Document:

<PAGE>

                                                                     Exhibit 4.1

                      HSI ASSET SECURITIZATION CORPORATION,
                                   Depositor,

                               CITIMORTGAGE, INC.,
                                Master Servicer,

                                 CITIBANK, N.A.,
                            Securities Administrator

                             WELLS FARGO BANK, N.A.,
                                   Custodian,

                                       and

                      DEUTSCHE BANK NATIONAL TRUST COMPANY,
                                     Trustee

                         POOLING AND SERVICING AGREEMENT
                           Dated as of January 1, 2007

                    HSI ASSET LOAN OBLIGATION TRUST 2007-AR1

                       MORTGAGE PASS THROUGH CERTIFICATES,
                                 SERIES 2007-AR1

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----
<S>                                                                         <C>
                                ARTICLE I
                               DEFINITIONS

                                ARTICLE II
       CONVEYANCE OF MORTGAGE LOANS; REPRESENTATIONS AND WARRANTIES
Section 2.01  Conveyance of Mortgage Loans...............................     39
Section 2.02  Acceptance by the Custodian of the Mortgage Loans..........     41
Section 2.03  Remedies for Breaches of Representations and Warranties
              with Respect to the Mortgage Loans.........................     42
Section 2.04  Execution and Delivery of Certificates.....................     44
Section 2.05  [Reserved].................................................     44
Section 2.06  [Reserved].................................................     44
Section 2.07  Representations and Warranties of the Depositor............     44

                               ARTICLE III
              ADMINISTRATION AND SERVICING OF MORTGAGE LOANS
Section 3.01  Establishment of Certain Accounts..........................     45
Section 3.02  Investment of Funds in the Distribution Account and the
              Master Servicing Account...................................     47
Section 3.03  Report on Assessment of Compliance with Relevant Servicing
              Criteria...................................................     47
Section 3.04  Report on Attestation of Compliance with Relevant Servicing
              Criteria...................................................     48
Section 3.05  Annual Officer's Certificates..............................     49
Section 3.06  Indemnification............................................     50
Section 3.07  Advances...................................................     50

                                ARTICLE IV
                              DISTRIBUTIONS
Section 4.01  The Distribution Account...................................     52
Section 4.02  Priorities of Distribution.................................     52
Section 4.03  Monthly Statements to Certificateholders...................     58
Section 4.04  Allocation of Realized Losses..............................     60
Section 4.05  [Reserved].................................................     61
Section 4.06  [Reserved].................................................     61
</TABLE>

                                      -i-

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----
<S>                                                                         <C>
                                ARTICLE V
                             THE CERTIFICATES
Section 5.01  The Certificates...........................................     61
Section 5.02  Certificate Register; Registration of Transfer and Exchange
              of Certificates............................................     62
Section 5.03  Mutilated, Destroyed, Lost or Stolen Certificates..........     67
Section 5.04  Persons Deemed Owners......................................     67
Section 5.05  Access to List of Certificateholders' Names and Addresses..     68
Section 5.06  Maintenance of Office or Agency............................     68

                                ARTICLE VI
                              THE DEPOSITOR
Section 6.01  Liabilities of the Depositor...............................     68
Section 6.02  Merger or Consolidation of the Depositor...................     68
Section 6.03  Limitation on Liability of the Depositor and Others........     68

                               ARTICLE VII
                                 DEFAULT
Section 7.01  Master Servicer to Act; Appointment of Successor...........     69
Section 7.02  Notification to Certificateholders.........................     72

                               ARTICLE VIII
                          CONCERNING THE TRUSTEE
Section 8.01  Duties of the Trustee......................................     72
Section 8.02  Certain Matters Affecting the Trustee......................     73
Section 8.03  Trustee Not Liable for Certificates or Mortgage Loans......     74
Section 8.04  Trustee May Own Certificates...............................     74
Section 8.05  Trustee's Fees Indemnification and Expenses................     74
Section 8.06  Eligibility Requirements for the Trustee...................     76
Section 8.07  Resignation and Removal of the Trustee.....................     76
Section 8.08  Successor Trustee..........................................     77
Section 8.09  Merger or Consolidation of the Trustee.....................     77
Section 8.10  Appointment of Co-Trustee or Separate Trustee..............     77
Section 8.11  [Reserved].................................................     79
Section 8.12  Commission Reporting.......................................     79
</TABLE>

                                      -ii-

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----
<S>                                                                         <C>
                                ARTICLE IX
       ADMINISTRATION OF THE MORTGAGE LOANS BY THE MASTER SERVICER
Section 9.01  Duties of the Master Servicer; Enforcement of each
              Servicer's Obligations.....................................     86
Section 9.02  Provision to the Securities Administrator of Loan-Level
              Information................................................     87
Section 9.03  [Reserved].................................................     87
Section 9.04  Maintenance of Fidelity Bond and Errors and Omissions
              Insurance..................................................     87
Section 9.05  Representations and Warranties of the Master Servicer......     88
Section 9.06  Master Servicer Events of Default..........................     89
Section 9.07  Waiver of Default..........................................     91
Section 9.08  Successor to the Master Servicer...........................     91
Section 9.09  [Reserved].................................................     92
Section 9.10  Merger or Consolidation....................................     92
Section 9.11  Resignation of the Master Servicer.........................     92
Section 9.12  Assignment or Delegation of Duties by the Master Servicer..     93
Section 9.13  Limitation on Liability of the Master Servicer.............     93
Section 9.14  Indemnification; Third Party Claims........................     94

                                ARTICLE X
                 CONCERNING THE SECURITIES ADMINISTRATOR
Section 10.01 Duties of Securities Administrator.........................     94
Section 10.02 Certain Matters Affecting the Securities Administrator.....     95
Section 10.03 Securities Administrator Not Liable for Certificates or
              Mortgage Loans.............................................     97
Section 10.04 Securities Administrator May Own Certificates..............     98
Section 10.05 Securities Administrator's Fees and Expenses...............     98
Section 10.06 Eligibility Requirements for Securities Administrator......     99
Section 10.07 Resignation and Removal of Securities Administrator........     99
Section 10.08 Successor Securities Administrator.........................    100
Section 10.09 Merger or Consolidation of Securities Administrator........    101
Section 10.10 Assignment or Delegation of Duties by the Securities
              Administrator..............................................    101
</TABLE>

                                     -iii-

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----
<S>                                                                         <C>
                                ARTICLE XI
                             REMIC PROVISIONS
Section 11.01 REMIC Administration.......................................    102
Section 11.02 [Reserved].................................................    105
Section 11.03 Designation of REMIC(s)....................................    105
Section 11.04 Distributions on Uncertificated REMIC 1 Regular Interests,
              REMIC 2 Regular Interests, and REMIC 3 Regular Interests...    105
Section 11.05 Compliance with Withholding Requirements...................    106

                               ARTICLE XII
                               TERMINATION
Section 12.01 Termination upon Liquidation or Purchase of the Mortgage
              Loans......................................................    107
Section 12.02 Final Distribution on the Certificates.....................    107
Section 12.03 Additional Termination Requirements........................    108

                              ARTICLE XIII
                         MISCELLANEOUS PROVISIONS
Section 13.01 Amendment..................................................    109
Section 13.02 Recordation of Agreement; Counterparts.....................    111
Section 13.03 Governing Law..............................................    111
Section 13.04 Intention of Parties.......................................    111
Section 13.05 Notices....................................................    112
Section 13.06 Severability of Provisions.................................    113
Section 13.07 [Reserved].................................................    113
Section 13.08 Limitation on Rights of Certificateholders.................    113
Section 13.09 Certificates Nonassessable and Fully Paid..................    114
Section 13.10 Rule of Construction.......................................    114
Section 13.11 Waiver of Jury Trial.......................................    114
</TABLE>

                                      -iv-

<PAGE>

EXHIBITS

Exhibit A Form of Senior Certificates and Senior Subordinate Certificate
Exhibit B Form of Junior Subordinate Certificate
Exhibit C Form of Class R Certificate
Exhibit D Form of Class P Certificate
Exhibit E Form of Initial Certification of Custodian
Exhibit F Form of Document Certification and Exception Report of Custodian
Exhibit G Form of Residual Transfer Affidavit
Exhibit H Form of Transferor Certificate
Exhibit I Form of Rule 144A Investment Letter
Exhibit J Form of Request for Release
Exhibit K Contents for Each Mortgage File
Exhibit L Form of Sarbanes-Oxley Certification to be provided with Form 10 K
Exhibit M List of Servicing Agreements
Exhibit N Form of Servicing Function Participant Back-up Sarbanes Oxely
          Certification
Exhibit O [Reserved]
Exhibit P [Reserved]
Exhibit Q Transfer Agreements
Exhibit R [Reserved]
Exhibit S Servicing Criteria Matrix
Exhibit T Transaction Parties
Exhibit U Form of Annual Compliance Certificate
Exhibit V Additional Form 10-D Disclosure
Exhibit W Additional Form 10-K Disclosure
Exhibit X Form 8-K Disclosure Information

                                      -v-
<PAGE>

Exhibit Y Additional Disclosure Notification

                                      -vi-
<PAGE>

     THIS POOLING AND SERVICING AGREEMENT, dated as of January 1, 2007, among
HSI ASSET SECURITIZATION CORPORATION, as depositor (the "Depositor"),
CITIMORTGAGE, INC., a New York corporation (the "Master Servicer"), CITIBANK,
N.A., a national banking association ( the "Securities Administrator"), WELLS
FARGO BANK, N.A., a national banking association (the "Custodian") and DEUTSCHE
BANK NATIONAL TRUST COMPANY, a national banking association, as trustee (the
"Trustee").

