of such certification (or, for any such
Constituent Document delivered pursuant to Section 3.1(a)(xi)
above, that there have been no changes from such Constituent Document so
delivered) and (C) the resolutions of such Loan Party’s board of directors or
other appropriate governing body approving and authorizing the execution,
delivery and performance of each Loan Document to which such Loan Party is a
party;

       

      (xiii)       a
certificate of a Responsible Officer of each Borrower to the effect that each
condition set forth in Section 3.3(b)
has been satisfied;

       

      (xiv)      
insurance certificates in form and substance satisfactory to the Administrative
Agent demonstrating that the insurance policies required by Section 7.5 are in
full force and effect and have all endorsements required by such Section 7.5;
and

       

      (xv)        such
other documents and information as any Lender through the Administrative Agent
may reasonably request.

       

      (b)           Aggregate Loan
Amounts.  The aggregate principal amount of all Loans requested
to be advanced on the Closing Date shall not exceed the amount of the Closing
Date Commitment.

       

      (c)           Fee and
Expenses.  There shall have been paid to the Administrative
Agent, for the account of the Administrative Agent, its Related Persons or any
Lender, as the case may be, all fees and all reimbursements of costs or
expenses, in each case due and payable under any Loan Document on or before the
Closing Date.

       

      (d)           Consents.  Each
Group Member shall have received all consents and authorizations required
pursuant to any material Contractual Obligation with any other Person and shall
have obtained all Permits of, and effected all notices to and filings with, any
Governmental Authority, in each case, as may be necessary in connection with the
consummation of the transactions contemplated in any Loan Document, including
consent of CPH’s board of managers and independent manager, any consents
required under the 2005-1 Securitization Documents in connection with the 2005-1
Disposition and any consents required under the 2007-1 Securitization Documents
in connection with the 2007-1 Disposition.

      
        
           

        

        
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      (e)           Textron
Facility.  The Administrative Agent shall have received
evidence satisfactory to it and to the Lenders that the Amended and Restated
Agreement for Wholesale Financing (Finished Goods—Shared Credit Facility), dated
as of May 25, 2004 (as amended, restated, supplemented or modified through the
date hereof, the “Textron Facility”),
among Parent, Palm Harbor Manufacturing, L.P., a Texas limited partnership, Palm
Harbor Homes I, L.P., a Texas limited partnership, and Palm Harbor Marketing,
Inc., a Nevada corporation, as borrowers, the lenders party thereto and Textron
Financial Corporation, a Delaware corporation, as administrative agent, has been
amended (i) to extend the Maturity Date thereunder to the earlier of June 30,
2012 and one month prior to the date of the first repurchase option for the
holders of the Parent Convertible Notes, (ii) to increase the Maximum Net Loss
covenant thereunder to not greater than $15,000,000 (excluding any restructuring
charges) in respect of the fiscal quarter ending March 26, 2010 and any fiscal
quarter thereafter through September 24, 2010 and (iii) to repeal Sections 11
and 12 of the seventh amendment, dated December 29, 2009, to the Textron
Facility, with respect to CPA and any of its direct or indirect Subsidiaries and
the assets, property, and ownership thereof.

       

      Section 3.2            Conditions Precedent to
Subsequent Loan.  The obligation of each Lender to make any
Loan after the Closing Date is subject to the satisfaction of each of the
following conditions precedent:

       

      (a)           Timing.  All
such Loans shall be requested to be advanced on a single date (the “Subsequent Borrowing
Date”), which shall occur on or prior to the Commitment Termination
Date.

       

      (b)           Certain
Documents.  The Administrative Agent shall have received on or
prior to the Subsequent Borrowing Date each of the following, each dated the
Subsequent Borrowing Date unless otherwise agreed by the Administrative Agent,
in form and substance satisfactory to the Administrative Agent and each
Lender:

       

      (i)           A
Pledge Amendment (as defined in the Guaranty and Security Agreement), duly
executed by Parent, with respect to all of the Pledged Stock in Standard
Casualty, together with (A) copies of UCC search reports with respect to Parent,
and of all effective prior filings listed therein, together with evidence of the
termination of such prior filings and other documents with respect to the
priority of the security interest of the Administrative Agent in the Pledged
Stock in Standard Casualty, in each case as may be reasonably requested by the
Administrative Agent, and (B) all documents representing all Securities being
pledged pursuant to such Pledge Amendment and related undated powers or
endorsements duly executed in blank;

       

      (ii)         duly
executed favorable opinion of Locke Lord Bissell & Liddell LLP, counsel to
Parent, in New York and Texas, addressed to the Administrative Agent and the
Lenders and addressing such matters as the Administrative Agent may reasonably
request;

       

      (iii)        a
copy of each Constituent Document of Parent that is on file with any
Governmental Authority in any jurisdiction, certified as of a recent date by
such Governmental Authority, together with, if applicable, certificates
attesting to the good standing of Parent in such jurisdiction;

      
        
           

        

        
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      (iv)        a
certificate of the secretary or other officer in charge of maintaining books and
records of Parent, certifying as to (A) the names and signatures of each officer
of such Loan Party authorized to execute and deliver any Loan Document, (B) the
Constituent Documents of such Loan Party attached to such certificate are
complete and correct copies of such Constituent Documents as in effect on the
date of such certification (or, for any such Constituent Document delivered
pursuant to Section
3.2(b)(iii) above, that there have been no changes from such Constituent
Document so delivered) and (C) the resolutions of the board of directors or
other appropriate governing body of such Loan Party approving and authorizing
the execution, delivery and performance of each Loan Document to which such Loan
Party is a party;

       

      (v)         a
certificate of a Responsible Officer of each Borrower to the effect that each
condition set forth in Section 3.3(b)
has been satisfied; and

       

      (vi)        such
other documents and information as any Lender through the Administrative Agent
may reasonably request.

       

      (c)           Aggregate Loan
Amounts.  The aggregate principal amount of all Loans requested
to be advanced on the Subsequent Borrowing Date shall not exceed the amount of
the Subsequent Commitment.

       

      Section 3.3            Conditions Precedent to Each
Loan.  The obligation of each Lender on any date (including the
Closing Date) to make any Loan is subject to the satisfaction of each of the
following conditions precedent:

       

      (a)           Request.  The
Administrative Agent shall have received, to the extent required by Article II, a
written, timely and duly executed and completed Notice of
Borrowing.

       

      (b)           Representations and
Warranties; No Defaults.  The following statements shall be
true on such date, both before and after giving effect to such Loan: (i) the
representations and warranties set forth in any Loan Document shall be true and
correct on and as of the Closing Date and (ii) no Default shall be
continuing.

       

      Section 3.4            Determinations of Borrowing
Conditions.  For purposes of determining compliance with the
conditions specified in Section 3.1,
each Lender shall be deemed to be satisfied with each document and each other
matter required to be satisfactory to such Lender unless, prior to the Closing
Date, the Administrative Agent receives notice from such Lender specifying such
Lender’s objections and such Lender has not made available its Pro Rata Share of
the Borrowing scheduled to be made on the Closing Date.

       

      ARTICLE IV

      REPRESENTATIONS
AND WARRANTIES

       

      To induce
the Lenders and the Administrative Agent to enter into the Loan Documents, each
Guarantor and each Borrower (and, to the extent set forth in any other Loan
Document, each other Loan Party) represents and warrants to each of them each of
the following on and as of the date hereof, the date of the Notice of Borrowing
and the Closing Date:

      
        
           

        

        
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      Section 4.1            Corporate Existence;
Compliance with Law.  Each Group Member (a) is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
organization, (b) is duly qualified to do business as a foreign entity and in
good standing under the laws of each jurisdiction where such qualification is
necessary, except where the failure to be so qualified or in good standing would
not, in the aggregate, have a Material Adverse Effect, (c) has all
requisite power and authority and the legal right to own, pledge, mortgage and
operate its property, to lease or sublease any property it operates under lease
or sublease and to conduct its business as now or currently proposed to be
conducted, (d) is in compliance with its Constituent Documents, (e) is in
compliance with all applicable Requirements of Law except where the failure to
be in compliance would not have a Material Adverse Effect and (f) has all
necessary Permits from or by, has made all necessary filings with, and has given
all necessary notices to, each Governmental Authority having jurisdiction, to
the extent required for such ownership, lease, sublease, operation, occupation
or conduct of business, except where the failure to obtain such Permits, make
such filings or give such notices would not, in the aggregate, have a Material
Adverse Effect.  The Corporate Chart attached hereto as Schedule 4.1 is
correct and complete as of the date hereof and as of the Closing
Date.

       

      Section 4.2            Loan
Documents.  (a) Power and
Authority.  The execution, delivery and performance by each
Loan Party of the Loan Documents to which it is a party and the consummation of
the transactions contemplated therein (i) are within such Loan Party’s corporate
or similar powers and, at the time of execution thereof, have been duly
authorized by all necessary corporate and similar action (including, if
applicable, consent of holders of its Securities), (ii) do not (A) contravene
such Loan Party’s Constituent Documents, (B) violate any applicable Requirement
of Law, (C) conflict with, contravene, constitute a default or breach
under, or result in or permit the termination or acceleration of, any material
Contractual Obligation of any Loan Party or any of its Subsidiaries (including
other Loan Documents) other than those that would not, in the aggregate, have a
Material Adverse Effect and are not created or caused by, or a conflict, breach,
default or termination or acceleration event under, any Loan Document or
(D) result in the imposition of any Lien (other than a Permitted Lien) upon
any property of any Loan Party or any of its Subsidiaries and (iii) do not
require any Permit of, or filing with, any Governmental Authority or any consent
of, or notice to, any Person, other than (A) with respect to the Loan Documents,
the filings required to perfect the Liens created by the Loan Documents and (B)
those listed on Schedule 4.2 and
that have been, or will be prior to the Closing Date, obtained or made, copies
of which have been, or will be prior to the Closing Date, delivered to the
Administrative Agent, and each of which on the Closing Date will be in full
force and effect.

       

      (b)           Due Execution and
Delivery.  From and after its delivery to the Administrative
Agent, each Loan Document has been duly executed and delivered to the other
parties thereto by each Loan Party party thereto, is the legal, valid and
binding obligation of such Loan Party and is enforceable against such Loan Party
in accordance with its terms, except as such enforceability may be limited by
(i) applicable bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting the enforcement of creditors’ rights generally, and (ii)
general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law).

      
        
           

        

        
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      Section 4.3            Ownership of Group
Members.  Set forth on Schedule 4.3 is
a complete and accurate list showing, as of the Closing Date, for Parent, each
Group Member and each Subsidiary of any Group Member and each joint venture of
any of them, its jurisdiction of organization, the number of shares of each
class of Stock authorized (if applicable), the number outstanding on the Closing
Date and the number and percentage of the outstanding shares of each such class
owned (directly or indirectly) by each Group Member or Parent.  All
outstanding Stock of each of them has been validly issued, is fully paid and
non-assessable (to the extent applicable) and (except in the case of Parent) is
owned beneficially and of record by a Group Member (or, in the case of CPA, by
Parent) free and clear of all Liens other than the security interests created by
the Loan Documents and, in the case of joint ventures, Permitted
Liens.  There are no Stock Equivalents with respect to the Stock of
any Group Member or any Subsidiary of any Group Member or any joint venture of
any of them and, as of the Closing Date, except as set forth on Schedule 4.3,
there are no Stock Equivalents with respect to the Stock of
Parent.  Except as set forth on Schedule 4.3, there
are no Contractual Obligations or other understandings to which Parent, any
Group Member, any Subsidiary of any Group Member or any joint venture of any of
them is a party with respect to (including any restriction on) the issuance,
voting, Disposition or pledge of any Stock or Stock Equivalent of any Group
Member or any such Subsidiary or joint venture.

       

      Section 4.4            Financial
Statements.  (a) Each of (i) the audited balance sheets of (A)
Parent and its Subsidiaries (consolidated in accordance with GAAP) and (B) CPA
as at March 31, 2009 and the related statements of income, retained earnings and
cash flows of (x) Parent and its Subsidiaries (consolidated in accordance with
GAAP) and (y) CPA for the fiscal year then ended, certified by Ernst & Young
LLP, and (ii) subject to the absence of footnote disclosure and normal recurring
year-end audit adjustments, the unaudited balance sheets of (A) Parent and its
Subsidiaries (consolidated in accordance with GAAP) and (B) CPA as at September
30, 2009 and the related statements of income, retained earnings and cash flows
of (x) Parent and its Subsidiaries (consolidated in accordance with GAAP) and
(y) CPA for the six months then ended, copies of each of which have been
furnished to the Administrative Agent, fairly present in all material respects
the consolidated financial position, results of operations and cash flow of each
such Person as at the dates indicated and for the periods indicated in
accordance with GAAP.

       

      (b)           Mortgage
SPV has no liabilities or Contractual Obligations other than the Loan Documents
and the Mortgage Sale, Contribution and Servicing Agreement.  Prior to
the Closing Date, Mortgage SPV had no property; on the Closing Date, Mortgage
SPV has no property other than the Mortgages, the Class X Certificates, the
Class R Certificates and related rights.  On the Closing Date, none of
CPA or its Subsidiaries has any material liability or other obligation
(including Indebtedness, Guaranty Obligations, contingent liabilities and
liabilities for taxes, long-term leases and unusual forward or long-term
commitments) that is not reflected in the financial statements referred to in
Section 4.4(a)
above or in the notes thereto and not otherwise permitted by this Agreement and
(iii) since the date of the unaudited financial statements referenced in Section 4.4(a)(ii)
above, there has been no Disposition of any material property of CPA and its
Subsidiaries and no purchase or other acquisition of any material property
(other than the 2005-1 and 2007-1 Dispositions and the Mortgage
Disposition).

       

      (c)           The
Initial Projections have been prepared by the Loan Parties in light of the past
operations of Parent and its Subsidiaries and reflect past performance and
projections for the 15 month period beginning on January 1, 2010 on a quarterly
basis.  As of the Closing Date, the Initial Projections are based upon
estimates and assumptions stated therein, all of which the Loan Parties believe
to be reasonable and fair in light of conditions and facts known to the Loan
Parties as of the Closing Date and reflect the good faith, reasonable and fair
estimates by the Loan Parties of the future financial performance of Parent and
its Subsidiaries (consolidated in accordance with GAAP) and the other
information projected therein for the periods set forth
therein.

      
        
           

        

        
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      (d)           The
unaudited balance sheet of CPA and its Subsidiaries (consolidated in accordance
with GAAP) delivered to the Administrative Agent prior to the date hereof, has
been prepared as of December 31, 2009 and reflects as of such date the financial
condition of CPA and its Subsidiaries (consolidated in accordance with GAAP),
and the assumptions expressed therein are reasonable based on the information
available to CPA at such date.

       

      (e)           Mortgage
SPV has delivered to the Administrative Agent prior to the date hereof the most
recent “Monthly Report” (as defined in the 2005-1 Pooling and Servicing
Agreement and as defined in the 2007-1 Pooling and Servicing Agreement) prepared
pursuant to the 2005-1 Pooling and Servicing Agreement and the 2007-1 Pooling
and Servicing Agreement, respectively, each of which Monthly Reports is true and
correct in all material respects.

       

      Section 4.5            Material Adverse
Effect.  Since September 30, 2009, there have been no events,
circumstances, developments or other changes in facts that would, in the
aggregate, have a Material Adverse Effect.

       

      Section 4.6            Solvency.  Both
before and after giving effect to (a) the Loans made on or prior to the date
this representation and warranty is made, (b) the disbursement of the proceeds
of such Loans and (c) the payment and accrual of all transaction costs in
connection with the foregoing, both the Loan Parties taken as a whole and the
Borrowers are Solvent.

       

      Section 4.7            Litigation.  There
are no pending (or, to the knowledge of any Group Member, threatened) actions,
investigations, suits, proceedings, audits, claims, demands, orders or disputes
affecting any Borrower or any of its Subsidiaries with, by or before any
Governmental Authority other than those that would not reasonably be expected
to, in the aggregate, have a Material Adverse Effect.

       

      Section 4.8            Taxes.  All
federal, state, local and foreign income and franchise and other material tax
returns, reports and statements (collectively, the “Tax Returns”)
required to be filed by any Tax Affiliate have been filed with the appropriate
Governmental Authorities in all jurisdictions in which such Tax Returns are
required to be filed, all such Tax Returns are true and correct in all material
respects, and all taxes, charges and other impositions reflected therein or
otherwise due and payable have been paid prior to the date on which any
Liability may be added thereto for non-payment thereof except for (i) those the
amount of which is not individually or in the aggregate material, or (ii) those
being contested in good faith by appropriate proceedings diligently conducted
and for which adequate reserves are maintained on the books of the appropriate
Tax Affiliate in accordance with GAAP.  Other than sales and use tax
audits, no Tax Return is under audit or examination by any Governmental
Authority and no notice of such an audit or examination or any assertion of any
claim for Taxes has been given or made by any Governmental
Authority.  Proper and accurate amounts have been withheld by each Tax
Affiliate from their respective employees for all periods in full and complete
compliance with the tax, social security and unemployment withholding provisions
of applicable Requirements of Law and such withholdings have been timely paid to
the respective Governmental Authorities.  No Tax Affiliate has
participated in a “reportable transaction” within the meaning of Treasury
Regulation Section 1.6011-4(b) or has been a member of an affiliated,
combined or unitary group other than the group of which a Tax Affiliate is the
common parent.

      
        
           

        

        
          43

          
            

          

        

        
           

        

      

       

      Section 4.9            Margin
Regulations.  No Borrower is engaged in the business of
extending credit for the purpose of, and no proceeds of any Loan or other
extensions of credit hereunder will be used for the purpose of, buying or
carrying margin stock (within the meaning of Regulation U of the Federal Reserve
Board) or extending credit to others for the purpose of purchasing or carrying
any such margin stock, in each case in contravention of Regulation T, U or X of
the Federal Reserve Board.

       

      Section 4.10          No Burdensome Obligations;
No Defaults.  No Group Member is a party to any Contractual
Obligation, no Group Member has Constituent Documents containing obligations,
and, to the knowledge of any Group Member, there are no applicable Requirements
of Law, in each case the compliance with which would have, in the aggregate, a
Material Adverse Effect.  No Group Member (and, to the knowledge of
each Group Member, no other party thereto) is in breach of any Contractual
Obligation of any Group Member, other than those that would not, in the
aggregate, have a Material Adverse Effect.

       

      Section 4.11          Investment Company
Act.  No Group Member is an “investment company” or an
“affiliated person” of, or “promoter” or “principal underwriter” for, an
“investment company”, as such terms are defined in the Investment Company Act of
1940.

       

      Section 4.12          Foreign Assets Control
Regulations, Etc.    No Loan Party or Subsidiary
thereof (i) is a person named on the list of Specially Designated Nationals or
Blocked Persons maintained by the U.S. Department of the Treasury’s Office of
Foreign Assets Control, available at
http://www.treas.gov/offices/eotffc/ofac/sdn/index.html or as otherwise
published from time to time (a “Sanctioned Person”),
(ii) conducts business with any (A) agency of the government of, (B)
organization directly or indirectly controlled by, or (C) natural person
resident in, a country that is subject to a sanctions program identified on the
list maintained by the U.S. Department of the Treasury’s Office of Foreign
Assets Control, available at
http://www.treas.gov/offices/eotffc/ofac/sanctions/index.html or as otherwise
published from time to time, as such program may be applicable to such agency,
organization or person (“Sanctioned
Entities”), or (iii) derives any income from investments in, or
transactions with, Sanctioned Persons or Sanctioned Entities.

       

      Section 4.13          Labor
Matters.  There are no strikes, work stoppages, slowdowns or
lockouts existing, pending (or, to the knowledge of any Group Member,
threatened) against or involving any Group Member, except, for those that would
not, in the aggregate, have a Material Adverse Effect.  Except as set
forth on Schedule
4.13, as of the Closing Date, (a) there is no collective bargaining or
similar agreement with any union, labor organization, works council or similar
representative covering any employee of any Group Member, (b) no petition for
certification or election of any such representative is existing or pending with
respect to any employee of any Group Member and (c) no such representative has
sought certification or recognition with respect to any employee of any Group
Member.

      
        
           

        

        
          44

          
            

          

        

        
           

        

      

       

      Section 4.14          ERISA.  Schedule 4.14 sets
forth, as of the Closing Date, a complete and correct list of, and that
separately identifies, (a) all Title IV Plans, (b) all Multiemployer Plans and
(c) all material Benefit Plans.  Each Benefit Plan, and each trust
thereunder, intended to qualify for tax exempt status under Section 401 or 501 of the Code or
other Requirements of Law so qualifies.  Except for those that would
not, in the aggregate, have a Material Adverse Effect, (x) each Benefit Plan is
in compliance with applicable provisions of ERISA, the Code and other
Requirements of Law, (y) there are no existing or pending (or to the knowledge
of any Group Member, threatened) claims (other than routine claims for benefits
in the normal course), sanctions, actions, lawsuits or other proceedings or
investigation involving any Benefit Plan to which any Group Member incurs or
otherwise has or could have an obligation or any Liability and (z) no ERISA
Event is reasonably expected to occur.  On the Closing Date, no ERISA
Event has occurred in connection with which obligations and liabilities
(contingent or otherwise) remain outstanding.  No ERISA Affiliate
would have any Withdrawal Liability as a result of a complete withdrawal from
any Multiemployer Plan on the date this representation is made.

       

      Section 4.15          Environmental
Matters.  Except as set forth on Schedule 4.15, (a)
the operations of each Group Member are and have been in compliance with all
applicable Environmental Laws, including obtaining, maintaining and complying
with all Permits required by any applicable Environmental Law, other than
non-compliances that, in the aggregate, would not have a reasonable likelihood
of resulting in Material Environmental Liabilities, (b) no Group Member is party
to, and no Group Member and no real property currently (or to the knowledge of
any Group Member previously) owned, leased, subleased, operated or otherwise
occupied by or for any Group Member is subject to or the subject of, any
Contractual Obligation or any pending (or, to the knowledge of any Group Member,
threatened) order, action, investigation, suit, proceeding, audit, claim,
demand, dispute or notice of violation or of potential liability or similar
notice under or pursuant to any Environmental Law other than those that, in the
aggregate, are not reasonably likely to result in Material Environmental
Liabilities, (c) no Lien in favor of any Governmental Authority securing, in
whole or in part, Environmental Liabilities has attached to any property of any
Group Member and, to the knowledge of any Group Member, no facts, circumstances
or conditions exist that would reasonably be expected to result in any such Lien
attaching to any such property, (d) no Group Member has caused or suffered to
occur a Release of Hazardous Materials at, to or from any real property of any
Group Member and each such real property is free of contamination by any
Hazardous Materials except for such Release or contamination that would not
reasonably be expected to result, in the aggregate, in Material Environmental
Liabilities, (e) no Group Member (i) is or has been engaged in, or has permitted
any current or former tenant to engage in, operations, or (ii) knows of any
facts, circumstances or conditions, including receipt of any information request
or notice of potential responsibility under the United States Comprehensive
Environmental Response, Compensation, and Liability Act (42 U.S.C. §§ 9601 et
seq.) or similar Environmental Laws, that, in the aggregate, would have a
reasonable likelihood of resulting in Material Environmental Liabilities and (f)
each Group Member has made available to the Administrative Agent copies of all
existing environmental reports, reviews and audits and all documents pertaining
to actual or potential Environmental Liabilities, in each case to the extent
such reports, reviews, audits and documents are in their possession, custody or
control.

      
        
           

        

        
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      Section 4.16          Intellectual
Property.  Each Group Member owns or licenses or has the right
to use all Intellectual Property that is necessary for the operations of its
businesses, except as otherwise disclosed in writing to the Administrative Agent
prior to the Closing Date.  To the knowledge of each Group Member, (a)
the conduct and operations of the businesses of each Group Member does not
infringe, misappropriate, dilute, violate or otherwise impair any Intellectual
Property owned by any other Person and (b) no other Person has contested any
right, title or interest of any Group Member in, or relating to, any
Intellectual Property, other than, in each case, as would not reasonably be
expected to affect the Loan Documents and the transactions contemplated therein
and would not, in the aggregate, have a Material Adverse Effect.  In
addition, (x) there are no pending (or, to the knowledge of any Group
Member, threatened) actions, investigations, suits, proceedings, audits, claims,
demands, orders or disputes affecting any Group Member with respect to, (y) no
judgment or order regarding any such claim has been rendered by any competent
Governmental Authority, no settlement agreement or similar Contractual
Obligation has been entered into by any Group Member, with respect to and (z) no
Group Member knows or has any reason to know of any valid basis for any claim
based on, any such infringement, misappropriation, dilution, violation or
impairment or contest, other than, in each case, as would not, in the aggregate,
have a Material Adverse Effect.

       

      Section 4.17          Title; Real
Property.  Each Group Member has good and marketable fee simple
title to all owned real property and valid leasehold interests in all leased
real property, and owns all personal property, in each case that is purported to
be owned or leased by it, including those reflected on the financial statements
most recently delivered by the Borrowers under Section 4.4 or 6.1, and none of such
property is subject to any Lien except Permitted Liens.

       

      Section 4.18          Securitization
Representations and Warranties.  No event of termination or, to
the knowledge of CPM, event that, with the giving of notice or lapse of time or
both, would constitute an event of termination, has occurred and is continuing
under the 2005-1 Pooling and Servicing Agreement or the 2007-1 Pooling and
Servicing Agreement.  CPM is the “Servicer” under and as defined in
each of the 2005-1 Pooling and Servicing Agreement and the 2007-1 Pooling and
Servicing Agreement.

       

      Section 4.19          Full
Disclosure.  The information prepared or furnished by or on
behalf of any Group Member in connection with any Loan Document (including the
information contained in any financial statement delivered under Section 4.4 or 6.1 or Disclosure
Document) or the consummation of any other transaction contemplated therein,
does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements contained therein, in light of
the circumstances when made, not misleading; provided, however, that
projections contained therein are not to be viewed as factual and that actual
results during the periods covered thereby may differ from the results set forth
in such projections by a material amount.  All projections that are
part of such information (including those set forth in any Projections delivered
subsequent to the Closing Date) are based upon good faith estimates and stated
assumptions believed to be reasonable and fair as of the date made in light of
conditions and facts then known and, as of such date, reflect good faith,
reasonable and fair estimates of the information projected for the periods set
forth therein.

      
        
           

        

        
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    ARTICLE V

    FINANCIAL
COVENANTS

     

    Each
Guarantor and each Borrower (and, to the extent set forth in any other Loan
Document, each other Loan Party) agrees with the Lenders and the Administrative
Agent to each of the following, as long as any Obligation or any Commitment
remains outstanding:

     

    Section 5.1            Capital
Expenditures.  The Group Members (other than Mortgage SPV)
shall not incur, or permit to be incurred, Capital Expenditures in an aggregate
amount not exceeding $300,000 in any fiscal year for all such Group Members;
provided, however, that, to the
extent that actual Capital Expenditures incurred in any such fiscal year shall
be less than the maximum amount set forth above for such fiscal year (without
giving effect to the carryover permitted by this proviso), 50% of the difference
between such stated maximum amount and such actual Capital Expenditures shall,
in addition to any amount permitted above, be available for Capital Expenditures
in the next succeeding fiscal year; and provided, further, that any
Capital Expenditures incurred in any fiscal year shall be deemed to have been
incurred first, in respect of amounts
permitted under this Section 5.2
without giving effect to the preceding proviso and then, in respect of
any amount permitted solely by reason of the preceding
proviso.  Mortgage SPV shall not incur, or permit to be incurred, any
Capital Expenditures.

     

    Section 5.2            Maximum Loan to Value
Ratio.  The Borrowers shall not permit, for more than three
consecutive months during any period set forth below, the Loan to Value Ratio
during such period to exceed the maximum ratio set forth below opposite such
period:

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	 
      	 	
                                        MAXIMUM LOAN TO VALUE RATIO

                                      
	
                                        TIME PERIOD

                                      	 	
                                        Prior to the Subsequent

                                        Borrowing Date 

                                      	   	
                                        On and after the Subsequent

                                        Borrowing Date

                                      
	
                                        Closing
      Date through first day prior to first anniversary of Closing
      Date

                                      	 	
                                        0.36 to one

                                      	 	
                                        0.45 to one

                                      
	
                                        First
      anniversary of Closing Date through first day prior to second anniversary
      of Closing Date

                                      	 	
                                        0.35 to one

                                      	 	
                                        0.44 to one

                                      
	
                                        Second
      anniversary of Closing Date through first day prior to third anniversary
      of Closing Date

                                      	 	
                                        0.34 to one

                                      	 	
                                        0.43 to one

                                      
	
                                        Third
      anniversary of Closing Date through first day prior to fourth anniversary
      of Closing Date

                                      	 	
                                        0.33 to one

                                      	 	
                                        0.42 to one

                                      

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    ARTICLE VI

    REPORTING
COVENANTS

     

    Each
Guarantor and each Borrower (and, to the extent set forth in any other Loan
Document, each other Loan Party) agrees with the Lenders and the Administrative
Agent to each of the following, as long as any Obligation or any Commitment
remains outstanding:

    

    
      
        
           

        

        
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    Section 6.1            Financial
Statements.  The Borrowers shall deliver to the Administrative
Agent each of the following:

     

    (a)           Monthly
Reports.  As soon as available, each “Monthly Report” (as
defined in the 2005-1 Pooling and Servicing Agreement and as defined in the
2007-1 Pooling and Servicing Agreement) prepared pursuant to the 2005-1 Pooling
and Servicing Agreement and the 2007-1 Pooling and Servicing Agreement,
respectively, and each “Credit Agreement Agent Report” (as defined in the
Mortgage Sale, Contribution and Servicing Agreement) prepared pursuant to the
Mortgage Sale, Contribution and Servicing Agreement.

     

    (b)           Quarterly
Reports.  As soon as available, and in any event within 45 days
after the end of each of the first three fiscal quarters of each fiscal year,
the unaudited balance sheet of CPA and its Subsidiaries (consolidated in
accordance with GAAP), and after the Subsequent Borrowing Date, Standard
Casualty, as of the close of such fiscal quarter and related statements of
income and cash flow of CPA and its Subsidiaries (consolidated in accordance
with GAAP), and after the Subsequent Borrowing Date, Standard Casualty, for such
fiscal quarter and that portion of the fiscal year ending as of the close of
such fiscal quarter, setting forth in comparative form the figures for the
corresponding period in the prior fiscal year and the figures contained in the
latest Projections, in each case certified by a Responsible Officer of CPA or
Standard Casualty, as applicable, as fairly presenting in all material respects
the respective financial position, results of operations and cash flow of such
Persons as at the dates indicated and for the periods indicated in accordance
with GAAP (subject to the absence of footnote disclosure and normal year-end
audit adjustments).

     

    (c)           Annual
Reports.  As soon as available, and in any event within 90 days
after the end of each fiscal year, the balance sheet of CPA and its Subsidiaries
(consolidated in accordance with GAAP), and after the Subsequent Borrowing Date,
Standard Casualty, as of the end of such year and related statements of income,
stockholders’ equity and cash flow of CPA and its Subsidiaries (consolidated in
accordance with GAAP), and after the Subsequent Borrowing Date, Standard
Casualty, for such fiscal year, each prepared in accordance with GAAP, together
with a certification by the Group Members’ Accountants that (i) such financial
statements fairly present in all material respects the financial position,
results of operations and cash flow of CPA and its Subsidiaries (consolidated in
accordance with GAAP), and after the Subsequent Borrowing Date, Standard
Casualty, as at the dates indicated and for the periods indicated therein in
accordance with GAAP without qualification as to the scope of the audit or as to
going concern and without any other similar qualification and (ii) in the course
of the regular audit of the businesses of the Group Members, which audit was
conducted in accordance with the standards of the United States' Public Company
Accounting Oversight Board (or any successor entity), such Group Members’
Accountants have obtained no knowledge that a Default in respect of any
financial covenant contained in Article V is
continuing or, if in the opinion of the Group Members’ Accountants such a
Default is continuing, a statement as to the nature thereof.

    

    
      
        
           

        

        
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    (d)           Compliance
Certificate.  Together with each delivery of any financial
statement pursuant to Section 6.1(c), a
Compliance Certificate duly executed by a Responsible Officer of CPA that states
that no Default related to Section 5.1 is
continuing as of the date of delivery of such Compliance Certificate or, if a
Default is continuing, states the nature thereof and the action that the
Borrowers propose to take with respect thereto.  Together with each
delivery of any report pursuant to Section 6.1(a), a
Compliance Certificate duly executed by a Responsible Officer of CPA that states
that no Default related to Section 5.2 is
continuing as of the date of delivery of such Compliance Certificate or, if a
Default is continuing, states the nature thereof and the action that the
Borrowers propose to take with respect thereto.

     

    (e)           Monthly
Calculations.  Together with each delivery of any report
pursuant to Section
6.1(a), a certificate duly executed by a Responsible Officer of CPA
setting forth:

     

    (i)           with
respect to the 2005-1 Securitization, (A) the Average Sixty-Day Delinquency
Ratio (as defined in the 2005-1 Pooling and Servicing Agreement as in effect on
the date hereof) as of the most recent preceding Distribution Date (as defined
in the 2005-1 Pooling and Servicing Agreement as in effect on the date hereof,
the “2005-1
Distribution Date”), (B) the Current Realized Loss Ratio (as defined in
the 2005-1 Pooling and Servicing Agreement as in effect on the date hereof) as
of the most recent preceding 2005-1 Distribution Date and (C) the Cumulative
Realized Losses (as defined in the 2005-1 Pooling and Servicing Agreement as in
effect on the date hereof) as of the most recent preceding 2005-1 Distribution
Date, as a percentage of the Cut-Off Date Pool Principal Balance (as defined in
the 2005-1 Pooling and Servicing Agreement as in effect on the date hereof) for
such 2005-1 Distribution Date;

     

    (ii)          with
respect to the 2007-1 Securitization, (A) the Average Sixty-Day Delinquency
Ratio (as defined in the 2007-1 Pooling and Servicing Agreement as in effect on
the date hereof) as of the most recent preceding Distribution Date (as defined
in the 2007-1 Pooling and Servicing Agreement as in effect on the date hereof,
the “2007-1
Distribution Date”), (B) the Current Realized Loss Ratio (as defined in
the 2007-1 Pooling and Servicing Agreement as in effect on the date hereof) as
of the most recent preceding 2007-1 Distribution Date and (C) the Cumulative
Realized Losses (as defined in the 2007-1 Pooling and Servicing Agreement as in
effect on the date hereof) as of the most recent preceding 2007-1 Distribution
Date, as a percentage of the Cut-Off Date Pool Principal Balance (as defined in
the 2007-1 Pooling and Servicing Agreement as in effect on the date hereof) for
such 2007-1 Distribution Date;

     

    (iii)         with
respect to the Mortgages, (A) the Average Sixty-Day Delinquency Ratio (as
defined in the Mortgage Sale, Contribution and Servicing Agreement) as of the
last day of the month most recently ended, (B) the Current Realized Loss Ratio
(as defined in the Mortgage Sale, Contribution and Servicing Agreement) as of
such date, (C) the Cumulative Realized Losses (as defined in the Mortgage Sale,
Contribution and Servicing Agreement) as of the last day of the month most
recently ended, as a percentage of the Pool Principal Balance (as defined in the
Mortgage Sale, Contribution and Servicing Agreement) as of the last day of the
month most recently ended, and (D) whether the Cumulative Realized Losses Test
(as defined in the Mortgage Sale, Contribution and Servicing Agreement) is
satisfied as of the last day of the month most recently ended;

     

    (iv)    
    the Loan to Value Ratio as of the last day of the month
most recently ended; and

    

    
      
        
           

        

        
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    (v)     
    Excess Cash Flow for the month most recently
ended;

     

    in each
case, setting forth in reasonable detail the calculations used in determining
all such ratios and amounts; provided that
Borrowers shall provide such certificate separately within 20 days after the end
of each month, if the report to be delivered pursuant to Section 6.1(a) is not
available at such time.

     

    (f)           Other Collateral
Updates.  As part of the Compliance Certificate delivered
pursuant to Section
6.1(d) above, each in form and substance satisfactory to the
Administrative Agent, a certificate by a Responsible Officer of CPA that (i) the
Loan Parties have delivered all documents (including updated schedules as to
locations of Collateral and acquisition of Intellectual Property or real
property) they are required to deliver pursuant to any Loan Document on or prior
to the date of delivery of such Compliance Certificate and (ii) complete
and correct copies of all documents modifying any term of any Constituent
Document of any Group Member or any Subsidiary or joint venture thereof on or
prior to the date of delivery of such Compliance Certificate have been delivered
to the Administrative Agent or are attached to such certificate.

     

    (g)           Additional
Projections.  Promptly upon provision thereof to the board of
directors of Parent, CPA or CPM, in any fiscal year (and Standard Casualty, in
any fiscal year of or following the Subsequent Borrowing Date), forecasts
prepared by management of the such entities (i) for each fiscal quarter in such
next succeeding fiscal year and (ii) for each other succeeding fiscal year
through the fiscal year containing the Maturity Date, in each case including in
such forecasts (A) a projected year-end consolidated balance sheet, income
statement and statement of cash flows, (B) a statement of all of the material
assumptions on which such forecasts are based and (C) substantially the
same type of financial information as that contained in the Initial
Projections.

     

    (h)           Audit Reports, Management
Letters, Etc.  Together with each delivery of any financial
statement for any fiscal year pursuant to Section 6.1(c) above,
copies of each management letter, audit report or similar letter or report
received by any Group Member from any independent registered certified public
accountant (including the Group Members’ Accountants) in connection with such
financial statements or any audit thereof, each certified to be complete and
correct copies by a Responsible Officer of CPA as part of the Compliance
Certificate delivered in connection with such financial statements.

     

    (i)           Insurance.  Together
with each delivery of any financial statement for any fiscal year pursuant to
Section 6.1(c)
above, each in form and substance satisfactory to the Administrative Agent and
certified as complete and correct by a Responsible Officer of CPA as part of the
Compliance Certificate delivered in connection with such financial statements, a
summary of all material insurance coverage maintained as of the date thereof by
any Group Member, together with such other related documents and information as
the Administrative Agent may reasonably require.

    

    
      
        
           

        

        
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    Section 6.2            Other
Events.  The Borrowers shall give the Administrative Agent
notice of each of the following (which may be made by telephone if promptly
confirmed in writing) promptly after any Responsible officer of any Group Member
knows or has reason to know of it:  (a)(i) any Default and (ii) any
event that would have a Material Adverse Effect, specifying, in each case, the
nature and anticipated effect thereof and any action proposed to be taken in
connection therewith, (b) any “Event of Termination” as defined in the Mortgage
Contribution, Sale and Servicing Agreement, (c) any event (other than any event
involving loss or damage to property) reasonably expected to result in a
mandatory payment of the Obligations pursuant to Section 2.6,
stating the material terms and conditions of such transaction and estimating the
Net Cash Proceeds thereof or relevant Excess Cash Flow (together with supporting
materials demonstrating the calculation of such Excess Cash Flow), and (d) the
commencement of, or any material developments in, any action, investigation,
suit, proceeding, audit, claim, demand, order or dispute with, by or before any
Governmental Authority affecting any Group Member or any property of any Group
Member that (i) in the reasonable judgment of the Borrowers, exposes any
Group Member to liability in an aggregate amount in excess of $250,000 or (ii)
if adversely determined would have a Material Adverse Effect.

     

    Section 6.3            Copies of Notices and
Reports.  The Borrowers shall promptly deliver to the
Administrative Agent copies of each of the following:  (a) to the
extent that Parent is no longer a reporting company under Section 15(d) of the
Securities Exchange Act of 1934, as amended, all reports that Parent transmits
to its security holders generally, (b) any material document, and any financial
statement or report, transmitted or received pursuant to, or in connection with,
any Contractual Obligation governing Indebtedness of any Group Member and (c)
all reports or notices received or issued by any Group Member in connection with
the 2005-1 Securitization or the 2007-1 Securitization.

     

    Section 6.4            Taxes.  The
Borrowers shall give the Administrative Agent notice of each of the following
(which may be made by telephone if promptly confirmed in writing) promptly after
any Responsible Officer of any Group Member knows or has reason to know of
it:  (a) the creation, or filing with the IRS or any other
Governmental Authority, of any Contractual Obligation or other document
extending, or having the effect of extending, the period for assessment or
collection of any taxes with respect to any Tax Affiliate (excluding routine
extensions) and (b) the creation of any Contractual Obligation of any Tax
Affiliate, or the receipt of any request directed to any Tax Affiliate, to make
any adjustment under Section 481(a) of the Code, by reason of a change in
accounting method or otherwise, which would have a Material Adverse
Effect.

     

    Section 6.5            Labor
Matters.  The Borrowers shall give the Administrative Agent
notice of each of the following (which may be made by telephone if promptly
confirmed in writing), promptly after, and in any event within 30 days after any
Responsible Officer of any Group Member knows or has reason to know of
it:  (a) the commencement of any material labor dispute to which any
Group Member is or may become a party, including any strikes, lockouts or other
disputes relating to any of such Person’s plants and other facilities and (b)
the incurrence by any Group Member of any Worker Adjustment and Retraining
Notification Act or related or similar liability incurred with respect to the
closing of any plant or other facility of any such Person (other than, in the
case of this Section
6.5(b), those that would not, in the aggregate, have a Material Adverse
Effect).

    

    
      
        
           

        

        
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    Section 6.6            ERISA
Matters.  The Borrowers shall give the Administrative Agent
(a) on or prior to any filing by any ERISA Affiliate of any notice of
intent to terminate any Title IV Plan, a copy of such notice and (b)
promptly, and in any event within ten days, after any Responsible Officer of any
ERISA Affiliate knows or has reason to know that a request for a minimum funding
waiver under Section 412 of the Code has been filed with respect to any
Title IV Plan or Multiemployer Plan, a notice (which may be made by
telephone if promptly confirmed in writing) describing such waiver request and
any action that any ERISA Affiliate proposes to take with respect thereto,
together with a copy of any notice filed with the PBGC or the IRS pertaining
thereto.

     

    Section 6.7            Environmental
Matters.  (a) The Borrowers shall provide the Administrative
Agent notice of each of the following (which may be made by telephone if
promptly confirmed by the Administrative Agent in writing) promptly after any
Responsible Officer of any Group Member knows or has reason to know of it (and,
upon reasonable request of the Administrative Agent, documents and information
in connection therewith):  (i)(A) unpermitted Releases, (B) the
receipt by any Group Member of any notice of violation of or potential liability
or similar notice under, or the existence of any condition that would reasonably
be expected to result in violations of or liabilities under, any
Environmental Law or (C) the commencement of, or any material change to, any
action, investigation, suit, proceeding, audit, claim, demand, dispute alleging
a violation of or liability under any Environmental Law, that, for each of clauses (A), (B) and (C) above (and, in
the case of clause (C), if
adversely determined), in the aggregate for each such clause, could reasonably
be expected to result in Environmental Liabilities in excess of $500,000, (ii)
the receipt by any Group Member of notification that any property of any
Group Member is subject to any Lien in favor of any Governmental Authority
securing, in whole or in part, Environmental Liabilities and (iii) any proposed
acquisition or lease of real property (except as part of any Permitted
Acquisition) if such acquisition or lease would have a reasonable likelihood of
resulting in aggregate Environmental Liabilities in excess of
$500,000.

     

    (b)           Upon
request of the Administrative Agent, the Borrowers shall provide the
Administrative Agent a report containing an update as to the status of any
environmental, health or safety compliance, hazard or liability issue identified
in any document delivered to any Secured Party pursuant to any Loan Document or
as to any condition reasonably believed by the Administrative Agent to result in
material Environmental
Liabilities.

     

    Section 6.8            Other
Information.  The Borrowers shall provide the Administrative
Agent with such other documents and information with respect to the business,
property, condition (financial or otherwise), legal, financial or corporate or
similar affairs or operations of any Group Member as the Administrative Agent or
such Lender through the Administrative Agent may from time to time reasonably
request.

     

    ARTICLE VII

    AFFIRMATIVE
COVENANTS

     

    Each
Guarantor and each Borrower (and, to the extent set forth in any other Loan
Document, each other Loan Party) agrees with the Lenders and the Administrative
Agent to each of the following, as long as any Obligation or any Commitment
remains outstanding:

    

    
      
        
           

        

        
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    Section 7.1            Maintenance of Corporate
Existence.  Each Group Member shall (a) preserve and
maintain its legal existence, except in the consummation of transactions
expressly permitted by Sections 8.4 and
8.7, and (b)
preserve and maintain it rights (charter and statutory), privileges franchises
and Permits necessary or desirable in the conduct of its business, except, in
the case of this Section 7.1(b), where
the failure to do so would not, in the aggregate, have a Material Adverse
Effect.

     

    Section 7.2            Compliance with Laws,
Etc.  Each Group Member shall comply with all applicable
Requirements of Law, Contractual Obligations and Permits, except for such
failures to comply that would not, in the aggregate, have a Material Adverse
Effect.

     

    Section 7.3            Payment of
Obligations.  Each Group Member shall pay or discharge before
they become delinquent (a) all material claims, taxes, assessments, charges and
levies imposed by any Governmental Authority and (b) all other lawful claims
that if unpaid would, by the operation of applicable Requirements of Law, become
a Lien upon any property of any Group Member, except, in each case, for those
whose amount or validity is being contested in good faith by proper proceedings
diligently conducted and for which adequate reserves are maintained on the books
of the appropriate Group Member in accordance with GAAP.

     

    Section 7.4            Maintenance of
Property.  Each Group Member shall maintain and preserve (a) in
good working order and condition all of its property necessary in the conduct of
its business and (b) all rights, permits, licenses, approvals and privileges
(including all Permits) necessary, used or useful, whether because of its
ownership, lease, sublease or other operation or occupation of property or other
conduct of its business, and shall make all necessary or appropriate filings
with, and give all required notices to, Government Authorities, except for such
failures to maintain and preserve the items set forth in clauses (a) and (b) above that would
not, in the aggregate, have a Material Adverse Effect.

     

    Section 7.5            Maintenance of
Insurance.  Each Group Member shall (a) maintain or cause to be
maintained in full force and effect all policies of insurance of any kind with
respect to the property and businesses of the Group Members (including policies
of life, fire, theft, product liability, public liability, property damage,
other casualty, employee fidelity, workers’ compensation, business interruption
and employee health and welfare insurance) with financially sound and reputable
insurance companies or associations (in each case that are not Affiliates of any
Borrower) of a nature and providing such coverage as is sufficient and as is
customarily carried by businesses of the size and character of the business of
the Group Members and (b) cause all such liability insurance relating to any
property or business of any Group Member to name the Administrative Agent on
behalf of the Secured Parties as additional insured or loss payee, as
appropriate, and to provide that no cancellation, material addition in amount or
material change in coverage shall be effective until after 30 days’ notice
thereof to the Administrative Agent.

     

    Section 7.6            Keeping of
Books.  The Group Members shall keep proper books of record and
account, in which full, true and correct entries shall be made in accordance
with GAAP and all other applicable Requirements of Law of all financial
transactions and the assets and business of each Group Member.

    

    
      
        
           

        

        
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    Section 7.7            Access to Books and
Property.  Each Group Member shall permit the Administrative
Agent, the Lenders and any Related Person of any of them, at the expense of the
Borrowers (except that, unless an Event of Default has occurred and is
continuing, any inspection(s) in excess of one per year shall be at the expense
of the Administrative Agent or Lenders and provided that the cost of inspections
paid by Borrowers, except during an Event of Default, shall not exceed $25,000),
as often as reasonably requested, at any reasonable time during normal business
hours and with reasonable advance notice to (a) visit and inspect the property
of each Group Member and examine and make copies of and abstracts from, the
corporate (and similar), financial, operating and other books and records of
each Group Member, (b) discuss the affairs, finances and accounts of each Group
Member with any officer or director of any Group Member and (c) with the consent
of the Group Member, communicate directly with any registered certified public
accountants (including the Group Members’ Accountants) of any Group
Member.  Each Group Member shall authorize their respective registered
certified public accountants (including the Group Members’ Accountants) to
communicate directly with the Administrative Agent, the Lenders and their
Related Persons and to disclose to the Administrative Agent, the Lenders and
their Related Persons all financial statements and other documents and
information as they might have and the Administrative Agent or any Lender
reasonably requests with respect to any Group Member.

     

    Section 7.8            Environmental.  Each
Group Member shall comply with, and maintain its real property, whether
owned, leased, subleased or otherwise operated or occupied, in compliance with,
all applicable Environmental Laws (including by implementing any Remedial Action
necessary to achieve such compliance or that is required by orders and
directives of any Governmental Authority) except for failures to comply that
would not, in the aggregate, have a Material Adverse Effect.  Without
limiting the foregoing, if an Event of Default is continuing or if the
Administrative Agent at any time has a reasonable basis to believe that there
exist violations of Environmental Laws by any Group Member or that there exist
any Environmental Liabilities, in each case, that would have, in the aggregate,
a Material Adverse Effect, then each Group Member shall, promptly upon receipt
of request from the Administrative Agent, cause the performance of, and allow
the Administrative Agent and its Related Persons access to such real property
for the purpose of conducting, such environmental audits and assessments,
including subsurface sampling of soil and groundwater, and cause the preparation
of such reports, in each case as the Administrative Agent may from time to time
reasonably request.  Such audits, assessments and reports, to the
extent not conducted by the Administrative Agent or any of its Related Persons,
shall be conducted and prepared by reputable environmental consulting firms
reasonably acceptable to the Administrative Agent and shall be in form and
substance reasonably acceptable to the Administrative Agent.

     

    Section 7.9            Use of
Proceeds.  The proceeds of the Loans shall be used by the
Borrowers (and, to the extent distributed to Parent by any Borrower, Parent)
solely (a) for the payment of transaction costs, fees and expenses incurred in
connection with the Loan Documents and the transactions contemplated therein and
(b) for working capital and general corporate and similar purposes including,
without limitation, the repayment of intercompany and third party
Indebtedness.

     

    Section 7.10          Additional Collateral and
Guaranties.  To the extent not delivered to the Administrative
Agent on or before the Closing Date, each Group Member shall, promptly (and
promptly upon acquisition or formation of any Subsidiary or interest described
below), do each of the following, unless otherwise agreed by the Administrative
Agent:

    

    
      
        
           

        

        
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    (a)           deliver
to the Administrative Agent such modifications to the terms of the Loan
Documents (or, to the extent applicable as determined by the Administrative
Agent, such other documents), in each case in form and substance reasonably
satisfactory to the Administrative Agent and as the Administrative Agent deems
necessary or advisable in order to ensure the following:

     

    (i)           each
Subsidiary of any Loan Party that holds a direct or indirect interest in any
Stock of Mortgage SPV shall guaranty, as primary obligor and not as surety, the
payment of the Obligations of the Borrowers; and

     

    (ii)          each
Loan Party shall effectively grant to the Administrative Agent, for the benefit
of the Secured Parties, a valid and enforceable security interest in all of its
Stock and Stock Equivalents that comprise such Loan Party’s direct or indirect
interest in any Stock of Mortgage SPV, as security for the Obligations of such
Loan Party;

     

    (b)           deliver
to the Administrative Agent all documents representing all Stock, Stock
Equivalents and other Securities pledged pursuant to the documents delivered
pursuant to Section
7.10(a) above, together with undated powers or endorsements duly executed
in blank;

     

    (c)           to
take all other actions necessary or advisable to ensure the validity or
continuing validity of any guaranty for any Obligation or any Lien securing any
Obligation, to perfect, maintain, evidence or enforce any Lien securing any
Obligation or to ensure such Liens have the same priority as that of the Liens
on similar Collateral set forth in the Loan Documents executed on the Closing
Date (or, for Collateral located outside the United States, a similar priority
acceptable to the Administrative Agent), including the filing of UCC financing
statements in such jurisdictions as may be required by the Loan Documents or
applicable Requirements of Law or as the Administrative Agent may otherwise
reasonably request; and

     

    (d)           deliver
to the Administrative Agent legal opinions relating to the matters described in
this Section 7.10,
which opinions shall be as reasonably required by, and in form and substance and
from counsel reasonably satisfactory to, the Administrative Agent.

     

    Section 7.11          Deposit Accounts; Securities
Accounts and Collateral Accounts.  (a) Mortgage SPV shall (i)
deposit all of its cash in deposit accounts that are the subject of an effective
Control Agreement maintained with a financial institution approved by the
Administrative Agent, (ii) deposit all of its Cash Equivalents in
securities accounts that are the subject of an effective Control Agreement
maintained with a securities intermediary approved by the Administrative Agent,
in each case except for cash and Cash Equivalents the aggregate value of which
does not exceed $10,000 at any time.

     

    (b)           The
Administrative Agent shall not have any responsibility for, or bear any risk of
loss of, any investment or income of any funds in any Collateral
Account.  The Group Members and Persons claiming on behalf of or
through any Group Member shall have the right to use the funds held in any
Collateral Account unless and until an Event of Default or Trigger Event shall
have occurred and be continuing and the Administrative Agent shall have
otherwise instructed the depository institution maintaining the Collateral
Account in accordance with the terms of the applicable Control
Agreement.

    

    
      
        
           

        

        
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    (c)           Each
Group Member shall deposit, or cause to be deposited, into a Collateral Account,
as promptly as practicable (and not later than the second Business Day)
following receipt thereof by such Group Member or any Affiliate thereof from or
on behalf of any Obligor (as defined in the Mortgage Sale, Contribution and
Servicing Agreement), any amount paid with respect to any Mortgage.

     

    Section 7.12          Payment of
Taxes.  Each Tax Affiliate shall properly prepare and file all
material tax returns and shall timely pay and discharge (or cause to be paid and
discharged) all material taxes, assessments and governmental and other charges
or levies imposed upon it or upon its income or profits, or upon property
belonging to it; provided that such Tax Affiliate shall not be required to pay
any such tax, assessment, charge or levy that is being contested in good faith
by appropriate proceedings and for which the affected Tax Affiliate shall have
set aside on its books adequate reserves with respect thereto in conformance
with GAAP.

     

    Section 7.13          Post-Closing
Covenants.

     

    (a)           Notwithstanding
the terms of Section
3.1, the parties acknowledge that the conditions precedent set forth
below will not be satisfied on or prior to the Closing Date.  The
Administrative Agent and Lenders have agreed to waive the satisfaction thereof
as a condition precedent to the initial Loans, and in consideration thereof the
Loan Parties agree to fulfill such conditions in the time periods set forth
below (unless waived by Required Lenders):

     

    (i)           within
30 days after the Closing Date, the Loan Parties shall provide insurance
certificates in form and substance satisfactory to the Administrative Agent
demonstrating that the insurance policies required by Section 7.5 are in
full force and effect and have all endorsements required by such Section
7.5.

     

    ARTICLE VIII

    NEGATIVE
COVENANTS

     

    Each
Guarantor and each Borrower (and, to the extent set forth in any other Loan
Document, each other Loan Party) agrees with the Lenders and the Administrative
Agent to each of the following, as long as any Obligation or any Commitment
remains outstanding:

     

    Section 8.1            Indebtedness.  No
Group Member shall, directly or indirectly, incur or otherwise remain liable
with respect to or responsible for, any Indebtedness except for the
following:

     

    (a)           the
Obligations;

     

    (b)           in
the case of any Group Member other than Mortgage SPV:

     

    (i)           Indebtedness
existing on the date hereof and set forth on Schedule 8.1,
together with any Permitted Refinancing thereof;

    

    
      
        
           

        

        
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    (ii)          Indebtedness
consisting of Capitalized Lease Obligations (other than with respect to a lease
entered into as part of a Sale and Leaseback Transaction) and other Indebtedness
incurred by any such Group Member solely to finance the acquisition, repair,
improvement or construction of fixed or capital assets of such Group Member;
provided, however, that (A) the
aggregate outstanding principal amount of all such Indebtedness does not exceed
$1,000,000 at any time and (B) the principal amount of such Indebtedness
does not exceed the lower of the cost or fair market value of the property so
acquired or built or of such repairs or improvements financed with such
Indebtedness (each measured at the time such acquisition, repair, improvement or
construction is made);

     

    (iii)         Capitalized
Lease Obligations arising under Sale and Leaseback Transactions permitted under
Section 8.4(b)(ii);

     

    (iv)        
up to $23,700,000 (or such higher amount as is approved in writing by Required
Lenders) of intercompany loans made in cash by Parent to CPA or CPM on a
non-revolving basis; provided that the
existing amount of such loans as of the Closing Date may be paid and prepaid
without subordination so long as no Default has occurred and is continuing, and
provided further that any such
new loans made would be subject to the approval of Required Lenders and
subordinated to the payment of the Obligations on terms and conditions
satisfactory to the Administrative Agent;

     

    (v)        
 intercompany loans owing by such Group Member to any other Group Member
and constituting Permitted Investments of such Group Member;

     

    (vi)       
 obligations under Hedging Agreements entered into for the sole purpose of
hedging in the normal course of business and consistent with industry
practices;

     

    (vii)      
 Guaranty Obligations of any such Group Member with respect to Indebtedness
of any other such Group Member (other than Indebtedness described in Section 8.1(b)(i) or
(b)(ii) above,
for which Guaranty Obligations may be permitted to the extent set forth in Section 8.1(b)(i) or
(b)(ii));

     

    (viii)     
 any unsecured Indebtedness, in favor of any Person other than an Affiliate
of any Group Member, not described elsewhere in this Section 8.1; provided, however, that the
aggregate outstanding principal amount of all such unsecured Indebtedness shall
not exceed $1,000,000 at any time; and

     

    (ix)        
 any secured Indebtedness consisting of (A) loan purchase or repurchase
agreements, (B) warehouse lines of credit or (C) construction lines of credit,
in each case, in favor of any Person other than an Affiliate of any Group Member
and not described elsewhere in this Section 8.1; provided, however, that (i) the
aggregate outstanding principal amount of all such secured Indebtedness shall
not exceed $25,000,000 at any time and (ii) the collateral therefor shall not
include any of the Collateral.

    

    
      
        
           

        

        
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    Section 8.2            Liens.  No
Group Member shall incur, maintain or otherwise suffer to exist any Lien upon or
with respect to any of its property, whether now owned or hereafter acquired, or
assign any right to receive income or profits, except for the
following:

     

    (a)           Liens
created pursuant to any Loan Document;

     

    (b)           in
the case of any Group Member other than Mortgage SPV:

     

    (i)           Liens
(A) with respect to the payment of taxes, assessments or other governmental
charges or (B) of suppliers, carriers, materialmen, warehousemen, workmen or
mechanics and other similar Liens, in each case imposed by law or arising in the
ordinary course of business, and, for each of the Liens in clauses (A) and (B) above for amounts
that are not yet due or that are being contested in good faith by appropriate
proceedings diligently conducted and with respect to which adequate reserves or
other appropriate provisions are maintained on the books of such Person in
accordance with GAAP;

     

    (ii)          Liens
of a collection bank on items in the course of collection arising under Section
4-208 of the UCC as in effect in the State of New York or any similar section
under any applicable UCC or any similar Requirement of Law of any foreign
jurisdiction;

     

    (iii)         pledges
or cash deposits made in the ordinary course of business (A) in connection
with workers’ compensation, unemployment insurance or other types of social
security benefits (other than any Lien imposed by ERISA), (B) to secure the
performance of bids, tenders, leases (other than Capital Leases) sales or other
trade contracts (other than for the repayment of borrowed money) or
(C) made in lieu of, or to secure the performance of, surety, customs,
reclamation or performance bonds (in each case not related to judgments or
litigation);

     

    (iv)         judgment
liens (other than for the payment of taxes, assessments or other governmental
charges) securing judgments and other proceedings not constituting an Event of
Default under Section 9.1(e)
and pledges or cash deposits made in lieu of, or to secure the performance of,
judgment or appeal bonds in respect of such judgments and
proceedings;

     

    (v)          Liens
(A) arising by reason of zoning restrictions, easements, licenses, reservations,
restrictions, covenants, rights-of-way, encroachments, minor defects or
irregularities in title (including leasehold title) and other similar
encumbrances on the use of real property or (B) consisting of leases, licenses
or subleases granted by a lessor, licensor or sublessor on its property (in each
case other than Capital Leases) otherwise permitted under Section 8.4
that, for each of the Liens in clauses (A) and (B) above, do not, in
the aggregate, materially (x) impair the value or marketability of such real
property or (y) interfere with the ordinary conduct of the business conducted
and proposed to be conducted at such real property;

    

    
      
        
           

        

        
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    (vi)        
Liens of landlords and mortgagees of landlords (A) arising by statute or under
any lease or related Contractual Obligation entered into in the ordinary course
of business, (B) on fixtures and movable tangible property located on the real
property leased or subleased from such landlord, (C) for amounts not yet due or
that are being contested in good faith by appropriate proceedings diligently
conducted and (D) for which adequate reserves or other appropriate provisions
are maintained on the books of such Person in accordance with GAAP;

     

    (vii)        the
title and interest of a lessor or sublessor in and to personal property leased
or subleased (other than through a Capital Lease), in each case extending only
to such personal property;

     

    (viii)       Liens
existing on the date hereof and set forth on Schedule 8.2,
together with Liens on the property of any Borrower or any of its Subsidiaries
(other than Mortgage SPV) securing the Permitted Refinancing of any Indebtedness
secured by any such Lien without any change in the property subject to such
Liens;

     

    (ix)         purchase
money Liens on the property of any Borrower or any of its Subsidiaries (other
than Mortgage SPV) securing Indebtedness described in Section 8.1(b)(ii);
provided, however, that
(A) such Liens exist prior to the acquisition of, or attach substantially
simultaneously with, or within 90 days after, the acquisition, repair,
improvement or construction of, such property financed by such Indebtedness and
(B) such Liens do not extend to any property of any Group Member other than
the property (and proceeds thereof) acquired or built, or the improvements or
repairs financed by such Indebtedness;

     

    (x)          Liens
on any property of any Borrower or any of its Subsidiaries (other than Mortgage
SPV) securing any of their Indebtedness or their other liabilities; provided, however, that the
aggregate outstanding principal amount of all such Indebtedness and other
liabilities shall not exceed $2,000,000 at any time; and

     

    (xi)         Liens
securing Indebtedness permitted under Section
8.1(b)(ix).

     

    Section 8.3            Investments.  No
Group Member shall make or maintain, directly or indirectly, any Investment
except for the following:

     

    (a)           Investments
existing on the date hereof and set forth on Schedule 8.3;

     

    (b)           Investments
in cash and Cash Equivalents;

     

    (c)           
endorsements for collection or deposit in the ordinary course of business
consistent with past practice;

     

    (d)           the
case of any Group Member other than Mortgage SPV:

     

    (i)           (A)
extensions of trade credit (other than to Affiliates of any Borrower) arising or
acquired in the ordinary course of business and (B) Investments received in
settlements in the ordinary course of business of such extensions of trade
credit;

    

    
      
        
           

        

        
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    (ii)          Investments
made as part of a Permitted Acquisition;

     

    (iii)         loans
or advances to employees of any Borrower (other than Mortgage SPV) or any of its
Subsidiaries to finance travel, entertainment and relocation expenses and other
ordinary business purposes in the ordinary course of business as presently
conducted; provided, however, that the
aggregate outstanding principal amount of all loans and advances permitted under
this Section
8.3(d)(iii) shall not exceed $500,000 at any time;

     

    (iv)         secured
loans made and held for sale or investment by any Borrower or any of its
Subsidiaries (other than Mortgage SPV) in the ordinary course of its business;
provided, however, that (A) the
aggregate outstanding amount of all such Investments shall not exceed
$10,000,000 at any time and (B) unless made in the ordinary course of such Group
Member’s business, such Investments have been approved by the Administrative
Agent (which approval shall not be unreasonably withheld or delayed);
and

     

    (vii)       Guaranty
Obligations constituting Indebtedness permitted by Section
8.1.

     

    Section 8.4            Asset
Dispositions.  Parent shall not Dispose of any Stock of
CPA.  No Group Member shall Dispose of any of its property (other than
cash) or issue shares of its own Stock, except for the following, in the case of
any Group Member other than Mortgage SPV:

     

    (a)           In
each case to the extent entered into in the ordinary course of business and made
to a Person that is not an Affiliate of any Borrower, (i) Dispositions of Cash
Equivalents, (ii) property that has become obsolete, no longer in use or
insignificant to such Group Member’s business or worn out and (iii)
non-exclusive licenses of Intellectual Property;

     

    (b)           (i)
a true lease or sublease of real property not constituting Indebtedness and not
entered into as part of a Sale and Leaseback Transaction and (ii) a Disposition
of property pursuant to a Sale and Leaseback Transaction; provided, however, that the
aggregate fair market value (measured at the time of the applicable Disposition)
of all property covered by any outstanding Sale and Leaseback Transaction at any
time shall not exceed $1,000,000;

     

    (c)           (i)
any Disposition of any property (other than their own Stock or Stock
Equivalents) by any such Group Member to any other Group Member (other than
Mortgage SPV) to the extent any resulting Investment constitutes a Permitted
Investment and (ii) any Restricted Payment by any such Group Member permitted
under Section 8.5;

     

    (d)           (i)
any Disposition or issuance by any such Borrower or any such Subsidiary of any
Borrower of its own Stock to any Group Member (other than Mortgage SPV), provided, however, that the
proportion of such Stock and of each class of such Stock (both on an outstanding
and fully-diluted basis) held by the Loan Parties, taken as a whole, does not
change as a result of such Disposition or issuance and (ii) to the extent
necessary to satisfy any Requirement of Law in the jurisdiction of incorporation
of any Subsidiary of any Borrower, any Disposition or issuance by such
Subsidiary of its own Stock constituting directors’ qualifying shares or nominal
holdings;

    

    
      
        
           

        

        
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    (e)           as
long as no Default is continuing or would result therefrom, any Disposition of
property (other than as part of a Sale and Leaseback Transaction) of, or
Disposition or issuance of its own Stock by, any such Group Member (other than
CPA) for fair market value payable in cash upon such Disposition; provided, however, that the
aggregate consideration received during any fiscal year for all such
Dispositions shall not exceed $1,000,000; and

     

    (f)           To
the extent entered into in the ordinary course of such Group Member’s business
for fair market value and made to a Person that is not an Affiliate of any
Borrower, Dispositions of inventory, mortgages, loans, property obtained by
foreclosure or deed-in-lieu of foreclosure.

     

    Section 8.5            Restricted
Payments.  No Group Member shall directly or indirectly,
declare, order, pay, make or set apart any sum for any Restricted Payment except
for the following:

     

    (a)           In
the case of Mortgage SPV:

     

    (i)           any
Restricted Payment to any holder of a Class A membership interest in Mortgage
SPV;

     

    (ii)          any
Restricted Payment if, at the time of such Restricted Payment and after giving
effect thereto, (i) no 2005-1 Trigger Event, 2007-1 Trigger Event, Mortgage
Trigger Event or Event of Default has occurred and is continuing and (ii) an
amount equal to the sum of the next payments of interest and principal
(including without limitation any required prepayments thereof), and any other
amount then due under the Loan Documents, has been and remains deposited in a
Collateral Account.

     

    (b)           In
the case of any Group Member other than Mortgage SPV or CPA:

     

    (i)           
(A) Restricted Payments (x) by any Loan Party to any Loan Party and (y) by any
Group Member that is not a Loan Party to any Group Member and (B) dividends and
distributions by any Subsidiary of any Borrower that is not a Loan Party to any
holder of its Stock, to the extent made to all such holders ratably according to
their ownership interests in such Stock;

     

    (ii)          dividends
and distributions declared and paid on the common Stock of any Group Member
ratably to the holders of such common Stock and payable only in common Stock of
such Group Member; and

     

    (c)           In
the case of CPA, Restricted Payments in an amount of up to $3,000,000 (or such
higher amount as has been approved by the Administrative Agent) in the
aggregate.

     

    Section 8.6            Prepayment of
Indebtedness.  No Group Member shall (x) prepay, redeem,
purchase, defease or otherwise satisfy prior to the scheduled maturity thereof
any Indebtedness, (y) set apart any property for such purpose, whether directly
or indirectly and whether to a sinking fund, a similar fund or otherwise, or (z)
make any payment in violation of any subordination terms of any Indebtedness;
provided, however, that each
Group Member may, to the extent otherwise permitted by the Loan Documents, do
each of the following:

    

    
      
        
           

        

        
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    (a)           prepay
the Obligations;

     

    (b)           in
the case of any Group Member other than Mortgage SPV:

     

    (i)           consummate
a Permitted Refinancing;

     

    (ii)          while
no Default has occurred and is continuing, prepay, redeem, purchase, defease or
otherwise satisfy prior to the scheduled maturity thereof (or set apart any
property for such purpose) (A) in the case of any Group Member that is not a
Loan Party, any Indebtedness owing by such Group Member to any other Group
Member and (B) in the case of any Loan Party, any Indebtedness owing to any Loan
Party, in each case, in accordance with any terms of subordination applicable
thereto;

     

    (iii)         while
no Default has occurred and is continuing, make regularly scheduled or otherwise
required repayments (including mandatory prepayments) or redemptions of
Indebtedness and, in the case of Subordinated Debt, to the extent permitted by
the subordination provisions thereof; and

     

    (iv)         payment
of secured Indebtedness that becomes due as a result of the voluntary sale or
transfer of property or assets securing such Indebtedness.

     

    Section 8.7            Fundamental
Changes.  No Group Member shall (a) merge, consolidate or
amalgamate with any Person, (b) acquire all or substantially all of the Stock or
Stock Equivalents of any Person or (c) acquire any brand or all or substantially
all of the assets of any Person or all or substantially all of the assets
constituting any line of business, division, branch, operating division or other
unit operation of any Person, in each case except for the following, in the case
of any Group Member other than Mortgage SPV: (x) to consummate any
Permitted Acquisition, (y) the merger, consolidation or amalgamation of any
Subsidiary of any Borrower into any Loan Party (other than Mortgage SPV or
Parent) and (z) the merger, consolidation or amalgamation of any Group Member
(other than Mortgage SPV) for the sole purpose, and with the sole material
effect, of changing its State of organization within the United States; provided, however, that (A) in
the case of any merger, consolidation or amalgamation involving any Borrower,
such Borrower shall be the surviving Person and (B) in the case of any merger,
consolidation or amalgamation involving any other Loan Party (other than
Mortgage SPV), a Loan Party other than Mortgage SPV or Parent shall be the
surviving corporation and all actions required to maintain the perfection of the
Lien of the Administrative Agent on the Stock or property of such Loan Party
shall have been made.

     

    Section 8.8            Change in Nature of
Business.  (a) No Group Member shall carry on any business,
operations or activities (whether directly, through a joint venture, in
connection with a Permitted Acquisition or otherwise) substantially different
from those carried on by the Borrowers and their Subsidiaries at the date hereof
and business, operations and activities reasonably related thereto.

    

    
      
        
           

        

        
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    (b)           Mortgage
SPV shall not engage in any business, operations or activity, or hold any
property, other than holding the Mortgages, the Class R Certificates and the
Class X Certificates.

     

    Section 8.9            Transactions with
Affiliates.  No Group Member shall, except as otherwise
expressly permitted herein, enter into any other transaction directly or
indirectly with, or for the benefit of, any Affiliate of any Borrower that is
not a Loan Party (including Guaranty Obligations with respect to any obligation
of any such Affiliate), except for (a) in the case of any Group Member,
transactions in the ordinary course of business and permitted by such Group
Member’s Constituent Documents, on a basis no less favorable to such Group
Member as would be obtained in a comparable arm’s length transaction with a
Person not an Affiliate of any Borrower, (b) Restricted Payments, the proceeds
of which, if received by CPA, are used as required by Section 8.5, (c)
reasonable salaries and other reasonable director or employee compensation to
officers and directors of any Group Member and (d) in the case of Mortgage SPV,
the transactions contemplated by the 2005-1 Securitization Documents as in
effect on the date hereof, the 2007-1 Securitization Documents as in effect on
the date hereof and the Mortgage Sale, Contribution and Servicing
Agreement.

     

    Section 8.10          Third-Party Restrictions on
Indebtedness, Liens, Investments or Restricted Payments.  (a)
No Group Member (other than Mortgage SPV) shall incur or otherwise suffer to
exist or become effective or remain liable on or responsible for any Contractual
Obligation limiting the ability of (a) any Subsidiary of any Borrower to make
Restricted Payments to any Group Member, or any Subsidiary of any Borrower
(other than Mortgage SPV) to make Investments in, or repay Indebtedness or
otherwise Dispose of property to, any Group Member or (b) any Group Member to
incur or suffer to exist any Lien upon any property of any Group Member, whether
now owned or hereafter acquired, securing any of its Obligations (including any
“equal and ratable” clause and any similar Contractual Obligation requiring,
when a Lien is granted on any property, another Lien to be granted on such
property or any other property), except, for each of clauses (a) and (b) above, (x)
pursuant to the Loan Documents and (y) limitations on Liens (other than those
securing any Obligation) on any property whose acquisition, repair, improvement
or construction is financed by Indebtedness or Permitted Refinancings permitted
under Section
8.1(b)(i) or (b)(ii) set forth in
the Contractual Obligations governing such Indebtedness, Capitalized Lease
Obligations or Permitted Refinancing or Guaranty Obligations with respect
thereto.

     

    (b)           Mortgage
SPV shall not incur or otherwise suffer to exist or become effective or remain
liable on or responsible for any Contractual Obligation limiting its ability to
incur or suffer to exist any Lien upon any of its property, whether now owned or
hereafter acquired, securing any of its Obligations (including any “equal and
ratable” clause and any similar Contractual Obligation requiring, when a Lien is
granted on any property, another Lien to be granted on such property or any
other property), except pursuant to the Loan Documents.