                                   WITNESSETH:

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

                             PRELIMINARY STATEMENT:

     The Depositor intends to sell Mortgage Pass-Through Certificates
(collectively, the "Certificates"), to be issued hereunder in multiple classes,
which in the aggregate will evidence the entire beneficial ownership interest in
the Trust Fund (as defined herein). As provided herein, the Securities
Administrator will make an election to treat the entire segregated pool of
assets relating to the Mortgage Loans, as described in the definition of REMIC 1
below, as a real estate mortgage investment conduit (a "REMIC") for federal
income tax purposes, and such segregated pool of assets will be designated as
"REMIC 1." The Class R-I Certificates will represent the sole class of "residual
interests" in REMIC 1 for purposes of the REMIC Provisions (as defined herein)
under federal income tax law. The following table irrevocably sets forth the
designation, the REMIC 1 Remittance Rate, the initial Uncertificated Principal
Balance, and solely for purposes of satisfying Treasury Regulation Section
1.860G-1(a)(4)(iii), the "latest possible maturity date" for each of the REMIC 1
Regular Interests. None of the REMIC 1 Regular Interests will be certificated.

                                       -7-

<PAGE>

<TABLE>
<CAPTION>
                                                                       Initial
                                                                    Uncertificated
                   REMIC 1                           REMIC 1          Principal       Latest Possible
              Regular Interest                   Remittance Rate       Balance       Maturity Date(1)
              ----------------                  ----------------   ---------------   ----------------
<S>                                             <C>                <C>               <C>
Uncertificated REMIC I Regular Interest  I-A    Variable Rate(2)   $         36.87     January 2037
Uncertificated REMIC I Regular Interest I-B     Variable Rate(2)   $        819.17     January 2037
Uncertificated REMIC I Regular Interest II-A    Variable Rate(2)   $      1,256.01     January 2037
Uncertificated REMIC I Regular Interest II-B    Variable Rate(2)   $     27,910.12     January 2037
Uncertificated REMIC I Regular Interest III-A   Variable Rate(2)   $        395.61     January 2037
Uncertificated REMIC I Regular Interest III-B   Variable Rate(2)   $      8,790.81     January 2037
Uncertificated REMIC I Regular Interest IV-A    Variable Rate(2)   $        265.03     January 2037
Uncertificated REMIC I Regular Interest IV-B    Variable Rate(2)   $      5,889.13     January 2037
Uncertificated REMIC I Regular Interest ZZZ                        $434,046,767.25     January 2037
Uncertificated REMIC I Regular Interest R-II                       $         50.00     January 2037
</TABLE>

As provided herein, the Securities Administrator will elect to treat the
segregated pool of assets consisting of the REMIC 1 Regular Interests as a REMIC
for federal income tax purposes, and such segregated pool of assets will be
designated as REMIC 2. The Class R-II Certificates will represent the sole class
of "residual interests" in REMIC 2 for purposes of the REMIC Provisions under
federal income tax law. The following table irrevocably sets forth the
designation and Initial Class Certificate Balance for each of the "regular
interests" in REMIC 2 (the "REMIC 2 Regular Interests"). The "latest possible
maturity date" (determined solely for purposes of satisfying Treasury regulation
Section 1.860G-1(a)(4)(iii)) for each REMIC 2 Regular Interest shall be the
first

----------
(1)  Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
     regulations, the Distribution Date immediately following the stated
     maturity date for the Mortgage Loan with the latest maturity date has been
     designated as the "latest possible maturity date" for each REMIC 1 Regular
     Interest.

(2)  Calculated in accordance with the definition of "REMIC I Remittance Rate"
     herein.

                                       -8-

<PAGE>

Distribution Date that follows the stated maturity date for the Mortgage Loan
included in the Trust Fund as of the Closing Date with the longest remaining
term to stated maturity.

                        THE SERIES 2007-AR1 CERTIFICATES

<TABLE>
<CAPTION>
                                 Initial
                                Principal
                               Balance or
                                Notional     Related Loan   Initial Interest                                   S&P     Fitch
           Class                Amount(1)        Group            Rate                 Designation           Rating   Rating
           -----              ------------   ------------   ----------------   ---------------------------   ------   ------
<S>                           <C>            <C>            <C>                <C>                           <C>      <C>
Offered Certificates
   CLASS I-A-1                $  7,823,000         I           VARIABLE(3)         SENIOR/PASS-THROUGH         AAA      AAA
   CLASS II-A-1               $254,547,000        II           VARIABLE(4)      SUPER SENIOR/PASS-THROUGH      AAA      AAA
   CLASS II-A-2               $ 11,994,000        II           VARIABLE(4)     SENIOR SUPPORT/PASS-THROUGH     AAA      AAA
   CLASS III-A-1              $ 80,174,000       III           VARIABLE(5)      SUPER SENIOR/PASS-THROUGH      AAA      AAA
   CLASS III-A-2              $  3,778,000       III           VARIABLE(5)     SENIOR SUPPORT/PASS-THROUGH     AAA      AAA
   CLASS IV-A-1               $ 53,710,000        IV           VARIABLE(6)      SUPER SENIOR/PASS-THROUGH      AAA      AAA
   CLASS IV-A-2               $  2,531,000        IV           VARIABLE(6)     SENIOR SUPPORT/PASS-THROUGH     AAA      AAA
   CLASS B-1                  $  9,768,000        (2)          VARIABLE(7)             SUBORDINATE              NR       AA
   CLASS B-2                  $  3,256,000        (2)          VARIABLE(7)             SUBORDINATE              NR        A
   CLASS B-3                  $  2,388,000        (2)          VARIABLE(7)             SUBORDINATE              NR      BBB
                              ------------
   Total Offered:             $429,969,000
                              ------------
</TABLE>

                                       -9-

<PAGE>

<TABLE>
<CAPTION>
                                 Initial
                                Principal
                               Balance or
                                Notional     Related Loan   Initial Interest                                   S&P     Fitch
           Class                Amount(1)        Group            Rate                 Designation           Rating   Rating
           -----              ------------   ------------   ----------------   ---------------------------   ------   ------
<S>                           <C>            <C>            <C>                <C>                           <C>      <C>
Non-Offered Certificates(8)
   CLASS B-4                  $  1,736,000        (2)          VARIABLE(7)             SUBORDINATE              NR       BB
   CLASS B-5                  $  1,302,000        (2)          VARIABLE(7)             SUBORDINATE              NR        B
   CLASS B-6                  $  1,084,980        (2)          VARIABLE(7)             SUBORDINATE              NR       NR
   CLASS R-I                  $         50        II           VARIABLE(4)           SENIOR/RESIDUAL            NR       NR
   CLASS R-II                 $         50        II           VARIABLE(4)           SENIOR/RESIDUAL            NR       NR
   CLASS P                    $        100        (2)               N/A            PREPAYMENT PENALTIES         NR       NR
                              ------------
   Total Non-Offered:         $  4,123,180
                              ------------
   Total:                     $434,092,180
                              ============
</TABLE>

----------
(1)  Approximate. Subject to variance of plus or minus 5%.

(2)  The Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 and
     Class P Certificates will be related to each of loan group I, loan group
     II, loan group III and loan group IV as further described in this
     Prospectus Supplement.

(3)  For each distribution date, the certificate rate for the Class I-A-1
     Certificates will equal a per annum rate equal to the weighted average of
     the net rates for the mortgage loans in loan group I. The initial
     pass-through rate for the Class I-A-1 Certificates will be equal to
     approximately 6.19991% per annum.

(4)  For each distribution date, the certificate rate for the Class II-A-1,
     Class II-A-2, Class R-I and Class R-II Certificates will equal a per annum
     rate equal to the weighted average of the net rates for the mortgage loans
     in loan group II. The initial pass-through rate for the Class II-A-1, Class
     II-A-2, Class R-I and Class R-II Certificates will be equal to
     approximately 6.18250% per annum.

(5)  For each distribution date, the certificate rate for the Class III-A-1 and
     Class III-A-2 Certificates will equal a per annum rate equal to the
     weighted average of the net rates for the mortgage loans in loan group III.
     The initial pass-through rate for the Class III-A-1 and Class III-A-2
     Certificates will be equal to approximately 6.09339% per annum.

(6)  For each distribution date, the certificate rate for the Class IV-A-1 and
     Class IV-A-2 Certificates will equal a per annum rate equal to the weighted
     average of the net rates for the mortgage loans in loan group IV. The
     initial pass-through rate for the Class IV-A-1 and IV-A-2 Certificates will
     be equal to approximately 6.18370% per annum.

(7)  The pass-through rate on the Class B-1, Class B-2 and Class B-3, Class B-4,
     Class B-5 and Class B-6 Certificates will be equal to weighted average of
     the net mortgage rates of the Mortgage Loans in loan group I, loan group
     II, loan group III and loan group IV, weighted in proportion to the results
     of

                                      -10-

<PAGE>

     subtracting from the aggregate principal balance of the related loan group
     the aggregate certificate principal balance of the senior certificates
     related to that loan group. The initial pass-through rate for the Class
     B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates
     will be equal to approximately 6.16495% per annum.