     

    
      
        
        

      

      
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    Section 8.11          Modification of Certain
Documents.  No Group Member shall do any of the
following:

    

    (a)           waive
or otherwise modify any term of any Constituent Document of, or otherwise change
the capital structure of, any Group Member (including the terms of any of their
outstanding Stock or Stock Equivalents), in each case for any Group Member other
than Mortgage SPV, except for those modifications and waivers that (x) do not
elect, or permit the election, to treat the Stock or Stock Equivalents of any
limited liability company (or similar entity) as uncertificated and (y) do not
materially and adversely affect the rights and privileges of any Group Member
and do not materially and adversely affect the interests of any Secured Party
under the Loan Documents or in the Collateral;

     

    (b)           waive
or otherwise modify any term of any Subordinated Debt if the effect thereof on
such Subordinated Debt is to (i) increase the interest rate, (ii) shorten the
time of payments of principal and interest due, (iii) modify any subordination
provision, or (vi) modify any other term if such modification would materially
increase the obligations of any Group Member or confer additional material
rights to the holder of such Subordinated Debt in a manner materially adverse to
any Group Member or any Secured Party as a senior creditor; or

     

    (c)           modify
or supplement, or consent to the modification or supplement of, any term of any
2005-1 Securitization Document or any 2007-1 Securitization Document if such
modification or consent would materially and adversely affect the Lenders,
without the prior written consent of the Majority Lenders, which consent shall
not be unreasonably withheld or delayed.

     

    Section 8.12          Accounting Changes; Fiscal
Year.  No Group Member shall change its (a) accounting
treatment or reporting practices, except as required by GAAP or any Requirement
of Law, or (b) its fiscal year or its method for determining fiscal quarters or
fiscal months.

     

    Section 8.13          Margin
Regulations.  No Group Member shall use all or any portion of
the proceeds of any credit extended hereunder to purchase or carry margin stock
(within the meaning of Regulation U of the Federal Reserve Board) in
contravention of Regulation U of the Federal Reserve Board.

     

    Section 8.14          Compliance with
ERISA.  No ERISA Affiliate shall cause or suffer to exist (a)
any event that could result in the imposition of a Lien with respect to any
Title IV Plan or Multiemployer Plan or (b) any other ERISA Event, that would,
in the aggregate, have a Material Adverse Effect.  No Group Member
shall cause or suffer to exist any event that would  result in the
imposition of a Lien with respect to any Benefit Plan.

     

    Section 8.15          Hazardous
Materials.  No Group Member shall cause or suffer to exist any
Release of any Hazardous Material at, to or from any real property owned,
leased, subleased or otherwise operated or occupied by any Group Member that
would violate any Environmental Law, form the basis for any Environmental
Liabilities or otherwise adversely affect the value or marketability of any real
property (whether or not owned by any Group Member), other than such violations,
Environmental Liabilities and effects that would not, in the aggregate, have a
Material Adverse Effect.

     

    
      
        
        

      

      
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    ARTICLE IX

    EVENTS OF
DEFAULT

     

    Section 9.1            Definition.  Each
of the following shall be an Event of Default:

     

    (a)           the
Borrowers shall fail to pay (i) any principal of any Loan or any Prepayment
Premium when the same becomes due and payable or (ii) any interest on any Loan,
any fee under any Loan Document or any other Obligation (other than those set
forth in clause
(i) above) and, in the case of this clause (ii), such
non-payment continues for a period of five Business Days after the due date
therefor; or

     

    (b)           any
representation, warranty or certification made or deemed made by or on behalf of
any Loan Party in any Loan Document (except for any representation or warranty
that triggers a repurchase under Section 3.5(a) of the Mortgage Sale,
Contribution and Servicing Agreement, if such repurchase is consummated in
accordance with the Mortgage Sale, Contribution and Servicing Agreement,
including the time frames therein stipulated) or by or on behalf of any Loan
Party (or any Responsible Officer thereof) in writing in connection with any
Loan Document (including in any document delivered in connection with any Loan
Document) shall prove to have been incorrect in any material respect when made
or deemed made; or

     

    (c)           any
Loan Party shall fail to comply with (i) any provision of Article V, 6.2(a)(i), 6.2(b), 7.1, 7.9 or 7.13 or Article VIII,
(ii) any provision of Section 6.1 if, in
the case of this clause (ii), such
failure shall remain unremedied for five days after the earlier of (A) the date
on which a Responsible Officer of any Borrower becomes aware of such failure and
(B) the date on which notice thereof shall have been given to the Borrowers by
the Administrative Agent or the Required Lenders (any such written notice to be
identified as a “notice of default” and to refer specifically to this Section 9.1(c)), or
(iii) any other provision of any Loan Document if, in the case of this clause (iii), such
failure shall remain unremedied for 30 days after the earlier of (A) the date on
which a Responsible Officer of any Borrower becomes aware of such failure and
(B) the date on which notice thereof shall have been given to the Borrowers by
the Administrative Agent or the Required Lenders (any such written notice to be
identified as a “notice of default” and to refer specifically to this Section 9.1(c));
or

     

    (d)           (i)
any Group Member shall fail to make any payment when due (whether due because of
scheduled maturity, required prepayment provisions, acceleration, demand or
otherwise) on any Indebtedness of any Group Member (other than the Obligations
or any Hedging Agreement) having an outstanding principal amount of $1,000,000
or more, (ii) any other event shall occur or condition shall exist under any
Contractual Obligation relating to any such Indebtedness, if the effect of such
event or condition is to accelerate, or to permit the acceleration of, the
maturity of such Indebtedness or (iii) any such Indebtedness shall become or be
declared to be due and payable, or be required to be prepaid, redeemed, defeased
or repurchased (other than by a regularly scheduled required prepayment), prior
to the stated maturity thereof; provided, however, the
termination (other than in connection with any breach or default thereunder),
maturity or non-renewal of any existing or future warehouse, construction or
repurchase facility permitted under Section 8.1 shall not
constitute an Event of Default under this Section
9.1(d);

    

    
      
        
           

        

        
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    (e)           (i)
any Group Member shall generally not pay its debts as such debts become due,
shall admit in writing its inability to pay its debts generally or shall make a
general assignment for the benefit of creditors, (ii) any proceeding shall be
instituted by or against any Group Member seeking to adjudicate it a bankrupt or
insolvent or seeking liquidation, winding up, reorganization, arrangement,
adjustment, protection, relief, composition of it or its debts or any similar
order, in each case under any Requirement of Law relating to bankruptcy,
insolvency or reorganization or relief of debtors or seeking the entry of an
order for relief or the appointment of a custodian, receiver, trustee,
conservator, liquidating agent, liquidator, other similar official or other
official with similar powers, in each case for it or for any substantial part of
its property and, in the case of any such proceedings instituted against (but
not by or with the consent of) any Group Member, either such proceedings shall
remain undismissed or unstayed for a period of 60 days or more or any
action sought in such proceedings shall occur or (iii) any Group Member shall
take any corporate or similar action or any other action to authorize any action
described in clause
(i) or (ii) above;
or

     

    (f)           one
or more judgments, orders or decrees (or other similar process) shall be
rendered against any Group Member (i)(A) in the case of money judgments, orders
and decrees, involving an aggregate amount (excluding amounts adequately covered
by insurance payable to any Group Member, to the extent the relevant insurer has
not denied coverage therefor) in excess of $1,000,000 or (B) otherwise, that
would have, in the aggregate, a Material Adverse Effect and (ii)(A) enforcement
proceedings shall have been commenced by any creditor upon any such judgment,
order or decree or (B) such judgment, order or decree shall not have been
vacated or discharged for a period of 30 consecutive days and there shall not be
in effect (by reason of a pending appeal or otherwise) any stay of enforcement
thereof; or

     

    (g)           except
pursuant to a valid, binding and enforceable termination or release permitted
under the Loan Documents and executed by the Administrative Agent or as
otherwise expressly permitted under any Loan Document, (i) any Loan Document
shall, at any time after the delivery of such Loan Document, fail to be valid
and binding on, or enforceable against, any Loan Party party thereto, (ii) any
Loan Document purporting to grant a Lien to secure any Obligation shall, at any
time after the delivery of such Loan Document, fail to create a valid and
enforceable Lien on any Collateral purported to be covered thereby or such Lien
shall fail or cease to be a perfected Lien with the priority required in the
relevant Loan Document or (iii) any subordination provision set forth in any
subordination agreement in favor of Administrative Agent or any Lender shall, in
whole or in part, terminate or otherwise fail or cease to be valid and binding
on, or enforceable against, or any holder of the applicable Subordinated Debt
(or any such holder shall so state in writing), or any Group Member shall state
in writing that any of the events described in clause (i), (ii) or (iii) above shall
have occurred;

     

    (h)           there
shall occur any Change of Control without the prior written consent of the
Required Lenders; or

     

    (i)           Mortgage
SPV shall fail to comply in any material respect with any of its Constituent
Documents.

    

    
      
        
           

        

        
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    Section 9.2            Remedies.  During
the continuance of any Event of Default, the Administrative Agent may, and, at
the request of the Required Lenders, shall, in each case by notice to each
Borrower and in addition to any other right or remedy provided under any Loan
Document or by any applicable Requirement of Law, do each of the
following:  (a) declare all or any portion of the Commitments
terminated, whereupon the Commitments shall immediately be reduced by such
portion or, in the case of a termination in whole, shall terminate together with
any obligation any Lender may have hereunder to make any Loan and (b) declare
immediately due and payable all or part of any Obligation (including any accrued
but unpaid interest thereon), whereupon the same shall become immediately due
and payable, without presentment, demand, protest or further notice or other
requirements of any kind, all of which are hereby expressly waived by the
Borrowers (and, to the extent provided in any other Loan Document, other Loan
Parties); provided, however, that,
effective immediately upon the occurrence of the Events of Default specified in
Section 9.1(e)(ii),
(x) the Commitments of each Lender to make Loans shall automatically be
terminated and (y) each Obligation (including in each case any accrued all
accrued but unpaid interest thereon) shall automatically become and be due and
payable, without presentment, demand, protest or further notice or other
requirement of any kind, all of which are hereby expressly waived by the
Borrowers (and, to the extent provided in any other Loan Document, any other
Loan Party).

     

    ARTICLE X

    THE
ADMINISTRATIVE AGENT

     

    Section 10.1          Appointment and
Duties.  (a) Appointment of
Administrative Agent.  Each Lender hereby appoints Virgo
(together with any successor Administrative Agent pursuant to Section 10.9) as
the Administrative Agent hereunder and authorizes the Administrative Agent to
(i) execute and deliver the Loan Documents and accept delivery thereof on its
behalf from any Group Member, (ii) take such action on its behalf and to
exercise all rights, powers and remedies and perform the duties as are expressly
delegated to the Administrative Agent under such Loan Documents and (iii)
exercise such powers as are reasonably incidental thereto.

     

    (b)           Duties as Collateral and
Disbursing Agent.  Without limiting the generality of Section 10.01(a)
above, the Administrative Agent shall have the sole and exclusive right and
authority (to the exclusion of the Lenders), and is hereby authorized, to
(i) act as the disbursing and collecting agent for the Lenders with respect
to all payments and collections arising in connection with the Loan Documents
(including in any proceeding described in Section 9.1(e)(ii)
or any other bankruptcy, insolvency or similar proceeding), and each Person
making any payment in connection with any Loan Document to any Secured Party is
hereby authorized to make such payment to the Administrative Agent, (ii) file
and prove claims and file other documents necessary or desirable to allow the
claims of the Secured Parties with respect to any Obligation in any proceeding
described in Section 9.1(e)(ii)
or any other bankruptcy, insolvency or similar proceeding (but not to vote,
consent or otherwise act on behalf of such Secured Party), (iii) act as
collateral agent for each Secured Party for purposes of the perfection of all
Liens created by such agreements and all other purposes stated therein, (iv)
manage, supervise and otherwise deal with the Collateral, (v) take such other
action as is necessary or desirable to maintain the perfection and priority of
the Liens created or purported to be created by the Loan Documents, (vi) except
as may be otherwise specified in any Loan Document, exercise all remedies given
to the Administrative Agent and the other Secured Parties with respect to the
Collateral, whether under the Loan Documents, applicable Requirements of Law or
otherwise and (vii) execute any amendment, consent or waiver under the Loan
Documents on behalf of any Lender that has consented in writing to such
amendment, consent or waiver; provided, however, that the
Administrative Agent hereby appoints, authorizes and directs each Lender to act
as collateral sub-agent for the Administrative Agent, the Lenders for purposes
of the perfection of all Liens with respect to the Collateral, including any
deposit account maintained by a Loan Party with, and cash and Cash Equivalents
held by, such Lender, and may further authorize and direct the Lenders to take
further actions as collateral sub-agents for purposes of enforcing such Liens or
otherwise to transfer the Collateral subject thereto to the Administrative
Agent, and each Lender hereby agrees to take such further actions to the extent,
and only to the extent, so authorized and directed.

    

    
      
        
           

        

        
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    (c)           Limited
Duties.  Under the Loan Documents, the Administrative Agent (i)
is acting solely on behalf of the Lenders (except to the limited extent provided
in Section 2.11(b)
with respect to the Register and in Section 10.11),
with duties that are entirely administrative in nature, notwithstanding the use
of the defined term “Administrative Agent”, the terms “agent”, “administrative
agent” and “collateral agent” and similar terms in any Loan Document to refer to
the Administrative Agent, which terms are used for title purposes only, (ii) is
not assuming any obligation under any Loan Document other than as expressly set
forth therein or any role as agent, fiduciary or trustee of or for any Lender or
any other Secured Party and (iii) shall have no implied functions,
responsibilities, duties, obligations or other liabilities under any Loan
Document, and each Lender hereby waives and agrees not to assert any claim
against the Administrative Agent based on the roles, duties and legal
relationships expressly disclaimed in clauses (i) through
(iii)
above.

     

    Section 10.2          Binding
Effect.  Each Lender agrees that (i) any action taken by the
Administrative Agent or the Required Lenders (or, if expressly required hereby,
a greater proportion of the Lenders) in accordance with the provisions of the
Loan Documents, (ii) any action taken by the Administrative Agent in reliance
upon the instructions of Required Lenders (or, where so required, such greater
proportion) and (iii) the exercise by the Administrative Agent or the Required
Lenders (or, where so required, such greater proportion) of the powers set forth
herein or therein, together with such other powers as are reasonably incidental
thereto, shall be authorized and binding upon all of the Secured
Parties.

     

    Section 10.3          Use of
Discretion.  (a) No Action without
Instructions.  The Administrative Agent shall not be required
to exercise any discretion or take, or to omit to take, any action, including
with respect to enforcement or collection, except any action it is required to
take or omit to take (i) under any Loan Document or (ii) pursuant to
instructions from the Required Lenders (or, where expressly required by the
terms of this Agreement, a greater proportion of the Lenders).

     

    (b)           Right Not to Follow Certain
Instructions.  Notwithstanding Section 10.3(a)
above, the Administrative Agent shall not be required to take, or to omit to
take, any action (i) unless, upon demand, the Administrative Agent receives
an indemnification satisfactory to it from the Lenders (or, to the extent
applicable and acceptable to the Administrative Agent, any other Secured Party)
against all Liabilities that, by reason of such action or omission, may be
imposed on, incurred by or asserted against the Administrative Agent or any
Related Person thereof or (ii) that is, in the opinion of the Administrative
Agent or its counsel, contrary to any Loan Document or applicable Requirement of
Law.

     

    Section 10.4          Delegation of Rights and
Duties.  The Administrative Agent may, upon any term or
condition it specifies, delegate or exercise any of its rights, powers and
remedies under, and delegate or perform any of its duties or any other action
with respect to, any Loan Document by or through any trustee, co-agent,
employee, attorney-in-fact and any other Person (including any Secured
Party).  Any such Person shall benefit from this Article X to the
extent provided by the Administrative Agent.

    

    
      
        
           

        

        
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    Section 10.5          Reliance and
Liability.  (a) The Administrative Agent may, without incurring
any liability hereunder, (i) rely on the Register to the extent set forth in
Section 2.11,
(ii) consult with any of its Related Persons and, whether or not selected by it,
any other advisors, accountants and other experts (including advisors to, and
accountants and experts engaged by, any Loan Party) and (iii) rely and act upon
any document and information and any telephone message or conversation, in each
case believed by it to be genuine and transmitted, signed or otherwise
authenticated by the appropriate parties.

     

    (b)           None
of the Administrative Agent and its Related Persons shall be liable for any
action taken or omitted to be taken by any of them under or in connection with
any Loan Document, and each Lender, each Guarantor and each Borrower hereby
waives and shall not assert (and each Guarantor and each Borrower shall cause
each other Loan Party to waive and agree not to assert) any right, claim or
cause of action based thereon, except to the extent of liabilities resulting
primarily from the gross negligence or willful misconduct of the Administrative
Agent or, as the case may be, such Related Person (each as determined in a
final, non-appealable judgment by a court of competent jurisdiction) in
connection with the duties expressly set forth herein.  Without
limiting the foregoing, the Administrative Agent:

     

    (i)           shall
not be responsible or otherwise incur liability for any action or omission taken
in reliance upon the instructions of the Required Lenders or for the actions or
omissions of any of its Related Persons selected with reasonable care (other
than employees, officers and directors of the Administrative Agent, when acting
on behalf of the Administrative Agent);

     

    (ii)          shall
not be responsible to any Secured Party for the due execution, legality,
validity, enforceability, effectiveness, genuineness, sufficiency or value of,
or the attachment, perfection or priority of any Lien created or purported to be
created under or in connection with, any Loan Document;

     

    (iii)         makes
no warranty or representation, and shall not be responsible, to any Secured
Party for any statement, document, information, representation or warranty made
or furnished by or on behalf of any Related Person, in or in connection with any
Loan Document or any transaction contemplated therein, whether or not
transmitted by the Administrative Agent, including as to completeness, accuracy,
scope or adequacy thereof, or for the scope, nature or results of any due
diligence performed by the Administrative Agent in connection with the Loan
Documents; and

     

    (iv)         shall
not have any duty to ascertain or to inquire as to the performance or observance
of any provision of any Loan Document, whether any condition set forth in any
Loan Document is satisfied or waived, as to the financial condition of any Loan
Party or as to the existence or continuation or possible occurrence or
continuation of any Default or Event of Default and shall not be deemed to have
notice or knowledge of such occurrence or continuation unless it has received a
notice from the Borrowers, any Lender describing such Default or Event of
Default clearly labeled “notice of default” (in which case the Administrative
Agent shall promptly give notice of such receipt to all Lenders);

    

    
      
        
           

        

        
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    and, for
each of the items set forth in clauses (i) through
(iv) above,
each Lender, each Guarantor and each Borrower hereby waives and agrees not to
assert (and each Guarantor and each Borrower shall cause each other Loan Party
to waive and agree not to assert) any right, claim or cause of action it might
have against the Administrative Agent based thereon.

     

    Section 10.6          Administrative Agent
Individually.  The Administrative Agent and its Affiliates may
make loans and other extensions of credit to, acquire Stock and Stock
Equivalents of, engage in any kind of business with, any Loan Party or Affiliate
thereof as though it were not acting the Administrative Agent and may receive
separate fees and other payments therefor.  To the extent the
Administrative Agent or any of its Affiliates makes any Loan or otherwise
becomes a Lender hereunder, it shall have and may exercise the same rights and
powers hereunder and shall be subject to the same obligations and liabilities as
any other Lender and the terms “Lender”, “Required Lender”, and any similar
terms shall, except where otherwise expressly provided in any Loan Document,
include, without limitation, the Administrative Agent or such Affiliate, as the
case may be, in its individual capacity as Lender or as one of the Required
Lenders, respectively.

     

    Section 10.7          Lender Credit
Decision.  Each Lender acknowledges that it shall,
independently and without reliance upon the Administrative Agent, any Lender or
any of their Related Persons or upon any document (including the Disclosure
Documents) solely or in part because such document was transmitted by the
Administrative Agent or any of its Related Persons, conduct its own independent
investigation of the financial condition and affairs of each Loan Party and make
and continue to make its own credit decisions in connection with entering into,
and taking or not taking any action under, any Loan Document or with respect to
any transaction contemplated in any Loan Document, in each case based on such
documents and information as it shall deem appropriate.

     

    Section 10.8          Expenses;
Indemnities.  (a) Each Lender agrees to reimburse the
Administrative Agent and each of its Related Persons (to the extent not
reimbursed by any Loan Party) promptly upon demand for such Lender’s Pro Rata
Share of any costs and expenses (including fees, charges and disbursements of
financial, legal and other advisors and Other Taxes paid in the name of, or on
behalf of, any Loan Party) that may be incurred by the Administrative Agent or
any of its Related Persons in connection with the preparation, syndication,
execution, delivery, administration, modification, consent, waiver or
enforcement (whether through negotiations, through any work-out, bankruptcy,
restructuring or other legal or other proceeding or otherwise) of, or legal
advice in respect of its rights or responsibilities under, any Loan
Document.

    

    
      
        
           

        

        
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    (b)           Each
Lender further agrees to indemnify the Administrative Agent and each of its
Related Persons (to the extent not reimbursed by any Loan Party), from and
against such Lender’s aggregate Pro Rata Share of the Liabilities (including
taxes, interests and penalties imposed for not properly withholding or backup
withholding on payments made to on or for the account of any Lender) that may be
imposed on, incurred by or asserted against the Administrative Agent or any of
its Related Persons in any matter relating to or arising out of, in connection
with or as a result of any Loan Document or any other act, event or transaction
related, contemplated in or attendant to any such document, or, in each case,
any action taken or omitted to be taken by the Administrative Agent or any of
its Related Persons under or with respect to any of the foregoing; provided, however, that no
Lender shall be liable to the Administrative Agent or any of its Related Persons
to the extent such liability has resulted primarily from the gross negligence or
willful misconduct of the Administrative Agent or, as the case may be, such
Related Person, as determined by a court of competent jurisdiction in a final
non-appealable judgment or order.

     

    Section 10.9          Resignation of
Administrative Agent.  (a) The Administrative Agent may resign
at any time by delivering notice of such resignation to the Lenders and the
Borrowers, effective on the date set forth in such notice (which shall be at
least 30 days from the date of delivery of such notice).  If the
Administrative Agent delivers any such notice, the Required Lenders shall have
the right to appoint a successor Administrative Agent.  If, within 30
days after the retiring Administrative Agent having given notice of resignation,
no successor Administrative Agent has been appointed by the Required Lenders
that has accepted such appointment, then the retiring Administrative Agent may,
on behalf of the Lenders, appoint a successor Administrative Agent from among
the Lenders.  Each appointment under this Section 10.9(a) shall
be subject to the prior consent of the Borrowers, which may not be unreasonably
withheld but shall not be required during the continuance of a
Default.

     

    (b)           Effective
immediately upon its resignation, (i) the retiring Administrative Agent shall be
discharged from its duties and obligations under the Loan Documents, (ii) the
Lenders shall assume and perform all of the duties of the Administrative Agent
until a successor Administrative Agent shall have accepted a valid appointment
hereunder, (iii) the retiring Administrative Agent and its Related Persons shall
no longer have the benefit of any provision of any Loan Document other than with
respect to any actions taken or omitted to be taken while such retiring
Administrative Agent was, or because such Administrative Agent had been, validly
acting as Administrative Agent under the Loan Documents and (iv) subject to its
rights under Section 10.3,
the retiring Administrative Agent shall take such action as may be reasonably
necessary to assign to the successor Administrative Agent its rights as
Administrative Agent under the Loan Documents.  Effective immediately
upon its acceptance of a valid appointment as Administrative Agent, a successor
Administrative Agent shall succeed to, and become vested with, all the rights,
powers, privileges and duties of the retiring Administrative Agent under the
Loan Documents.

     

    Section 10.10        Release of Collateral or
Guarantors.  Each Lender hereby consents to the release and
hereby directs the Administrative Agent to release (or, in the case of Section 10.10(b)(ii)
below, release or subordinate) the following:

     

    (a)           any
Subsidiary of any Borrower from its guaranty of any Obligation of any Loan Party
if all of the Securities of such Subsidiary owned by any Group Member are
Disposed of in a Disposition permitted under the Loan Documents (including
pursuant to a waiver or consent), to the extent that, after giving effect to
such Disposition, such Subsidiary would not be required to guaranty any
Obligations pursuant to Section 7.10;
and

    

    
      
        
           

        

        
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    (b)           any
Lien held by the Administrative Agent for the benefit of the Secured Parties
against (i) any Collateral that is Disposed of by a Loan Party in a Disposition
permitted by the Loan Documents (including pursuant to a valid waiver or
consent), to the extent all Liens required to be granted in such Collateral
pursuant to Section 7.10
after giving effect to such Disposition have been granted, (ii) any property
subject to a Lien described in Section 8.2(b)(ix)
and (iii) all of the Collateral and all Loan Parties, upon (A) termination of
the Commitments, (B) payment and satisfaction in full of all Loans and all other
Obligations that the Administrative Agent has been notified in writing are then
due and payable, (C) deposit of cash collateral with respect to all contingent
Obligations, in amounts and on terms and conditions and with parties
satisfactory to the Administrative Agent and each Indemnitee that is owed such
Obligations and (D) to the extent requested by the Administrative Agent, receipt
by the Secured Parties of liability releases from the Loan Parties each in form
and substance acceptable to the Administrative Agent.

     

    Each
Lender hereby directs the Administrative Agent, and the Administrative Agent
hereby agrees, upon receipt of reasonable advance notice from the Borrowers, to
execute and deliver or file such documents and to perform other actions
reasonably necessary to release the guaranties and Liens when and as directed in
this Section 10.10.

     

    Section 10.11        Additional Secured
Parties.  The benefit of the provisions of the Loan Documents
directly relating to the Collateral or any Lien granted thereunder shall extend
to and be available to any Secured Party that is not a Lender as long as, by
accepting such benefits, such Secured Party agrees, as among the Administrative
Agent and all other Secured Parties, that such Secured Party is bound by (and,
if requested by the Administrative Agent, shall confirm such agreement in a
writing in form and substance acceptable to the Administrative Agent) this Article X and
Sections 11.8,
11.9 and 11.20 and the
decisions and actions of the Administrative Agent and the Required Lenders (or,
where expressly required by the terms of this Agreement, a greater proportion of
the Lenders) to the same extent a Lender is bound; provided, however, that,
notwithstanding the foregoing, (a) such Secured Party shall be bound by Section 10.8
only to the extent of Liabilities, costs and expenses with respect to or
otherwise relating to the Collateral held for the benefit of such Secured Party,
in which case the obligations of such Secured Party thereunder shall not be
limited by any concept of Pro Rata Share or similar concept, (b) each of the
Administrative Agent, the Lenders shall be entitled to act at its sole
discretion, without regard to the interest of such Secured Party, regardless of
whether any Obligation to such Secured Party thereafter remains outstanding, is
deprived of the benefit of the Collateral, becomes unsecured or is otherwise
affected or put in jeopardy thereby, and without any duty or liability to such
Secured Party or any such Obligation and (c) such Secured Party shall not have
any right to be notified of, consent to, direct, require or be heard with
respect to, any action taken or omitted in respect of the Collateral or under
any Loan Document.

     

    ARTICLE XI

    MISCELLANEOUS

    

    Section 11.1          Amendments, Waivers,
Etc.  (a) No amendment or waiver of any provision of any Loan
Document (other than the Fee Letter and the Control Agreements) and no consent
to any departure by any Loan Party therefrom shall be effective unless the same
shall be in writing and signed (1) in the case of an amendment, consent or
waiver to cure any ambiguity, omission, defect or inconsistency or granting a
new Lien for the benefit of the Secured Parties or extending an existing Lien
over additional property, by the Administrative Agent and the Borrowers, (2) in
the case of any other waiver or consent, by the Required Lenders (or by the
Administrative Agent with the consent of the Required Lenders) and (3) in the
case of any other amendment, by the Required Lenders (or by the Administrative
Agent with the consent of the Required Lenders) and the Borrowers; provided, however, that no
amendment, consent or waiver described in clause (2) or
(3) above
shall, unless in writing and signed by each Lender directly affected thereby (or
by the Administrative Agent with the consent of such Lender), in addition to any
other Person the signature of which is otherwise required pursuant to any Loan
Document, do any of the following:

     

    
      
        
        

      

      
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    (i)           waive
any condition specified in Section 3.1,
except any condition referring to any other provision of any Loan
Document;

     

    (ii)          increase
the Commitment of such Lender or subject such Lender to any additional
obligation;

     

    (iii)         reduce
(including through release, forgiveness, assignment or otherwise) (A) the
principal amount of, the interest rate on, or any obligation of the Borrowers to
repay (whether or not on a fixed date), any outstanding Loan owing to such
Lender, or (B) any fee or accrued interest payable to such Lender; provided, however, that this
clause (iii)
does not apply to (x) any change to any provision increasing any interest
rate or fee during the continuance of an Event of Default or to any payment of
any such increase or (y) any modification to any financial covenant set forth in
Article V
or in any definition set forth therein or principally used therein;

     

    (iv)         waive
or postpone any scheduled maturity date or other scheduled date fixed for the
payment, in whole or in part, of principal of or interest on any Loan or fee
owing to such Lender; provided, however, that this
clause (iv)
does not apply to any change to mandatory prepayments, including those required
under Section 2.6, or
to the application of any payment, including as set forth in Section 2.9;

     

    (v)    
     except as provided in Section 10.10,
release all or substantially all of the Collateral or any Guarantor from its
guaranty of any Obligation of the Borrowers;

     

    (vi)         reduce
or increase the proportion of Lenders required for the Lenders (or any subset
thereof) to take any action hereunder or change the definition of the terms
“Required Lenders” or “Pro Rata Share”; or

     

    (vii)        amend
Section 10.10
or 11.9
or this Section 11.1;

     

    and provided, further, that (x)(A)
any waiver of any payment applied pursuant to Section 2.9(b)
to, and any modification of the application of any such payment to, the Loans
shall require the consent of the Required Lenders and (B) any change to the
definition of the term “Required Lender” shall require the consent of the
Required Lenders, and (y) no amendment, waiver or consent shall affect the
rights or duties under any Loan Document of, or any payment to, the
Administrative Agent (or otherwise modify any provision of Article X or the
application thereof) or any SPV that has been granted an option pursuant to
Section 11.2(f)
unless in writing and signed by the Administrative Agent or, as the case may be,
such SPV in addition to any signature otherwise required.

    

    
      
        
           

        

        
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    (b)           Each
waiver or consent under any Loan Document shall be effective only in the
specific instance and for the specific purpose for which it was
given.  No notice to or demand on any Loan Party shall entitle any
Loan Party to any notice or demand in the same, similar or other
circumstances.  No failure on the part of any Secured Party to
exercise, and no delay in exercising, any right hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any such right
preclude any other or further exercise thereof or the exercise of any other
right.

     

    Section 11.2          Assignments and
Participations; Binding Effect.  (a) Binding
Effect.  This Agreement shall be binding upon and inure to the
benefit of, but only to the benefit of, the Guarantors, the Borrowers (in each
case except for Article X), the
Administrative Agent, each Lender and, to the extent provided in Section 10.11,
each other Indemnitee and Secured Party and, in each case, their respective
successors and permitted assigns.  Except as expressly provided in any
Loan Document (including in Section 10.9),
none of any Guarantor, any Borrower or the Administrative Agent shall have the
right to assign any rights or obligations hereunder or any interest
herein.

     

    (b)           Right to
Assign.  Each Lender may sell, transfer, negotiate or assign
all or a portion of its rights and obligations hereunder (including all or a
portion of its Commitments and its rights and obligations with respect to Loans)
to (i) any existing Lender, (ii) any Affiliate or Approved Fund of any existing
Lender or (iii) any other Person acceptable (which acceptance shall not be
unreasonably withheld or delayed) to the Administrative Agent; provided, however, that (x)
such Dispositions must be ratable among the obligations owing to and owed by
such Lender and (y) the aggregate outstanding principal amount (determined as of
the effective date of the applicable Assignment) of the Loans and Commitments
subject to any such Disposition shall be an integral multiple of $1,000,000,
unless such Disposition is made to an existing Lender or an Affiliate or
Approved Fund of any existing Lender, is of the assignor’s (together with its
Affiliates and Approved Funds) entire interest or is made with the prior consent
of the Borrowers and the Administrative Agent.

     

    (c)           Procedure.  The
parties to each Disposition described in Section 11.2(b) above
(other than those described in Section 11.2(e) or
(f) below)
shall execute and deliver to the Administrative Agent (which shall keep a copy
thereof) an Assignment, any tax forms required to be delivered pursuant to Section 2.14(f)
and payment by the assignee of an assignment fee in the amount of
$3,500.  Upon receipt of all the foregoing, and conditioned upon such
receipt and upon the Administrative Agent consenting to such Assignment, from
and after the effective date specified in such Assignment, the Administrative
Agent shall record or cause to be recorded in the Register the information
contained in such Assignment.

    

    
      
        
           

        

        
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    (d)           Effectiveness.  Effective
upon the entry of such record in the Register, (i) such assignee shall
become a party hereto and, to the extent that rights and obligations under the
Loan Documents have been assigned to such assignee pursuant to such Assignment,
shall have the rights and obligations of a Lender and (ii) the assignor
thereunder shall, to the extent that rights and obligations under this Agreement
have been assigned by it pursuant to such Assignment, relinquish its rights
(except for those surviving the termination of the Commitments and the payment
in full of the Obligations) and be released from its obligations under the Loan
Documents, other than those relating to events or circumstances occurring prior
to such assignment (and, in the case of an Assignment covering all or the
remaining portion of an assigning Lender’s rights and obligations under the Loan
Documents, such Lender shall cease to be a party hereto except that each Lender
agrees to remain bound by Article X and
Sections 11.8
and 11.9 to the
extent provided in Section 10.11).

     

    (e)           Grant of Security
Interests.  In addition to the other rights provided in this
Section 11.2,
each Lender may grant a security interest in, or otherwise assign as collateral,
any of its rights under this Agreement, whether now owned or hereafter acquired
(including rights to payments of principal or interest on the Loans), to (A) any
federal reserve bank (pursuant to Regulation A of the Federal Reserve Board),
without notice to the Administrative Agent or (B) any holder of, or trustee
for the benefit of the holders of, such Lender’s Securities by notice to the
Administrative Agent; provided, however, that no such
holder or trustee, whether because of such grant or assignment or any
foreclosure thereon (unless such foreclosure is made through an assignment in
accordance with Section 11.2(b)
above), shall be entitled to any rights of such Lender hereunder and no such
Lender shall be relieved of any of its obligations hereunder.

     

    (f)           Participants and
SPVs.  In addition to the other rights provided in this Section 11.2,
each Lender may, (x) with notice to the Administrative Agent, grant to an SPV
the option to make all or any part of any Loan that such Lender would otherwise
be required to make hereunder (and the exercise of such option by such SPV and
the making of Loans pursuant thereto shall satisfy the obligation of such Lender
to make such Loans hereunder) and such SPV may assign to such Lender the right
to receive payment with respect to any Obligation and (y) without notice to
or consent from the Administrative Agent or the Borrowers, sell participations
to one or more Persons in or to all or a portion of its rights and obligations
under the Loan Documents (including all its rights and obligations with respect
to the Loans); provided, however, that,
whether as a result of any term of any Loan Document or of such grant or
participation, (i) no such SPV or participant shall have a commitment, or be
deemed to have made an offer to commit, to make Loans hereunder, and, except as
provided in the applicable option agreement, none shall be liable for any
obligation of such Lender hereunder, (ii) such Lender’s rights and obligations,
and the rights and obligations of the Loan Parties and the Secured Parties
towards such Lender, under any Loan Document shall remain unchanged and each
other party hereto shall continue to deal solely with such Lender, which shall
remain the holder of the Obligations in the Register, except that (A) each such
participant and SPV shall be entitled to the benefit of Sections 2.13
and 2.14, but
only to the extent such participant or SPV delivers the tax forms such Lender is
required to collect pursuant to Section 2.14(f)
and then only to the extent of any amount to which such Lender would be entitled
in the absence of any such grant or participation and (B) each such SPV may
receive other payments that would otherwise be made to such Lender with respect
to Loans funded by such SPV to the extent provided in the applicable option
agreement and set forth in a notice provided to the Administrative Agent by such
SPV and such Lender, provided, however, that in no
case (including pursuant to clause (A) or (B) above) shall an
SPV or participant have the right to enforce any of the terms of any Loan
Document, and (iii) the consent of such SPV or participant shall not be required
(either directly, as a restraint on such Lender’s ability to consent hereunder
or otherwise) for any amendments, waivers or consents with respect to any Loan
Document or to exercise or refrain from exercising any powers or rights such
Lender may have under or in respect of the Loan Documents (including the right
to enforce or direct enforcement of the Obligations), except for those described
in clauses (iii)
and (iv) of
Section 11.1(a)
with respect to amounts, or dates fixed for payment of amounts, to which such
participant or SPV would otherwise be entitled and, in the case of participants,
except for those described in Section 11.1(a)(v)
(or amendments, consents and waivers with respect to Section 10.10 to
release all or substantially all of the Collateral).  No party hereto
shall institute against any SPV grantee of an option pursuant to this Section 11.2(f) any
bankruptcy, reorganization, insolvency, liquidation or similar proceeding, prior
to the date that is one year and one day after the payment in full of all
outstanding commercial paper of such SPV; provided, however, that each Lender
having designated an SPV as such agrees to indemnify each Indemnitee against any
Liability that may be incurred by, or asserted against, such Indemnitee as a
result of failing to institute such proceeding (including a failure to get
reimbursed by such SPV for any such Liability).  The agreement in the
preceding sentence shall survive the termination of the Commitments and the
payment in full of the Obligations.

    

    
      
        
           

        

        
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    Section 11.3          Costs and
Expenses.  Any action taken by any Loan Party under or with
respect to any Loan Document, even if required under any Loan Document or at the
request of any Secured Party, shall be at the expense of such Loan Party, and no
Secured Party shall be required under any Loan Document to reimburse any Loan
Party or Group Member therefor except as expressly provided
therein.  In addition, each Borrower agrees to pay or reimburse upon
demand (a) the Administrative Agent for all reasonable out-of-pocket costs and
expenses incurred by it or any of its Related Persons in connection with the
investigation, development, preparation, negotiation, syndication, execution,
interpretation or administration of, any modification of any term of or
termination of, any Loan Document, any commitment or proposal letter therefor,
any other document prepared in connection therewith or the consummation and
administration of any transaction contemplated therein (including, subject to
Sections 7.7
and 7.8,
periodic audits in connection therewith and environmental audits and
assessments), in each case including the reasonable fees, charges and
disbursements of legal counsel to the Administrative Agent or such Related
Persons, and reasonable fees, charges and disbursements of the auditors,
appraisers, printers and other of their Related Persons retained by or on behalf
of any of them or any of their Related Persons, up to an amount equal to
$300,000, and (b) each of the Administrative Agent, its Related Persons, and
each Lender for all costs and expenses incurred in connection with (i) any
refinancing or restructuring of the credit arrangements provided hereunder in
the nature of a “work-out”, (ii) the enforcement or preservation of any right or
remedy under any Loan Document, any Obligation, with respect to the Collateral
or any other related right or remedy or (iii) the commencement, defense, conduct
of, intervention in, or the taking of any other action with respect to, any
proceeding (including any bankruptcy or insolvency proceeding) related to any
Group Member, Loan Document or Obligation (or the response to and preparation
for any subpoena or request for document production relating thereto), including
fees and disbursements of counsel (including allocated costs of internal
counsel).

    

    
      
        
           

        

        
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    Section 11.4          Indemnities.  (a)
Each Borrower agrees to indemnify, hold harmless and defend the Administrative
Agent, each Lender and each of their respective Related Persons (each such
Person being an “Indemnitee”) from and
against all Liabilities (including brokerage commissions, fees and other
compensation) that may be imposed on, incurred by or asserted by, any Person
other than the Borrowers, against any such Indemnitee in any matter relating to
or arising out of, in connection with or as a result of (i) any Loan Document,
any Disclosure Document, any Obligation (or the repayment thereof), the use or
intended use of the proceeds of any Loan, or any securities filing of, or with
respect to, any Group Member, (ii) any commitment letter, proposal letter or
term sheet with any Person or any Contractual Obligation, arrangement or
understanding with any broker, finder or consultant, in each case entered into
by or on behalf of any Group Member or any Affiliate of any of them in
connection with any of the foregoing, (iii) any actual or prospective
investigation, litigation or other proceeding, whether or not brought by any
such Indemnitee or any of its Related Persons, any holders of Securities or
creditors (and including attorneys’ fees in any case), whether or not any such
Indemnitee, Related Person, holder or creditor is a party thereto, and whether
or not based on any securities or commercial law or regulation or any other
Requirement of Law or theory thereof, including common law, equity, contract,
tort or otherwise, or (iv) any other act, event or transaction related,
contemplated in or attendant to any of the foregoing (collectively, the “Indemnified
Matters”); provided, however, that the
Borrowers shall not have any liability under this Section 11.4 to
any Indemnitee with respect to any Indemnified Matter, and no Indemnitee shall
have any liability with respect to any Indemnified Matter other than (to the
extent otherwise liable), to the extent such liability has resulted primarily
from the gross negligence or willful misconduct of such Indemnitee, as
determined by a court of competent jurisdiction in a final non-appealable
judgment or order or from the failure of any such Indemnitee to comply with any
Requirements of Law; provided, further, that such indemnity shall not, as to any
Indemnitee, be available to the extent that such liability results from any
litigation brought by such Indemnitee against any Loan Party or by any Loan
Party against such Indemnitee, in which such Loan Party is the prevailing
party.  Furthermore, each Guarantor and each Borrower waives and
agrees not to assert against any Indemnitee, and shall cause each other Loan
Party to waive and not assert against any Indemnitee, any right of contribution
with respect to any Liabilities that may be imposed on, incurred by or asserted
against any Related Person.

     

    (b)           Without
limiting the foregoing, “Indemnified Matters”
includes all Environmental Liabilities, including those arising from, or
otherwise involving, any property of any Related Person or any actual, alleged
or prospective damage to property or natural resources or harm or injury alleged
to have resulted from any Release of Hazardous Materials on, upon or into such
property or natural resource or any property on or contiguous to any real
property of any Related Person, whether or not, with respect to any such
Environmental Liabilities, any Indemnitee is a mortgagee pursuant to any
leasehold mortgage, a mortgagee in possession, the successor-in-interest to any
Related Person or the owner, lessee or operator of any property of any Related
Person through any foreclosure action, in each case except to the extent such
Environmental Liabilities (i) are incurred solely following foreclosure by any
Secured Party or following any Secured Party having become the
successor-in-interest to any Loan Party and (ii) are attributable solely to
acts of such Indemnitee.

     

    Section 11.5          Survival.  Any
indemnification or other protection provided to any Indemnitee pursuant to any
Loan Document (including pursuant to Section 2.14 or
2.13, Article X, Section 11.3 or
11.4 or this
Section 11.5)
and all representations and warranties made in any Loan Document shall
(A) survive the termination of the Commitments and the payment in full of
other Obligations and (B) inure to the benefit of any Person that at any time
held a right thereunder (as an Indemnitee or otherwise) and, thereafter, its
successors and permitted assigns.

    

    
      
        
           

        

        
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    Section 11.6          Limitation of Liability for
Certain Damages.  In no event shall any Indemnitee be liable on
any theory of liability for any special, indirect, consequential or punitive
damages (including any loss of profits, business or anticipated
savings).  Each Guarantor and each Borrower hereby waives, releases
and agrees (and shall cause each other Loan Party to waive, release and agree)
not to sue upon any such claim for any special, indirect, consequential or
punitive damages, whether or not accrued and whether or not known or suspected
to exist in its favor.

     

    Section 11.7          Lender-Creditor
Relationship.  The relationship between the Lenders and the
Administrative Agent, on the one hand, and the Loan Parties, on the other hand,
is solely that of lender and creditor.  No Secured Party has any
fiduciary relationship or duty to any Loan Party arising out of or in connection
with, and there is no agency, tenancy or joint venture relationship between the
Secured Parties and the Loan Parties by virtue of, any Loan Document or any
transaction contemplated therein.

     

    Section 11.8          Right of
Setoff.  Each of the Administrative Agent, each Lender and each
Affiliate (including each branch office thereof) of any of them is hereby
authorized, without notice or demand (each of which is hereby waived by the
Guarantors and the Borrowers), at any time and from time to time during the
continuance of any Event of Default and to the fullest extent permitted by
applicable Requirements of Law, to set off and apply any and all deposits
(whether general or special, time or demand, provisional or final) at any time
held and other Indebtedness, claims or other obligations at any time owing by
the Administrative Agent, such Lender or any of their respective Affiliates to
or for the credit or the account of any Guarantor or any Borrower against any
Obligation of any Loan Party now or hereafter existing, whether or not any
demand was made under any Loan Document with respect to such Obligation and even
though such Obligation may be unmatured.  Each of the Administrative
Agent and each Lender agrees promptly to notify the Borrowers and the
Administrative Agent after any such setoff and application made by such Lender
or its Affiliates; provided, however, that the
failure to give such notice shall not affect the validity of such setoff and
application.  The rights under this Section 11.8 are
in addition to any other rights and remedies (including other rights of setoff)
that the Administrative Agent, the Lenders and their Affiliates and other
Secured Parties may have.

     

    Section 11.9          Sharing of Payments,
Etc.  If any Lender, directly or through an Affiliate or branch
office thereof, obtains any payment of any Obligation of any Loan Party (whether
voluntary, involuntary or through the exercise of any right of setoff or the
receipt of any Collateral or “proceeds” (as defined
in the applicable UCC) of Collateral) other than pursuant to Sections 2.13,
2.14 and 2.15 and such payment
exceeds the amount such Lender would have been entitled to receive if all
payments had gone to, and been distributed by, the Administrative Agent in
accordance with the provisions of the Loan Documents, such Lender shall purchase
for cash from other Secured Parties such participations in their Obligations as
necessary for such Lender to share such excess payment with such Secured Parties
to ensure such payment is applied as though it had been received by the
Administrative Agent and applied in accordance with this Agreement (or, if such
application would then be at the discretion of the Borrowers, applied to repay
the Obligations in accordance herewith); provided, however, that (a) if
such payment is rescinded or otherwise recovered from such Lender in whole or in
part, such purchase shall be rescinded and the purchase price therefor shall be
returned to such Lender without interest and (b) such Lender shall, to the
fullest extent permitted by applicable Requirements of Law, be able to exercise
all its rights of payment (including the right of setoff) with respect to such
participation as fully as if such Lender were the direct creditor of the
Borrowers in the amount of such participation.

    

    
      
        
           

        

        
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    Section 11.10        Co-Borrower
Provisions.

     

    (a)           Borrower
Agent.  Each Borrower appoints CPM its agent for purposes of
the giving and receiving of any notice, and the agreement to any consent or
waiver under this Agreement (CPM, in such capacity, the “Borrower
Agent”).  Any notice required by this Agreement to be delivered
to any Borrower shall be deemed to have been delivered to such Borrower upon
delivery of such notice to the Borrower Agent, and receipt of any notice by the
Borrower Agent shall constitute receipt of such notice by each
Borrower.  Any notice or consent to be delivered hereunder by any
Borrower shall be deemed to have been delivered by such Borrower upon delivery
thereof by the Borrower Agent.

     

    (b)           Joint and Several Nature of
Obligations.  All Loans made to the Borrowers shall be deemed
to have been made to all Borrowers and each Borrower hereby agrees that it shall
jointly and severally, and unconditionally, be obligated to pay all of the
Obligations, including, without limitation, the Obligations incurred for the
benefit of each of the other Borrowers.

     

    (c)           Co-Borrower
Waivers.

     

    (i)           General
Waivers.  Each Borrower hereby expressly waives (A) diligence,
presentment, demand for payment, protest, benefit of any statute of limitations
affecting any Borrower’s liability under the Loan Documents; (B) discharge due
to any disability of any Borrower; (C) any defenses of any Borrower to
obligations under the Loan Documents not arising under the express terms of the
Loan Documents or from a material breach thereof by Administrative Agent or any
Lender which under applicable law has the effect of discharging any Borrower
from the Obligations as to which this Agreement is sought to be enforced; (D)
the benefit of any act or omission by Administrative Agent or Lender which
directly or indirectly results in or aids the discharge of any Borrower from any
of the Obligations by operation of law or otherwise; (E) all notices whatsoever,
including, without limitation, notice of acceptance of the incurring of the
Obligations; (F) any right it may have to require Administrative Agent or
Lenders to disclose to it any information that Administrative Agent or any
Lender may now or hereafter acquire concerning the financial condition or any
circumstances that bear on the risk of nonpayment by any other Borrower,
including without limitation the release of such other Borrower from its
Obligations hereunder; and (G) any requirement that Administrative Agent or any
Lender exhaust any right, power or remedy or proceed against the other Borrower
or any other security for, or any guarantor of, or any other party liable for,
any of the Obligations, or any portion thereof.  Each Borrower
specifically agrees that it shall not be necessary or required, and Borrowers
shall not be entitled to require, that Administrative Agent or any Lender (1)
file suit or proceed to assert or obtain a claim for personal judgment against
any other Borrower for all or any part of the Obligations; (2) make any effort
at collection or enforcement of all or any part of the Obligations from any
Borrower; (3) foreclose against or seek to realize upon the Collateral or any
other security now or hereafter existing for all or any part of the Obligations;
(4) file suit or proceed to obtain or assert a claim for personal judgment
against any Borrower or any guarantor or other party liable for all or any part
of the Obligations; (5) exercise or assert any other right or remedy to which
Administrative Agent or any Lender is or may be entitled in connection with the
Obligations or any security or guaranty relating thereto to assert; or (6) file
any claim against assets of one Borrower before or as a condition of enforcing
the liability of any other Borrower under any Loan Document.

    

    
      
        
           

        

        
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    (ii)          Real Property Security
Waivers.  Each Borrower acknowledges that all or any portion of
the Obligations may now or hereafter be secured by a Lien or Liens upon real
property evidenced by certain documents including, without limitation, deeds of
trust and assignments of rents.  Administrative Agent and Lenders may,
pursuant to the terms of said real property security documents and applicable
law, foreclose under all or any portion of one or more of said Liens by means of
judicial or nonjudicial sale or sales.  Each Borrower agrees that
Administrative Agent and Lenders may exercise whatever rights and remedies they
may have with respect to said real property security, all without affecting the
liability of any Borrower hereunder, except to the extent Administrative Agent
and Lenders realize payment by such action or proceeding.  No election
to proceed in one form of action or against any party, or on any obligation
shall constitute a waiver of Administrative Agent’s or Lenders' rights to
proceed in any other form of action or against any Borrower or any other Person,
or diminish the liability of any Borrower, or affect the right of Administrative
Agent or Lenders to proceed against any Borrower for any deficiency, except to
the extent Administrative Agent and Lenders realize payment by such action,
notwithstanding the effect of such action upon any Borrower’s rights of
subrogation, reimbursement or indemnity, if any, against Borrower or any other
Person.

     

    (iii)         Waiver of Specific
Rights.  WITHOUT LIMITING THE FOREGOING IN ANY WAY, EACH
BORROWER HEREBY IRREVOCABLY WAIVES AND RELEASES TO THE EXTENT PERMITTED BY LAW
ANY AND ALL RIGHTS IT MAY HAVE AT ANY TIME (WHETHER ARISING DIRECTLY OR
INDIRECTLY, BY OPERATION OF LAW, CONTRACT OR OTHERWISE) TO REQUIRE THE
MARSHALING OF ANY ASSETS OF ANY BORROWER, WHICH RIGHT OF MARSHALING MIGHT
OTHERWISE ARISE FROM ANY SUCH PAYMENTS MADE OR OBLIGATIONS
PERFORMED.

     

    Section 11.11        Marshaling; Payments Set
Aside.  No Secured Party shall be under any obligation to
marshal any property in favor of any Loan Party or any other party or against or
in payment of any Obligation.  To the extent that any Secured Party
receives a payment from the Borrowers, from the proceeds of the Collateral, from
the exercise of its rights of setoff, any enforcement action or otherwise, and
such payment is subsequently, in whole or in part, invalidated, declared to be
fraudulent or preferential, set aside or required to be repaid to a trustee,
receiver or any other party, then to the extent of such recovery, the obligation
or part thereof originally intended to be satisfied, and all Liens, rights and
remedies therefor, shall be revived and continued in full force and effect as if
such payment had not occurred.

    

    
      
        
           

        

        
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    Section 11.12        Notices.  (a)
Addresses.  All
notices, demands, requests, directions and other communications required or
expressly authorized to be made by this Agreement shall, whether or not
specified to be in writing but unless otherwise expressly specified to be given
by any other means, be given in writing and (i) addressed to (A) if to
any Guarantor or any Borrower, to 15303 Dallas Parkway, Suite 800, Addison,
Texas 75001-4600, Attention:  Kelly Tacke, Tel:  (972)
991-2422, Fax:  972-764-9018, with copy to 15303 Dallas Parkway, Suite
900, Addison, Texas 75001, Attention: Jennifer Morrow, Tel: 972/764-9213,
Fax:  972-764-9104, (B) if to the Administrative Agent, to Virgo
Service Company LLC, 677 Madison Avenue, 11th Floor,
New York, New York 10065, Attention:  Bob Racusin, Tel: 646/289-3037,
Fax: 646-619-4035, with a copy to Virgo Investment Group LLC, 250 University
Avenue, Suite 300, Palo Alto, California 94301, Attention:  Elizabeth
Ketterer, Tel: 650-331-8858, Fax: 650-331-8801 and (C) otherwise to the
party to be notified at its address specified opposite its name on Schedule II or
on the signature page of any applicable Assignment, or (ii) addressed to
such other address as shall be notified in writing (A) in the case of each
Borrower and the Administrative Agent, to the other parties hereto and
(B) in the case of all other parties, to each Borrower and the
Administrative Agent.

     

    (b)           Effectiveness.  All
communications described in Section 11.1(a) above
and all other notices, demands, requests and other communications made in
connection with this Agreement shall be effective and be deemed to have been
received (i) if delivered by hand, upon personal delivery, (ii) if delivered by
overnight courier service, one Business Day after delivery to such courier
service, (iii) if delivered by mail, three Business Days after the date
deposited in the mails, and (iv) if delivered by facsimile, upon sender’s
receipt of confirmation of proper transmission; provided, however, that no
communications to the Administrative Agent pursuant to Article II or
Article X
shall be effective until received by the Administrative Agent.

     

    Section 11.13        Governing
Law.  This Agreement, each other Loan Document that does not
expressly set forth its applicable law, and the rights and obligations of the
parties hereto and thereto shall be governed by, and construed and interpreted
in accordance with, the law of the State of New York.

     

    Section 11.14        Jurisdiction.  (a)
Submission to
Jurisdiction.  Any legal action or proceeding with respect to
any Loan Document may be brought in the courts of the State of New York located
in the City of New York, Borough of Manhattan, or of the United States of
America for the Southern District of New York and, by execution and delivery of
this Agreement, each Guarantor and each Borrower hereby accepts for itself and
in respect of its property, generally and unconditionally, the jurisdiction of
the aforesaid courts.  The parties hereto (and, to the extent set
forth in any other Loan Document, each other Loan Party) hereby irrevocably
waive any objection, including any objection to the laying of venue or based on
the grounds of forum non conveniens, that any of them
may now or hereafter have to the bringing of any such action or proceeding in
such jurisdictions.

    

    
      
        
           

        

        
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    (b)           Service of
Process.  Each Guarantor and each Borrower (and, to the extent
set forth in any other Loan Document, each other Loan Party) hereby irrevocably
waives personal service of any and all legal process, summons, notices and other
documents and other service of process of any kind and consents to such service
in any suit, action or proceeding brought in the United States of America with
respect to or otherwise arising out of or in connection with any Loan Document
by any means permitted by applicable Requirements of Law, including by the
mailing thereof (by registered or certified mail, postage prepaid) to the
addresses of Borrowers specified in Section 11.12
(and shall be effective when such mailing shall be effective, as provided
therein).  Each Guarantor and each Borrower (and, to the extent set
forth in any other Loan Document, each other Loan Party) agrees that a final
judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law.

     

    (c)           Non-Exclusive
Jurisdiction.  Nothing contained in this Section 11.14
shall affect the right of the Administrative Agent or any Lender to serve
process in any other manner permitted by applicable Requirements of Law or
commence legal proceedings or otherwise proceed against any Loan Party in any
other jurisdiction.

     

    Section 11.15        Waiver of Jury
Trial.  Each party hereto hereby irrevocably waives trial by
jury in any suit, action or proceeding with respect to, or directly or
indirectly arising out of, under or in connection with, any Loan Document or the
transactions contemplated therein or related thereto (whether founded in
contract, tort or any other theory).  Each party hereto (A) certifies
that no other party and no Related Person of any other party has represented,
expressly or otherwise, that such other party would not, in the event of
litigation, seek to enforce the foregoing waiver and (B) acknowledges that
it and the other parties hereto have been induced to enter into the Loan
Documents, as applicable, by the mutual waivers and certifications in this Section 11.15.

     

    Section 11.16        Severability.  Any
provision of any Loan Document being held illegal, invalid or unenforceable in
any jurisdiction shall not affect any part of such provision not held illegal,
invalid or unenforceable, any other provision of any Loan Document or any part
of such provision in any other jurisdiction.

     

    Section 11.17        Execution in
Counterparts.  This Agreement may be executed in any number of
counterparts and by different parties in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.  Signature pages
may be detached from multiple separate counterparts and attached to a single
counterpart.  Delivery of an executed signature page of this Agreement
by facsimile transmission shall be as effective as delivery of a manually
executed counterpart hereof.

     

    Section 11.18        Entire
Agreement.  The Loan Documents embody the entire agreement of
the parties and supersede all prior agreements and understandings relating to
the subject matter thereof and any prior letter of interest, commitment letter,
fee letter, confidentiality and similar agreements involving any Loan Party and
any of the Administrative Agent or any Lender or any of their respective
Affiliates relating to a financing of substantially similar form, purpose or
effect.  In the event of any conflict between the terms of this
Agreement and any other Loan Document, the terms of this Agreement shall govern
(unless such terms of such other Loan Documents are necessary to comply with
applicable Requirements of Law, in which case such terms shall govern to the
extent necessary to comply therewith).

    

    
      
        
           

        

        
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    Section 11.19        Use of
Name.  Each Guarantor and each Borrower agrees, and shall cause
each other Loan Party to agree, that it shall not, and none of its Affiliates
shall, issue any press release or other public disclosure (other than any
document filed with any Governmental Authority relating to a public offering of
the Securities of any Loan Party) using the name, logo or otherwise referring to
Virgo or of any of its Affiliates, the Loan Documents or any transaction
contemplated therein to which the Secured Parties are party without at least two
Business Days’ prior notice to Virgo and without the prior consent of Virgo
except to the extent required to do so under applicable Requirements of
Law.

     

    Section 11.20        Non-Public Information;
Confidentiality.  (a) Each Lender acknowledges and agrees that
it may receive material non-public information hereunder concerning the Loan
Parties and their Affiliates and Securities and agrees to use such information
in compliance with all relevant policies, procedures and Contractual Obligations
and applicable Requirements of Laws (including United States federal and state
security laws and regulations).

     

    (b)           Each
Lender and the Administrative Agent agrees to use all reasonable efforts to
maintain, in accordance with its customary practices, the confidentiality of
information obtained by it pursuant to any Loan Document and designated in
writing by any Loan Party as confidential, except that such information may be
disclosed (i) with the Borrowers’ consent, (ii) to Related Persons of such
Lender or the Administrative Agent, as the case may be, that are advised of the
confidential nature of such information and are instructed to keep such
information confidential, (iii) to the extent such information presently is or
hereafter becomes available to such Lender or the Administrative Agent, as the
case may be, on a non-confidential basis from a source other than any Loan
Party, (iv) to the extent disclosure is required by applicable Requirements of
Law or other legal process or requested or demanded by any Governmental
Authority, (v) to the extent necessary or customary for inclusion in league
table measurements or in any tombstone or other advertising materials (and the
Loan Parties consent to the publication of such tombstone or other advertising
materials by the Administrative Agent, any Lender or any of their Related
Persons), (vi) to the National Association of Insurance Commissioners or
any similar organization, any examiner or any nationally recognized rating
agency or otherwise to the extent consisting of general portfolio information
that does not identify borrowers, (vii) to current or prospective assignees, SPV
grantees of any option described in Section 11.2(f)
or participants, direct or contractual counterparties to any Hedging Agreement
permitted hereunder and to their respective Related Persons, in each case to the
extent such assignees, participants, counterparties or Related Persons agree to
be bound by the provisions of this Section 11.20
and (viii) in connection with the exercise of any remedy under any Loan
Document.  In the event of any conflict between the terms of this
Section 11.20
and those of any other Contractual Obligation entered into with any Loan Party
(whether or not a Loan Document), the terms of this Section 11.20
shall govern.

     

    
      
        
        

      

      
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    Section 11.21        PATRIOT
Act.  Each Lender that is subject to the Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001 (Public Law 107-56) (the “PATRIOT Act”) and the
Administrative Agent (for itself and not on behalf of any Lender) hereby
notifies each Guarantor and each Borrower that pursuant to the requirements of
the PATRIOT Act, it is required to obtain, verify and record information that
identifies each Loan Party, which information includes the name and address of
each Loan Party and other information that will allow such Lender or the
Administrative Agent, as applicable, to identify each Loan Party in accordance
with the PATRIOT Act.  Each Guarantor and each Borrower shall,
promptly following a request by the Administrative Agent or any Lender, provide
all documentation and other information that the Administrative Agent or such
Lender requests in order to comply with its ongoing obligations under applicable
“know your customer” and any anti-money laundering rules and regulations,
including the PATRIOT Act.

     

    [SIGNATURE
PAGES FOLLOW]

    

    
      
        
           

        

        
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    IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by
their respective officers thereunto duly authorized, as of the date first above
written.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          	 
      	
                                                                  COUNTRYPLACE
      ACCEPTANCE

                                                                
	 	 	CORPORATION,
      as Borrower 
	 	 	 
	 
      	
                                                                  By

                                                                	/s/
      Larry Keener
	 
      	 
      	
                                                                  Name:
      Larry Keener

                                                                
	 
      	 
      	
                                                                  Title:
      Vice President

                                                                
	 
      	 
      	 
      
	 
      	
                                                                  COUNTRYPLACE
      MORTGAGE, LTD., as

                                                                
	 	 	Borrower
	 
      	 
      	
                                                                  By
      COUNTRYPLACE ACCEPTANCE GP,
LLC, as its General
  Partner

                                                                
	 
      	 
      	 
      	
                                                                  By
      COUNTRYPLACE ACCEPTANCE CORPORATION, as its Sole Member

                                                                
	 	 	 	 
	 
      	 
      	 
      	
                                                                  By

                                                                	/s/
      Larry Keener
	 
      	 
      	 
      	 
      	
                                                                  Name:
      Larry Keener

                                                                
	 
      	 
      	 
      	 
      	
                                                                  Title:
      Vice President

                                                                
	 
      	 
      	 
      	 
      	 
      
	 
      	
                                                                  COUNTRYPLACE
      MORTGAGE HOLDINGS,

                                                                
	 	 	LLC,
      as Borrower
	 	 	 
	 
      	
                                                                  By

                                                                	/s/
      Larry Keener
	 
      	 
      	
                                                                  Name:
      Larry Keener

                                                                
	 
      	 
      	
                                                                  Title:
      Vice President

                                                                
	 
      	 
      	 
      
	 
      	
                                                                  PALM
      HARBOR HOMES, INC.

                                                                
	 
      	 
      
	 
      	
                                                                  By

                                                                	/s/
      Larry Keener
	 
      	 
      	
                                                                  Name:
      Larry Keener

                                                                
	 
      	 
      	
                                                                  Title:
      CEO

                                                                
	 
      	 
      	 
      
	 
      	
                                                                  COUNTRYPLACE
      ACCEPTANCE G.P., LLC

                                                                
	 
      	 
      	
                                                                  By
      COUNTRYPLACE ACCEPTANCE CORPORATION, as its Sole Member

                                                                
	 	 	 
	 
      	 
      	
                                                                  By

                                                                	/s/
      Larry Keener
	 
      	 
      	 
      	
                                                                  Name:
      Larry Keener

                                                                
	 
      	 
      	 
      	
                                                                  Title:
      Vice
President

                                                                

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    
      
        
           

        

        
          S-1

          
            

          

        

        
           

        

      

    

     

    
      
        
          	 
      	
                  COUNTRYPLACE
      ACCEPTANCE L.P., LLC

                
	 
      	 
      	
                  By
      COUNTRYPLACE ACCEPTANCE CORPORATION, as its Sole Member

                
	 
      	 
      	 
      
	 
      	 
      	
                  By

                	/s/
      Larry Keener
	 
      	 
      	 
      	
                  Name:
      Larry Keener

                
	 
      	 
      	 
      	
                  Title:
      Vice President

                

        

      

    

    

    
      
        
           

        

        
          S-2

          
            

          

        

        
           

        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  	 
      	
                                          VIRGO
      SERVICE COMPANY LLC, as

                                        
	 	 	Administrative
      Agent
	 	 	 
	 
      	
                                          By

                                        	/s/
      Jesse C. Watson
	 
      	 
      	
                                          Name:
      Jesse C. Watson

                                        
	 
      	 
      	
                                          Title:
      Managing Member

                                        
	 
      	 
      	 
      
	 
      	
                                          VIRGO
      - REDWOOD, LP, as a Lender

                                        
	 
      	 
      	
                                          By
      VIRGO INVESTMENT GROUP, LLC, its
General Partner

                                        
	 
      	 
      	 
      
	 
      	 
      	
                                          By

                                        	/s/
      Jesse C. Watson
	 
      	 
      	 
      	
                                          Jesse
      C. Watson

                                        
	 
      	 
      	 
      	
                                          Managing
      Member

                                        
	 
      	 
      	 
      	 
      
	 
      	
                                          VIRGO
      - WILLOW, LP, as a Lender

                                        
	 
      	 
      	
                                          By
      VIRGO INVESTMENT GROUP, LLC, its
General Partner

                                        
	 
      	 
      	 
      
	 
      	 
      	
                                          By

                                        	/s/
      Jesse C. Watson
	 
      	 
      	 
      	
                                          Jesse
      C. Watson

                                        
	 
      	 
      	 
      	
                                          Managing
      Member

                                        
	 
      	 
      	 
      	 
      
	 
      	
                                          VIRGO
      - SIERRA, LP, as a Lender

                                        
	 
      	 
      	
                                          By
      VIRGO INVESTMENT GROUP, LLC, its
General Partner

                                        
	 
      	 
      	 
      
	 
      	 
      	
                                          By

                                        	/s/
      Jesse C. Watson
	 
      	 
      	 
      	
                                          Jesse
      C. Watson

                                        
	 
      	 
      	 
      	
                                          Managing
      Member

                                        
	 
      	 
      	 
      	 
      
	 
      	
                                          VIRGO
      - MAGNOLIA, as a Lender 

                                        
	 
      	 
      	
                                          By
      VIRGO INVESTMENT GROUP, LLC, its
General Partner

                                        
	 
      	 
      	 
      	 
      
	 
      	 
      	
                                          By

                                        	/s/
      Jesse C. Watson
	 
      	 
      	 
      	
                                          Jesse
      C. Watson

                                        
	 
      	 
      	 
      	
                                          Managing
      Member

                                        

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    
      
        
           

        

        
          S-3

          
            

          

        

        
           

        

      

    

    

    Exhibit
A

    to
Credit Agreement

     

    FORM OF
ASSIGNMENT

     

    This
ASSIGNMENT, dated as of the Effective Date, is entered into between the Assignor
and the Assignee (each as defined below).

     

    The
parties hereto hereby agree as follows:

     

    
      
        
          
            
              	
                      Borrowers:

                    	
                      CountryPlace
      Acceptance Corporation, a Nevada corporation, CountryPlace Mortgage, Ltd.,
      a Texas limited partnership, and CountryPlace Mortgage Holdings, LLC, a
      Delaware limited liability company (collectively, the “Borrowers”)

                    
	 
      	 
      
	
                      Administrative
      Agent:

                    	
                      VIRGO
      SERVICE COMPANY LLC, a Delaware limited liability company, as
      administrative agent and collateral agent for the Lenders (in such
      capacity and together with its successors and permitted assigns, the
      “Administrative
      Agent”)

                    
	 
      	 
      
	
                      Credit
      Agreement:

                    	
                      Credit
      Agreement, dated as of January 29, 2010, among the Borrowers, Palm Harbor
      Homes, Inc., a Florida corporation, Countryplace Acceptance G.P., LLC, a
      Texas limited liability company, Countryplace Acceptance L.P., LLC, a
      Delaware limited liability company, the Guarantors and the Lenders party
      thereto and the Administrative Agent (as the same may be amended,
      restated, supplemented or otherwise modified from time to time, the “Credit
      Agreement”; capitalized terms used herein without definition are
      used as defined in the Credit Agreement)

                    
	 
      	 
      
	
                      [Trade
      Date:

                    	
                      _________,
      ____]1

                    
	 
      	 
      
	
                      Effective
      Date:

                    	
                      _________,
      ____2

                    

            

          

        

      

    

    

      
        

    

    
      1 Insert
for informational purposes only if needed to determine other arrangements
between the assignor and the assignee.

    

      
      2 To be
filled out by Administrative Agent upon entry in the
Register.

    

    

    
      
        
           

        

        
          A-1

          
            

          

        

        
           

        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          	
                                                  Assignor

                                                  (collectively,

                                                  the

                                                  “Assignors”)3

                                                	 	
                                                  Assignee

                                                  (collectively, the

                                                  “Assignees”)4

                                                	 	
                                                  Aggregate

                                                  amount of

                                                  Commitments

                                                  or principal

                                                  amount of

                                                  Loans for all

                                                  Lenders

                                                	 	
                                                  Aggregate

                                                  amount of

                                                  Commitments

                                                  or principal

                                                  amount of

                                                  Loans

                                                  Assigned5

                                                	 	 	
                                                  Percentage

                                                  Assigned6

                                                	 
	
                                                  [Name
      of Assignor]

                                                	 	
                                                  [Name
      of Assignee] [Affiliate][Approved Fund] of [Name of
Lender]

                                                	 	$	
                                                  [__________]

                                                	 	$ 	
                                                  [_________]

                                                	 	 	
                                                  [__._____]

                                                	% 
	
                                                  [Name
      of Assignor]

                                                	 	
                                                  [Name
      of Assignee] [Affiliate][Approved Fund] of [Name of
Lender]

                                                	 	$ 	
                                                  [__________]

                                                	 	$ 	
                                                  [_________]

                                                	 	 	
                                                  [__._____]

                                                	% 
	
                                                  [Name
      of Assignor]

                                                	 	
                                                  [Name
      of Assignee] [Affiliate][Approved Fund] of [Name of
Lender]

                                                	 	$ 	
                                                  [__________]

                                                	 	$	
                                                  [_________]

                                                	 	 	
                                                  [__._____]

                                                	% 

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      
         

        [The
Remainder of this Page Was Intentionally Left Blank]

        
          

      

      
        
          3 List
each Assignor, as appropriate.
  

      

      
        4 List
each Assignee, as appropriate.

      

        
        5 Amount
to be adjusted by the counterparties to take into account any payments or
prepayments made between the Trade Date and the Effective Date.  The
aggregate amounts are inserted for informational purposes only to help in
calculating the percentages assigned which, themselves, are for informational
purposes only.

      

        
        6 Set
forth, to at least 9 decimals, the Assigned Interest as a percentage of the
aggregate Commitment or Loans.  This percentage is set forth for
informational purposes only and is not intended to be binding.  The
assignments are based on the amounts assigned not on the percentages listed in
this column.

         

      

    

    
      
        
          
            
               

            

            
              A-2

              
                

              

            

            
               

            

          

        

      

    

     

    Section 1.          Assignment.  Each
Assignor hereby sells and assigns to the Assignee set forth above opposite such
Assignor, and such Assignee hereby purchases and assumes from such Assignor,
such Assignor’s rights and obligations in its capacity as Lender under the
Credit Agreement (including Liabilities owing to or by such Assignor thereunder)
and the other Loan Documents, in each case to the extent related to the amounts
identified above opposite such Assignor (such Assignor’s “Assigned
Interest”).

     

    Section 2.          Representations, Warranties
and Covenants of Assignors.  Each Assignor severally but not
jointly (a) represents and warrants to its corresponding Assignee and the
Administrative Agent that (i) it has full power and authority, and has taken all
actions necessary for it, to execute and deliver this Assignment and to
consummate the transactions contemplated hereby and (ii) it is the legal and
beneficial owner of its Assigned Interest and that such Assigned Interest is
free and clear of any Lien and other adverse claims, (b) makes no other
representation or warranty and assumes no responsibility, including with respect
to any statements, representations and warranties made in or in connection with
any Loan Document or any other document or information furnished pursuant
thereto, the execution, legality, validity, enforceability or genuineness of any
Loan Document or any document or information provided in connection therewith
and the existence, nature or value of any Collateral, and (c) assumes no
responsibility (and makes no representation or warranty) with respect to the
financial condition of any Group Member or Loan Party or the performance or
nonperformance by any Loan Party of any obligation under any Loan Document or
any document provided in connection therewith.

     

    Section 3.          Representations, Warranties
and Covenants of Assignees.  Each Assignee severally but not
jointly (a) represents and warrants to its corresponding Assignor and the
Administrative Agent that (i) it has full power and authority, and has taken all
actions necessary for such Assignee, to execute and deliver this Assignment and
to consummate the transactions contemplated hereby, (ii) to the extent indicated
above, is an Affiliate or an Approved Fund of the Lender set forth above and
(iii) it is sophisticated with respect to decisions to acquire assets of the
type represented by the Assigned Interest assigned to it hereunder and either
such Assignee or the Person exercising discretion in making the decision for
such assignment is experienced in acquiring assets of such type, (b) appoints
and authorizes the Administrative Agent to take such action as administrative
agent and collateral agent on its behalf and to exercise such powers under the
Loan Documents as are delegated to the Administrative Agent by the terms
thereof, together with such powers as are reasonably incidental thereto,
(c) shall perform in accordance with their terms all obligations that, by
the terms of the Loan Documents, are required to be performed by it as a Lender,
(d) confirms it has received such documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this
Assignment and shall continue to make its own credit decisions in taking or not
taking any action under any Loan Document independently and without reliance
upon any Secured Party and based on such documents and information as it shall
deem appropriate at the time, (e) acknowledges and agrees that, as a Lender, it
may receive material non-public information and confidential information
concerning the Loan Parties and their Affiliates and Securities and agrees to
use such information in accordance with Section 11.20 of the
Credit Agreement, (f) specifies as its applicable lending offices (and addresses
for notices) the offices at the addresses set forth beneath its name on the
signature pages hereof, (g) shall pay to the Administrative Agent an assignment
fee in the amount of $3,500 to the extent such fee is required to be paid under
Section 11.2(c)
of the Credit Agreement and (h) to the extent required pursuant to Section 2.14(f) of
the Credit Agreement, attaches two completed originals of Forms W-8ECI, W-8BEN
or W-9.