                                      -11-

<PAGE>

<TABLE>
<CAPTION>
                                                   Final
                                                 Scheduled
                        Record  Delay/Accrual  Distribution           Minimum           Incremental
        Class          Date(1)    Period(2)       Date(3)         Denomination(4)      Denomination  CUSIP Number   ISIN Number
        -----          -------  -------------  ------------  ------------------------  ------------  ------------  ------------
<S>                    <C>      <C>            <C>           <C>                       <C>           <C>           <C>
Offered Certificates
   CLASS I-A-1            DD        24 DAY     JANUARY 2037           $25,000                $1        40431LAA6   US40431LAA61
   CLASS II-A-1           DD        24 DAY     JANUARY 2037           $25,000                $1        40431LAB4   US40431LAB45
   CLASS II-A-2           DD        24 DAY     JANUARY 2037           $25,000                $1        40431LAC2   US40431LAC28
   CLASS III-A-1          DD        24 DAY     JANUARY 2037           $25,000                $1        40431LAD0   US40431LAD01
   CLASS III-A-2          DD        24 DAY     JANUARY 2037           $25,000                $1        40431LAE8   US40431LAE83
   CLASS IV-A-1           DD        24 DAY     JANUARY 2037           $25,000                $1        40431LAF5   US40431LAF58
   CLASS IV-A-2           DD        24 DAY     JANUARY 2037           $25,000                $1        40431LAG3   US40431LAG32
   CLASS B-1              DD        24 DAY     JANUARY 2037           $25,000                $1        40431LAH1   US40431LAH15
   CLASS B-2              DD        24 DAY     JANUARY 2037           $25,000                $1        40431LAJ7   US40431LAJ70
   CLASS B-3              DD        24 DAY     JANUARY 2037           $25,000                $1        40431LAK4   US40431LAK44

Non-Offered
   Certificates
   CLASS B-4              DD        24 DAY     JANUARY 2037           $25,000                $1        40431LAN8   US40431LAN82
   CLASS B-5              DD        24 DAY     JANUARY 2037           $25,000                $1        40431LAP3   US40431LAP31
   CLASS B-6              DD        24 DAY     JANUARY 2037           $25,000                $1        40431LAQ1   US40431LAQ14
   CLASS R-I              CM        24 DAY     JANUARY 2037  20% PERCENTAGE INTERESTS       N/A        40431LAM0   US40431LAM00
</TABLE>

                                      -12-

<PAGE>

<TABLE>
<CAPTION>
                                                   Final
                                                 Scheduled
                        Record  Delay/Accrual  Distribution           Minimum           Incremental
        Class          Date(1)    Period(2)       Date(3)         Denomination(4)      Denomination  CUSIP Number   ISIN Number
        -----          -------  -------------  ------------  ------------------------  ------------  ------------  ------------
<S>                    <C>      <C>            <C>           <C>                       <C>           <C>           <C>
   CLASS R-II             CM        24 DAY     JANUARY 2037  20% PERCENTAGE INTERESTS       N/A        40431LAR9   US40431LAR96
   CLASS P                CM           N/A     JANUARY 2037  20% PERCENTAGE INTERESTS       N/A        40431LAL2   US40431LAL27
</TABLE>

----------
(1)  CM = For any distribution date, the last business day of the calendar month
     immediately preceding the distribution date. DD = For any distribution
     date, the close of business on the business day immediately preceding the
     distribution date.

(2)  24 Day = For any distribution date, the interest accrual period will be the
     calendar month immediately preceding the month in which the related
     distribution date occurs.

(3)  Calculated as the distribution date in the month following the month in
     which the latest maturity date of any mortgage loan included in the related
     loan group occurs.

(4)  With respect to the initial European investors, the underwriters will only
     sell offered certificates in minimum total investment amounts of $100,000.

                                      -13-
<PAGE>

     The Mortgage Loans have an aggregate Stated Principal Balance as of the
Cut-off Date of $434,092,081.

     Set forth below are designations of Classes of Certificates to the
categories used herein:

<TABLE>
<S>                              <C>
Book-Entry Certificates.......   All Classes of Certificates other than the
                                 Class R Certificates and Class P Certificates.

Class A Certificates..........   Class I-A-1, Class II-A-1, Class II-A-2, Class
                                 III-A-1, Class III-A-2, Class IV-A-1 and Class
                                 IV-A-2 Certificates.

Class I-A Certificates........   The Class I-A-1 Certificates.

Class II-A Certificates.......   The Class II-A-1 and Class II-A-2 Certificates.

Class III-A Certificates......   Class III-A-1 and Class III-A-2 Certificates.

Class IV-A Certificates.......   Class IV-A-1 and Class IV-A-2 Certificates.

Class P Certificates..........   The Class P Certificates.

Class R Certificates..........   Class R-I and Class R-II Certificates.

ERISA-Restricted                 The Junior Subordinate Certificates, Class R
Certificates..................   Certificates, Class P Certificates and any
                                 Certificate with a rating which falls below the
                                 lowest applicable permitted rating under the
                                 Underwriters' Exemption.

Group 1 Certificates..........   The Class I-A-1 Certificates.

Group 2 Certificates..........   Any one of the Class II-A-1, Class II-A-2
                                 Certificates and the Class R Certificates.

Group 3 Certificates:.........   Class III-A-1 and Class III-A-2 Certificates.

Group 4 Certificates:.........   Class IV-A-1 and Class IV-A-2 Certificates.

Junior Subordinate               Class B-4, Class B-5 and Class B-6
Certificates..................   Certificates.

Offered Certificates..........   All Classes of Certificates other than the
                                 Private Certificates.

Physical Certificates:........   Any one of the Class P or Class R Certificates.
</TABLE>

                                      -14-

<PAGE>

<TABLE>
<S>                              <C>
Private Certificate...........   Any Junior Subordinate Certificate, Class R
                                 Certificate or Class P Certificate.

Rating Agencies...............   Standard & Poor's and Fitch.

Regular Certificates..........   All Classes of Certificates other than the
                                 Class R Certificates.

Residual Certificates.........   Class R Certificates.

Senior Certificate............   Any one of the Group 1 Certificates, the Group
                                 2 Certificates, the Group 3 Certificates or the
                                 Group 4 Certificates.

Senior Subordinate               Class B-1, Class B-2 and Class B-3
Certificates..................   Certificates.

Senior Support Certificates...   The Class II-A-2, Class III-A-2 or Class IV-A-2
                                 Certificates.

Subordinate Certificate.......   Any one of the Senior Subordinate Certificates
                                 or Junior Subordinate Certificates.

Super Senior Certificates.....   The Class II-A-1, Class III-A-1 or the Class
                                 IV-A-1 Certificates.
</TABLE>

                                    ARTICLE I

                                   DEFINITIONS

     Whenever used in this Agreement, the following words and phrases, unless
the context otherwise requires, shall have the following meanings:

     10-K Filing Deadline: As defined in Section 8.12(a)(ii).

     Accepted Servicing Practices: With respect to any Mortgage Loan and the
related Servicer, the servicing and administration of such Mortgage Loan (i) in
the same manner in which, and with the same care, skill, prudence and diligence
with which such Servicer generally services and administers similar mortgage
loans with similar mortgagors (A) for other third parties, giving due
consideration to customary and usual standards of practice of prudent
institutional residential mortgage lenders servicing their own mortgage loans or
(B) held in such Servicer's own portfolio, whichever standard is higher, and
(ii) in accordance with applicable local, state and federal laws, rules and
regulations.

     Account: Any of the Collection Accounts, the Master Servicing Account, the
Reserve Fund, the Class P Reserve Fund, the Distribution Account and any Escrow
Account. Each Account shall be an Eligible Account.

                                      -15-

<PAGE>

     Accrued Certificate Interest: With respect to each Distribution Date, in
the case of each class of Offered Certificates interest accrued during the
related Interest Accrual Period on the Class Certificate Balance thereof,
immediately prior to that Distribution Date at the related Pass-Through Rate.
Accrued Certificate Interest on any Class of Certificates will be reduced by the
amount of:

          (i) Prepayment Interest Shortfalls on the Mortgage Loans in the
     related Loan Group (to the extent not offset by the related Servicer with a
     payment of Compensating Interest as provided in the related Servicing
     Agreement); and

          (ii) any other interest shortfalls not allocated solely to one or more
     Specific Classes of Certificates pursuant to Section 4.04, including
     interest that is not collectible from the Mortgagor pursuant to the Relief
     Act.

     The related Loan Group Senior Percentage of these reductions with respect
to the related Loan Group, will be allocated among the Holders of the related
Senior Certificates, in proportion to the amounts of Accrued Certificate
Interest that would have been payable to those Certificates on that Distribution
Date absent such reductions. The remainder of these reductions will be allocated
among the Holders of the Subordinate Certificates, in proportion to the
respective amounts of Accrued Certificate Interest that would have been payable
to those Certificates on that Distribution Date absent such reductions. In
addition to that portion of the reductions described in the preceding sentences
that are allocated to any Class of Subordinate Certificates, Accrued Certificate
Interest on such Class of Subordinate Certificates will be reduced by the
interest portion of Realized Losses that are allocated solely to such Class of
Subordinate Certificates pursuant to Section 4.04.

     Additional Disclosure Notification: The form of notice set forth on Exhibit
Y.

     Additional Form 10-D Disclosure: As defined in Section 8.12(a)(i).

     Additional Form 10-K Disclosure: As defined in Section 8.12(a)(ii).

     Advance: Any P&I Advance or Servicing Advance.

     Affiliate: With respect to any Person, any other Person controlling,
controlled by or under common control with such first Person. For the purposes
of this definition, "control" means the power to direct the management and
policies of such Person, directly or indirectly, whether through the ownership
of voting securities, by contract or otherwise; and the terms "controlling" and
"controlled" have meanings correlative to the foregoing.

     Aggregate Subordinate Percentage: means, as of each Distribution Date and
for all Mortgage Loans, the percentage equal to the aggregate Class Certificate
Balance of the Subordinate Certificates immediately prior to that Distribution
Date divided by the aggregate Stated Principal Balance of all Mortgage Loans
immediately prior to that Distribution Date (without giving effect to any
principal collections on such Mortgage Loans received or advanced and to be
distributed on such Distribution Date).

                                      -16-

<PAGE>

     Agreement: This Pooling and Servicing Agreement and all amendments or
supplements hereto.

     American Home: American Home Mortgage Servicing, Inc.

     Amounts Held for Future Distribution: As to the Certificates on any
Distribution Date, the aggregate amount held in the Collection Accounts of the
Servicers at the close of business on the related Determination Date on account
of (i) Principal Prepayments, Insurance Proceeds, Condemnation Proceeds,
Liquidation Proceeds and Subsequent Recoveries on the Mortgage Loans received
after the end of the related Prepayment Period and (ii) all Scheduled Payments
on the Mortgage Loans due after the end of the related Due Period.

     Assignment of Mortgage: An assignment of the Mortgage, notice of transfer
or equivalent instrument in recordable form (other than the assignee's name and
recording information not yet returned from the recording office), reflecting
the sale of the Mortgage to the Trustee.

     Available Funds: With respect to any Distribution Date and each Loan Group,
to the extent received by the Securities Administrator (x) the sum of (i) all
scheduled installments of interest (net of the related Expense Fees and any
Lender paid Primary Mortgage Insurance Policy premiums) and principal due on the
Due Date on the related Mortgage Loans in the related Due Period and received by
the Servicers on or prior to the related Determination Date, together with any
P&I Advances in respect thereof; (ii) all Condemnation Proceeds, Insurance
Proceeds, Liquidation Proceeds and Subsequent Recoveries received by the
Servicers during the related Prepayment Period (in each case, net of
unreimbursed expenses incurred in connection with a liquidation or foreclosure
and unreimbursed Advances, if any); (iii) all curtailments or Principal
Prepayments in Full on the related Mortgage Loans received by the Servicers
during the related Prepayment Period together with all Compensating Interest
paid by the Servicers in connection therewith (excluding any Prepayment
Charges); (iv) all Substitution Adjustment Amounts with respect to the
substitutions of Mortgage Loans in such Loan Group that occur on or prior to the
related Determination Date; (v) all amounts received with respect to such
Distribution Date as the Repurchase Price in respect of a Mortgage Loan
repurchased by a Mortgage Loan Seller or the Sponsor on or prior to the related
Determination Date; and (vi) the proceeds with respect to the termination of the
Trust Fund pursuant to clause (a) of Section 12.01; reduced by (y) amounts in
reimbursement for Advances previously made with respect to the Mortgage Loans in
such Loan Group and other amounts as to which the Servicers, the Depositor, the
Master Servicer, the Securities Administrator or the Trustee are entitled to be
paid or reimbursed pursuant to the Servicing Agreements or this Agreement.

     Back-up Certification: As defined in Section 3.05.

     Book-Entry Certificates: As specified in the Preliminary Statement.

     Business Day: Any day other than (i) Saturday or Sunday, or (ii) a day on
which banking and savings and loan institutions, in (a) the States of New York,
California, Maryland or Minnesota, (b) the Commonwealth of Pennsylvania or any
other State in which any Servicer's

                                      -17-

<PAGE>

servicing operations are located, or (c) any State in which the Corporate Trust
Office is located, are authorized or obligated by law or executive order to be
closed.

     Cash Liquidation: As to any defaulted Mortgage Loan other than a Mortgage
Loan as to which an REO Acquisition occurred, a determination by the applicable
Servicer that it has received all Insurance Proceeds, Liquidation Proceeds and
other payments or cash recoveries which such Servicer reasonably and in good
faith expects to be finally recoverable with respect to such Mortgage Loan.

     Certificate: Any one of the Certificates executed by the Securities
Administrator in substantially the forms attached hereto as exhibits.

     Certificate Group: As applicable, each of the Group 1 Certificates, the
Group 2 Certificates, the Group 3 Certificates or the Group 4 Certificates.

     Certificate Owner: With respect to a Book-Entry Certificate, the Person who
is the beneficial owner of such Book-Entry Certificate.

     Certificate Register: The register maintained pursuant to Section 5.02.

     Certificateholder or Holder: The person in whose name a Certificate is
registered in the Certificate Register, except that, solely for the purpose of
giving any consent pursuant to this Agreement, any Certificate registered in the
name of the Depositor or any Affiliate of the Depositor shall be deemed not to
be Outstanding and the Percentage Interest evidenced thereby shall not be taken
into account in determining whether the requisite amount of Percentage Interests
necessary to effect such consent has been obtained; provided, however, that if
any such Person (including the Depositor) owns 100.00% of the Percentage
Interests evidenced by a Class of Certificates, such Certificates shall be
deemed to be Outstanding for purposes of any provision hereof that requires the
consent of the Holders of Certificates of a particular Class as a condition to
the taking of any action hereunder. The Securities Administrator is entitled to
rely conclusively on a certification of the Depositor or any Affiliate of the
Depositor in determining which Certificates are registered in the name of an
Affiliate of the Depositor.

     Certification Parties: As defined in Section 3.05.

     Certifying Person: As defined in Section 3.05.

     Citibank: Citibank, N.A. or its successor in interest.

     CitiMortgage: CitiMortgage, Inc. or its successor in interest.

     Class: All Certificates bearing the same class designation as set forth in
the Preliminary Statement.

     Class I-A Certificates: As specified in the Preliminary Statement.

     Class I-A-1 Certificates: All Certificates bearing the Class designation of
"Class I-A-1".

                                      -18-

<PAGE>

     Class II-A-1 Certificates: All Certificates bearing the Class designation
of "Class II-A-1".

     Class II-A-2 Certificates: All Certificates bearing the Class designation
of "Class II-A-2".

     Class III-A-1 Certificates: All Certificates bearing the Class designation
of "Class III-A-1".

     Class III-A-2 Certificates: All Certificates bearing the Class designation
of "Class III-A-2".

     Class IV-A-1 Certificates: All Certificates bearing the Class designation
of "Class IV-A-1".

     Class IV-A-2 Certificates: All Certificates bearing the Class designation
of "Class IV-A-2".

     Class II-A Certificates: The Class II-A-1 and Class II-A-2 Certificates.

     Class III-A Certificates: The Class III-A-1 and Class III-A-2 Certificates.

     Class IV-A Certificates: The Class IV-A-1 and Class IV-A-2 Certificates.

     Class II-A-1 Certificates: All Certificates bearing the Class designation
of "Class II-A-1".

     Class A Certificates: As specified in the Preliminary Statement.

     Class B-1 Certificates: All Certificates bearing the Class designation of
"Class B-1".

     Class B-2 Certificates: All Certificates bearing the Class designation of
"Class B-2".

     Class B-3 Certificates: All Certificates bearing the Class designation of
"Class B-3".

     Class B-4 Certificates: All Certificates bearing the Class designation of
"Class B-4".

     Class B-5 Certificates: All Certificates bearing the Class designation of
"Class B-5".

     Class B-6 Certificates: All Certificates bearing the Class designation of
"Class B-6".

     Class Certificate Balance: With respect to any Offered Certificate, as of
any date of determination, an amount equal to the initial Class Certificate
Balance of that Certificate reduced by the aggregate of (a) all amounts
allocable to principal previously distributed with respect to that Certificate
and (b) any reductions in the Class Certificate Balance of that Certificate
deemed to have occurred in connection with allocations of Realized Losses in the
manner described in this Agreement, provided that, the Class Certificate Balance
of any Class of Certificates outstanding with the Highest Priority to which
Realized Losses related to a Mortgage Loan, have been allocated shall be
increased by any Subsequent Recoveries related to that Mortgage Loan

                                      -19-

<PAGE>

not previously allocated as set forth in Section 4.02(h), and the Class
Certificate Balance of the Class of Certificates with a Class Certificate
Balance greater than zero with the Lowest Priority shall be further reduced by
an amount equal to the percentage interest evidenced thereby multiplied by the
excess, if any, of (i) the then-aggregate Class Certificate Balance of all
Classes of Certificates then outstanding over (ii) the then-aggregate Stated
Principal Balance of all of the Mortgage Loans.

     Class P Certificates: All certificates bearing the designation of "Class
P".

     Class P Reserve Fund: The Eligible Account established pursuant to Section
3.01(e).

     Class R Certificates: As set forth in the Preliminary Statement.

     Closing Date: January 26, 2007.

     Code: The Internal Revenue Code of 1986, including any successor or
amendatory provisions.

     Collection Account: With respect to each Servicer, the account defined as
"Custodial Account" in the related Servicing Agreement.

     Commission: The United States Securities and Exchange Commission.

     Compensating Interest: For any Distribution Date, the lesser of (a) the
amount, if any, by which the Prepayment Interest Shortfall related to a Loan
Group, if any, for such Distribution Date, with respect to all voluntary
Principal Prepayments for such Loan Group (excluding any payments made upon
liquidation of any Mortgage Loan) exceeds all Prepayment Interest Excesses for
such Distribution Date and for such Loan Group, and (b) the aggregate amount of
the Servicing Fees actually retained by or paid to the applicable Servicer for
such Distribution Date and for such Loan Group.

     Condemnation Proceeds: All awards or settlements in respect of a Mortgaged
Property, whether permanent or temporary, partial or entire, by exercise of the
power of eminent domain or condemnation.

     Corporate Trust Office: With respect to the Securities Administrator, (i)
for transfer, presentation or surrender of Certificates, the office at 111 Wall
Street, 15th Floor Window, New York, New York 10005, Attention: Corporate Trust
Services - HALO 2007-AR1, and (ii) for all other purposes, 388 Greenwich Street,
14th Floor, New York, New York 10013, Attention: Structured Finance Agency and
Trust - HALO 2007-AR1 or at such other address as the Securities Administrator
may designate from time to time by notice to the Certificateholders, the
Depositor, the Master Servicer and the Trustee. With respect to the Trustee, the
designated office of the Trustee in the State of California at which any
particular time its corporate trust business with respect to this Agreement is
administered, which office at the date of the execution of this Agreement is
located at 1761 East St. Andrew Place, Santa Ana, California 92705 4934,
Attention: Trust Administration - HB06L2, facsimile number (714) 247-6329, and
its telephone number is (714) 247-6000 and which is also the address to which
notices to and correspondence with the Trustee under this Agreement should be
directed.

                                      -20-

<PAGE>

     Countrywide Servicing: Countrywide Home Loans Servicing LP.

     Credit Support Depletion Date: The First Distribution Date on which the
aggregate Class Certificate Balances of the Subordinate Certificates has been
reduced to zero.