    

    
      
        
           

        

        
          A-3

          
            

          

        

        
           

        

      

    

     

    Section 4.          Determination of Effective
Date; Register.  Following the due execution and delivery of
this Assignment by each Assignor and each Assignee, this Assignment (including
its attachments) will be delivered to the Administrative Agent for its
acceptance and recording in the Register.  The effective date of this
Assignment (the “Effective Date”)
shall be the later of (i) the acceptance of this Assignment by the
Administrative Agent and (ii) the recording of this Assignment in the
Register.  The Administrative Agent shall insert the Effective Date
when known in the space provided therefor at the beginning of this
Assignment.

     

    Section 5.          Effect.  As
of the Effective Date, (a) each Assignee shall be a party to the Credit
Agreement and, to the extent provided in this Assignment, have the rights and
obligations of a Lender under the Credit Agreement and (b) each Assignor shall,
to the extent provided in this Assignment, relinquish its rights (except those
surviving the termination of the Commitments and payment in full of the
Obligations) and be released from its obligations under the Loan Documents other
than those obligations relating to events and circumstances occurring prior to
the Effective Date.

     

    Section 6.          Distribution of
Payments.  On and after the Effective Date, the Administrative
Agent shall make all payments under the Loan Documents in respect of each
Assigned Interest of any Assignor (a) in the case of amounts accrued to but
excluding the Effective Date, to such Assignor and (b) otherwise, to the
corresponding Assignee.

     

    Section 7.          Miscellaneous.  This
Assignment is a Loan Document and, as such, is subject to certain provisions of
the Credit Agreement, including Sections 1.5, 11.14(a) and 11.15
thereof.  On and after the Effective Date, this Assignment shall be
binding upon, and inure to the benefit of, the Assignors, Assignees, the
Administrative Agent and their Related Persons and their successors and
assigns.  This Assignment shall be governed by, and be construed and
interpreted in accordance with, the law of the State of New
York.  This Assignment may be executed in any number of counterparts
and by different parties in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement.  Signature pages may be
detached from multiple separate counterparts and attached to a single
counterpart.  Delivery of an executed signature page of this
Assignment by facsimile transmission shall be as effective as delivery of a
manually executed counterpart of this Assignment.

     

    [Signature
Pages Follow]

    

    
      
        
           

        

        
          A-4

          
            

          

        

        
           

        

      

    

    

    IN
WITNESS WHEREOF, the parties hereto have caused this Assignment to be executed
by their respective officers thereunto duly authorized, as of the date first
above written.

     

    
      
        
          
            
              
                	 
      	
                        [NAME
      OF ASSIGNOR]

                      
	 
      	 
      	
                        as
      Assignor

                      
	 
      	 
      	 
      
	 
      	
                        By:

                      	 
      
	 
      	 
      	
                        Name:

                      
	 
      	 
      	
                        Title:

                      
	 
      	 
      
	 
      	
                        [NAME
      OF ASSIGNEE]

                      
	 
      	 
      	
                        as
      Assignee

                      
	 
      	 
      	 
      
	 
      	
                        By:

                      	 
      
	 
      	 
      	
                        Name:

                      
	 
      	 
      	
                        Title:

                      
	 
      	 
      	 
      
	 
      	
                        Lending Office for
      Loans:7

                      
	 
      	 
      
	 
      	
                        [Insert
      Address (including contact name, fax number and e-mail
      address)]

                      
	 
      	 
      
	 
      	
                        Lending Office (and
      address for notices) for any other purpose:

                      
	 
      	 
      
	 
      	
                        [Insert
      Address (including contact name, fax number and e-mail
      address)]

                      

              

            

          

        

      

    

     

    ACCEPTED
and AGREED

    this __
day of ______ _____:

     

    
      
        
          
            	
                    VIRGO
      SERVICE COMPANY LLC, as
Administrative Agent

                  	 
      
	 
      	 
      	 
      
	
                    By

                  	 
      	 
      
	 
      	
                    Name:

                  	 
      
	 
      	
                    Title:

                  	 
      

          

        

      

    

     

    
      
        

      

      7 Insert
for each Assignee.

    

     

    
      [SIGNATURE
PAGE FOR ASSIGNMENT FOR COUNTRYPLACE CREDIT
AGREEMENT]

    

    
 

    
      
        
           

        

        
          A-5

          
            

          

        

        
           

        

      

    

    

    Exhibit
B

    to
Credit Agreement

     

    FORM OF NOTICE OF
BORROWING

     

    
      VIRGO
SERVICE COMPANY LLC

    

    
      as
Administrative Agent under the

    

    
      Credit
Agreement referred to below

    

     

    Attention:

    

    _________
__, ____

    

    

    
      
        
          	
                	
                  Re:

                	
                  CountryPlace
      Acceptance Corporation, a Nevada corporation, CountryPlace Mortgage, Ltd.,
      a Texas limited partnership, and CountryPlace Mortgage Holdings, LLC, a
      Delaware limited liability company (collectively, the “Borrowers”)

                

        

      

       

    

    Reference
is made to the Credit Agreement, to be dated as of January 29, 2010 (as the same
may be amended, restated, supplemented or otherwise modified from time to time,
the “Credit
Agreement”), among the Borrowers, Palm Harbor Homes, Inc., a Florida
corporation, Countryplace Acceptance G.P., LLC, a Texas limited liability
company, Countryplace Acceptance L.P., LLC, a Delaware limited liability
company, the Lenders party thereto and Virgo Service Company LLC, a Delaware
limited liability company, as administrative agent and collateral agent for such
Lenders.  Capitalized terms used herein without definition are used as
defined in the Credit Agreement.

     

    The
Borrowers hereby give you irrevocable notice, pursuant to Section 2.2 of
the Credit Agreement of its request of the Borrowing (the “Proposed Borrowing”)
under the Credit Agreement and, in that connection, sets forth the following
information:

     

    A.           The
date of the Proposed Borrowing is __________, ____8 (the “Funding
Date”).

     

    B.           The
aggregate principal amount of Loans is $_______.

     

    The
undersigned hereby certifies that the following statements are true on the date
hereof, both before and after giving effect to the Proposed Borrowing and any
other Loan to be made on or before the Funding Date:

     

    A.           the
representations and warranties set forth in Article IV of
the Credit Agreement and elsewhere in the Loan Documents are true and correct;
and

     

      
        

      

    

    8  Must
be the Closing Date.

    

    
      
        
           

        

        
          B-1

          
            

          

        

        
           

        

      

    

     

    B.           no
Default is continuing.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      	 	
                                              COUNTRYPLACE
      ACCEPTANCE

                                            
	 	 	CORPORATION,
      as Borrower
	 	 
      	 
      
	 	
                                              By

                                            	 
      
	 	 
      	
                                              Name:

                                            	 
      
	 	 
      	
                                              Title:

                                            	 
      
	 	 
      	 
      	 
      	 
      
	 	
                                              COUNTRYPLACE
      MORTGAGE, LTD., as 

                                            
	 	 	Borrower 
	 	 
      	
                                              By
      COUNTRYPLACE ACCEPTANCE GP, 
LLC, as its General
  Partner

                                            
	 	 
      	
                                              By
      COUNTRYPLACE ACCEPTANCE
CORPORATION, as its Sole
  Member

                                            
	 	 
      	 
      
	 	 
      	 
      	
                                              By

                                            	 
      
	 	 
      	 
      	 
      	
                                              Name:

                                            
	 	 
      	 
      	 
      	
                                              Title:

                                            
	 	 
      	 
      	 
      	 
      
	 	
                                              COUNTRYPLACE
      MORTGAGE HOLDINGS,
LLC, as Borrower

                                            
	 	 
      
	 	
                                              By

                                            	 
      
	 	 
      	
                                              Name:

                                            	 
      
	 	 
      	
                                              Title:

                                            	 
      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      [SIGNATURE
PAGE TO NOTICE OF BORROWING DATED ___________, 2009]

       

    

    
      
        
           

        

        
          B-2

          
            

          

        

        
           

        

      

    

    

    Exhibit
C

    to
Credit Agreement

     

    FORM OF COMPLIANCE
CERTIFICATE

     

    __________,
____9

     

    This
certificate is delivered pursuant to Section 6.1(d) of, and in connection
with the consummation of the transactions contemplated in, the Credit Agreement,
dated as of January 29, 2010, among Countryplace Acceptance Corporation, a
Nevada corporation (“CPA”), Countryplace
Mortgage, Ltd., a Texas limited partnership (“CPM”), CountryPlace
Mortgage Holdings, LLC, a Delaware limited liability company (“Mortgage SPV”,
together with CPM and CPA, the “Borrowers” and each
individually a “Borrower”), Palm
Harbor Homes, Inc., a Florida corporation (“Parent”),
Countryplace Acceptance G.P., LLC, a Texas limited liability company (“GP LLC”),
Countryplace Acceptance L.P., LLC, a Delaware limited liability company (“LP LLC”), the Lenders
(as defined below), and Virgo Service Company LLC, a Delaware limited liability
company (“Virgo”), as
administrative agent and collateral agent for the Lenders (in such capacity, and
together with its successors and permitted assigns, the
“Administrative
Agent”).  Capitalized terms used herein and not otherwise
defined herein are used herein as defined in the Credit Agreement.

     

    The
undersigned, a duly authorized Responsible Officer of CPA having the name and
title set forth below under his signature, hereby certifies, on behalf of the
Borrowers for the benefit of the Secured Parties and pursuant to Section 6.1 of the
Credit Agreement that such Responsible Officer of CPA is familiar with the
Credit Agreement and that, in accordance with each of the following sections of
the Credit Agreement, each of the following is true on the date hereof, both
before and after giving effect to any Loan to be made on or before the date
hereof:

     

    (a)           In
accordance with Section 6.1[(b)/(c)]
of the Credit Agreement, attached hereto as Annex A are the
financial statements for the [fiscal month/fiscal quarter/fiscal year] ended
_________, ____ required to be delivered pursuant to Section 6.1[(b)/(c)]
of the Credit Agreement.  Such financial statements fairly present in
all material respects the consolidated financial position, results of operations
and cash flow of CPA as at the dates indicated therein and for the periods
indicated therein in accordance with GAAP [(subject to the absence of footnote
disclosure and normal year-end audit adjustments)]10 [without qualification
as to the scope of the audit or as to going concern and without any other
similar qualification, together with the certificate from the Group Members’
Accountants with respect to such financial statements required to be delivered
pursuant to Section 6.1(c)
of the Credit Agreement.  The examination by the Borrowers’
Accountants in connection with such financial statements has been made in
accordance with the standards of the United States' Public Company accounting
Oversight Board (or any successor entity).]11

     

    
      
        

    

    
      9 Insert
date of delivery of certificate.

    

      
      10 Insert
language in brackets only for monthly and quarterly reports.

    

      
      11 Insert
language in brackets only for annual certifications.

    

    

    
      
        
           

        

        
          C-3

          
            

          

        

        
           

        

      

    

     

    (b)           [In
accordance with Section 6.1(d) of the
Credit Agreement, attached hereto as Annex B are the calculations
used in determining Excess Cash Flow]12.

     

    (c)           In
accordance with Section 6.1(d) of the
Credit Agreement, no Default is continuing as of the date hereof[, except as
provided for on Annex
C attached hereto, with respect to each of which the Borrowers propose to
take the actions set forth on Annex
C].

     

    (d)           In
accordance with Section 6.1(f) of the
Credit Agreement, (i) all documents (including updated schedules as to locations
of Collateral and acquisition of Intellectual Property or real property)
required to be delivered pursuant to the Loan Documents by any Loan Party in the
preceding fiscal quarter have been delivered thereunder (or such delivery
requirement was otherwise duly waived or extended) and (ii) complete and correct
copies of all documents modifying any term of any Constituent Document of any
Group Member or any Subsidiary or joint venture thereof on or prior to the date
hereof have been delivered to the Administrative Agent [or are attached hereto
as Annex D[-2]].

     

    (f)           [In
accordance with Sections 6.1(h) and
(i) of the
Credit Agreement, attached hereto as Annexes E and F are complete and
correct (i) copies of each management letter, audit report or similar letter or
report received by any Group Member from any independent registered certified
public accountant (including the Group Members’ Accountants) in connection with
such financial statements or any audit thereof and (ii) a summary of all
material insurance coverage maintained as of the date thereof by any Group
Member13].14

     

    In
Witness
Whereof,
the undersigned has executed this certificate on the date first written
above.

     

    
      
        
          
            	 
      	 
      	 
      
	 
      	
                    Name:

                  	 
      
	 
      	
                    Title:

                  	 
      

          

        

      

    

    
 

    
      
        

      

    

    
      12 Insert
if consolidated financial statements are delivered with
Certificate.

       

    

    
      13 Insert
other information reasonably required by the Administrative
Agent.

    

      
      14 Insert
bracketed language only for annual reports.

    

    

    
      
        
           

        

        
          D-4

          
            

          

        

        
           

        

      

    

    

    Schedule
I

    to
Credit Agreement

     

    COMMITMENTS

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                	
                                                                        Lender

                                                                      	 	 	
                                                                        Closing Date

                                                                        Commitment

                                                                      	 	 	
                                                                        Subsequent

                                                                        Commitment

                                                                      	 	 	
                                                                        Total

                                                                      	 	 	
                                                                        Initial Pro

                                                                        Rata Share

                                                                      	 
	
                                                                        Virgo
      - Redwood, LP

                                                                      	 	 	$	15,087,036.75	 	 	$	3,809,857.76	 	 	$	18,896,894.51	 	 	 	76.1972	%
	
                                                                        Virgo
      - Willow, LP

                                                                      	 	 	$	2,423,471.42	 	 	$	611,987.73	 	 	$	3,035,459.15	 	 	 	12.2398	%
	
                                                                        Virgo
      - Sierra, LP

                                                                      	 	 	$	955,037.49	 	 	$	241,171.08	 	 	$	1,196,208.57	 	 	 	4.8234	%
	
                                                                        Virgo
      - Magnolia, LP

                                                                      	 	 	$	1,334,454.34	 	 	$	336,983.42	 	 	$	1,671,437.76	 	 	 	6.7397	%
	
                                                                        TOTAL

                                                                      	 	 	$	19,800,000.00	 	 	$	5,000,000.00	 	 	$	24,800,000.00	 	 	 	100	%

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    
      
        
           

        

        
          
            Schedule
I-1

          

          
            

          

        

        
           

        

      

    

    

    Schedule
II

    to
Credit Agreement

     

    ADDRESSES FOR
NOTICES

    

    
      
        
          
            
              
                
                  	
                          If
      to Virgo - Redwood, LP, to it at:

                        	 
      
	 
      	
                          667
      Madison Avenue, Fl 11

                          New
      York, NY 10065

                          Attn:
      Bob Racusin

                          Tel.:        646-289-3037

                          Fax:        646-619-4035

                        
	 
      	 
      
	
                          If
      to Virgo - Willow, LP, to it at:

                        	 
      
	 
      	
                          667
      Madison Avenue, Fl 11

                          New
      York, NY 10065

                          Attn:
      Bob Racusin

                          Tel.:        646-289-3037

                          Fax:        646-619-4035

                        
	 
      	 
      
	
                          If
      to Virgo - Sierra, LP, to it at:

                        	 
      
	 
      	
                          667
      Madison Avenue, Fl 11

                          New
      York, NY 10065

                          Attn:
      Bob Racusin

                          Tel.:        646-289-3037

                          Fax:        646-619-4035

                        
	 
      	 
      
	
                          If
      to Virgo - Magnolia, LP, to it at:

                        	 
      
	 
      	
                          667
      Madison Avenue, Fl 11

                          New
      York, NY 10065

                          Attn:
      Bob Racusin

                          Tel.:        646-289-3037

                          Fax:        646-619-4035

                        

                

              

            

          

        

      

    

    

    
      
        
           

        

        
          
            Schedule
II-1

          

          
            

          

        

        
           

        

      

    

    

    Schedule 4.1

    to
Credit Agreement

     

    CORPORATE
CHART

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              	
                                                      Full Legal

                                                      Name

                                                    	 	
                                                      Jurisdiction

                                                      of

                                                      Organization

                                                    	 	
                                                      Organizational

                                                      Number

                                                    	 	
                                                      Tax ID

                                                      Number

                                                    	 	
                                                      Chief Executive

                                                      Office or Sole

                                                      Place of Business

                                                    	 	
                                                      Number of

                                                      Shares of

                                                      Stock

                                                      Authorized

                                                      (by Class)

                                                    	 	
                                                      Number of

                                                      Shares of

                                                      Stock

                                                      Outstanding

                                                      (by Class)

                                                    	 	
                                                      Number of

                                                      Outstanding Shares

                                                      of Stock (by Class)

                                                      In/directly Owned

                                                      by Any Loan Party

                                                      or Subsidiary of a

                                                      Loan Party

                                                    
	
                                                      CountryPlace
      Acceptance Corporation

                                                    	 	
                                                      Nevada

                                                    	 	
                                                      C27666-2002

                                                    	 	
                                                      16-1638352

                                                    	 	
                                                      15303
      Dallas Parkway, Suite 800

                                                      Addison,
      Texas 75001

                                                    	 	
                                                      Common:
      2,500,000

                                                      Preferred:
      22,500

                                                    	 	
                                                      Common:
      2,500,000

                                                      Preferred:
      22,500

                                                    	 	
                                                      Common:
      2,500,000 (100%) owned by Palm Harbor Homes, Inc.

                                                      Preferred:
      22,500 (100%) owned by Palm Harbor Homes, Inc.

                                                    
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                      CountryPlace
      Mortgage, Ltd.

                                                    	 	
                                                      Texas

                                                    	 	
                                                      0008017210

                                                    	 	
                                                      Federal:
      20-3640581

                                                      Texas:
      32036405812

                                                    	 	
                                                      15303
      Dallas Parkway, Suite 800

                                                      Addison,
      Texas 75001

                                                    	 	
                                                      n/a

                                                    	 	
                                                      Limited
      Partner

                                                      General
      Partner

                                                    	 	
                                                      Limited
      Partner: solely CountryPlace Acceptance L.P., LLC (representing 99%
      Percentage Interest)

                                                      General
      Partner: solely CountryPlace Acceptance G.P., LLC (representing 1%
      Percentage
Interest)

                                                    

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        
          Schedule
4.1-1

        

        
          

        

      

      
        
        

      

    

    
       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                	
                                                        Full Legal

                                                        Name

                                                      	 	
                                                        Jurisdiction

                                                        of

                                                        Organization

                                                      	 	
                                                        Organizational

                                                        Number

                                                      	 	
                                                        Tax ID

                                                        Number

                                                      	 	
                                                        Chief Executive

                                                        Office or Sole

                                                        Place of Business

                                                      	 	
                                                        Number of

                                                        Shares of

                                                        Stock

                                                        Authorized

                                                        (by Class)

                                                      	 	
                                                        Number of

                                                        Shares of

                                                        Stock

                                                        Outstanding

                                                        (by Class)

                                                      	 	
                                                        Number of

                                                        Outstanding Shares

                                                        of Stock (by Class)

                                                        In/directly Owned

                                                        by Any Loan Party

                                                        or Subsidiary of a

                                                        Loan Party

                                                      
	
                                                        CountryPlace
      Holdings, LLC

                                                      	 	
                                                        Delaware

                                                      	 	
                                                        SRV
      050571625-3997989

                                                      	 	
                                                        Federal:
      20-3979311

                                                        Delaware:
      NA

                                                      	 	
                                                        15303
      Dallas Parkway, Suite 800

                                                        Addison,
      Texas 75001

                                                      	 	
                                                        n/a

                                                      	 	
                                                        n/a

                                                      	 	
                                                        Sole
      Member: CountryPlace Mortgage, Ltd.

                                                      
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                        CountryPlace
      Mortgage Holdings, LLC

                                                      	 	
                                                        Delaware

                                                      	 	
                                                        SRV

                                                        091036023-4755961

                                                      	 	
                                                        Federal:
      27-1349080

                                                      	 	
                                                        15303
      Dallas Parkway, Suite 800

                                                        Addison,
      Texas 75001

                                                      	 	
                                                        n/a

                                                      	 	
                                                        Class
      A

                                                        Class
      B

                                                      	 	
                                                        Virgo
      - Redwood, LP owns 76.1971553% of Class A Member Interests and 0.7619716%
      of all Member Interests

                                                        Virgo
      - Willow, LP owns 12.2397546% of Class A Member Interests and 0.1223975%
      of all Member Interests

                                                        Virgo
      - Sierra, LP owns 4.8234217% of Class A Member Interests and 0.0482342% of
      all Member Interests

                                                        Virgo
      - Magnolia, LP owns 6.7396684% of Class A Member Interests and 0.0673967%
      of all Member Interests

                                                        CountryPlace
      Mortgage, Ltd. owns 100% of Class B Member Interests and 99.6% of all
      Member
Interests

                                                      

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      
        
          
          

        

        
          
            Schedule
4.1-2

          

          
            

          

        

        
          
          

        

      

      
         

        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  	
                                                          Full Legal

                                                          Name

                                                        	 	
                                                          Jurisdiction

                                                          of

                                                          Organization

                                                        	 	
                                                          Organizational

                                                          Number

                                                        	 	
                                                          Tax ID

                                                          Number

                                                        	 	
                                                          Chief Executive

                                                          Office or Sole

                                                          Place of Business

                                                        	 	
                                                          Number of

                                                          Shares of

                                                          Stock

                                                          Authorized

                                                          (by Class)

                                                        	 	
                                                          Number of

                                                          Shares of

                                                          Stock

                                                          Outstanding

                                                          (by Class)

                                                        	 	
                                                          Number of

                                                          Outstanding Shares

                                                          of Stock (by Class)

                                                          In/directly Owned

                                                          by Any Loan Party

                                                          or Subsidiary of a

                                                          Loan Party

                                                        
	
                                                          Palm
      Harbor Homes, Inc.

                                                        	 	
                                                          Florida

                                                        	 	
                                                          279947

                                                        	 	
                                                          Federal:
      59-1036634

                                                        	 	
                                                          15303
      Dallas Parkway, Suite 800

                                                          Addison,
      Texas 75001

                                                        	 	
                                                          [not
      required]

                                                        	 	
                                                          [not
      required]

                                                        	 	
                                                          n/a

                                                        
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                          CountryPlace
      Acceptance G.P., LLC

                                                        	 	
                                                          Texas

                                                        	 	
                                                          0800142861

                                                        	 	
                                                          Federal:
      20-0925174

                                                          Texas:
      11616383573

                                                        	 	
                                                          15303
      Dallas Parkway, Suite 800

                                                          Addison,
      Texas 75001

                                                        	 	
                                                          n/a

                                                        	 	
                                                          n/a

                                                        	 	
                                                          Sole
      Member: CountryPlace Acceptance Corporation

                                                        
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                          CountryPlace
      Acceptance L.P., LLC

                                                        	 	
                                                          Delaware

                                                        	 	
                                                          3590244

                                                        	 	
                                                          Federal:
      16-1638362

                                                          Delaware:
      NA

                                                        	 	
                                                          15303
      Dallas Parkway, Suite 800

                                                          Addison,
      Texas 75001

                                                        	 	
                                                          n/a

                                                        	 	
                                                          n/a

                                                        	 	
                                                          Sole
      Member: CountryPlace Acceptance
Corporation

                                                        

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    
      
        
           

        

        
          
            Schedule
4.1-3

          

          
            

          

        

        
           

        

      

    

    

    Schedule 4.2

    to
Credit Agreement

     

    CONSENTS

     

    None

    

    
      
        
           

        

        
          
            Schedule
4.2-1

          

          
            

          

        

        
           

        

      

    

    

    Schedule 4.3

    to
Credit Agreement

     

    OWNERSHIP OF BORROWER AND
SUBSIDIARIES

     

    See
Schedule 4.1.

    

    
      
        
           

        

        
          
            Schedule
4.3-1

          

          
            

          

        

        
           

        

      

    

    

    Schedule 4.7

    to
Credit Agreement

     

    LITIGATION

     

    None

    

    
      
        
           

        

        
          
            Schedule
4.7-1

          

          
            

          

        

        
           

        

      

    

    

    Schedule
4.13

    to
Credit Agreement

     

    LABOR
MATTERS

     

    None

    

    
      
        
           

        

        
          
            Schedule
4.13-1

          

          
            

          

        

        
           

        

      

    

    

    Schedule
4.14

    to
Credit Agreement

     

    LIST OF
PLANS

     

    Group
Health Plan from Tower Life Insurance Company issued to Palm Harbor Homes
Inc.

     

    Group
Long Term Disability Policy from Standard Insurance Company issued to Palm
Harbor Homes Inc.

     

    Group
Life Insurance Policy from Standard Insurance Company issued to Palm Harbor
Homes Inc.

     

    Palm
Harbor Homes, Inc. Employee Savings Plan

    

    
      
        
           

        

        
          
            Schedule
4.14-1

          

          
            

          

        

        
           

        

      

    

    

    Schedule
4.15

    to
Credit Agreement

     

    ENVIRONMENTAL
MATTERS

     

    None

    

    
      
        
           

        

        
          
            Schedule
4.15-1

          

          
            

          

        

        
           

        

      

    

    

    Schedule 8.1

    to
Credit Agreement

     

    EXISTING
INDEBTEDNESS

     

    Purchase/Repurchase
Agreement for Loans between Weststar Mortgage Corporation and CountryPlace
Acceptance Corporation dated 9 January 2009.  The maximum amount of
loans that Weststar will purchase from Seller at any one time is
$10,000,000.  The agreement is for an indefinite term.

    

    
      
        
           

        

        
          
            
              Schedule
8.1-1

            

          

          
            

          

        

        
           

        

      

    

    

    Schedule 8.2

    to
Credit Agreement

     

    EXISTING
LIENS

     

    
      	
              1.

            	
              Lien
      granted by CPM in favor of Citibank, N.A., as trustee, with respect to
      loans securitized in the 2005-1 CountryPlace Manufactured Housing Contract
      Trust.  This Lien relates to UCC filing number 05-0021931364
      made in the office of the Texas Secretary of
  State.

            

    

     

    
      	
              2.

            	
              Lien
      granted by CPM in favor of Citibank, N.A., as trustee, with respect loans
      securitized in the 2007-1 CountryPlace Manufactured Housing Contract
      Trust.  This Lien relates to UCC filing number 07-0009649772
      made in the office of the Texas Secretary of
  State.

            

    

     

    
      	
              3.

            	
              Lien
      granted by CPM in favor of Federal National Mortgage Association, pursuant
      to a Seller Servicer Agreement, to secure past and future loan sales, with
      respect to loans CPM has assigned, transferred, and/or sold to Fannie
      Mae.  This Lien relates to UCC filing number 07-0033547372 made
      in the office of the Texas Secretary of
State.

            

    

    

    
      
        
           

        

        
          
            Schedule
8.2-1

          

          
            

          

        

        
           

        

      

    

    

    Schedule 8.3

    to
Credit Agreement

     

    EXISTING
INVESTMENTS

     

    None

    

    
      
        
           

        

        
          
            Schedule
8.3-1EXECUTION
VERSION

    

    
      
        	
                 

              

      

    

     

    GUARANTY
AND SECURITY AGREEMENT

     

    Dated as
of January 29, 2010

     

    among

     

    COUNTRYPLACE ACCEPTANCE CORPORATION, as Borrower
Grantor,

     

     COUNTRYPLACE
MORTGAGE, LTD., as Borrower Grantor,

     

    COUNTRYPLACE
MORTGAGE HOLDINGS, LLC, as Borrower Grantor,

     

    PALM HARBOR HOMES, INC., as Guarantor
Grantor,

     

    COUNTRYPLACE
ACCEPTANCE G.P., LLC, as Guarantor Grantor,

     

    COUNTRYPLACE
ACCEPTANCE L.P., LLC, as Guarantor Grantor,

     

    and

     

    Each
Other Grantor

    From Time
to Time Party Hereto

     

    and

     

    VIRGO
SERVICE COMPANY LLC,

    as
Administrative Agent and Collateral Agent 

      	
               

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    TABLE OF CONTENTS

    

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	 
      	 
      	
                                    Page

                                  
	 	 	 
	
                                    ARTICLE I

                                  	
                                    DEFINED
      TERMS

                                  	
                                    1

                                  
	 
      	 
      	 
      
	
                                    Section 1.1

                                  	
                                    Definitions

                                  	
                                    1

                                  
	
                                    Section 1.2

                                  	
                                    Certain
      Other Terms

                                  	
                                    5

                                  
	 
      	 
      	 
      
	
                                    ARTICLE II

                                  	
                                    GUARANTY

                                  	
                                    5

                                  
	 
      	 
      	 
      
	
                                    Section 2.1

                                  	
                                    Guaranty

                                  	
                                    5

                                  
	
                                    Section 2.2

                                  	
                                    Limitation
      of Guaranty

                                  	
                                    5

                                  
	
                                    Section 2.3

                                  	
                                    Contribution

                                  	
                                    6

                                  
	
                                    Section 2.4

                                  	
                                    Authorization;
      Other Agreements

                                  	
                                    6

                                  
	
                                    Section 2.5

                                  	
                                    Guaranty
      Absolute and Unconditional

                                  	
                                    7

                                  
	
                                    Section 2.6

                                  	
                                    Waivers

                                  	
                                    8

                                  
	
                                    Section 2.7

                                  	
                                    Reliance

                                  	
                                    8

                                  
	 
      	 
      	 
      
	
                                    ARTICLE III

                                  	
                                    GRANT
      OF SECURITY INTEREST

                                  	
                                    8

                                  
	 
      	 
      	 
      
	
                                    Section 3.1

                                  	
                                    Collateral

                                  	
                                    8

                                  
	
                                    Section 3.2

                                  	
                                    Grant
      of Security Interest in Collateral

                                  	
                                    10

                                  
	
                                    Section 3.3

                                  	
                                    Certain
      Assets

                                  	
                                    10

                                  
	 
      	 
      	 
      
	
                                    ARTICLE IV

                                  	
                                    REPRESENTATIONS
      AND WARRANTIES

                                  	
                                    11

                                  
	 
      	 
      	 
      
	
                                    Section 4.1

                                  	
                                    Title;
      No Other Liens

                                  	
                                    11

                                  
	
                                    Section 4.2

                                  	
                                    Perfection
      and Priority

                                  	
                                    11

                                  
	
                                    Section 4.3

                                  	
                                    Jurisdiction
      of Organization; Chief Executive Office

                                  	
                                    11

                                  
	
                                    Section 4.4

                                  	
                                    Locations
      of Books and Records

                                  	
                                    11

                                  
	
                                    Section 4.5

                                  	
                                    Pledged
      Collateral

                                  	
                                    11

                                  
	
                                    Section 4.6

                                  	
                                    Instruments
      and Tangible Chattel Paper Formerly Accounts

                                  	
                                    12

                                  
	
                                    Section 4.7

                                  	
                                    Intellectual
      Property

                                  	
                                    12

                                  
	
                                    Section 4.8

                                  	
                                    Commercial
      Tort Claims

                                  	
                                    13

                                  
	
                                    Section 4.9

                                  	
                                    Specific
      Collateral

                                  	
                                    13

                                  
	
                                    Section 4.10

                                  	
                                    Enforcement

                                  	
                                    13

                                  
	
                                    Section 4.11

                                  	
                                    Representations
      and Warranties of the Credit Agreement

                                  	
                                    13

                                  
	 
      	 
      	 
      
	
                                    ARTICLE V

                                  	
                                    COVENANTS

                                  	
                                    13

                                  
	 
      	 
      	 
      
	
                                    Section 5.1

                                  	
                                    Maintenance
      of Perfected Security Interest; Further Documentation and
      Consents

                                  	
                                    13

                                  
	
                                    Section 5.2

                                  	
                                    Changes
      in Locations, Name, Etc

                                  	
                                    14

                                  
	
                                    Section 5.3

                                  	
                                    Pledged
      Collateral

                                  	
                                    14

                                  
	
                                    Section 5.4

                                  	
                                    Accounts

                                  	
                                    16

                                  
	
                                    Section 5.5

                                  	
                                    Commodity
      Contracts

                                  	
                                    16

                                  

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

      
        
           

        

        
          i

          
            

          

        

        
           

        

      

       

      TABLE OF
CONTENTS

      (continued)

       

      
        
          
            
              	 
      	 
      	
                      Page

                    
	 
      	 
      	 
      
	
                      Section 5.6

                    	
                      Delivery
      of Instruments and Tangible Chattel Paper and Control of Investment
      Property, Letter-of-Credit Rights and Electronic Chattel
    Paper

                    	
                      16

                    
	
                      Section 5.7

                    	
                      Intellectual
      Property

                    	
                      17

                    
	
                      Section 5.8

                    	
                      Notices

                    	
                      18

                    
	
                      Section 5.9

                    	
                      Notice
      of Commercial Tort Claims

                    	
                      18

                    
	
                      Section 5.10

                    	
                      Compliance
      with Credit Agreement

                    	
                      18

                    
	 
      	 
      	 
      
	
                      ARTICLE VI

                    	
                      REMEDIAL
      PROVISIONS

                    	
                      18

                    
	 
      	 
      	 
      
	
                      Section 6.1

                    	
                      Code
      and Other Remedies

                    	
                      18

                    
	
                      Section 6.2

                    	
                      Accounts
      and Payments in Respect of General Intangibles

                    	
                      21

                    
	
                      Section 6.3

                    	
                      Pledged
      Collateral

                    	
                      23

                    
	
                      Section 6.4

                    	
                      Proceeds
      to be Turned over to and Held by Administrative Agent

                    	
                      24

                    
	
                      Section 6.5

                    	
                      Registration
      Rights

                    	
                      24

                    
	
                      Section 6.6

                    	
                      Deficiency

                    	
                      25

                    
	 
      	 
      	 
      
	
                      ARTICLE VII

                    	
                      SUBORDINATION

                    	
                      25

                    
	 
      	 
      	 
      
	
                      Section 7.1

                    	
                      Subordination

                    	
                      25

                    
	
                      Section 7.2

                    	
                      Restrictions
      on Payment and Transfer

                    	
                      25

                    
	 
      	 
      	 
      
	
                      ARTICLE VIII

                    	
                      THE
      ADMINISTRATIVE AGENT

                    	
                      25

                    
	 
      	 
      	 
      
	
                      Section 8.1

                    	
                      Administrative
      Agent’s Appointment as Attorney-in-Fact

                    	
                      25

                    
	
                      Section 8.2

                    	
                      Authorization
      to File Financing Statements

                    	
                      27

                    
	
                      Section 8.3

                    	
                      Authority
      of Administrative Agent

                    	
                      27

                    
	
                      Section 8.4

                    	
                      Duty;
      Obligations and Liabilities

                    	
                      28

                    
	 
      	 
      	 
      
	
                      ARTICLE IX

                    	
                      MISCELLANEOUS

                    	
                      28

                    
	 
      	 
      	 
      
	
                      Section 9.1

                    	
                      Reinstatement

                    	
                      28

                    
	
                      Section 9.2

                    	
                      Release
      of Collateral

                    	
                      29

                    
	
                      Section 9.3

                    	
                      Independent
      Obligations

                    	
                      29

                    
	
                      Section 9.4

                    	
                      No
      Waiver by Course of Conduct

                    	
                      29

                    
	
                      Section 9.5

                    	
                      Amendments
      in Writing

                    	
                      30

                    
	
                      Section 9.6

                    	
                      Additional
      Grantors; Additional Pledged Collateral

                    	
                      30

                    
	
                      Section 9.7

                    	
                      Notices

                    	
                      30

                    
	
                      Section 9.8

                    	
                      Successors
      and Assigns

                    	
                      30

                    
	
                      Section 9.9

                    	
                      Counterparts

                    	
                      30

                    
	
                      Section 9.10

                    	
                      Severability

                    	
                      30

                    
	
                      Section 9.11

                    	
                      Governing
      Law

                    	
                      31

                    

            

          

        

      

      
        
           

        

        
          ii

          
            

          

        

        
           

        

      

       

      TABLE OF
CONTENTS

      (continued)

       

      
        
          
            
              	 
      	 
      	
                      Page

                    
	 
      	 
      	 
      
	
                      Section 9.12

                    	
                      Waiver
      of Jury Trial

                    	
                      31

                    

            

          

        

      

    

     

    
      
        	
                ANNEXES AND SCHEDULES

              	 
      
	 
      	 
      
	
                ANNEX 1

              	
                Form
      of Pledge Amendment

              
	
                ANNEX 2

              	
                Form
      of Joinder Agreement

              
	 
      	 
      
	
                SCHEDULE 1

              	
                Commercial
      Tort Claims

              
	
                SCHEDULE 2

              	
                Jurisdiction
      of Organization; Chief Executive Offices

              
	
                SCHEDULE 3

              	
                Location
      of Books and Records

              
	
                SCHEDULE 4

              	
                Pledged
      Collateral

              
	
                SCHEDULE 5

              	
                Intellectual
      Property

              

      

    

    

      
        
           

        

        
          iii

          
            

          

        

        
           

        

      

       

      GUARANTY
AND SECURITY AGREEMENT, dated as of January 29, 2010, by and among COUNTRYPLACE
ACCEPTANCE CORPORATION, a Nevada corporation (“CPA”), COUNTRYPLACE
MORTGAGE, LTD., a Texas limited partnership (“CPM”), COUNTRYPLACE
MORTGAGE HOLDINGS, LLC, a Delaware limited liability company (“Mortgage SPV”,
together with CPM and CPA, the “Borrowers” and each
individually a “Borrower”), PALM
HARBOR HOMES, INC., a Florida corporation (“Parent”),
COUNTRYPLACE ACCEPTANCE G.P., LLC, a Texas limited liability company (“GP LLC”),
COUNTRYPLACE ACCEPTANCE L.P., LLC, a Delaware limited liability company (“LP LLC” and, together
with Parent, GP LLC and each of the other entities that becomes a party hereto
pursuant to Section 9.6 and
the Borrowers, the “Grantors”), in favor
of VIRGO SERVICE COMPANY LLC, a Delaware limited liability company (“Virgo”), as
administrative agent and collateral agent (in such capacity, together with its
successors and permitted assigns, the “Administrative
Agent”) for the Lenders and each other Secured Party (each as defined in
the Credit Agreement referred to below).