     Curtailment: Any Principal Prepayment made by a Mortgagor which is not a
Principal Prepayment in Full.

     Custodial File: The meaning assigned to such term in Section 2.01(b).

     Custodian: Initially, Wells Fargo, or any successor custodian appointed
hereunder.

     Cut-off Date: January 1, 2007.

     Cut-off Date Pool Principal Balance: The aggregate Stated Principal
Balances of all Mortgage Loans as of the Cut-off Date.

     Cut-off Date Principal Balance: As to any Mortgage Loan, the Stated
Principal Balance thereof as of the close of business on the Cut-off Date.

     Data Tape Information: With respect to each Mortgage Loan, the same
information (provided as of the Cut-off Date) included in the data fields
specified under the definition of "Mortgage Loan Schedule" in the applicable
Transfer Agreement, with such additions and modifications as agreed upon by the
applicable Mortgage Loan Seller and the Depositor.

     Deficient Valuation: With respect to any Mortgage Loan, a valuation of the
related Mortgaged Property by a court of competent jurisdiction in an amount
less than then outstanding principal balance of the Mortgage Loan, which
valuation results from a proceeding initiated under the United States Bankruptcy
Code.

     Definitive Certificates: Any Certificate evidenced by a Physical
Certificate and any Certificate issued in lieu of a Book-Entry Certificate
pursuant to Section 5.02(e).

     Deleted Mortgage Loan: A Mortgage Loan repurchased by a Mortgage Loan
Seller or the Sponsor and removed from the Trust Fund.

     Denomination: With respect to each Certificate, the amount set forth on the
face thereof as the "Initial Certificate Balance of this Certificate" (or
initial notional balance, in the case of the Interest Only Certificates) or the
Percentage Interest appearing on the face thereof.

     Depositor: HSI Asset Securitization Corporation, a Delaware corporation,
and its successors in interest.

     Depository: The initial Depository shall be The Depository Trust Company,
the nominee of which is CEDE & Co., as the registered Holder of the Book-Entry
Certificates. The Depository shall at all times be a "clearing corporation" as
defined in Section 8-102(a)(5) of the Uniform Commercial Code of the State of
New York.

                                      -21-

<PAGE>

     Depository Institution: Any depository institution or trust company,
including the Trustee and the Securities Administrator, that (a) is incorporated
under the laws of the United States of America or any State thereof, (b) is
subject to supervision and examination by federal or state banking authorities
and (c) has outstanding unsecured commercial paper or other short-term unsecured
debt obligations that are rated P-1 by Moody's, F1+ by Fitch and A-1 by Standard
& Poor's, if the amounts on deposit represent less than 20% of the initial par
value of the securities, are not intended to be used as credit enhancement, and
are to be held in the account for less than 30 days.

     Depository Participant: A broker, dealer, bank or other financial
institution or other Person for whom from time to time a Depository effects
book-entry transfers and pledges of securities deposited with the Depository.

     Determination Date: means, for each Servicer Remittance Date (i) with
respect to Countrywide Servicing, the Business Day immediately preceding such
Servicer Remittance Date, (ii) with respect to American Home Mortgage Servicing,
Inc., Residential Funding Company, LLC and SunTrust Mortgage, Inc., the 15th day
of the calendar month in which such Servicer Remittance Date occurs, or if that
day is not a Business Day, the immediately succeeding Business Day and (iii)
with respect to HSBC Mortgage, the 16th day of the calendar month in which such
Servicer Remittance Date occurs, or if that day is not a Business Day, the
immediately succeeding Business Day.

     Disqualified Non-U.S. Person: With respect to a Class R Certificate, any
Non-U.S. Person or agent thereof other than (i) a Non-U.S. Person that holds the
Class R Certificate in connection with the conduct of a trade or business within
the United States and has furnished the transferor and the Securities
Administrator with an effective IRS Form W-8ECI or (ii) a Non-U.S. Person that
has delivered to both the transferor and the Securities Administrator an opinion
of a nationally recognized tax counsel to the effect that the transfer of a
Class R Certificate to it is in accordance with the requirements of the Code and
the regulations promulgated thereunder and that such transfer of a Class R
Certificate will not be disregarded for federal income tax purposes.

     Distribution Account: The separate Eligible Account created and maintained
by the Securities Administrator pursuant to Section 3.01(c) in the name of the
Securities Administrator as paying agent for the benefit of the Trustee and the
Certificateholders and designated "Citibank, N.A. as paying agent in trust for
registered holders of HSI Asset Loan Obligation Trust 2007-AR1 Mortgage
Pass-Through Certificates, Series 2007-AR1". Funds in the Distribution Account
shall be held in trust for the Certificateholders for the uses and purposes set
forth in this Agreement.

     Distribution Date: The 25th day of each calendar month, or if such day is
not a Business Day, the next succeeding Business Day, commencing in February,
2007.

     Document Certification and Exception Report: The form of report attached to
Exhibit F hereto.

                                      -22-

<PAGE>

     Due Date: For a Mortgage Loan, the date specified in the related Mortgage
Note on which the monthly scheduled payment of interest and principal (or
interest only during the applicable interest-only period, if any, following
origination) is due.

     Due Period: With respect to any Distribution Date, the period commencing on
the second day of the calendar month preceding the month in which such
Distribution Date occurs and ending on the first day of the calendar month in
which such Distribution Date occurs.

     EDGAR: The Commission's Electronic Data Gathering and Retrieval System.

     Eligible Account: Either (i) an account maintained with a federal or
state-chartered depository institution or trust company that complies with the
definition of Eligible Institution, (ii) an account maintained with the
corporate trust department of a federal depository institution or
state-chartered depository institution subject to regulations regarding
fiduciary funds on deposit similar to Title 12 of the U.S. Code of Federal
Regulation Section 9.10(b), which, in either case, has corporate trust powers
and is acting in its fiduciary capacity or (iii) any other account acceptable to
each Rating Agency. Eligible Accounts may bear interest, and may include, if
otherwise qualified under this definition, accounts maintained with the
Securities Administrator.

     Eligible Institution: A federal or state-chartered depository institution
or trust company the commercial paper, short-term debt obligations, or other
short-term deposits of which are rated at least "A-1+" by Standard & Poor's if
the amounts on deposit are to be held in the account for no more than 365 days
(or at least "A-2" if the amounts on deposit are to be held in the account for
no more than 30 days, otherwise upon the loss of this required rating, the
accounts would need to be transferred immediately to accounts which have the
required rating), "P-1" by Moody's and "F1+" by Fitch (or a comparable rating if
another Rating Agency is specified by the Depositor by written notice to each of
the Servicers and the Securities Administrator) or long-term unsecured debt
obligations are rated at least "AA-" by Standard & Poor's if the amounts on
deposit are to be held in the account for no more than 365 days.

     ERISA: The Employee Retirement Income Security Act of 1974, as amended.

     ERISA-Qualifying Underwriting: A best efforts or firm commitment
underwriting or private placement that meets the requirements of Prohibited
Transaction Exemption ("PTE") 96-84, 61 Fed. Reg. 58234 (1996), as amended by
PTE 97-34, 62 Fed. Reg. 39021 (1997), PTE 2000-58, 65 Fed. Reg. 67765 (2000) and
PTE 2002-41, 67 Fed. Reg. 54487 (2002) (or any successor thereto), or any
substantially similar administrative exemption granted by the U.S. Department of
Labor.

     ERISA-Restricted Certificate: As specified in the Preliminary Statement.

     Escrow Account: With respect to each Servicer, the meaning assigned to such
term in the related Servicing Agreement.

     Event of Default: With respect to each Servicer, the meaning assigned to
such term in the related Servicing Agreement.

                                      -23-

<PAGE>

     Exchange Act: The Securities Exchange Act of 1934, as amended, and the
rules and regulations thereunder.

     Expense Fees: As to each Mortgage Loan and any Distribution Date, the
Servicing Fees.

     Fannie Mae: The Federal National Mortgage Association, or any successor
thereto.

     Final Recovery Determination: With respect to any defaulted Mortgage Loan
or any REO Property (other than a Mortgage Loan or REO Property purchased by the
Mortgage Loan Seller or the Sponsor as contemplated by this Agreement, any
Transfer Agreement or the Purchase Agreement, as applicable), a determination
made by any Servicer that all Insurance Proceeds, Condemnation Proceeds,
Liquidation Proceeds and other payments or recoveries which the Servicer, in its
reasonable good faith judgment, expects to be finally recoverable in respect
thereof have been so recovered.

     Fitch: Fitch, Inc., or any successor thereto. If Fitch is designated as a
Rating Agency in the Preliminary Statement, for purposes of Section 12.05 the
address for notices to Fitch shall be Fitch, Inc., One State Street Plaza, New
York, New York 10004, Attention: MBS Monitoring - HALO (HSI Asset Loan
Obligation Trust 2007-AR1), or such other address as Fitch may hereafter furnish
to the Depositor and the Securities Administrator.

     Form 8-K Disclosure Information: As defined in Section 8.12(a)(iii).

     Freddie Mac: The Federal Home Loan Mortgage Corporation, a corporate
instrumentality of the United States created and existing under Title III of the
Emergency Home Finance Act of 1970, as amended, or any successor thereto.

     Group I Net WAC Rate: means, with respect to any Distribution Date and Loan
Group I, the weighted average of the Net Mortgage Rates of the Group I Mortgage
Loans as of the end of the calendar month immediately preceding the month in
which the related Distribution Date occurs.

     Group II Net WAC Rate: means, with respect to any Distribution Date and
Loan Group II, the weighted average of the Net Mortgage Rates of the Group II
Loans as of the end of the calendar month immediately preceding the month in
which the related Distribution Date occurs.

     Group III Net WAC Rate: means, with respect to any Distribution Date and
Loan Group III, the weighted average of the Net Mortgage Rates of the Group III
Loans as of the end of the calendar month immediately preceding the month in
which the related Distribution Date occurs.

     Group IV Net WAC Rate: means, with respect to any Distribution Date and
Loan Group IV, the weighted average of the Net Mortgage Rates of the Group IV
Loans as of the end of the calendar month immediately preceding the month in
which the related Distribution Date occurs.

     Group 1 Certificates: As specified in the Preliminary Statement.

     Group I Mortgage Loans: The Mortgage Loans identified on the Mortgage Loan
Schedule as Group I Mortgage Loans.

                                      -24-

<PAGE>

     Group 2 Certificates: As specified in the Preliminary Statement.

     Group 2 Mortgage Loans: The Mortgage Loans identified on the Mortgage Loan
Schedule as Group II Mortgage Loans.

     Group 3 Certificates: As specified in the Preliminary Statement.

     Group 3 Mortgage Loans: The Mortgage Loans identified on the Mortgage Loan
Schedule as Group III Mortgage Loans.

     Group 4 Certificates: As specified in the Preliminary Statement.

     Group 4 Mortgage Loans: The Mortgage Loans identified on the Mortgage Loan
Schedule as Group IV Mortgage Loans.

     Highest Priority: As of any date of determination, the Class of
Certificates then outstanding with a Certificate Balance greater than zero, with
the earliest priority for payments pursuant to Section 4.02(a), in the following
order: Senior Certificates, Class B-1, Class B-2, Class B-3, Class B-4, Class
B-5 and Class B-6 Certificates.

     HSBC Mortgage: HSBC Mortgage Corporation (USA).

     Independent: When used with respect to any accountants, a Person who is
"independent" within the meaning of Rule 2-01(B) of the Commission's Regulation
S-X. Independent means, when used with respect to any other Person, a Person who
(A) is in fact independent of another specified Person and any Affiliate of such
other Person, (B) does not have any material direct or indirect financial
interest in such other Person or any Affiliate of such other Person, (C) is not
connected with such other Person or any Affiliate of such other Person as an
officer, employee, promoter, underwriter, trustee, partner, director or Person
performing similar functions and (D) is not a member of the immediate family of
a Person defined in clause (B) or (C) above.

     Initial Certificate Balance: With respect to each Class of Certificates,
the Certificate Balance of such Class of Certificates as of the Cut-off Date, in
the amount set forth in the Preliminary Statement.

     Initial Certification: As defined in Section 2.02.

     Initial Subordinate Class Percentage: With respect to each Class of
Subordinate Certificates, an amount which is equal to the initial aggregate
Certificate Balance of such Class of Subordinate Certificates divided by the
aggregate Stated Principal Balance of all the Mortgage Loans as of the Cut-off
Date as follows:

<TABLE>
<S>          <C>
CLASS B-1:   2.25%
CLASS B-2:   0.75%
CLASS B-3:   0.55%
CLASS B-4:   0.40%
CLASS B-5:   0.30%
CLASS B-6:   0.25%
</TABLE>

                                      -25-

<PAGE>

     Insurance Policy: With respect to any Mortgage Loan included in the Trust
Fund, any insurance policy, including, but not limited to, any standard hazard
insurance policy, flood insurance policy, earthquake insurance policy, title
insurance policy or Primary Mortgage Insurance Policy (if any), including all
riders and endorsements thereto in effect, including any replacement policy or
policies.

     Insurance Proceeds: With respect to each Mortgage Loan, proceeds of
Insurance Policies insuring the Mortgage Loan or the related Mortgaged Property.

     Interest Accrual Period: means, for the Certificates and any Distribution
Date, the calendar month immediately preceding the month in which the related
Distribution Date occurs assuming a 360-day year consisting of twelve 30-day
months.

     Interest Transfer Amount: With respect to any Undercollateralized Group and
any Distribution Date, one month's interest on the applicable Principal Transfer
Amount at the Pass-Through Rate for the Class or Classes of Certificates of such
Undercollateralized Group, plus any shortfall of interest on the Class or
Classes of Certificates of the applicable Undercollateralized Group from prior
Distribution Dates.

     IRS: The Internal Revenue Service.

     Junior Subordinate Certificates: As specified in the Preliminary Statement.

     Late Collections: With respect to any Mortgage Loan and any Due Period, all
amounts received after the Determination Date immediately following such Due
Period, whether as late payments of Scheduled Payments or as Insurance Proceeds,
Condemnation Proceeds, Liquidation Proceeds, Subsequent Recoveries or otherwise,
which represent late payments or collections of principal and/or interest due
(without regard to any acceleration of payments under the related Mortgage and
Mortgage Note) but delinquent for such Due Period and not previously recovered.

     Liquidated Mortgage Loan: With respect to any Distribution Date, a
defaulted Mortgage Loan (including any REO Property) which was liquidated in the
calendar month preceding the month of such Distribution Date and as to which the
applicable Servicer has certified to the Securities Administrator that it has
received all amounts it expects to receive in connection with the liquidation of
such Mortgage Loan including the final disposition of an REO Property.

     Liquidation Proceeds: Cash received in connection with the liquidation of a
Liquidated Mortgage Loan, whether through a trustee's sale, foreclosure sale or
otherwise.

     Loan Group: The Group I Mortgage Loans, the Group II Mortgage Loans, the
Group III Mortgage Loans or the Group IV Mortgage Loans, as applicable.

     Loan Group I: The group of Mortgage Loans comprised of the Group I Mortgage
Loans.

     Loan Group II: The group of Mortgage Loans comprised of the Group II
Mortgage Loans.

                                      -26-

<PAGE>

     Loan Group III: The group of Mortgage Loans comprised of the Group III
Mortgage Loans.

     Loan Group IV The group of Mortgage Loans comprised of the Group IV
Mortgage Loans.

     London Business Day: Any day on which dealings in deposits of United States
dollars are transacted in the London interbank market.

     Lower Priority: As of any date of determination and any Class of
Certificates, any other Class of Certificates then outstanding with a
Certificate Balance greater than zero, with later priority for payments pursuant
to Section 4.02(a).

     Lowest Priority: As of any date of determination, the Class of Certificates
then outstanding with the latest priority for payments pursuant to Section
4.02(a), in the following order: Senior Certificates, Class B-6, Class B-5,
Class B-4, Class B-3, Class B-2 and Class B-1 Certificates.

     Master Servicer: CitiMortgage, Inc., and any successor in interest, and if
a successor master servicer is appointed hereunder, such successor.

     Master Servicer Event of Default: As defined in Section 9.06.

     Master Servicer Float Period: With respect to each Distribution Date and
the related amounts in the Master Servicing Account, the period commencing on
the applicable Remittance Date immediately preceding the related Master Servicer
Remittance Date and ending on such Master Servicer Remittance Date.

     Master Servicer Remittance Date: As to any Distribution Date, 12:00 noon
New York City time on the 23rd day of each month (or if the 23rd day is not a
Business Day, the immediately preceding Business Day).

     Master Servicing Account: The separate Eligible Account created and
maintained by the Master Servicer pursuant to Section 3.01(c) in the name of the
Master Servicer for the benefit of the Trustee and the Certificateholders and
designated "CitiMortgage, Inc., in trust for registered holders of HSI Asset
Loan Obligation Trust 2007-AR1 Mortgage Pass-Through Certificates, Series
2007-AR1". Funds in the Master Servicing Account shall be held in trust for the
Certificateholders for the uses and purposes set forth in this Agreement.

     Master Servicing Officer: Any officer of the Master Servicer involved in,
or responsible for, the administration and master servicing of the Mortgage
Loans.

     MERS: Mortgage Electronic Registration Systems, Inc., a Delaware
corporation, and its successors in interest.

     MERS Designated Mortgage Loan: Any Mortgage Loan as to which the related
Mortgage, or an Assignment of Mortgage, has been or will be recorded in the name
of MERS, as nominee for the holder from time to time of the Mortgage Note.

                                      -27-

<PAGE>

     MERS Procedure Manual: The MERS Procedures Manual, as it may be amended,
supplemented or otherwise modified from time to time.

     MERS(R) System: MERS mortgage electronic registry system, as more
particularly described in the MERS Procedures Manual.

     MIN: The Mortgage Identification Number of Mortgage Loans registered with
MERS on the MERS(R) System.

     Monthly Statement: The statement made available to the Certificateholders
by the Securities Administrator through its website pursuant to Section 4.03.

     Moody's: Moody's Investors Service, Inc. If Moody's is designated as a
Rating Agency in the Preliminary Statement, for purposes of Section 13.05(c) the
address for notices to Moody's shall be Moody's Investors Service, Inc., 99
Church Street, New York, New York 10007, Attention: Residential Mortgage
Pass-Through Group, HALO (HSI Asset Loan Obligation Trust Series 2007-AR1), or
such other address as Moody's may hereafter furnish to the Depositor and the
Securities Administrator.

     Mortgage: The mortgage, deed of trust or other instrument identified on the
Mortgage Loan Schedule as securing a Mortgage Note.

     Mortgage File: The items pertaining to a particular Mortgage Loan contained
in either the Servicing File or Custodial File.

     Mortgage Loan: An individual Mortgage Loan that is the subject of this
Agreement, each Mortgage Loan originally sold and subject to this Agreement
being identified on the Mortgage Loan Schedule, which Mortgage Loan includes,
without limitation, the Mortgage File, the Scheduled Payments, Principal
Prepayments, Liquidation Proceeds, Subsequent Recoveries, Condemnation Proceeds,
Insurance Proceeds, REO Disposition, Prepayment Charges, and all other rights,
benefits, proceeds and obligations arising from or in connection with such
Mortgage Loan, excluding replaced or repurchased Mortgage Loans.

     Mortgage Loan Schedule: A schedule of Mortgage Loans prepared by the
Depositor, delivered to the Trustee on the Closing Date and referred to on
Schedule I, such schedule setting forth the Data Tape Information with respect
to each Mortgage Loan.