       

      WITNESSETH:

       

      WHEREAS,
pursuant to the Credit Agreement dated as of the date hereof (as the same may be
modified from time to time, the “Credit Agreement”)
among each of the Borrowers, Parent, GP LLC, LP LLC, the Lenders from time to
time party thereto and Virgo, as administrative agent and collateral agent for
the Lenders, the Lenders have severally agreed to make Loans (as defined in the
Credit Agreement) to the Borrowers upon the terms and subject to the conditions
set forth therein;

       

      WHEREAS,
each Grantor (other than the Borrowers and with respect to Parent only to the
extent provided in Section 2.2(b)) has agreed to guaranty the Obligations (as
defined in the Credit Agreement) of the Borrowers;

       

      WHEREAS,
each Grantor will derive substantial direct and indirect benefits from the
making of the extensions of credit under the Credit Agreement; and

       

      WHEREAS,
it is a condition precedent to the obligation of the Lenders to make their
respective Loans to the Borrowers under the Credit Agreement that the Grantors
shall have executed and delivered this Agreement to the Administrative
Agent;

       

      NOW,
THEREFORE, in consideration of the premises and to induce the Lenders and the
Administrative Agent to enter into the Credit Agreement and to induce the
Lenders to make their respective Loans to the Borrowers thereunder, each Grantor
hereby agrees with the Administrative Agent as follows:

       

      ARTICLE I

      DEFINED
TERMS

       

      Section 1.1             Definitions.  (a) Capital
terms used herein without definition are used as defined in the Credit
Agreement.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (b)           The
following terms have the meanings given to them in the UCC and terms used herein
without definition that are defined in the UCC have the meanings given to them
in the UCC (such meanings to be equally applicable to both the singular and
plural forms of the terms defined):  “account”, “account debtor”,
“as-extracted
collateral”, “certificated
security”, “chattel paper”,
“commercial tort
claim”, “commodity contract”,
“deposit
account”, “electronic chattel
paper”, “equipment”, “farm products”,
“fixture”,
“general
intangible”, “goods”, “health-care-insurance
receivable”, “instruments”, “inventory”, “investment property”,
“letter-of-credit
right”, “proceeds”, “record”, “securities account”,
“security”,
“supporting
obligation” and “tangible chattel
paper”.

       

      (c)           The
following terms shall have the following meanings:

       

      “Additional Pledged
Stock” means any and all interest in (a) any and all additional
interests in any Person owned by any Grantor that is a Pledged Subsidiary
hereafter acquired by such Grantor, including any additional Pledged Stock in
any such Pledged Subsidiary, any and all of Grantor’s other additional rights
and interests in and to such Pledged Subsidiary and any and all of Grantor’s
rights to and interests in any proceeds and distributions under or pursuant to
any Pledged Collateral Agreements of or with respect to such Pledged Subsidiary
or otherwise, including (i) warrants, options or other rights entitling
such Grantor to acquire any interest in capital stock or other equity securities
of or other equity interests in such Pledged Subsidiary, (iii) securities,
property, interest, dividends and other payments and distributions issued as an
addition to, in redemption of, in renewal or exchange for, in substitution or
upon conversion of, or otherwise on account of, the Pledged Stock of such
Pledged Subsidiary or such additional capital stock or other equity securities
or other interests in such Pledged Subsidiary, (iii) all rights of such
Grantor to receive moneys in repayment of loans made to such Pledged Subsidiary
pursuant to any Pledged Collateral Agreement or otherwise, (iv) all rights
of such Grantor to receive proceeds of any insurance, indemnity, warranty or
guaranty with respect to the Pledged Stock in such Pledged Subsidiary,
(v) all claims of such Grantor for damages arising out of or for breach of
or default or misrepresentation under any Pledged Collateral Agreement or any
documents, instruments or opinions delivered pursuant thereto, (vi) any
right of Grantor to terminate any Pledged Collateral Agreement, to perform
thereunder and to compel performance and otherwise exercise all remedies
thereunder and (vii) all rights of such Grantor to vote and give
appraisals, consents, decisions and directions and exercise any other similar
rights with respect to any lawful action of such Pledged Subsidiary, and
(b) to the extent not included in the foregoing, all cash and non-cash
proceeds and supporting obligations of or with respect to the Pledged Stock in
such Pledged Subsidiary and any such Additional Pledged Stock, in each case from
time to time received or receivable by, or otherwise paid or distributed to or
acquired by, such Grantor.

       

      “Agreement” means this
Guaranty and Security Agreement.

       

      “Applicable IP Office”
means the United States Patent and Trademark Office, the United States Copyright
Office or any similar office or agency within or outside the United
States.

       

      “Collateral” has the
meaning specified in Section 3.1.

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      “Copyrights” has the
meaning set forth in clause (i)(A) of
the definition of “Intellectual Property” set forth in the Credit
Agreement.

       

      “Excluded Property”
means, collectively, (i) to the extent that any property is excluded from
the Collateral solely by operation of Section 3.3,
such property, and (ii) any “intent to use” Trademark applications for
which a statement of use has not been filed (but only until such statement is
filed); provided, however, “Excluded Property”
shall not include any proceeds, products, substitutions or replacements of any
of the foregoing (unless such proceeds, products, substitutions or replacements
would otherwise constitute Excluded Property).

       

      “Guaranteed
Obligations” has the meaning set forth in Section 2.1.

       

      “Guarantor” means each
Grantor other than the Borrowers.

       

      “Guaranty” means the
guaranty of the Guaranteed Obligations made by the Guarantors as set forth in
this Agreement.

       

      “Internet Domain
Names” has the meaning set forth in clause (i)(D) of
the definition of “Intellectual Property” set forth in the Credit
Agreement.

       

      “IP Licenses” has the
meaning set forth in clause (ii) of
the definition of “Intellectual Property” set forth in the Credit
Agreement.

       

      “Limited Grantors”
means each of Parent, CPA, GP LLC, LP LLC and CPM, in its capacity as a
Grantor.

       

      “Material Intellectual
Property” means Intellectual Property that is owned by or licensed to a
Grantor and material to the conduct of any Grantor’s business.

       

      “Patents” has the
meaning set forth in clause (i)(B) of
the definition of “Intellectual Property” set forth in the Credit
Agreement.

       

      “Permitted Collateral
Liens” means Permitted Liens described in Sections 8.2(a)
through (b)(vii) of the
Credit Agreement and those permitted by any Loan Document to have priority over
the Liens of the Administrative Agent granted hereunder.

       

      “Pledged Certificated
Stock” means all certificated securities and any other Stock or Stock
Equivalent of any Person evidenced by a certificate, instrument or other similar
document (as defined in the UCC), in each case owned by any Grantor, and any
distribution of property made on, in respect of or in exchange for the foregoing
from time to time, exceeding $100,000 in the aggregate including all Stock and
Stock Equivalents listed on Schedule
4.  Pledged Certificated Stock excludes any Excluded Property
and any Cash Equivalents that are not, to the extent permitted by Section 7.11 of
the Credit Agreement, held in a securities account that is the subject of an
effective Control Agreement maintained with a securities intermediary approved
by the Administrative Agent.

       

      “Pledged Collateral”
means, collectively, the Pledged Stock and the Pledged Debt
Instruments.

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      “Pledged Collateral
Agreement” means any shareholders agreement, operating agreement,
partnership agreement, voting trust, proxy agreement or other agreement or
understanding with respect to any Pledged Collateral.

       

      “Pledged Debt
Instruments” means all right, title and interest of any Grantor in
instruments evidencing any Indebtedness owed to such Grantor or other
obligations, and any distribution of property made on, in respect of or in
exchange for the foregoing from time to time, exceeding $100,000 in the
aggregate including all Indebtedness described on Schedule 4,
issued by the obligors named therein.  Pledged Debt Instruments
excludes any Cash Equivalents that are not, to the extent permitted by Section 7.11 of
the Credit Agreement,  held in a securities account that is the
subject of an effective Control Agreement maintained with a securities
intermediary approved by the Administrative Agent.

       

      “Pledged Entity” means
each of CPA, GP LLC, LP LLC, CPM, Mortgage SPV, and each entity listed as a
Subsidiary on a Pledge Amendment (as defined in Section
9.6).

       

      “Pledged Investment
Property” means any investment property of any Grantor, and any
distribution of property made on, in respect of or in exchange for the foregoing
from time to time, exceeding $100,000 in the aggregate other than any Pledged
Stock or Pledged Debt Instruments.  Pledged Investment Property
excludes any Cash Equivalents that are not, to the extent permitted by Section 7.11 of
the Credit Agreement, held in a securities account that is the subject of an
effective Control Agreement maintained with a securities intermediary approved
by the Administrative Agent.

       

      “Pledged Stock” means
all Additional Pledged Stock, all Pledged Certificated Stock and all Pledged
Uncertificated Stock.

       

      “Pledged Subsidiary”
means  each Subsidiary of a Grantor, the Stock in which is required to
be pledged hereunder, including each Subsidiary of a Grantor listed on Schedule
4.

       

      “Pledged Uncertificated
Stock” means any Stock or Stock Equivalent of any Person that is not
Pledged Certificated Stock, including all right, title and interest of any
Grantor as a limited or general partner in any partnership not constituting
Pledged Certificated Stock or as a member of any limited liability company, all
right, title and interest of any Grantor in, to and under any Constituent
Document of any partnership or limited liability company to which it is a party,
and any distribution of property made on, in respect of or in exchange for the
foregoing from time to time, exceeding $100,000 in the aggregate including in
each case those interests set forth on Schedule 4, to
the extent such interests are not certificated.  Pledged
Uncertificated Stock excludes any Excluded Property and any Cash Equivalents
that are not, to the extent permitted by Section 7.11 of
the Credit Agreement, held in a securities account that is the subject of an
effective Control Agreement maintained with a securities intermediary approved
by the Administrative Agent.

       

      “Secured Obligations”
has the meaning set forth in Section 3.2.

       

      “Software” means
(a) all computer programs, including source code and object code versions,
(b) all data, databases and compilations of data, whether machine readable
or otherwise, and (c) all documentation, training materials and
configurations related to any of the foregoing.

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      “Subsidiary Guarantor”
means any Guarantor that is a Subsidiary of a Borrower.

       

      “Trade Secrets” has
the meaning set forth in clause (i)(E) of
the definition of “Intellectual Property” set forth in the Credit
Agreement.

       

      “Trademarks” has the
meaning set forth in clause (i)(C) of
the definition of “Intellectual Property” set forth in the Credit
Agreement.

       

      “UCC” means the
Uniform Commercial Code as from time to time in effect in the State of New York;
provided, however, that, in the
event that, by reason of mandatory provisions of any applicable Requirement of
Law, any of the attachment, perfection or priority of the Administrative Agent’s
or any other Secured Party’s security interest in any Collateral is governed by
the Uniform Commercial Code of a jurisdiction other than the State of New York,
“UCC” shall
mean the Uniform Commercial Code as in effect in such other jurisdiction for
purposes of the provisions hereof relating to such attachment, perfection or
priority and for purposes of the definitions related to or otherwise used in
such provisions.

       

      Section 1.2           
 Certain Other
Terms.  (a) The meanings given to terms defined herein shall be
equally applicable to both the singular and plural forms of such
terms.  The terms “herein”, “hereof” and similar
terms refer to this Agreement as a whole and not to any particular Article,
Section or clause in this Agreement.  References herein to an Annex,
Schedule, Article, Section or clause refer to the appropriate Annex or Schedule
to, or Article, Section or clause in this Agreement.  Where the
context requires, provisions relating to any Collateral when used in relation to
a Grantor shall refer to such Grantor’s Collateral or any relevant part
thereof.

       

      (b)           Section 1.5 of the
Credit Agreement is applicable to this Agreement as and to the extent set forth
therein.

       

      ARTICLE II

      GUARANTY

       

      Section 2.1             Guaranty.  To
induce the Lenders to make the Loans, each Guarantor hereby, jointly and
severally, absolutely, unconditionally and irrevocably guarantees, as primary
obligor and not merely as surety, the full and punctual payment when due,
whether at stated maturity or earlier, by reason of acceleration, mandatory
prepayment or otherwise in accordance with any Loan Document, of all the
Obligations of each Borrower whether existing on the date hereof or hereinafter
incurred or created (the “Guaranteed
Obligations”).  This Guaranty by each Guarantor hereunder
constitutes a guaranty of payment and not of collection.

       

      Section 2.2             Limitation of
Guaranty.  (a) Any term or provision of this Guaranty or any
other Loan Document to the contrary notwithstanding, the maximum aggregate
amount for which any Subsidiary Guarantor shall be liable hereunder shall not
exceed the maximum amount for which such Subsidiary Guarantor can be liable
without rendering this Guaranty or any other Loan Document, as it relates to
such Subsidiary Guarantor, subject to avoidance under applicable Requirements of
Law relating to fraudulent conveyance or fraudulent transfer (including the
Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act and
Section 548 of title 11 of the United States Code or any applicable
provisions of comparable Requirements of Law) (collectively, “Fraudulent Transfer
Laws”). Any analysis of the provisions of this Guaranty for purposes
of Fraudulent Transfer Laws shall take into account the right of contribution
established in Section 2.3 and,
for purposes of such analysis, give effect to any discharge of intercompany debt
as a result of any payment made under the Guaranty.

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      (b)           Notwithstanding
anything to the contrary contained in this Agreement, in any action or
proceeding brought to enforce any Secured Obligation or to exercise any right or
remedy contained in this Agreement or any other Loan Document, any judgment,
decree or other remedy shall be enforceable against Parent only to the extent
of, and Administrative Agent’s and Secured Parties’ recourse is limited to,
Parent’s interest in the Limited Collateral.  Any judicial proceedings
brought by Administrative Agent or any Secured Party against Parent with respect
to the Secured Obligations shall be limited to the enforcement and foreclosure
of the security interest in the Limited Collateral and no judgment for any
deficiency upon the Secured Obligations shall be sought or obtained by
Administrative Agent or any Secured Party against Parent.  The
Administrative Agent hereby acknowledges and agrees that all obligations of
Parent undertaken hereunder and under any other Loan Document shall be payable
solely from the Limited Collateral pledged by Parent hereunder.

       

      Section 2.3             Contribution.  To
the extent that any Subsidiary Guarantor shall be required hereunder to pay any
portion of any Guaranteed Obligation exceeding the greater of (a) the
amount of the economic benefit actually received by such Subsidiary Guarantor
from the Loans and other Obligations and (b) the amount such Subsidiary
Guarantor would otherwise have paid if such Subsidiary Guarantor had paid the
aggregate amount of the Guaranteed Obligations (excluding the amount thereof
repaid by the Borrowers) in the same proportion as such Subsidiary Guarantor’s
net worth on the date enforcement is sought hereunder bears to the aggregate net
worth of all the Subsidiary Guarantors on such date, then such Guarantor shall
be reimbursed by such other Subsidiary Guarantors for the amount of such excess,
pro rata, based on the respective net worth of such other Subsidiary Guarantors
on such date.

       

      Section 2.4             Authorization; Other
Agreements.  The Secured Parties are hereby authorized, without
notice to or demand upon any Guarantor and without discharging or otherwise
affecting the obligations of any Guarantor hereunder and without incurring any
liability hereunder, from time to time, to do each of the
following:

       

      (a)           (i) modify,
amend, supplement or otherwise change, (ii) accelerate or otherwise change
the time of payment or (iii) waive or otherwise consent to noncompliance
with, any Guaranteed Obligation or any Loan Document;

       

      (b)           apply
to the Guaranteed Obligations any sums by whomever paid or however realized to
any Guaranteed Obligation in such order as provided in the Loan
Documents;

       

      (c)           refund
at any time any payment received by any Secured Party in respect of any
Guaranteed Obligation;

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      (d)           (i) Dispose
of, exchange, enforce, waive, substitute, liquidate, terminate, release,
abandon, fail to perfect, subordinate, accept, substitute, surrender, exchange,
affect, impair or otherwise alter or release any Collateral for any Guaranteed
Obligation or any other guaranty therefor in any manner, (ii) receive, take
and hold additional Collateral to secure any Guaranteed Obligation,
(iii) add, release or substitute any one or more other Guarantors, makers
or endorsers of any Guaranteed Obligation or any part thereof and
(iv) otherwise deal in any manner with any Borrower and any other
Guarantor, maker or endorser of any Guaranteed Obligation or any part thereof;
and

       

      (e)           settle,
release, compromise, collect or otherwise liquidate the Guaranteed
Obligations.

       

      Section 2.5             Guaranty Absolute and
Unconditional.  Each Guarantor hereby waives and agrees not to
assert any defense, whether arising in connection with or in respect of any of
the following or otherwise, and hereby agrees that its obligations under this
Guaranty are irrevocable, absolute and unconditional and shall not be discharged
as a result of or otherwise affected by any of the following (which may not be
pleaded and evidence of which may not be introduced in any proceeding with
respect to this Guaranty, in each case except as otherwise agreed in writing by
the Administrative Agent):

       

      (a)           the
invalidity or unenforceability of any obligation of any Borrower or any other
Guarantor under any Loan Document or any other agreement or instrument relating
thereto (including any amendment, consent or waiver thereto), or any security
for, or other guaranty of, any Guaranteed Obligation or any part thereof, or the
lack of perfection or continuing perfection or failure of priority of any
security for the Guaranteed Obligations or any part thereof;

       

      (b)           the
absence of (i) any attempt to collect any Guaranteed Obligation or any part
thereof from any Borrower or any other Guarantor or other action to enforce the
same or (ii) any action to enforce any Loan Document or any Lien
thereunder;

       

      (c)           the
failure by any Person to take any steps to perfect and maintain any Lien on, or
to preserve any rights with respect to, any Collateral;

       

      (d)           any
workout, insolvency, bankruptcy proceeding, reorganization, arrangement,
liquidation or dissolution by or against any Borrower, any other Guarantor or
any other Subsidiaries of any Borrower or any procedure, agreement, order,
stipulation, election, action or omission thereunder, including any discharge or
disallowance of, or bar or stay against collecting, any Guaranteed Obligation
(or any interest thereon) in or as a result of any such proceeding;

       

      (e)           any
foreclosure, whether or not through judicial sale, and any other Disposition of
any Collateral or any election following the occurrence of an Event of Default
by any Secured Party to proceed separately against any Collateral in accordance
with such Secured Party’s rights under any applicable Requirement of Law;
or

       

      (f)           any
other defense, setoff, counterclaim or any other circumstance that might
otherwise constitute a legal or equitable discharge of any Borrower, any other
Guarantor or any other Subsidiaries of any Borrower, in each case other than the
payment in full of the Guaranteed Obligations.

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      Section 2.6             Waivers.  Each
Guarantor hereby unconditionally and irrevocably waives and agrees not to assert
any claim, defense, setoff or counterclaim based on diligence, promptness,
presentment, requirements for any demand or notice hereunder including any
of the following:  (a) any demand for payment or performance and
protest and notice of protest, (b) any notice of acceptance, (c) any
presentment, demand, protest or further notice or other requirements of any kind
with respect to any Guaranteed Obligation (including any accrued but unpaid
interest thereon) becoming immediately due and payable and (d) any other
notice in respect of any Guaranteed Obligation or any part thereof, and any
defense arising by reason of any disability or other defense of any Borrower or
any other Guarantor.  Each Guarantor further unconditionally and
irrevocably agrees not to (x) enforce or otherwise exercise any right of
subrogation or any right of reimbursement or contribution or similar right
against any Borrower or any other Guarantor by reason of any Loan Document or
any payment made thereunder or (y) assert any claim, defense, setoff or
counterclaim it may have against any other Loan Party or set off any of its
obligations to such other Loan Party against obligations of such Loan Party to
such Guarantor.  No obligation of any Guarantor hereunder shall be
discharged other than by complete performance.

       

      Section 2.7             Reliance.  Each
Guarantor hereby assumes responsibility for keeping itself informed of the
financial condition of each Borrower, each other Guarantor and any other
guarantor, maker or endorser of any Guaranteed Obligation or any part thereof,
and of all other circumstances bearing upon the risk of nonpayment of any
Guaranteed Obligation or any part thereof that diligent inquiry would reveal,
and each Guarantor hereby agrees that no Secured Party shall have any duty to
advise any Guarantor of information known to it regarding such condition or any
such circumstances.  In the event any Secured Party, in its sole
discretion, undertakes at any time or from time to time to provide any such
information to any Guarantor, such Secured Party shall be under no obligation to
(a) undertake any investigation not a part of its regular business routine,
(b) disclose any information that such Secured Party, pursuant to accepted
or reasonable commercial finance or banking practices, wishes to maintain
confidential or (c) make any future disclosures of such information or any
other information to any Guarantor.

       

      ARTICLE III

      GRANT OF
SECURITY INTEREST

       

      Section 3.1             Collateral.  (a)
For the purposes of this Agreement, all of the following property now owned or
at any time hereafter acquired by a Grantor (other than a Limited Grantor), or
in which a Grantor (other than a Limited Grantor) now has or at any time in the
future may acquire any right, title or interests, subject to Section 3.3, is
collectively referred to as the “SPV
Collateral”:

       

      (i)           all
accounts, chattel paper, deposit accounts, documents (as defined in the UCC),
equipment, general intangibles, instruments, inventory, investment property and
any supporting obligations related thereto;

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

       

      (ii)         
the commercial tort claims described on Schedule 1 and
on any supplement thereto received by the Administrative Agent pursuant to Section 5.9;

       

      (iii)         all
books, records and other documentation pertaining to the other property
described in this Section 3.1(a);

       

      (iv)         all
property of such Grantor held by any Secured Party, including all property of
every description, in the custody of or in transit to such Secured Party for any
purpose, including safekeeping, collection or pledge, for the account of such
Grantor or as to which such Grantor may have any right or power, including but
not limited to cash;

       

      (v)    
     all other goods (including but not limited to
fixtures) and personal property of such Grantor, whether tangible or intangible
and wherever located; and

       

      (vi)         to
the extent not otherwise included, all proceeds of the foregoing;

       

      (b)           For
the purposes of this Agreement, all of the following property now owned or at
any time hereafter acquired by a Limited Grantor, or in which a Limited Grantor
now has or at any time in the future may acquire any right, title or interests,
subject to Section 3.3, is
collectively referred to as the “Limited Collateral”
and, together with the SPV Collateral, the “Collateral”:

       

      (i)           all
Pledged Stock in each Pledged Entity;

       

      (ii)          all
rights, interests and claims with respect to the Pledged Stock in each Pledged
Entity, including under any and all Pledged Collateral Agreement with respect to
such Pledged Entity;

       

      (iii)         in
the case of CPM, all right, title and interest in and to (A) the “Monthly
Servicing Fee” under and as defined in the 2005-1 Pooling and Servicing
Agreement and (B) the “Monthly Servicing Fee” under and as defined in the 2007-1
Pooling and Servicing Agreement;

       

      (iv)         in
the case of CPM, all rights under the Mortgage Sale, Contribution and Servicing
Agreement, including all rights to payment thereunder;

       

      (v)         all
books, records and other documentation pertaining to the other property
described in this Section
3.1(b);

       

      (vi)         to
the extent not otherwise included, all proceeds of the foregoing;

       

      in each
case whether presently existing or owned or hereafter arising or acquired and
wherever located; provided, however, that “Collateral” shall not
include any Excluded Property.

      
        
           

        

        
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      Section 3.2             Grant of Security Interest
in Collateral.  Each Grantor, as collateral security for the
prompt and complete payment and performance when due (whether at stated
maturity, by acceleration or otherwise) of the Obligations of such Grantor (the
“Secured
Obligations”), hereby mortgages, pledges and hypothecates to the
Administrative Agent for the benefit of the Secured Parties, and grants to the
Administrative Agent for the benefit of the Secured Parties a Lien on and
security interest in, all of its right, title and interest in, to and under the
Collateral of such Grantor.

       

      Section 3.3           
 Certain
Assets.  Notwithstanding anything herein to the contrary, in no
event shall the Collateral include, and no Grantor shall be deemed to have
granted a security interest in, any of such Grantor’s right, title or interest
in:

       

      (a)           any
permit or license, or any Contractual Obligation entered into by such Grantor,
in each case, if and only if, and solely to the extent that, (i) the grant
of a security interest therein shall constitute or result in a breach,
termination or default or invalidity thereunder or thereof (other than to the
extent that any such term would be rendered ineffective pursuant to
Sections 9-406, 9-407, 9-408 or 9-409 of the UCC of any relevant
jurisdiction or any other applicable law or principles of equity) and
(ii) such permit, license or Contractual Obligation: (A) is an “off
the shelf” license of intellectual property that is not material to the
operation of the business or which can be replaced without a material
expenditure; or (B) is executed by the Grantor after the date hereof,
provided that if such permit, license or Contractual Obligation involves the
payment by any Person, or the provision of services or transfer of property with
a value, in excess of $2,000,000 in any single year, the applicable Grantor,
prior to entering into or obtaining such permit, license or Contractual
Obligation, used commercially reasonable efforts to permit the collateral
assignment thereof but was unsuccessful in obtaining such permission; provided
that immediately upon the time at which the consequences described in the
foregoing clause (i) shall no longer exist, the Collateral shall include,
and the Grantor shall be deemed to have granted a security interest in, all of
the Grantor’s right, title and interest in such permit, license or Contractual
Obligation; or

       

      (b)           any
fixed or capital assets owned by any Grantor and subject to a purchase money
Lien or a Capital Lease, if and only if, and solely to the extent that,
(i) the grant of a security interest in such fixed or capital asset shall
constitute or result in a breach, termination or default or invalidity of the
Contractual Obligation pursuant to which such purchase money Lien is granted or
in the document providing for such Capital Lease (other than to the extent that
any such term would be rendered ineffective pursuant to Sections 9-406,
9-407, 9-408 or 9-409 of the UCC of any relevant jurisdiction or any other
applicable law or principles of equity) and (ii) such Contractual
Obligation or Capital Lease is executed by the Grantor after the date hereof,
provided that if such Contractual Obligation or Capital Lease involves the
payment by any Person, or the provision of services or transfer of property with
a value, in excess of $2,000,000 in any single year, the applicable Grantor,
prior to entering into such Contractual Obligation or Capital Lease or obtaining
such fixed or capital asset, used commercially reasonable efforts to permit the
collateral assignment of such fixed or capital asset but was unsuccessful in
obtaining such permission; provided that immediately upon the time at which the
consequences described in the foregoing clause (i) shall no longer exist,
the Collateral shall include, and the Grantor shall be deemed to have granted a
security interest in, all of the Grantor’s right, title and interest in such
fixed or capital asset.

      
        
           

        

        
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      ARTICLE IV

      REPRESENTATIONS
AND WARRANTIES

       

      To induce
the Lenders and the Administrative Agent to enter into the Loan Documents, each
Grantor hereby represents and warrants each of the following to the
Administrative Agent, the Lenders and the other Secured Parties:

       

      Section 4.1             Title; No Other
Liens.  Except for Permitted Liens (other than those not
permitted to exist on any Collateral), such Grantor owns each item of the
Collateral free and clear of any and all Liens or claims of
others.  Such Grantor (a) is the record and beneficial owner of
the Collateral pledged by it hereunder constituting instruments or certificates
and (b) has rights in or the power to transfer each other item of
Collateral in which a Lien is granted by it hereunder, free and clear of any
other Lien.

       

      Section 4.2             Perfection and
Priority.  The security interest granted pursuant to this
Agreement constitutes a valid and continuing perfected security interest in
favor of the Administrative Agent in all Collateral.  Such security
interest is prior to all other Liens on the Collateral (except for Permitted
Collateral Liens).  Except as set forth in this Section 4.2, all
actions by each Grantor necessary or desirable to protect and perfect the Lien
granted hereunder on the Collateral have been duly taken.

       

      Section 4.3             Jurisdiction of
Organization; Chief Executive Office.  Such Grantor’s
jurisdiction of organization, legal name and organizational identification
number, if any, and the location of such Grantor’s chief executive office or
sole place of business, in each case as of the date hereof, is specified on
Schedule 2
and such Schedule 2 also
lists all jurisdictions of incorporation, legal names and locations of such
Grantor’s chief executive office or sole place of business for the five years
preceding the date hereof.

       

      Section 4.4             Locations of Books and
Records.  On the date hereof, such Grantor’s books and records
concerning the Collateral are kept at the locations listed on Schedule 3.

       

      Section 4.5             Pledged
Collateral.  (a) The Pledged Stock pledged by such Grantor
hereunder (i) is listed on Schedule 4 and
constitutes that percentage of the issued and outstanding equity of all classes
of each issuer thereof as set forth on Schedule 4,
(ii) has been duly authorized, validly issued and is fully paid and
nonassessable (other than Pledged Stock in limited liability companies and
partnerships) and (iii) constitutes the legal, valid and binding obligation
of the obligor with respect thereto, enforceable in accordance with its
terms.

       

      (b)           As
of the Closing Date, all Pledged Collateral constituting Collateral (other than
Pledged Uncertificated Stock) and all Pledged Investment Property constituting
Collateral consisting of instruments and certificates has been delivered to the
Administrative Agent in accordance with Section 5.3(a).

       

      (c)           Upon
the occurrence and during the continuance of an Event of Default, the
Administrative Agent shall be entitled to exercise all of the rights of the
Grantor granting the security interest in any Pledged Stock constituting
Collateral, and a transferee or assignee of such Pledged Stock shall become a
holder of such Pledged Stock to the same extent as such Grantor and be entitled
to participate in the management of the issuer of such Pledged Stock and, upon
the transfer of the entire interest of such Grantor, such Grantor shall, by
operation of law, cease to be a holder of such Pledged Stock.

      
        
           

        

        
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      (d)           Except
as disclosed in writing to the Administrative Agent, there are no (i) Pledged
Collateral Agreements which affect or relate to the voting or giving of written
consents with respect to any of the Pledged Collateral constituting Collateral
and (ii) restrictions on the transferability of the Pledged Collateral
constituting Collateral to Secured Party or with respect to the foreclosure,
transfer or disposition thereof by Secured Party.  Each Pledged
Collateral Agreement contains the entire agreement between the parties thereto
with respect to the subject matter thereof, has not been amended or modified,
and is in full force and effect in accordance with its terms.  To the
best knowledge of each Grantor, there exists no material violation or material
default under any Pledged Collateral Agreement by such Grantor or the other
parties thereto.  Each Grantor has not knowingly waived or released
any of its material rights under or otherwise consented to a material departure
from the terms and provisions of any Pledged Collateral Agreement.

       

      (e)           No
control agreements exist with respect to any Collateral other than Control
Agreements in favor of the Administrative Agent.

       

      Section 4.6             Instruments and Tangible
Chattel Paper Formerly Accounts.  No amount payable to such
Grantor under or in connection with any account constituting Collateral is
evidenced by any instrument or tangible chattel paper that has not been
delivered to the Administrative Agent, properly endorsed for transfer, to the
extent delivery is required by Section 5.6(a).

       

      Section 4.7             Intellectual
Property.  (a) Schedule 5 sets
forth a true and complete list of the following Intellectual Property
constituting Collateral such Grantor owns, licenses or otherwise has the right
to use:  (i) Intellectual Property that is registered or subject
to applications for registration, (ii) Internet Domain Names and
(iii) Material Intellectual Property and material Software, separately
identifying that owned and licensed to such Grantor and including for each of
the foregoing items (1) the owner, (2) the title, (3) the
jurisdiction in which such item has been registered or otherwise arises or in
which an application for registration has been filed, (4) as applicable,
the registration or application number and registration or application date and
(5) any IP Licenses or other rights (including franchises) granted by the
Grantor with respect thereto.

       

      (b)           On
the Closing Date, all Material Intellectual Property constituting Collateral
owned by such Grantor is valid, in full force and effect, subsisting, unexpired
and enforceable, and no Material Intellectual Property  constituting
Collateral has been abandoned.  No breach or default of any material
IP License constituting Collateral shall be caused by any of the following, and
none of the following shall limit or impair the ownership, use, validity or
enforceability of, or any rights of such Grantor in, any Material Intellectual
Property constituting Collateral:  (i) the consummation of the
transactions contemplated by any Loan Document or (ii) any holding,
decision, judgment or order rendered by any Governmental
Authority.  There are no pending (or, to the knowledge of such
Grantor, threatened) actions, investigations, suits, proceedings, audits,
claims, demands, orders or disputes challenging the ownership, use, validity,
enforceability of, or such Grantor’s rights in, any Material Intellectual
Property constituting Collateral of such Grantor.  To such Grantor’s
knowledge, no Person has been or is infringing, misappropriating, diluting,
violating or otherwise impairing any Intellectual Property constituting
Collateral of such Grantor.  Such Grantor, and to such Grantor’s
knowledge each other party thereto, is not in material breach or default of any
material IP License constituting Collateral.

      
        
           

        

        
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      Section 4.8             Commercial Tort
Claims.  The only commercial tort claims of Mortgage SPV
existing on the date hereof (regardless of whether the amount, defendant or
other material facts can be determined and regardless of whether such commercial
tort claim has been asserted, threatened or has otherwise been made known to the
obligee thereof or whether litigation has been commenced for such claims) are
those listed on Schedule 1.

       

      Section 4.9             Specific
Collateral.  None of the Collateral is, or is proceeds or
products of, farm products, as-extracted collateral, health-care-insurance
receivables or timber to be cut.

       

      Section 4.10           Enforcement.  No
Permit, notice to or filing with any Governmental Authority or any other Person
or any consent from any Person is required for the exercise by the
Administrative Agent of its rights (including voting rights) provided for in
this Agreement or the enforcement of remedies in respect of the Collateral
pursuant to this Agreement, including the transfer of any Collateral, except as
may be required in connection with the disposition of any portion of the Pledged
Collateral constituting Collateral by laws affecting the offering and sale of
securities generally or any approvals that may be required to be obtained from
any bailees or landlords to collect the Collateral.

       

      Section 4.11           Representations and
Warranties of the Credit Agreement.  The representations and
warranties as to such Grantor and its Subsidiaries made by each Borrower in
Article IV of
the Credit Agreement (all of which are hereby incorporated herein by reference)
are true and correct on each date as required by Section 3.1 of
the Credit Agreement.

       

      ARTICLE V

      COVENANTS

       

      Each
Grantor agrees with the Administrative Agent to the following, as long as any
Obligation or Commitment remains outstanding and, in each case, unless the
Required Lenders otherwise consent in writing:

       

      Section 5.1             Maintenance of Perfected
Security Interest; Further Documentation and
Consents.  (a) Generally.  Such
Grantor shall (i) not use or permit any Collateral to be used unlawfully or
in violation of any provision of any Loan Document, any Related Document, any
Requirement of Law or any policy of insurance covering the Collateral and
(ii) not enter into any Contractual Obligation or undertaking restricting
the right or ability of such Grantor or the Administrative Agent to Dispose of
any Collateral if such restriction would have a Material Adverse
Effect.

       

      (b)           Such
Grantor shall maintain the security interest created by this Agreement as a
perfected security interest having at least the priority described in Section 4.2 and
shall defend such security interest and such priority against the claims and
demands of all Persons (other than holders of Permitted Liens).

      
        
           

        

        
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      (c)           Pursuant
to Section 6.1(e)
of the Credit Agreement, such Grantor shall furnish to the Administrative Agent
from time to time statements and schedules further identifying and describing
the Collateral and such other documents in connection with the Collateral as the
Administrative Agent may reasonably request, all in reasonable detail and in
form and substance satisfactory to the Administrative Agent.

       

      (d)           At
any time and from time to time, upon the written request of the Administrative
Agent, such Grantor shall, for the purpose of obtaining or preserving the full
benefits of this Agreement and of the rights and powers herein granted,
(i) promptly and duly execute and deliver, and have recorded, such further
documents, including an authorization to file (or, as applicable, the filing) of
any financing statement or amendment under the UCC (or other filings under
similar Requirements of Law) in effect in any jurisdiction with respect to the
security interest created hereby and (ii) in the case of Mortgage SPV, take
such further action as the Administrative Agent may reasonably request (to the
extent that the same can be done at reasonable cost to Mortgage SPV), including
(A) using its commercially reasonable efforts to secure all approvals
necessary or appropriate for the assignment to or for the benefit of the
Administrative Agent of any Contractual Obligation, including any IP License,
held by such Grantor and to enforce the security interests granted hereunder and
(B) executing and delivering any Control Agreements with respect to deposit
accounts and securities accounts.