     Mortgage Loan Sellers: The entities which sold the Mortgage Loans to the
Sponsor pursuant to the Transfer Agreements.

     Mortgage Note: The note or other evidence of the indebtedness of a
Mortgagor under a Mortgage Loan.

     Mortgage Rate: With respect to any Mortgage Loan, the annual rate of
interest borne by the related Mortgage Note from time to time, as of the related
Due Date.

                                      -28-

<PAGE>

     Mortgaged Property: With respect to each Mortgage Loan, the real property
(or leasehold estate, if applicable) identified on the Mortgage Loan Schedule as
securing repayment of the debt evidenced by the related Mortgage Note.

     Mortgagor: The obligor(s) on a Mortgage Note.

     Net Mortgage Rate: As to any Mortgage Loan and any Distribution Date, the
excess of the Mortgage Rate over the sum of the applicable Servicing Fee Rate
and the rate at which any lender paid Primary Mortgage Insurance Policy premiums
are paid, if applicable.

     Non-Permitted Transferee: A Person other than a Permitted Transferee.

     Non-U.S. Person: A person that is not a U.S. Person.

     Nonrecoverable P&I Advance: Any P&I Advance previously made or proposed to
be made in respect of a Mortgage Loan or REO Property that, in the good faith
business judgment (taking into account Accepted Servicing Practices) of the
applicable Servicer, the Master Servicer, as successor servicer, or any
successor master servicer including the Trustee, as applicable, will not or, in
the case of a proposed P&I Advance, would not be ultimately recoverable from
related Late Collections on such Mortgage Loan or REO Property as provided
herein.

     Nonrecoverable Servicing Advance: Any Servicing Advances previously made or
proposed to be made in respect of a Mortgage Loan or REO Property, which, in
accordance with Accepted Servicing Practices, will not or, in the case of a
proposed Servicing Advance, would not be ultimately recoverable from related
Late Collections.

     Notice of Final Distribution: The notice to be provided by the Securities
Administrator pursuant to Section 12.02 to the effect that final distribution on
any of the Certificates shall be made only upon presentation and surrender
thereof.

     Offered Certificates: As specified in the Preliminary Statement.

     Offering Documents: Collectively, the Prospectus, Prospectus Supplement and
the Private Placement Memorandum.

     Officer's Certificate: As defined in the applicable Servicing Agreement.

     Opinion of Counsel: A written opinion of counsel, which may be in-house or
outside counsel to the Depositor, the Sponsor, the Master Servicer or the
Trustee, acceptable to the Trustee or the Securities Administrator, as
applicable, except that any opinion of counsel relating to (a) the qualification
of any REMIC created hereunder as a REMIC or (b) compliance with the REMIC
Provisions must be an opinion of Independent counsel.

     Option to Purchase: On the initial or any subsequent Optional Termination
Date, the Master Servicer at its own option may purchase, or upon instruction by
the Depositor shall purchase, the Mortgage Loans. In the event that the
Depositor wishes to instruct the Master Servicer to purchase the Mortgage Loans
on any Optional Termination Date, the Depositor shall

                                      -29-

<PAGE>

provide instructions to the Master Servicer to exercise such option no later
than 5 p.m. on the third Business Day immediately preceding the Optional
Termination Date, in which event the exercise by the Master Servicer of its
option to purchase the Mortgage Loans shall be deemed to have been at the
Depositor's instruction.

     Optional Termination Date: Any Distribution Date on which the aggregate
Stated Principal Balance of the Mortgage Loans, as of the last day of the
related Due Period, is less than or equal to 10.00% of the Cut-off Date Pool
Principal Balance.

     OTS: Office of Thrift Supervision, and any successor thereto.

     Outstanding: With respect to the Certificates as of any date of
determination, all Certificates theretofore executed and authenticated under
this Agreement except:

          (i) Certificates theretofore canceled by the Securities Administrator
     or delivered to the Securities Administrator for cancellation; and

          (ii) Certificates in exchange for which or in lieu of which other
     Certificates have been executed and delivered by the Securities
     Administrator pursuant to this Agreement.

     Outstanding Mortgage Loan: As of any Due Date, a Mortgage Loan with a
Stated Principal Balance greater than zero which was not the subject of a
Principal Prepayment in Full prior to such Due Date and which did not become a
Liquidated Mortgage Loan prior to such Due Date.

     Overcollateralized Group: On any Distribution Date, when there is an
Undercollateralized Group, any Certificate Group on such Distribution Date that
is not itself an Undercollateralized Group.

     Ownership Interest: As to any Residual Certificate, any ownership interest
in such Certificate including any interest in such Certificate as the Holder
thereof and any other interest therein, whether direct or indirect, legal or
beneficial.

     Pass-Through Rate: means with respect to (i) the Group I Senior
Certificates on any Distribution Date, the Group I Net WAC Rate; (ii) the Group
II Senior Certificates on any Distribution Date, the Group II Net WAC Rate;
(iii) the Group III Senior Certificates on any Distribution Date, the Group III
Net WAC Rate and (iv) the Group IV Senior Certificates on any Distribution Date,
the Group IV Net WAC Rate and (v) the Subordinate Certificates on any
Distribution Date, the Subordinate Net WAC Rate. For federal income tax
purposes, however, the Pass-Through Rates set forth in (i) through (iv) above
shall be expressed as the weighted average of the REMIC I Remittance Rate on the
related Uncertificated REMIC I Regular Interest I-B, II-B, III-B or IV-B, as the
case may be, weighted on the basis of the Uncertificated Principal Balance of
such related Uncertificated REMIC Regular Interest immediately preceding the
relevant Distribution Date. The Pass-Through Rate set forth in (v) above shall
be expressed, for federal income tax purposes, as the weighted average of the
REMIC I Remittance Rates on Uncertificated REMIC I Regular Interest I-A, II-A,
III-A and IV-A weighted on the basis of the

                                      -30-

<PAGE>

Uncertificated Principal Balance of each such Uncertificated REMIC I Regular
Interest immediately preceding the relevant Distribution Date.

     P&I Advance: As to any Mortgage Loan or REO Property, any advance made by a
Servicer in respect of any Remittance Date representing the aggregate of all
payments of principal and interest, net of the applicable Servicing Fee and any
lender paid Primary Mortgage Insurance Policy premiums, that were due during the
related Due Period on the Mortgage Loans and that were delinquent on the related
Determination Date, plus certain amounts representing assumed payments not
covered by any current net income on the Mortgaged Properties acquired by
foreclosure or deed in lieu of foreclosure as determined pursuant to the related
Servicing Agreement.

     Percentage Interest: As to any Certificate, the percentage interest
evidenced thereby in distributions required to be made on the related Class,
such percentage interest being set forth on the face thereof or equal to the
percentage obtained by dividing the Denomination of such Certificate by the
aggregate of the Denominations of all Certificates of the same Class.

     Permitted Investments: Any one or more of the following obligations or
securities acquired at a purchase price of not greater than par, regardless of
whether issued by the Securities Administrator, the Trustee or any of their
respective Affiliates:

          (i) direct obligations of, or obligations fully guaranteed as to
     timely payment of principal and interest by, the United States or any
     agency or instrumentality thereof, provided such obligations are backed by
     the full faith and credit of the United States;

          (ii) demand and time deposits in, certificates of deposit of, or
     bankers' acceptances (which shall each have an original maturity of not
     more than 90 days and, in the case of bankers' acceptances, shall in no
     event have an original maturity of more than 365 days or a remaining
     maturity of more than 30 days) denominated in United States dollars and
     issued by, any Depository Institution and rated F1+ by Fitch, A-1+ by
     Standard & Poor's and P-1 by Moody's;

          (iii) repurchase obligations with respect to any security described in
     clause (i) above entered into with a Depository Institution (acting as
     principal);

          (iv) securities bearing interest or sold at a discount that are issued
     by any corporation incorporated under the laws of the United States of
     America or any state thereof and that are rated by Fitch, Moody's and
     Standard & Poor's (in each case, to the extent they are designated as
     Rating Agencies in the Preliminary Statement), and by each other Rating
     Agency that rates such securities, in its highest long-term unsecured
     rating categories at the time of such investment or contractual commitment
     providing for such investment;

          (v) commercial paper (including both non-interest-bearing discount
     obligations and interest-bearing obligations payable on demand or on a
     specified date not more than 30 days after the date of acquisition thereof)
     that is rated by Fitch, Moody's and Standard & Poor's (in each case, to the
     extent they are designated as Rating Agencies

                                      -31-

<PAGE>

     in the Preliminary Statement), and by each other Rating Agency that rates
     such securities, in its highest short-term unsecured debt rating available
     at the time of such investment;

          (vi) units of money market funds, including money market funds managed
     by the Trustee, the Securities Administrator or an Affiliate thereof, that
     have been rated "Aaa" by Moody's, "AAA" by Standard & Poor's and, if rated
     by Fitch, "AAA" by Fitch; and

          (vii) if previously confirmed in writing to the Securities
     Administrator, any other demand, money market or time deposit, or any other
     obligation, security or investment, as may be acceptable to each of the
     Rating Agencies as a permitted investment of funds backing "Aaa" or "AAA"
     rated securities; provided, however, that no instrument described hereunder
     shall evidence either the right to receive (a) only interest with respect
     to the obligations underlying such instrument or (b) both principal and
     interest payments derived from obligations underlying such instrument and
     the interest and principal payments with respect to such instrument provide
     a yield to maturity at par greater than 120.00% of the yield to maturity at
     par of the underlying obligations.