       

      Section 5.2             Changes in Locations, Name,
Etc.  Except upon 30 days’ prior written notice to the
Administrative Agent and delivery to the Administrative Agent of all documents
reasonably requested by the Administrative Agent to maintain the validity,
perfection and priority of the security interests provided for herein, such
Grantor shall not do any of the following:

       

      (i)           change
its jurisdiction of organization or its location, in each case from that
referred to in Section 4.3;
or

       

      (ii)          change
its legal name or organizational identification number, if any, or corporation,
limited liability company, partnership or other organizational structure to such
an extent that any financing statement filed in connection with this Agreement
would become misleading.

       

      Section 5.3             Pledged
Collateral.  (a) Delivery of Pledged
Collateral.  Such Grantor shall (i) deliver to the
Administrative Agent, in suitable form for transfer and in form and substance
satisfactory to the Administrative Agent, (A) all Pledged Certificated
Stock constituting Collateral of such Grantor, (B) all Pledged Debt
Instruments constituting Collateral of such Grantor and (C) all
certificates and instruments evidencing Pledged Investment Property constituting
Collateral of such Grantor and (ii) maintain all other Pledged Investment
Property constituting Collateral of such Grantor in a securities account that is
the subject of an effective Control Agreement maintained with a securities
intermediary approved by the Administrative Agent.

       

      (b)           Event of
Default.  During the continuance of an Event of Default, the
Administrative Agent shall have the right, at any time in its discretion and
without notice to the Grantor, to transfer to or to register in its name or in
the name of its nominees any Pledged Collateral constituting Collateral or any
Pledged Investment Property constituting Collateral of such
Grantor.

      
        
           

        

        
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      (c)           Exchange and Issuance of
Certificates.  The Administrative Agent shall have the right,
at any time in its discretion and without notice to the Grantor, to exchange any
certificate or instrument representing or evidencing any Pledged Collateral
constituting Collateral or any Pledged Investment Property constituting
Collateral for certificates or instruments of smaller or larger
denominations.  Upon the request of the Administrative Agent, such
Grantor shall cause certificates to be issued in respect of any uncertificated
Pledged Stock constituting Collateral.

       

      (d)           Cash Distributions with
respect to Pledged Collateral.  Except as provided in Article VI, such
Grantor shall be entitled to receive all cash distributions paid in respect of
the Pledged Collateral constituting Collateral.

       

      (e)           Voting
Rights.  Except as provided in Article VI, such
Grantor shall be entitled to exercise all voting, consent and corporate,
partnership, limited liability company and similar rights with respect to the
Pledged Collateral constituting Collateral; provided, however, that no vote
shall be cast, consent given or right exercised or other action taken by such
Grantor that would impair the Collateral or be inconsistent with or result in
any violation of any provision of any Loan Document.

       

      (f)         
  Certification of Pledged
Stock.  (i)      Such Grantor shall
comply with all of its obligations under any Pledged Collateral Agreements to
which it is a party and shall enforce all of its rights thereunder.

       

      (ii)          Such
Grantor will take all actions necessary to cause each Pledged Collateral
Agreement relating to Collateral consisting of any and all limited, limited
liability and general partnership interests and limited liability company
interests of any type or nature (“Partnership and LLC
Collateral”) to provide specifically at all times that: (A) the
Partnership and LLC Collateral shall be securities and shall be governed by
Article 8 of the applicable UCC; (B) each certificate of membership or
partnership representing the Partnership and LLC Collateral shall bear a legend
to the effect that such membership interest or partnership interest is a
security and is governed by Article 8 of the applicable UCC; and (C) no consent
of any member, manager, partner or other Person shall be a condition to the
admission as a member or partner of any transferee that acquires ownership of
the Partnership and LLC Collateral as a result of the exercise by Secured Party
of any remedy hereunder or under applicable law.

       

      (iii)         Such
Grantor shall not vote to enable or take any other action to amend or terminate,
or waive compliance with any of the terms of, any Pledged Collateral Agreement,
certificate or articles of incorporation, bylaws or other organizational
documents, or otherwise cast any vote or grant or give any consent, waiver or
ratification in respect of the Pledged Collateral constituting Collateral, in
any way that materially changes the rights of such Grantor with respect to any
such Pledged Collateral in a manner adverse to the Administrative Agent or that
adversely affects the validity, perfection or priority of the Administrative
Agent’s security interest therein.

      
        
           

        

        
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      Section 5.4             Accounts.  (a)
Such Grantor shall not, other than in the ordinary course of business,
(i) grant any extension of the time of payment of any account constituting
Collateral, (ii) compromise or settle any such account for less than the
full amount thereof, (iii) release, wholly or partially, any Person liable
for the payment of any such account, (iv) allow any credit or discount on
any such account or (v) amend, supplement or modify any such account in any
manner that could adversely affect the value thereof.

       

      (b)           The
Administrative Agent shall have the right to make test verifications of the
accounts constituting Collateral in any manner and through any medium that it
reasonably considers advisable, and such Grantor shall furnish all such
assistance and information as the Administrative Agent may reasonably require in
connection therewith.  At any time and from time to time, upon the
Administrative Agent’s request, such Grantor shall cause independent public
accountants or others satisfactory to the Administrative Agent to furnish to the
Administrative Agent reports showing reconciliations, aging and test
verifications of, and trial balances for, the accounts constituting Collateral;
provided, however, that unless
a Default shall be continuing, the Administrative Agent shall request no more
than four such reports during any calendar year.

       

      Section 5.5             Commodity
Contracts.   In the case of Mortgage SPV, such Grantor
shall not have any commodity contract other than with a Person approved by the
Administrative Agent and subject to a Control Agreement.

       

      Section 5.6             Delivery of Instruments and
Tangible Chattel Paper and Control of Investment Property, Letter-of-Credit
Rights and Electronic Chattel Paper.  (a) If any amount in
excess of $250,000 payable under or in connection with any Collateral owned by
such Grantor shall be or become evidenced by an instrument or tangible chattel
paper other than such instrument delivered in accordance with Section 5.3(a)
and in the possession of the Administrative Agent, such Grantor shall mark all
such instruments and tangible chattel paper with the following
legend:  “This writing and the obligations evidenced or secured hereby
are subject to the security interest of Virgo Service Company LLC, as
Administrative Agent” and, at the request of the Administrative Agent, shall
immediately deliver such instrument or tangible chattel paper to the
Administrative Agent, duly indorsed in a manner satisfactory to the
Administrative Agent.

       

      (b)           Such
Grantor shall not grant “control” (within the meaning of such term under Article
9-106 of the UCC) over any investment property constituting Collateral to any
Person other than the Administrative Agent.

       

      (c)           If
such Grantor is or becomes the beneficiary of a letter of credit constituting
Collateral that is (i) not a supporting obligation of any Collateral and
(ii) in excess of $250,000, such Grantor shall promptly, and in any event
within 2 Business Days after becoming a beneficiary, notify the Administrative
Agent thereof and enter into a Contractual Obligation with the Administrative
Agent, the issuer of such letter of credit or any nominated person with respect
to the letter-of-credit rights under such letter of credit.  Such
Contractual Obligation shall assign such letter-of-credit rights to the
Administrative Agent and such assignment shall be sufficient to grant control
for the purposes of Section 9-107 of the UCC (or any similar section under
any equivalent UCC).  Such Contractual Obligation shall also direct
all payments thereunder to a Collateral Account.  The provisions of
the Contractual Obligation shall be in form and substance reasonably
satisfactory to the Administrative Agent.

      
        
           

        

        
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      (d)           If
any amount in excess of $100,000 payable under or in connection with any
Collateral owned by such Grantor shall be or become evidenced by electronic
chattel paper, such Grantor shall take all steps necessary to grant the
Administrative Agent control of all such electronic chattel paper for the
purposes of Section 9-105 of the UCC (or any similar section under any
equivalent UCC) and all “transferable records” as defined in each of the Uniform
Electronic Transactions Act and the Electronic Signatures in Global and National
Commerce Act.

       

      Section 5.7            Intellectual
Property.  (a) Within 60 days after any change to Schedule 5 for
such Grantor, such Grantor shall provide the Administrative Agent notification
thereof and the short-form intellectual property agreements and assignments and
other documents that the Administrative Agent reasonably requests with respect
thereto.

       

      (b)           Such
Grantor shall (and shall cause all its licensees to) (i) (1) continue
to use each Trademark included in the Material Intellectual Property
constituting Collateral in order to maintain such Trademark in full force and
effect with respect to each class of goods for which such Trademark is currently
used, free from any claim of abandonment for non-use, (2) maintain at least
the same standards of quality of products and services offered under such
Trademark as are currently maintained, (3) use such Trademark with the
appropriate notice of registration and all other notices and legends required by
applicable Requirements of Law, (4) not adopt or use any other Trademark
that is confusingly similar or a colorable imitation of such Trademark unless
the Administrative Agent shall obtain a perfected security interest in such
other Trademark pursuant to this Agreement and (ii) not do any act or omit
to do any act whereby (w) such Trademark (or any goodwill associated
therewith) may become destroyed, invalidated, impaired or harmed in any way,
(x) any Patent included in the Material Intellectual Property constituting
Collateral may become forfeited, misused, unenforceable, abandoned or dedicated
to the public, (y) any portion of the Copyrights included in the Material
Intellectual Property constituting Collateral may become invalidated, otherwise
impaired or fall into the public domain or (z) any Trade Secret that is
Material Intellectual Property constituting Collateral may become publicly
available or otherwise unprotectable.

       

      (c)           Such
Grantor shall notify the Administrative Agent immediately if it knows, or has
reason to know, that any application or registration relating to any Material
Intellectual Property constituting Collateral may become forfeited, misused,
unenforceable, abandoned or dedicated to the public, or of any adverse
determination or development regarding the validity or enforceability or such
Grantor’s ownership of, interest in, right to use, register, own or maintain any
Material Intellectual Property constituting Collateral (including the
institution of, or any such determination or development in, any proceeding
relating to the foregoing in any Applicable IP Office).  Such Grantor
shall take all actions that are necessary or reasonably requested by the
Administrative Agent to maintain and pursue each application (and to obtain the
relevant registration or recordation) and to maintain each registration and
recordation included in the Material Intellectual Property constituting
Collateral.

      
        
           

        

        
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      (d)           In
the event that any Material Intellectual Property of such Grantor constituting
Collateral is or has been infringed, misappropriated, violated, diluted or
otherwise impaired by a third party, such Grantor shall take such action as it
reasonably deems appropriate under the circumstances in response thereto,
including promptly bringing suit and recovering all damages
therefor.

       

      Section 5.8             Notices.  Such
Grantor shall promptly notify the Administrative Agent in writing of its
acquisition of any interest hereafter in property constituting Collateral that
is of a type where a security interest or lien must be or may be registered,
recorded or filed under, or notice thereof given under, any federal statute or
regulation.

       

      Section 5.9             Notice of Commercial Tort
Claims.  Such Grantor agrees that, if it shall acquire any
interest in any commercial tort claim (whether from another Person or because
such commercial tort claim shall have come into existence) constituting
Collateral, (i) such Grantor shall, immediately upon such acquisition,
deliver to the Administrative Agent, in each case in form and substance
satisfactory to the Administrative Agent, a notice of the existence and nature
of such commercial tort claim and a supplement to Schedule 1
containing a specific description of such commercial tort claim, (ii) Section 3.1
shall apply to such commercial tort claim and (iii) such Grantor shall
execute and deliver to the Administrative Agent, in each case in form and
substance satisfactory to the Administrative Agent, any document, and take all
other action, deemed by the Administrative Agent to be reasonably necessary or
appropriate for the Administrative Agent to obtain, on behalf of the Lenders, a
perfected security interest having at least the priority set forth in Section 4.2 in
all such commercial tort claims.  Any supplement to Schedule 1
delivered pursuant to this Section 5.9
shall, after the receipt thereof by the Administrative Agent, become part of
Schedule 1
for all purposes hereunder other than in respect of representations and
warranties made prior to the date of such receipt.

       

      Section 5.10           Compliance with Credit
Agreement.  Such Grantor agrees to comply with all covenants
and other provisions applicable to it under the Credit Agreement, including
Sections 2.13,
11.3 and 11.4 of the Credit
Agreement (all of which are hereby incorporated herein by reference) and agrees
to the same submission to jurisdiction as that agreed to by each Borrower in the
Credit Agreement.

       

      ARTICLE VI

      REMEDIAL
PROVISIONS

       

      Section 6.1             Code and Other
Remedies.  (a) UCC
Remedies.  During the continuance of an Event of Default, the
Administrative Agent may exercise, in addition to all other rights and remedies
granted to it in this Agreement and in any other instrument or agreement
securing, evidencing or relating to any Secured Obligation, all rights and
remedies of a secured party under the UCC or any other applicable
law.

      
        
           

        

        
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      (b)           Disposition of
Collateral.  Without limiting the generality of the foregoing,
the Administrative Agent may, without demand of performance or other demand,
presentment, protest, advertisement or notice of any kind (except any notice
required by law referred to below) to or upon any Grantor or any other Person
(all and each of which demands, defenses, advertisements and notices are hereby
waived), during the continuance of any Event of Default (personally or through
its agents or attorneys), (i) enter upon the premises where any Collateral
is located, without any obligation to pay rent, through self-help, without
judicial process, without first obtaining a final judgment or giving any Grantor
or any other Person notice or opportunity for a hearing on the Administrative
Agent’s claim or action, (ii) collect, receive, appropriate and realize
upon any Collateral and (iii) Dispose of, grant option or options to
purchase and deliver any Collateral (enter into Contractual Obligations to do
any of the foregoing), in one or more parcels at public or private sale or
sales, at any exchange, broker’s board or office of any Secured Party or
elsewhere upon such terms and conditions as it may deem advisable and at such
prices as it may deem best, for cash or on credit or for future delivery without
assumption of any credit risk.  The Administrative Agent shall have
the right, upon any such public sale or sales and, to the extent permitted by
the UCC and other applicable Requirements of Law, upon any such private sale, to
purchase the whole or any part of the Collateral so sold, free of any right or
equity of redemption of any Grantor, which right or equity is hereby waived and
released.

       

      (c)           Management of the
Collateral.  Each Grantor further agrees, that, during the
continuance of any Event of Default, (i) at the Administrative Agent’s
request, it shall assemble the Collateral and make it available to the
Administrative Agent at places that the Administrative Agent shall reasonably
select, whether at such Grantor’s premises or elsewhere, (ii) without
limiting the foregoing, the Administrative Agent also has the right to require
that each Grantor store and keep any Collateral pending further action by the
Administrative Agent and, while any such Collateral is so stored or kept,
provide such guards and maintenance services as shall be necessary to protect
the same and to preserve and maintain such Collateral in good condition,
(iii) until the Administrative Agent is able to Dispose of any Collateral,
the Administrative Agent shall have the right to hold or use such Collateral to
the extent that it deems appropriate for the purpose of preserving the
Collateral or its value or for any other purpose deemed appropriate by the
Administrative Agent and (iv) the Administrative Agent may, if it so
elects, seek the appointment of a receiver or keeper to take possession of any
Collateral and to enforce any of the Administrative Agent’s remedies (for the
benefit of the Secured Parties), with respect to such appointment without prior
notice or hearing as to such appointment.  The Administrative Agent
shall not have any obligation to any Grantor to maintain or preserve the rights
of any Grantor as against third parties with respect to any Collateral while
such Collateral is in the possession of the Administrative Agent.

       

      (d)           Application of
Proceeds.  The Administrative Agent shall apply the cash
proceeds of any action taken by it pursuant to this Section 6.1,
after deducting all reasonable costs and expenses of every kind incurred in
connection therewith or incidental to the care or safekeeping of any Collateral
or in any way relating to the Collateral or the rights of the Administrative
Agent and any other Secured Party hereunder, including reasonable attorneys’
fees and disbursements, to the payment in whole or in part of the Secured
Obligations, as set forth in the Credit Agreement, and only after such
application and after the payment by the Administrative Agent of any other
amount required by any Requirement of Law, need the Administrative Agent account
for the surplus, if any, to any Grantor.

      
        
           

        

        
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      (e)           Direct
Obligation.  Neither the Administrative Agent nor any other
Secured Party shall be required to make any demand upon, or pursue or exhaust
any right or remedy against, any Grantor, any other Loan Party or any other
Person with respect to the payment of the Obligations or to pursue or exhaust
any right or remedy with respect to any Collateral therefor or any direct or
indirect guaranty thereof.  All of the rights and remedies of the
Administrative Agent and any other Secured Party under any Loan Document shall
be cumulative, may be exercised individually or concurrently and not exclusive
of any other rights or remedies provided by any Requirement of
Law.  To the extent it may lawfully do so, each Grantor absolutely and
irrevocably waives and relinquishes the benefit and advantage of, and covenants
not to assert against the Administrative Agent or any Lender, any valuation,
stay, appraisement, extension, redemption or similar laws and any and all rights
or defenses it may have as a surety, now or hereafter existing, arising out of
the exercise by them of any rights hereunder.  If any notice of a
proposed sale or other disposition of any Collateral shall be required by law,
such notice shall be deemed reasonable and proper if given at least 10 days
before such sale or other disposition.

       

      (f)           Commercially
Reasonable.  To the extent that applicable Requirements of Law
impose duties on the Administrative Agent to exercise remedies in a commercially
reasonable manner, each Grantor acknowledges and agrees that it is not
commercially unreasonable for the Administrative Agent to do any of the
following:

       

      (i)           fail
to incur significant costs, expenses or other Liabilities reasonably deemed as
such by the Administrative Agent to prepare any Collateral for disposition or
otherwise to complete raw material or work in process into finished goods or
other finished products for disposition;

       

      (ii)          fail
to obtain Permits, or other consents, for access to any Collateral to Dispose of
or for the collection or Disposition of any Collateral, or, if not required by
other Requirements of Law, fail to obtain Permits or other consents for the
collection or disposition of any Collateral;

       

      (iii)         fail
to exercise remedies against account debtors or other Persons obligated on any
Collateral or to remove Liens on any Collateral or to remove any adverse claims
against any Collateral;

       

      (iv)         advertise
dispositions of any Collateral through publications or media of general
circulation, whether or not such Collateral is of a specialized nature or to
contact other Persons, whether or not in the same business as any Grantor, for
expressions of interest in acquiring any such Collateral;

       

      (v)          exercise
collection remedies against account debtors and other Persons obligated on any
Collateral, directly or through the use of collection agencies or other
collection specialists, hire one or more professional auctioneers to assist in
the disposition of any Collateral, whether or not such Collateral is of a
specialized nature or, to the extent deemed appropriate by the Administrative
Agent, obtain the services of other brokers, investment bankers, consultants and
other professionals to assist the Administrative Agent in the collection or
disposition of any Collateral, or utilize Internet sites that provide for the
auction of assets of the types included in the Collateral or that have the
reasonable capacity of doing so, or that match buyers and sellers of assets to
dispose of any Collateral;

      
        
           

        

        
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      (vi)         dispose
of assets in wholesale rather than retail markets;

       

      (vii)        disclaim
disposition warranties, such as title, possession or quiet enjoyment;
or

       

      (viii)       purchase
insurance or credit enhancements to insure the Administrative Agent against
risks of loss, collection or disposition of any Collateral or to provide to the
Administrative Agent a guaranteed return from the collection or disposition of
any Collateral.

       

      Each
Grantor acknowledges that the purpose of this Section 6.1 is
to provide a non-exhaustive list of actions or omissions that are commercially
reasonable when exercising remedies against any Collateral and that other
actions or omissions by the Secured Parties shall not be deemed commercially
unreasonable solely on account of not being indicated in this Section 6.1.  Without
limitation upon the foregoing, nothing contained in this Section 6.1
shall be construed to grant any rights to any Grantor or to impose any duties on
the Administrative Agent that would not have been granted or imposed by this
Agreement or by applicable Requirements of Law in the absence of this Section 6.1.

       

      (g)           License.  For
the purpose of enabling the Administrative Agent to exercise rights and remedies
under this Section 6.1
(including in order to take possession of, collect, receive, assemble, process,
appropriate, remove, realize upon, Dispose of or grant options to purchase any
Collateral) at such time as the Administrative Agent shall be lawfully entitled
to exercise such rights and remedies, each Grantor hereby grants to the
Administrative Agent, for the benefit of the Secured Parties, an irrevocable,
nonexclusive, worldwide license (exercisable without payment of royalty or other
compensation to such Grantor), including in such license the right to
sublicense, use and practice any Intellectual Property constituting Collateral
now owned or hereafter acquired by such Grantor and access to all media in which
any of the licensed items may be recorded or stored and to all Software and
programs used for the compilation or printout thereof.

       

      Section 6.2             Accounts and Payments in
Respect of General Intangibles.  (a) In addition to, and not in
substitution for, any similar requirement in the Credit Agreement, if required
by the Administrative Agent at any time during the continuance of an Event of
Default, any payment of accounts constituting Collateral or payment in respect
of general intangibles constituting Collateral, when collected by any Grantor,
shall be promptly (and, in any event, within two Business Days) deposited by
such Grantor in the exact form received, duly indorsed by such Grantor to the
Administrative Agent, in a Collateral Account, subject to withdrawal by the
Administrative Agent as provided in Section 6.4.  Until
so turned over, such payment shall be held by such Grantor in trust for the
Administrative Agent, segregated from other funds of such
Grantor.  Each such deposit of proceeds of accounts constituting
Collateral and payments in respect of general intangibles constituting
Collateral shall be accompanied by a report identifying in reasonable detail the
nature and source of the payments included in the deposit.

      
        
           

        

        
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      (b)           At
any time during the continuance of an Event of Default:

       

      (i)           each
Grantor shall, upon the Administrative Agent’s request, deliver to the
Administrative Agent all original and other documents evidencing, and relating
to, the Contractual Obligations constituting Collateral and transactions that
gave rise to any account constituting Collateral or any payment in respect of
general intangibles constituting Collateral, including all original orders,
invoices and shipping receipts and notify account debtors that such accounts or
general intangibles have been collaterally assigned to the Administrative Agent
and that payments in respect thereof shall be made directly to the
Administrative Agent.

       

      (ii)          the
Administrative Agent may, without notice, at any time during the continuance of
an Event of Default, limit or terminate the authority of a Grantor to collect
any and all payments under Mortgages, including without limitation accounts,
chattel paper and general intangibles, and its accounts constituting Collateral
or amounts due under general intangibles constituting Collateral or any thereof
(all of the foregoing, “Specified
Collateral”) and, in its own name or in the name of others, communicate
with account debtors or obligors with respect thereto to verify with them to the
Administrative Agent’s satisfaction the existence, amount and terms of any
Specified Collateral or direct such account debtors or obligors to make payment
in respect of Specified Collateral directly to Administrative Agent or as
Administrative Agent shall direct.  In addition, the Administrative
Agent may at any time enforce such Grantor’s rights against such account debtors
and obligors of any Specified Collateral.  Upon request of
Administrative Agent, Grantors shall provide to Administrative Agent signed,
undated notices, on such Grantor’s letterhead, notifying account debtors or
obligors of any Specified Collateral that the Specified Collateral has been
transferred and directing such account debtors and obligors no longer to make
payment to such Grantor, but to make payment in respect of Specified Collateral
directly to Administrative Agent or as Administrative Agent shall
direct.

       

      (iii)         each
Grantor shall take all actions, deliver all documents and provide all
information necessary or reasonably requested by the Administrative Agent to
ensure any Internet Domain Name constituting Collateral is
registered.

       

      (c)           Anything
herein to the contrary notwithstanding, each Grantor shall remain liable under
each account and each payment in respect of general intangibles to observe and
perform all the conditions and obligations to be observed and performed by it
thereunder, all in accordance with the terms of any agreement giving rise
thereto.  No Secured Party shall have any obligation or liability
under any agreement giving rise to an account or a payment in respect of a
general intangible by reason of or arising out of any Loan Document or the
receipt by any Secured Party of any payment relating thereto, nor shall any
Secured Party be obligated in any manner to perform any obligation of any
Grantor under or pursuant to any agreement giving rise to an account or a
payment in respect of a general intangible, to make any payment, to make any
inquiry as to the nature or the sufficiency of any payment received by it or as
to the sufficiency of any performance by any party thereunder, to present or
file any claim, to take any action to enforce any performance or to collect the
payment of any amounts that may have been assigned to it or to which it may be
entitled at any time or times.

      
        
           

        

        
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      Section 6.3             Pledged
Collateral.  (a) Voting
Rights.  During the continuance of an Event of Default, upon
notice by the Administrative Agent to the relevant Grantor or Grantors, the
Administrative Agent or its nominee may exercise (A) any voting, consent,
corporate and other right pertaining to the Pledged Collateral constituting
Collateral at any meeting of shareholders, partners or members, as the case may
be, of the relevant issuer or issuers of such Pledged Collateral or otherwise
and (B) any right of conversion, exchange and subscription and any other
right, privilege or option pertaining to the Pledged Collateral constituting
Collateral as if it were the absolute owner thereof (including the right to
exchange at its discretion any such Pledged Collateral upon the merger,
amalgamation, consolidation, reorganization, recapitalization or other
fundamental change in the corporate or equivalent structure of any issuer of
Pledged Stock constituting Collateral, the right to deposit and deliver any such
Pledged Collateral with any committee, depositary, transfer agent, registrar or
other designated agency upon such terms and conditions as the Administrative
Agent may determine), all without liability except to account for property
actually received by it; provided, however, that the
Administrative Agent shall have no duty to any Grantor to exercise any such
right, privilege or option and shall not be responsible for any failure to do so
or delay in so doing.

       

      (b)           Proxies.  In
order to permit the Administrative Agent to exercise the voting and other
consensual rights that it may be entitled to exercise pursuant hereto and to
receive all dividends and other distributions that it may be entitled to receive
hereunder, (i) each Grantor shall promptly execute and deliver (or cause to
be executed and delivered) to the Administrative Agent all such proxies,
dividend payment orders and other instruments as the Administrative Agent may
from time to time reasonably request and (ii) without limiting the effect
of clause (i)
above, such Grantor hereby revokes all previous proxies with respect to the
Pledged Collateral constituting Collateral and grants to the Administrative
Agent an irrevocable proxy to vote all or any part of the Pledged Collateral
constituting Collateral and to exercise all other rights, powers, privileges and
remedies to which a holder of such Pledged Collateral would be entitled
(including giving or withholding written consents of shareholders, partners or
members, as the case may be, calling special meetings of shareholders, partners
or members, as the case may be, and voting at such meetings), which proxy shall
be effective, automatically and without the necessity of any action (including
any transfer of any such Pledged Collateral on the record books of the issuer
thereof) by any other person (including the issuer of such Pledged Collateral or
any officer or agent thereof) during the continuance of an Event of Default and
which proxy shall only terminate upon the payment in full of the Secured
Obligations.

       

      (c)           Authorization of
Issuers.  Each Grantor hereby expressly irrevocably authorizes
and instructs, without any further instructions from such Grantor, each issuer
of any Pledged Collateral pledged hereunder by such Grantor to (i) comply
with any instruction received by it from the Administrative Agent in writing
that states that an Event of Default is continuing and is otherwise in
accordance with the terms of this Agreement and each Grantor agrees that such
issuer shall be fully protected from Liabilities to such Grantor in so complying
and (ii) unless otherwise expressly permitted hereby, pay any dividend or
make any other payment with respect to such Pledged Collateral directly to the
Administrative Agent.

      
        
           

        

        
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      (d)           Anything
herein to the contrary notwithstanding, (i) each Grantor shall remain liable
under any Pledged Collateral Agreement and any other contracts, agreements and
other documents to which it is a party included in the Collateral, to the extent
set forth therein, to perform all of its duties and obligations thereunder to
the same extent as if this Agreement had not been executed, (ii) the exercise by
Secured Party of any of the rights hereunder shall not release any Grantor from
any of its duties or obligations under any such Pledged Collateral Agreement or
other contracts, agreements and other documents, and (iii) Secured Parties shall
not have any obligation or liability under any such Pledged Collateral
Agreements or other contracts, agreements and other documents by reason of this
Agreement, nor shall any Secured Party be obligated to perform any of the
obligations or duties of any Grantor thereunder or to take any action to collect
or enforce any Pledged Collateral Agreements or other such contract, agreement
or other document.

       

      Section 6.4             Proceeds to be Turned over
to and Held by Administrative Agent.  After the occurrence and
during the continuance of an Event of Default, unless otherwise expressly
provided in the Credit Agreement or this Agreement, all proceeds of any
Collateral received by any Grantor hereunder in cash or Cash Equivalents shall
be held by such Grantor in trust for the Administrative Agent and the other
Secured Parties, segregated from other funds of such Grantor, and shall,
promptly upon receipt by any Grantor, be turned over to the Administrative Agent
in the exact form received (with any necessary endorsement).  All such
proceeds of Collateral and any other proceeds of any Collateral received by the
Administrative Agent in cash or Cash Equivalents shall be held by the
Administrative Agent in a Collateral Account.  All proceeds being held
by the Administrative Agent in a Collateral Account (or by such Grantor in trust
for the Administrative Agent) shall continue to be held as collateral security
for the Secured Obligations and shall not constitute payment thereof until
applied as provided in the Credit Agreement.

       

      Section 6.5             Registration
Rights.  (a) If, in the opinion of the Administrative Agent, it
is necessary or advisable to Dispose of any portion of the Pledged Collateral
constituting Collateral by registering such Pledged Collateral under the
provisions of the Securities Act of 1933 (the “Securities Act”),
each relevant Grantor shall cause the issuer thereof to do or cause to be done
all acts as may be, in the opinion of the Administrative Agent, necessary or
advisable to register such Pledged Collateral or that portion thereof to be
Disposed of under the provisions of the Securities Act, all as directed by the
Administrative Agent in conformity with the requirements of the Securities Act
and the rules and regulations of the Securities and Exchange Commission
applicable thereto and in compliance with the securities or “Blue Sky” laws of any
jurisdiction that the Administrative Agent shall designate.

       

      (b)           Each
Grantor recognizes that the Administrative Agent may be unable to effect a
public sale of any Pledged Collateral by reason of certain prohibitions
contained in the Securities Act and applicable state or foreign securities laws
or otherwise or may determine that a public sale is impracticable, not desirable
or not commercially reasonable and, accordingly, may resort to one or more
private sales thereof to a restricted group of purchasers that shall be obliged
to agree, among other things, to acquire such securities for their own account
for investment and not with a view to the distribution or resale
thereof.  Each Grantor acknowledges and agrees that any such private
sale may result in prices and other terms less favorable than if such sale were
a public sale and, notwithstanding such circumstances, agrees that any such
private sale shall be deemed to have been made in a commercially reasonable
manner.  The Administrative Agent shall be under no obligation to
delay a sale of any Pledged Collateral for the period of time necessary to
permit the issuer thereof to register such securities for public sale under the
Securities Act or under applicable state securities laws even if such issuer
would agree to do so.

      
        
           

        

        
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      (c)           Each
Grantor agrees to use its commercially reasonable efforts to do or cause to be
done all such other acts as may be necessary to make such sale or sales of any
portion of the Pledged Collateral constituting Collateral pursuant to this Section 6.5
valid and binding and in compliance with all applicable Requirements of
Law.  Each Grantor further agrees that a breach of any covenant
contained in this Section 6.5 will
cause irreparable injury to the Administrative Agent and other Secured Parties,
that the Administrative Agent and the other Secured Parties have no adequate
remedy at law in respect of such breach and, as a consequence, that each and
every covenant contained in this Section 6.5
shall be specifically enforceable against such Grantor, and such Grantor hereby
waives and agrees not to assert any defense against an action for specific
performance of such covenants except for a defense that no Event of Default has
occurred under the Credit Agreement.

       

      Section 6.6             Deficiency.  Each
Grantor shall remain liable for any deficiency if the proceeds of any sale or
other disposition of any Collateral are insufficient to pay the Secured
Obligations and the fees and disbursements of any attorney employed by the
Administrative Agent or any other Secured Party to collect such deficiency (in
the case of Parent, subject to Section
2.2(b)).

       

      ARTICLE VII

      SUBORDINATION

       

      Section 7.1             Subordination.  Each
Grantor agrees that all payments on account of any Indebtedness owing to such
Grantor by any other Grantor (excluding that owed by CPM to Parent) (“Intercompany Debt”)
shall be subject, subordinate and junior, in right of payment and exercise of
remedies, to the prior to the indefeasible payment and satisfaction in full of
all Loans and all other Secured Obligations, and all Liens (if any) now or
hereafter existing in favor of any Grantor in respect of any Collateral shall be
subject, subordinate and junior in all respects and at all times to the Liens
now or hereafter existing of the Secured Parties therein.  Each
Secured Party shall be deemed to have acquired the Secured Obligations in
reliance upon this Article
VII.

       

      Section 7.2             Restrictions on Payment and
Transfer.  Each Grantor agrees (i) not to collect, or to
receive payment upon, by setoff or in any other manner, all or any portion of
the Intercompany Debt owing to it, except as expressly permitted by the Loan
Documents, and (ii) not to sell, assign, transfer, pledge, or grant a Lien on
any such Intercompany Debt.

       

      ARTICLE VIII

      THE
ADMINISTRATIVE AGENT

       

      Section 8.1             Administrative Agent’s
Appointment as Attorney-in-Fact.  (a) Each Grantor hereby
irrevocably constitutes and appoints the Administrative Agent and any Related
Person thereof, with full power of substitution, as its true and lawful
attorney-in-fact with full irrevocable power and authority in the place and
stead of such Grantor and in the name of such Grantor or in its own name, for
the purpose of carrying out the terms of the Loan Documents, to take any
appropriate action and to execute any document or instrument that may be
necessary or desirable to accomplish the purposes of the Loan Documents, and,
without limiting the generality of the foregoing, each Grantor hereby gives the
Administrative Agent and its Related Persons the power and right, on behalf of
such Grantor, without notice to or assent by such Grantor, to do any of the
following when an Event of Default shall be continuing:

      
        
           

        

        
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      (i)           in
the name of such Grantor, in its own name or otherwise, take possession of and
indorse and collect any check, draft, note, acceptance or other instrument for
the payment of moneys due under any account or general intangible constituting
Collateral or with respect to any other Collateral and file any claim or take
any other action or proceeding in any court of law or equity or otherwise deemed
appropriate by the Administrative Agent for the purpose of collecting any such
moneys due under any account or general intangible constituting Collateral or
with respect to any other Collateral whenever payable;

       

      (ii)          in
the case of any Intellectual Property constituting Collateral owned by or
licensed to the Grantors, execute, deliver and have recorded any document that
the Administrative Agent may request to evidence, effect, publicize or record
the Administrative Agent’s security interest in such Intellectual Property and
the goodwill and general intangibles of such Grantor relating thereto or
represented thereby;

       

      (iii)         pay
or discharge taxes and Liens levied or placed on or threatened against any
Collateral, effect any repair or pay any insurance called for by the terms of
the Credit Agreement (including all or any part of the premiums therefor and the
costs thereof);

       

      (iv)        execute,
in connection with any sale provided for in Section 6.1 or
Section 6.5, any
document to effect or otherwise necessary or appropriate in relation to evidence
the Disposition of any Collateral; or

       

      (v)         (A) direct
any party liable for any payment under any Collateral to make payment of any
moneys due or to become due thereunder directly to the Administrative Agent or
as the Administrative Agent shall direct, (B) ask or demand for, and
collect and receive payment of and receipt for, any moneys, claims and other
amounts due or to become due at any time in respect of or arising out of any
Collateral, (C) sign and indorse any invoice, freight or express bill, bill
of lading, storage or warehouse receipt, draft against debtors, assignment,
verification, notice and other document in connection with any Collateral,
(D) commence and prosecute any suit, action or proceeding at law or in
equity in any court of competent jurisdiction to collect any Collateral and to
enforce any other right in respect of any Collateral, (E) defend any
actions, suits, proceedings, audits, claims, demands, orders or disputes brought
against such Grantor with respect to any Collateral, (F) settle, compromise
or adjust any such actions, suits, proceedings, audits, claims, demands, orders
or disputes and, in connection therewith, give such discharges or releases as
the Administrative Agent may deem appropriate, (G) assign any Intellectual
Property constituting Collateral owned by the Grantors or any IP Licenses
constituting Collateral of the Grantors throughout the world on such terms and
conditions and in such manner as the Administrative Agent shall in its sole
discretion determine, including the execution and filing of any document
necessary to effectuate or record such assignment and (H) generally,
Dispose of, grant a Lien on, make any Contractual Obligation with respect to and
otherwise deal with, any Collateral as fully and completely as though the
Administrative Agent were the absolute owner thereof for all purposes and do, at
the Administrative Agent’s option, at any time or from time to time, all acts
and things that the Administrative Agent deems necessary to protect, preserve or
realize upon any Collateral and the Secured Parties’ security interests therein
and to effect the intent of the Loan Documents, all as fully and effectively as
such Grantor might do.

      
        
           

        

        
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      (b)           If
any Grantor fails to perform or comply with any Contractual Obligation contained
herein, the Administrative Agent, at its option, but without any obligation so
to do, may perform or comply, or otherwise cause performance or compliance, with
such Contractual Obligation.

       

      (c)           The
expenses of the Administrative Agent incurred in connection with actions
undertaken as provided in this Section 8.1,
together with interest thereon at a rate set forth in Section 2.8 of
the Credit Agreement, from the date of payment by the Administrative Agent to
the date reimbursed by the relevant Grantor, shall be payable by such Grantor to
the Administrative Agent on demand.

       

      (d)           Each
Grantor hereby ratifies all that said attorneys shall lawfully do or cause to be
done by virtue of this Section 8.1.  All
powers, authorizations and agencies contained in this Agreement are coupled with
an interest and are irrevocable until this Agreement is terminated and the
security interests created hereby are released.

       

      Section 8.2            
Authorization to File
Financing Statements.  Each Grantor authorizes the
Administrative Agent and its Related Persons, at any time and from time to time,
to file or record financing statements, amendments thereto, and other filing or
recording documents or instruments with respect to any Collateral in such form
and in such offices as the Administrative Agent reasonably determines
appropriate to perfect the security interests of the Administrative Agent under
this Agreement, and such financing statements and amendments may described the
Collateral covered thereby (other than the Limited Collateral) as “all assets of
the debtor”.  A photographic or other reproduction of this Agreement
shall be sufficient as a financing statement or other filing or recording
document or instrument for filing or recording in any
jurisdiction.  Such Grantor also hereby ratifies its authorization for
the Administrative Agent to have filed any initial financing statement or
amendment thereto under the UCC (or other similar laws) in effect in any
jurisdiction if filed prior to the date hereof.

       

      Section 8.3             Authority of Administrative
Agent.  Each Grantor acknowledges that the rights and
responsibilities of the Administrative Agent under this Agreement with respect
to any action taken by the Administrative Agent or the exercise or non-exercise
by the Administrative Agent of any option, voting right, request, judgment or
other right or remedy provided for herein or resulting or arising out of this
Agreement shall, as between the Administrative Agent and the other Secured
Parties, be governed by the Credit Agreement and by such other agreements with
respect thereto as may exist from time to time among them, but, as between the
Administrative Agent and the Grantors, the Administrative Agent shall be
conclusively presumed to be acting as agent for the Secured Parties with full
and valid authority so to act or refrain from acting, and no Grantor shall be
under any obligation or entitlement to make any inquiry respecting such
authority.

      
        
           

        

        
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      Section 8.4             Duty; Obligations and
Liabilities.  (a) Duty of Administrative
Agent.  The Administrative Agent’s sole duty with respect to
the custody, safekeeping and physical preservation of the Collateral in its
possession shall be to deal with it in the same manner as the Administrative
Agent deals with similar property for its own account.  The powers
conferred on the Administrative Agent hereunder are solely to protect the
Administrative Agent’s interest in the Collateral and shall not impose any duty
upon the Administrative Agent to exercise any such powers.  The
Administrative Agent shall be accountable only for amounts that it receives as a
result of the exercise of such powers, and neither it nor any of its Related
Persons shall be responsible to any Grantor for any act or failure to act
hereunder, except for their own gross negligence or willful misconduct as
finally determined by a court of competent jurisdiction.  In addition,
the Administrative Agent shall not be liable or responsible for any loss or
damage to any Collateral, or for any diminution in the value thereof, by reason
of the act or omission of any warehousemen, carrier, forwarding agency,
consignee or other bailee if such Person has been selected by the Administrative
Agent in good faith.

       

      (b)           Obligations and Liabilities
with respect to Collateral.  No Secured Party and no Related
Person thereof shall be liable for failure to demand, collect or realize upon
any Collateral or for any delay in doing so or shall be under any obligation to
sell or otherwise dispose of any Collateral upon the request of any Grantor or
any other Person or to take any other action whatsoever with regard to any
Collateral.  The powers conferred on the Administrative Agent
hereunder shall not impose any duty upon any other Secured Party to exercise any
such powers.  The other Secured Parties shall be accountable only for
amounts that they actually receive as a result of the exercise of such powers,
and neither they nor any of their respective officers, directors, employees or
agents shall be responsible to any Grantor for any act or failure to act
hereunder, except for their own gross negligence or willful misconduct as
finally determined by a court of competent jurisdiction.

       

      ARTICLE IX

      Miscellaneous

       

      Section 9.1             Reinstatement.  Each
Grantor agrees that, if any payment made by any Loan Party or other Person and
applied to the Secured Obligations is at any time annulled, avoided, set aside,
rescinded, invalidated, declared to be fraudulent or preferential or otherwise
required to be refunded or repaid, or the proceeds of any Collateral are
required to be returned by any Secured Party to such Loan Party, its estate,
trustee, receiver or any other party, including any Grantor, under any
bankruptcy law, state or federal law, common law or equitable cause, then, to
the extent of such payment or repayment, any Lien or other Collateral securing
such liability shall be and remain in full force and effect, as fully as if such
payment had never been made.  If, prior to any of the foregoing,
(a) any Lien or other Collateral securing such Grantor’s liability
hereunder shall have been released or terminated by virtue of the foregoing or
(b) any provision of the Guaranty hereunder shall have been terminated,
cancelled or surrendered, such Lien, other Collateral or provision shall be
reinstated in full force and effect and such prior release, termination,
cancellation or surrender shall not diminish, release, discharge, impair or
otherwise affect the obligations of any such Grantor in respect of any Lien or
other Collateral securing such obligation or the amount of such
payment.

      
        
           

        

        
          28

          
            

          

        

        
           

        

      

       

      Section 9.2             Release of
Collateral.  (a) At the time provided in Section 10.10(b)(iii)
of the Credit Agreement, the Collateral shall be released from the Lien created
hereby and this Agreement and all obligations (other than those expressly stated
to survive such termination) of the Administrative Agent and each Grantor
hereunder shall terminate, all without delivery of any instrument or performance
of any act by any party, and all rights to the Collateral shall revert to the
Grantors.  Each Grantor is hereby authorized to file UCC amendments at
such time evidencing the termination of the Liens so released.  At the
request of any Grantor following any such termination, the Administrative Agent
shall deliver to such Grantor any Collateral of such Grantor held by the
Administrative Agent hereunder and execute and deliver to such Grantor such
documents as such Grantor shall reasonably request to evidence such
termination.

       

      (b)           If
the Administrative Agent shall be directed or permitted pursuant to Section 10.10(b)(i)
or (ii) of the
Credit Agreement to release any Lien or any Collateral, such Collateral shall be
released from the Lien created hereby to the extent provided thereunder, and
subject to the terms and conditions set forth therein.  In connection
therewith, the Administrative Agent, at the request of any Grantor, shall
execute and deliver to such Grantor such documents as such Grantor shall
reasonably request to evidence such release.

       

      (c)           At
the time provided in Section 10.10(a)
of the Credit Agreement and at the request of the Borrowers, a Grantor shall be
released from its obligations hereunder in the event that all the Securities of
such Grantor shall be Disposed of to any Person that is not an Affiliate any
Borrower and the Subsidiaries of any Borrower in a transaction permitted by the
Loan Documents.

       

      Section 9.3             Independent
Obligations.  The obligations of each Grantor hereunder are
independent of and separate from the Secured Obligations and the Guaranteed
Obligations.  If any Secured Obligation or Guaranteed Obligation is
not paid when due, or upon any Event of Default, the Administrative Agent may,
at its sole election, proceed directly and at once, without notice, against any
Grantor and any Collateral to collect and recover the full amount of any Secured
Obligation or Guaranteed Obligation then due, without first proceeding against
any other Grantor, any other Loan Party or any other Collateral and without
first joining any other Grantor or any other Loan Party in any
proceeding.

       

      Section 9.4             No Waiver by Course of
Conduct.  No Secured Party shall by any act (except by a
written instrument pursuant to Section 9.6),
delay, indulgence, omission or otherwise be deemed to have waived any right or
remedy hereunder or to have acquiesced in any Default or Event of
Default.  No failure to exercise, nor any delay in exercising, on the
part of any Secured Party, any right, power or privilege hereunder shall operate
as a waiver thereof.  No single or partial exercise of any right,
power or privilege hereunder shall preclude any other or further exercise
thereof or the exercise of any other right, power or privilege.  A
waiver by any Secured Party of any right or remedy hereunder on any one occasion
shall not be construed as a bar to any right or remedy that such Secured Party
would otherwise have on any future occasion.

      
        
           

        

        
          29

          
            

          

        

        
           

        

      

       

      Section 9.5            
Amendments in
Writing.  None of the terms or provisions of this Agreement may
be waived, amended, supplemented or otherwise modified except in accordance with
Section 11.1 of
the Credit Agreement; provided, however, that annexes
to this Agreement may be supplemented (but no existing provisions may be
modified and no Collateral may be released) through Pledge Amendments and
Joinder Agreements, in substantially the form of Annex 1 and
Annex 2,
respectively, in each case duly executed by the Administrative Agent and each
Grantor directly affected thereby.

       

      Section 9.6             Additional Grantors;
Additional Pledged Collateral.  (a) Joinder
Agreements.  If, at the option of the Borrowers or as required
pursuant to Section 7.10 of
the Credit Agreement, the Borrowers shall cause any Subsidiary that is not a
Grantor to become a Grantor hereunder, such Subsidiary shall execute and deliver
to the Administrative Agent a Joinder Agreement substantially in the form of
Annex 2
and shall thereafter for all purposes be a party hereto and have the same
rights, benefits and obligations as a Grantor party hereto on the Closing
Date.

       

      (b)           Pledge
Amendments.  To the extent any Pledged Collateral constituting
Collateral has not been delivered as of the Closing Date, or any Grantor
acquires any Pledged Collateral comprising a direct or indirect interest in any
Stock of Mortgage SPV, such Grantor shall deliver a pledge amendment duly
executed by the Grantor in substantially the form of Annex 1 (each, a
“Pledge
Amendment”) with respect to such Pledged Collateral.  Such
Grantor authorizes the Administrative Agent to attach each Pledge Amendment to
this Agreement.

       

      Section 9.7             Notices.  All
notices, requests and demands to or upon the Administrative Agent or any Grantor
hereunder shall be effected in the manner provided for in Section 11.11 of
the Credit Agreement; provided, however, that any
such notice, request or demand to or upon any Grantor shall be addressed to the
Borrowers’ notice address set forth in such Section 11.11.

       

      Section 9.8             Successors and
Assigns.  This Agreement shall be binding upon the successors
and assigns of each Grantor and shall inure to the benefit of each Secured Party
and their successors and assigns; provided, however, that no
Grantor may assign, transfer or delegate any of its rights or obligations under
this Agreement without the prior written consent of the Administrative
Agent.

       

      Section 9.9             Counterparts.  This
Agreement may be executed in any number of counterparts and by different parties
in separate counterparts, each of which when so executed shall be deemed to be
an original and all of which taken together shall constitute one and the same
agreement.  Signature pages may be detached from multiple separate
counterparts and attached to a single counterpart.  Delivery of an
executed signature page of this Agreement by facsimile transmission shall be as
effective as delivery of a manually executed counterpart hereof.

       

      Section 9.10           Severability.  Any
provision of this Agreement being held illegal, invalid or unenforceable in any
jurisdiction shall not affect any part of such provision not held illegal,
invalid or unenforceable, any other provision of this Agreement or any part of
such provision in any other jurisdiction.

      
        
           

        

        
          30

          
            

          

        

        
           

        

      

       

      Section 9.11           Governing
Law.  This Agreement and the rights and obligations of the
parties hereto shall be governed by, and construed and interpreted in accordance
with, the law of the State of New York.

       

      Section 9.12           Waiver
of Jury Trial.  Each
party hereto hereby irrevocably waives trial by jury in any suit, action or
proceeding with respect to, or directly or indirectly arising out of, under or
in connection with, any loan document or the transactions contemplated therein
or related thereto (whether founded in contract, tort or any other
theory).  Each party hereto (A) certifies that no other party and
no Related Person of any other party has represented, expressly or otherwise,
that such other party would not, in the event of litigation, seek to enforce the
foregoing waiver and (B) acknowledges that it and the other parties hereto
have been induced to enter into this agreement by the mutual waivers and
certifications in this Section 9.12.

       

      [SIGNATURE
PAGES FOLLOW]

      
        
           

        

        
          31

          
            

          

        

        
           

        

      

    

     

    IN
WITNESS WHEREOF, each of the undersigned has caused this Guaranty and Security
Agreement to be duly executed and delivered as of the date first above
written.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      
                                                                                        
                                                                                          
                                                                                            
                                                                                              
                                                                                                
                                                                                                  
                                                                                                    
                                                                                                      
                                                                                                        
                                                                                                          
                                                                                                            
                                                                                                              
                                                                                                                
                                                                                                                  
                                                                                                                    
                                                                                                                      
                                                                                                                        
                                                                                                                          
                                                                                                                            
                                                                                                                              
                                                                                                                                
                                                                                                                                  
                                                                                                                                    
                                                                                                                                      
                                                                                                                                        
                                                                                                                                          
                                                                                                                                            
                                                                                                                                              
                                                                                                                                                
                                                                                                                                                  	 
      	
                                                                                                                                                          COUNTRYPLACE
      ACCEPTANCE  

                                                                                                                                                        
	 
      	 
      	CORPORATION
	 	 	 
	 
      	
                                                                                                                                                          By

                                                                                                                                                        	/s/
      Larry Keener
	 
      	 
      	
                                                                                                                                                          Name:
      Larry Keener

                                                                                                                                                        
	 
      	 
      	
                                                                                                                                                          Title:
      Vice President

                                                                                                                                                        
	 
      	 
      	 
      
	 
      	
                                                                                                                                                          COUNTRYPLACE
      MORTGAGE, LTD., as

                                                                                                                                                        
	 
      	 
      	
                                                                                                                                                          Borrower

                                                                                                                                                          By
      COUNTRYPLACE ACCEPTANCE GP,
LLC, as its General
  Partner

                                                                                                                                                        
	 
      	 
      	 
      	
                                                                                                                                                          By
      COUNTRYPLACE ACCEPTANCE

                                                                                                                                                          CORPORATION,
      as its Sole Member

                                                                                                                                                        
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
                                                                                                                                                          By

                                                                                                                                                        	/s/
      Larry Keener
	 
      	 
      	 
      	 
      	
                                                                                                                                                          Name:
      Larry Keener

                                                                                                                                                        
	 
      	 
      	 
      	 
      	
                                                                                                                                                          Title:
      Vice President

                                                                                                                                                        
	 	 
	 
      	
                                                                                                                                                          COUNTRYPLACE
      MORTGAGE HOLDINGS,

                                                                                                                                                        
	 
      	 
      	
                                                                                                                                                          LLC

                                                                                                                                                        
	 
      	 
      	 
      
	 
      	
                                                                                                                                                          By

                                                                                                                                                        	/s/
      Larry Keener
	 
      	 
      	
                                                                                                                                                          Name:
      Larry Keener

                                                                                                                                                        
	 
      	 
      	
                                                                                                                                                          Title:
      Vice President

                                                                                                                                                        
	 
      	 
      	 
      
	 
      	
                                                                                                                                                          COUNTRYPLACE
      HOLDINGS ABS, LLC

                                                                                                                                                        
	 
      	 
      	 
      
	 
      	
                                                                                                                                                          By

                                                                                                                                                        	/s/
      Larry Keener
	 
      	 
      	
                                                                                                                                                          Name:
      Larry Keener

                                                                                                                                                        
	 
      	 
      	
                                                                                                                                                          Title:
      Vice President

                                                                                                                                                        
	 
      	 
      	 
      
	 
      	
                                                                                                                                                          PALM
      HARBOR HOMES, INC.

                                                                                                                                                        
	 
      	 
      	 
      
	 
      	
                                                                                                                                                          By

                                                                                                                                                        	/s/
      Larry Keener
	 
      	 
      	
                                                                                                                                                          Name:
      Larry Keener

                                                                                                                                                        
	 
      	 
      	
                                                                                                                                                          Title:
      CEO

                                                                                                                                                        

                                                                                                                                                

                                                                                                                                              

                                                                                                                                            

                                                                                                                                          

                                                                                                                                        

                                                                                                                                      

                                                                                                                                    

                                                                                                                                  

                                                                                                                                

                                                                                                                              

                                                                                                                            

                                                                                                                          

                                                                                                                        

                                                                                                                      

                                                                                                                    

                                                                                                                  

                                                                                                                

                                                                                                              

                                                                                                            

                                                                                                          

                                                                                                        

                                                                                                      

                                                                                                    

                                                                                                  

                                                                                                

                                                                                              

                                                                                            

                                                                                          

                                                                                        

                                                                                      

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    [SIGNATURE
PAGE TO GUARANTY AND SECURITY AGREEMENT]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        	 
      	
                                                                COUNTRYPLACE
      ACCEPTANCE G.P., LLC

                                                              
	 
      	 
      	
                                                                By
      COUNTRYPLACE ACCEPTANCE
CORPORATION, as its Sole
  Member

                                                              
	 	 	 	 
	 
      	 
      	
                                                                By

                                                              	/s/
      Larry Keener
	 
      	 
      	 
      	
                                                                Name:
      Larry Keener

                                                              
	 
      	 
      	 
      	
                                                                Title:
      Vice President

                                                              
	 	 
	 
      	
                                                                COUNTRYPLACE
      ACCEPTANCE L.P., LLC

                                                              
	 
      	 
      	
                                                                By
      COUNTRYPLACE ACCEPTANCE
CORPORATION, as its Sole
  Member

                                                              
	 	 	 
	 
      	 
      	
                                                                By

                                                              	/s/
      Larry Keener
	 
      	 
      	 
      	
                                                                Name:
      Larry Keener

                                                              
	 
      	 
      	 
      	
                                                                Title:
      Vice
President

                                                              

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    ACCEPTED
AND AGREED

    as of the
date first above written:

     

    
      
        
          
            
              	
                      VIRGO
      SERVICE COMPANY LLC, as

                    	 
      
	 
      	
                      Administrative
      Agent

                    	 
      
	 	 	 
	
                      By:

                    	/s/
      Jesse C. Watson	 
      
	 
      	
                      Name:
      Jesse C. Watson

                    	 
      
	 
      	
                      Title:
      Managing Member

                    	 
      

            

          

        

      

    

     

    [SIGNATURE
PAGE TO GUARANTY AND SECURITY AGREEMENT]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ANNEX
1

     to
Guaranty and Security Agreement

     

    FORM OF PLEDGE
AMENDMENT

     

    This
PLEDGE AMENDMENT, dated as of [_________], is delivered pursuant to Section 9.6 of
the Guaranty and Security Agreement, dated as of January 29, 2010 (the “Guaranty and Security
Agreement”), by and among Countryplace Acceptance Corporation, a Nevada
corporation (“CPA”), Countryplace
Mortgage, LTD., a Texas limited partnership (“CPM”), CountryPlace
Mortgage Holdings, LLC, a Delaware limited liability company (“Mortgage SPV”,
together with CPM and CPA, the “Borrowers” and each
individually a “Borrower”), Palm
Harbor Homes, Inc., a Florida corporation (“Parent”),
Countryplace Acceptance G.P., LLC, a Texas limited liability company (“GP LLC”),
Countryplace Acceptance L.P., LLC, a Delaware limited liability company (“LP LLC” and, together
with Parent, GP LLC, each of the other entities that becomes a party hereto
pursuant to Section 9.6
thereof and the Borrowers, the “Grantors”), in favor
of Virgo Service Company LLC, a Delaware limited liability company (“Virgo”), as
administrative agent and collateral agent.  Capitalized terms used
herein without definition are used as defined in the Guaranty and Security
Agreement.

     

    The
undersigned hereby agrees that this Pledge Amendment may be attached to the
Guaranty and Security Agreement and that the Pledged Collateral listed on Annex 1-A to
this Pledge Amendment shall be and become part of the Collateral referred to in
the Guaranty and Security Agreement and shall secure all Obligations of the
undersigned.

     

    The
undersigned hereby represents and warrants that each of the representations and
warranties contained in Sections 4.1,
4.2, 4.5 and 4.10 of the Guaranty
and Security Agreement is true and correct and as of the date hereof as if made
on and as of such date.

     

    
      
        
          
            
              	 
      	
                      [GRANTOR]

                    
	 	 
	 
      	
                      By:

                    	 
      
	 
      	 
      	
                      Name:

                    
	 
      	 
      	
                      Title:

                    

            

          

        

      

    

    
      
        
          
            
              
                
                  
                    	
                            ACKNOWLEDGED
      AND AGREED

                          	 
      
	
                            as
      of the date first above written:

                          	 
      
	 
      	 
      	 
      
	
                            VIRGO
      SERVICE COMPANY LLC, as

                          	 
      
	 
      	
                            Administrative
      Agent

                          	 
      
	 	 	 
	
                            By:

                          	 
      	 
      
	 
      	
                            Name:

                          	 
      
	 
      	
                            Title:

                          	 
      

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        A1-1

        
          

        

      

      
        
        

      

    

     

    Annex
1-A

    to Pledge
Amendment

     

    Pledged
Collateral

    

    1.           Pledged Stock in Limited
Liability Companies. Interests in each limited liability company that is
a Pledged Entity as follows:

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	
                                      Subsidiary

                                    	 	
                                      Grantor

                                    	 	
                                      Certificate
No.

                                    	 	
                                      Certificate
Date

                                    	 	
                                      Number
of Units

                                    	 	
                                      Pledged Units’
Percentage of all
Outstanding
Units

                                    
	 
      	 	 
      	 	 
      	 	 
      	 	 
      	 	 
      

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    2.           Pledged Stock in
Partnerships. Interests in each general partnership, limited partnership,
limited liability partnership or other partnership that is a Pledged Entity as
follows:

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      	
                                              Subsidiary

                                            	 	
                                              Grantor

                                            	 	
                                              Type of
Interest
(e.g.,
general,
limited)

                                            	 	
                                              Certificate
No.

                                            	 	
                                              Certificate
Date

                                            	 	
                                              Number
of Units

                                            	 	
                                              Pledged Units’
Percentage of all
Outstanding
Units

                                            
	 
      	 	 
      	 	 
      	 	 
      	 	 
      	 	 
      	 	 
      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    3.           Pledged Stock in
Corporations.  Capital stock of each corporation that is a
Pledged Entity as follows:

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	
                                        Subsidiary

                                      	 	
                                        Grantor

                                      	 	
                                        Certificate
No.

                                      	 	
                                        Certificate
Date

                                      	 	
                                        No. and
Class

                                        of Pledged
Stock

                                      	 	
                                        Pledged Units’
Percentage of all
Outstanding
Units

                                      
	 
      	 	 
      	 	 
      	 	 
      	 	 
      	 	 
      

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    4.           Pledged Debt
Instruments.  Pledged Debt Instruments as follows:

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    ISSUER

                                  	 	
                                    DESCRIPTION
OF DEBT

                                  	 	
                                    CERTIFICATE
NO(S).

                                  	 	
                                    FINAL
MATURITY

                                  	 	
                                    PRINCIPAL
AMOUNT

                                  
	 
      	 	 
      	 	 
      	 	 
      	 	 
      

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        A1-2

        
          

        

      

      
        
        

      

    

     

    ANNEX
2

    to
Guaranty and Security Agreement

     

    FORM OF JOINDER
AGREEMENT

     

    This
JOINDER AGREEMENT, dated as of [_____________], is delivered pursuant to Section 9.6 of
the Guaranty and Security Agreement, dated as of January 29, 2010 (the “Guaranty and Security
Agreement”), by and among Countryplace Acceptance Corporation, a Nevada
corporation (“CPA”), Countryplace
Mortgage, LTD., a Texas limited partnership (“CPM”), CountryPlace
Mortgage Holdings, LLC, a Delaware limited liability company (“Mortgage SPV”,
together with CPM and CPA, the “Borrowers” and each
individually a “Borrower”), Palm
Harbor Homes, Inc., a Florida corporation (“Parent”),
Countryplace Acceptance G.P., LLC, a Texas limited liability company (“GP LLC”),
Countryplace Acceptance L.P., LLC, a Delaware limited liability company (“LP LLC” and, together
with Parent, GP LLC, each of the other entities that becomes a party thereto
pursuant to Section 9.6
thereof and the Borrowers, the “Grantors”), in favor
of Virgo Service Company LLC, a Delaware limited liability company (“Virgo”), as
administrative agent and collateral agent.  Capitalized terms used
herein without definition are used as defined in the Guaranty and Security
Agreement.

     

    By
executing and delivering this Joinder Agreement, the undersigned, as provided in
Section 9.6 of
the Guaranty and Security Agreement, hereby becomes a party to the Guaranty and
Security Agreement as a Grantor thereunder with the same force and effect as if
originally named as a Grantor therein and, without limiting the generality of
the foregoing, as collateral security for the prompt and complete payment and
performance when due (whether at stated maturity, by acceleration or otherwise)
of the Secured Obligations of the undersigned, hereby mortgages, pledges and
hypothecates to the Administrative Agent for the benefit of the Secured Parties,
and grants to the Administrative Agent for the benefit of the Secured Parties a
lien on and security interest in, all of its right, title and interest in, to
and under the Collateral of the undersigned and expressly assumes all
obligations and liabilities of a Grantor thereunder.  The undersigned
hereby agrees to be bound as a Grantor for the purposes of the Guaranty and
Security Agreement.

     

    The
information set forth in Annex 1-A is
hereby added to the information set forth in Schedules 1 through
5 to the
Guaranty and Security Agreement.  By acknowledging and agreeing to
this Joinder Agreement, the undersigned hereby agree that this Joinder Agreement
may be attached to the Guaranty and Security Agreement and that the Pledged
Collateral listed on Annex 1-A to
this Joinder Amendment shall be and become part of the Collateral referred to in
the Guaranty and Security Agreement and shall secure all Secured Obligations of
the undersigned.

     

    The
undersigned hereby represents and warrants that each of the representations and
warranties contained in Article IV of
the Guaranty and Security Agreement applicable to it is true and correct on and
as the date hereof as if made on and as of such date.

     

    
      
        
        

      

      
        A2-1

        
          

        

      

      
        
        

      

    

     

    IN
WITNESS WHEREOF, the undersigned has caused this Joinder Agreement to be duly
executed and delivered as of the date first above written.

     

    
      
        
          
            	 
      	
                    [ADDITIONAL
      GRANTOR]

                  
	 
      	 
      	 
      
	 
      	
                    By:

                  	 
      
	 
      	 
      	
                    Name:

                  
	 
      	 
      	
                    Title:

                  

          

        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	
                                  ACKNOWLEDGED
      AND AGREED

                                	 
      
	
                                  as
      of the date first above written:

                                	 
      
	 
      	 
      
	
                                  [EACH
      GRANTOR PLEDGING

                                	 
      
	
                                  ADDITIONAL
      COLLATERAL]

                                	 
      
	 
      	 
      	 
      
	
                                  By:

                                	 
      	 
      
	 
      	
                                  Name:

                                	 
      
	 
      	
                                  Title:

                                	 
      
	 
      	 
      	 
      
	
                                  VIRGO
      SERVICE COMPANY LLC, as

                                	 
      
	 
      	
                                  Administrative
      Agent

                                	 
      
	 	 	 
	
                                  By:

                                	 
      	 
      
	 
      	
                                  Name:

                                	 
      
	 
      	
                                  Title:

                                	 
      

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        A2-2

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
1

     to
Guaranty and Security Agreement

     

    Commercial
Tort Claims

     

    None

     

    
      
        
        

      

      
        
          Schedule
1-1

        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
2

    to
Guaranty and Security Agreement

     

    Jurisdiction
of Organization; Chief Executive Offices

     

    
      
        	
                CountryPlace
      Acceptance Corporation

              
	
                Jurisdiction
      of Organization:

              	 	
                Nevada

              
	
                Legal
      Names:

              	 	
                CountryPlace
      Acceptance Corporation

              
	
                Organizational
      Number:

              	 	
                C27666-2002

              
	
                Location
      of chief executive office or sole place of business:

              	 	
                15303
      Dallas Parkway, Suite 900

                Addison,
      TX 75001

              
	
                All
      other jurisdictions of incorporation in any of the five years preceding
      the date of the Guaranty and Security Agreement:

              	 	
                not
      applicable

              
	
                All
      other legal names used any of the five years preceding the date of the
      Guaranty and Security Agreement:

              	 	
                not
      applicable

              
	
                All
      other locations of chief executive office or sole place of business any of
      the five years preceding the date of the Guaranty and Security
      Agreement:

              	 	
                not
      applicable

              

      

    

    

    
      
        	
                CountryPlace
      Mortgage, Ltd.

              
	
                Jurisdiction
      of Organization:

              	 	
                Texas

              
	
                Legal
      Names:

              	 	
                CountryPlace
      Mortgage, Ltd.

              
	
                Organizational
      Number:

              	 	
                8017210

              
	
                Location
      of chief executive office or sole place of business:

              	 	
                15303
      Dallas Parkway, Suite 900

                Addison,
      TX 75001

              
	
                All
      other jurisdictions of incorporation in any of the five years preceding
      the date of the Guaranty and Security Agreement:

              	 	
                not
      applicable

              
	
                All
      other legal names used any of the five years preceding the date of the
      Guaranty and Security Agreement:

              	 	
                not
      applicable

              
	
                All
      other locations of chief executive office or sole place of business any of
      the five years preceding the date of the Guaranty and Security
      Agreement:

              	 	
                not
      applicable

              

      

    

     

    
      
        
        

      

      
        
          Schedule
2-1

        

        
          

        

      

      
        
        

      

    

     

    
      
        	
                CountryPlace
      Mortgage Holdings, LLC

              
	
                Jurisdiction
      of Organization:

              	 	
                Delaware

              
	
                Legal
      Names:

              	 	
                CountryPlace
      Mortgage Holdings, LLC

              
	
                Organizational
      Number:

              	 	
                SRV
      091036023-4755961

              
	
                Location
      of chief executive office or sole place of business:

              	 	
                15303
      Dallas Parkway, Suite 900

                Addison,
      TX 75001

              
	
                All
      other jurisdictions of incorporation in any of the five years preceding
      the date of the Guaranty and Security Agreement:

              	 	
                not
      applicable

              
	
                All
      other legal names used any of the five years preceding the date of the
      Guaranty and Security Agreement:

              	 	
                not
      applicable

              
	
                All
      other locations of chief executive office or sole place of business any of
      the five years preceding the date of the Guaranty and Security
      Agreement:

              	 	
                not
      applicable

              

      

    

     

    
      
        	
                Palm
      Harbor Homes, Inc.

              
	
                Jurisdiction
      of Organization:

              	 	
                Florida

              
	
                Legal
      Names:

              	 	
                Palm
      Harbor Homes, Inc.

              
	
                Organizational
      Number:

              	 	
                279947

              
	
                Location
      of chief executive office or sole place of business:

              	 	
                15303
      Dallas Parkway, Suite 800

                Addison,
      TX 75001

              
	
                All
      other jurisdictions of incorporation in any of the five years preceding
      the date of the Guaranty and Security Agreement:

              	 	
                not
      applicable

              
	
                All
      other legal names used any of the five years preceding the date of the
      Guaranty and Security Agreement:

              	 	
                not
      applicable

              
	
                All
      other locations of chief executive office or sole place of business any of
      the five years preceding the date of the Guaranty and Security
      Agreement:

              	 	
                not
      applicable

              

      

    

     

    
      
        	
                CountryPlace
      Acceptance G.P., LLC

              
	
                Jurisdiction
      of Organization:

              	 	
                Texas

              
	
                Legal
      Names:

              	 	
                CountryPlace
      Acceptance G.P., LLC

              
	
                Organizational
      Number:

              	 	
                800142861

              
	
                Location
      of chief executive office or sole place of business:

              	 	
                15303
      Dallas Parkway, Suite 900

                Addison,
      TX 75001

              
	
                All
      other jurisdictions of incorporation in any of the five years preceding
      the date of the Guaranty and Security Agreement:

              	 	
                not
      applicable

              
	
                All
      other legal names used any of the five years preceding the date of the
      Guaranty and Security Agreement:

              	 	
                not
      applicable

              
	
                All
      other locations of chief executive office or sole place of business any of
      the five years preceding the date of the Guaranty and Security
      Agreement:

              	 	
                not
      applicable

              

      

    

     

    
      
        
        

      

      
        
          Schedule
2-2

        

        
          

        

      

      
        
        

      

    

     

    
      
        	
                CountryPlace
      Acceptance L.P., LLC

              
	
                Jurisdiction
      of Organization:

              	 	
                Delaware

              
	
                Legal
      Names:

              	 	
                CountryPlace
      Acceptance L.P., LLC

              
	
                Organizational
      Number:

              	 	
                3590244

              
	
                Location
      of chief executive office or sole place of business:

              	 	
                15303
      Dallas Parkway, Suite 900

                Addison,
      TX 75001

              
	
                All
      other jurisdictions of incorporation in any of the five years preceding
      the date of the Guaranty and Security Agreement:

              	 	
                not
      applicable

              
	
                All
      other legal names used any of the five years preceding the date of the
      Guaranty and Security Agreement:

              	 	
                not
      applicable

              
	
                All
      other locations of chief executive office or sole place of business any of
      the five years preceding the date of the Guaranty and Security
      Agreement:

              	 	
                not
      applicable

              

      

    

     

    
      
        
        

      

      
        
          Schedule
2-3

        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
3

    to
Guaranty and Security Agreement

     

    Location
of Books and Records

    

    The books
and records for each Grantor may be found at:

    

    15303
Dallas Parkway, Suite 800

    Addison,
TX 75001

     

    
      
        
        

      

      
        
          Schedule
3-1

        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
4

    to
Guaranty and Security Agreement

     

    Pledged
Collateral

     

    1.           Pledged Stock in Limited
Liability Companies. Interests in each limited liability company that is
a Pledged Entity as follows:

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	
                                      Subsidiary

                                    	 	
                                      Grantor

                                    	 	
                                      Certificate
No.

                                    	 	
                                      Certificate
      Date

                                    	 	
                                      Number
      of
Units

                                    	 	
                                      Pledged
      Units’
Percentage of all
Outstanding Units

                                    
	
                                      GP
      LLC

                                    	 	
                                      CPA

                                    	 	
                                      001

                                    	 	
                                      January
      29, 2010

                                    	 	
                                      n/a

                                    	 	
                                      100%

                                    
	
                                      LP
      LLC

                                    	 	
                                      CPA

                                    	 	
                                      001

                                    	 	
                                      January
      29, 2010

                                    	 	
                                      n/a

                                    	 	
                                      100%

                                    
	
                                      Mortgage
      SPV

                                    	 	
                                      CPM

                                    	 	
                                      001

                                    	 	
                                      January
      29, 2010

                                    	 	
                                      10,000

                                    	 	
                                      99%

                                    

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    2.           Pledged Stock in
Partnerships. Interests in each general partnership, limited partnership,
limited liability partnership or other partnership that is a Pledged Entity as
follows:

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	
                                            Subsidiary

                                          	 	
                                            Grantor

                                          	 	
                                            Type
      of
Interest (e.g.,
general,
limited)

                                          	 	
                                            Certificate
No.

                                          	 	
                                            Certificate Date

                                          	 	
                                            Number of
Units

                                          	 	
                                            Pledged Units’
Percentage of all
Outstanding Units

                                          
	
                                            CPM

                                          	 	
                                            GP
      LLC

                                          	 	
                                            General
      partner

                                          	 	
                                            001

                                          	 	
                                            January
      29, 2010

                                          	 	
                                            n/a

                                          	 	
                                            1%
      (general partner interest)

                                          
	 
      	 	
                                            LP
      LLC

                                          	 	
                                            Limited
      partner

                                          	 	
                                            002

                                          	 	
                                            January
      29, 2010

                                          	 	
                                            n/a

                                          	 	
                                            99%
      (limited partner
interest)

                                          

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    3.           Pledged Stock in
Corporations.  Capital stock of each corporation that is a
Pledged Entity as follows:

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              	
                                                      Subsidiary

                                                    	 	
                                                      Grantor

                                                    	 	
                                                      Certificate No.

                                                    	 	
                                                      Certificate Date

                                                    	 	
                                                      No. and Class

                                                      of Pledged Stock

                                                    	 	
                                                      Pledged Units’
Percentage of all
Outstanding Units

                                                    
	
                                                      CPA

                                                    	 	
                                                      Parent

                                                    	 	
                                                      003

                                                    	 	
                                                      November 12, 2002

                                                    	 	
                                                      2,000,000
      shares of Common Stock

                                                    	 	
                                                      100%

                                                    
	 
      	 	 
      	 	
                                                      004

                                                    	 	
                                                      February
      15, 2008

                                                    	 	
                                                      500,000
      shares of Common Stock

                                                    	 	
                                                       
    

                                                    
	 
      	 	 
      	 	
                                                      P-001

                                                    	 	
                                                      November
      12, 2002

                                                    	 	
                                                      22,500
      shares of Preferred Stock

                                                    	 	
                                                      100%
      

                                                    

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

               

            

          

        

      

    

    4.           Pledged Debt
Instruments:  None.

     

    
      
        
        

      

      
        
          Schedule
4-1

        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
5

     to
Guaranty and Security Agreement

     

    Intellectual
Property

    

    None

    

    
      
        
        

      

      
        
          Schedule
5-1

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