     Permitted Transferee: Any Person other than (i) the United States, any
State or political subdivision thereof, or any agency or instrumentality of any
of the foregoing, (ii) a foreign government, international organization or any
agency or instrumentality of either of the foregoing, (iii) an organization
(except certain farmers' cooperatives described in Section 521 of the Code)
which is exempt from tax imposed by Chapter 1 of the Code (including the tax
imposed by Section 511 of the Code on unrelated business taxable income) on any
excess inclusions (as defined in Section 860E(c)(1) of the Code) with respect to
any Residual Certificate, (iv) rural electric and telephone cooperatives
described in Section 1381(a)(2)(C) of the Code, (v) a Person that is a
Disqualified Non-U.S. Person or a U.S. Person with respect to whom income from a
Residual Certificate is attributable to a foreign permanent establishment or
fixed base, within the meaning of an applicable income tax treaty, of such
Person or any other U.S. Person, (vi) an "electing large partnership" within the
meaning of Section 775 of the Code and (vii) any other Person so designated by
the Depositor based upon an Opinion of Counsel that the Transfer of an Ownership
Interest in a Residual Certificate to such Person may cause any REMIC formed
hereby to fail to qualify as a REMIC at any time that the Certificates are
outstanding. The terms "United States", "State" and "international organization"
shall have the meanings set forth in Section 7701 of the Code or successor
provisions. A corporation will not be treated as an instrumentality of the
United States or of any State or political subdivision thereof for these
purposes if all of its activities are subject to tax and, with the exception of
Freddie Mac, a majority of its board of directors is not selected by such
government unit.

     Person: Any individual, corporation, partnership, joint venture,
association, limited liability company, joint-stock company, trust,
unincorporated organization or government, or any agency or political
subdivision thereof.

     Prepayment Assumption: With respect to the Mortgage Loans, a prepayment
assumption of 25% CPR, used for determining the accrual of original issue
discount and market discount and premium on the Certificates for federal income
tax purposes.

                                      -32-

<PAGE>

     Prepayment Charge: Any prepayment premium, penalty or charge collected by a
Servicer with respect to a Mortgage Loan from a Mortgagor in connection with any
Principal Prepayment pursuant to the terms of the related Mortgage Note.

     Prepayment Distribution Percentage: With respect to any Distribution Date
and each Class of Subordinate Certificates for each Loan Group, under the
applicable circumstances set forth below, the respective percentages set forth
below:

          (i) For any Distribution Date prior to the Distribution Date in
     February 2014 (unless the Certificate Balances of the related Senior
     Certificates other than the Class PO Certificates have been reduced to
     zero), 0%.

          (ii) For any Distribution Date for which clause (i) above does not
     apply, and on which any Class of Subordinate Certificates is outstanding
     with a Certificate Balance greater than zero:

               (a) in the case of the Class of Subordinate Certificates then
          outstanding with the Highest Priority and each other Class of
          Subordinate Certificates for which the related Prepayment Distribution
          Trigger has been satisfied, a fraction, expressed as a percentage, the
          numerator of which is the Certificate Balance of such Class of
          Subordinate Certificates then outstanding with the Highest Priority
          immediately prior to such date and the denominator of which is the sum
          of the Certificate Balances immediately prior to such date of (1) the
          Class of Subordinate Certificates then outstanding with the Highest
          Priority and (2) all other Classes of Subordinate Certificates for
          which the respective Prepayment Distribution Triggers have been
          satisfied; and

               (b) in the case of each other Class of Subordinate Certificates
          for which the Prepayment Distribution Triggers have not been
          satisfied, 0%.

          (iii) Notwithstanding the foregoing, if the application of the
     foregoing percentages on any Distribution Date (determined without regard
     to the proviso to the definition of "Subordinate Principal Distribution
     Amount") would result in a distribution as provided in Section 4.02 in
     respect of principal of any Class or Classes of Subordinate Certificates in
     an amount greater than the remaining Certificate Balance thereof (any such
     class, a "Maturing Class"), then: (a) the Prepayment Distribution
     Percentage of each Maturing Class shall be reduced to a level that, when
     applied as described above, would exactly reduce the Certificate Balance of
     such Class to zero; (b) the Prepayment Distribution Percentage of each
     other Class of Subordinate Certificates (any such Class, a "Non-Maturing
     Class") shall be recalculated in accordance with the provisions in
     paragraph (ii) above, as if the Certificate Balance of each Maturing Class
     had been reduced to zero (such percentage as recalculated, the
     "Recalculated Percentage"); (c) the total amount of the reductions in the
     Prepayment Distribution Percentages of the Maturing Class or Classes
     pursuant to clause (a) of this sentence, expressed as an aggregate
     percentage, shall be allocated among the Non-Maturing Classes in proportion
     to their respective Recalculated Percentages (the portion of such aggregate
     reduction so allocated to any Non-Maturing Class, the "Adjustment
     Percentage"); and (d) for purposes

                                      -33-

<PAGE>

     of such Distribution Date, the Prepayment Distribution Percentage of each
     Non-Maturing Class shall be equal to the sum of (1) the Prepayment
     Distribution Percentage thereof, calculated in accordance with the
     provisions in paragraph (ii) above as if the Certificate Balance of each
     Maturing Class had not been reduced to zero, plus (2) the related
     Adjustment Percentage.

     Prepayment Distribution Trigger: With respect to any Distribution Date and
any Class of Subordinate Certificates (other than the Class B-1 Certificates), a
test that shall be satisfied if the fraction (expressed as a percentage) equal
to the sum of the Certificate Balances of such Class and each Class of
Subordinate Certificates with a Lower Priority than such Class immediately prior
to such Distribution Date divided by the aggregate Stated Principal Balance of
all of the Mortgage Loans (or related REO Properties) immediately prior to such
Distribution Date is greater than or equal to the sum of the related Initial
Subordinate Class Percentages of such Classes of Subordinate Certificates.

     Prepayment Interest Shortfall: With respect to each Servicer, the meaning
assigned to such term in the related Servicing Agreement for each Loan Group.

     Prepayment Period: With respect to each Servicer, the meaning assigned to
such term in the related Servicing Agreement.

     Primary Mortgage Insurance Policy: Any mortgage guaranty insurance, if any,
on an individual Mortgage Loan as evidenced by a policy or certificate, whether
such policy is obtained by the related Mortgage Loan Seller, the lender or the
borrower.

     Principal Prepayment: Any full or partial payment or other recovery of
principal on a Mortgage Loan (including upon liquidation of a Mortgage Loan)
that is received in advance of its scheduled Due Date, excluding any Prepayment
Charge thereon, and that is not accompanied by an amount of interest
representing scheduled interest due on any date or dates in any month or months
subsequent to the month of prepayment.

     Principal Prepayment in Full: Any Principal Prepayment made by a Mortgagor
of the entire principal balance of a Mortgage Loan.

     Principal Transfer Amount: With respect to any Distribution Date and any
Undercollateralized Group, the excess of the aggregate Class Certificate Balance
of the Senior Certificates related to that Undercollateralized Group over the
aggregate Stated Principal Balance of the Mortgage Loans related to that
Undercollateralized Group.

     Private Certificate: As specified in the Preliminary Statement.

     Private Placement Memorandum: The Private Placement Memorandum, dated
January 26, 2007 relating to the offering of the Junior Subordinate
Certificates.

     Prospectus: The Prospectus, dated December 27, 2006, as supplemented by the
Prospectus Supplement.

                                      -34-
<PAGE>

     Prospectus Supplement: The Prospectus Supplement, dated January 26, 2007
relating to the Offered Certificates.

     PTCE: As defined in Section 5.02(b).

     Purchase Agreement: The Mortgage Loan Purchase Agreement, dated as of
January 1, 2007, between the Depositor and the Sponsor.

     Rating Agency: Each of the Rating Agencies specified in the Preliminary
Statement. If such organization or a successor is no longer in existence,
"Rating Agency" shall be such nationally recognized statistical rating
organization, or other comparable Person, as is designated by the Depositor,
notice of which designation shall be given to the Trustee and the Securities
Administrator. References herein to a given rating or rating category of a
Rating Agency shall mean such rating category without giving effect to any
modifiers. For purposes of Section 13.05, the addresses for notices to each
Rating Agency shall be the address specified therefor in the definition
corresponding to the name of such Rating Agency, or such other address as either
such Rating Agency may hereafter furnish to the Depositor and the Securities
Administrator.

     Realized Losses: With respect to any date of determination and any
Liquidated Mortgage Loan, the amount, if any, by which (a) the unpaid principal
balance of such Liquidated Mortgage Loan together with accrued and unpaid
interest thereon exceeds (b) the Liquidation Proceeds with respect thereto net
of the expenses incurred by the applicable Servicer in connection with the
liquidation of such Liquidated Mortgage Loan and net of the amount of
unreimbursed Servicing Advances with respect to such Liquidated Mortgage Loan.

     Record Date: means, with respect to the Offered Certificates, the Business
Day immediately preceding the related Distribution Date, unless the Offered
Certificates are issued in definitive form, in which case the Record Date will
be the last Business Day of the month immediately preceding the related
Distribution Date.

     Regulation AB: Subpart 229.1100 - Asset Backed Securities (Regulation AB),
17 C.F.R. Sections 229.1100-229.1123, as such may be amended from time to time,
and subject to such clarification and interpretation as have been provided by
the Commission in the adopting release (Asset-Backed Securities, Securities Act
Release No. 33-8518, 70 Fed. Reg. 1,506, 1,531 (Jan. 7, 2005)) or by the staff
of the Commission, or as may be provided by the Commission or its staff from
time to time.

     Regular Certificates: As specified in the Preliminary Statement.

     Relevant Servicing Criteria: The Servicing Criteria applicable to the
parties having reporting obligations hereunder, as set forth on Exhibit S
attached hereto. For clarification purposes, multiple parties can have
responsibility for the same Relevant Servicing Criteria. With respect to any
Servicing Function Participant engaged by the Master Servicer, the Securities
Administrator, the Custodian or any Servicer, the term "Relevant Servicing
Criteria" may refer to a portion of the Relevant Servicing Criteria applicable
to such parties.

     Relief Act: The Servicemembers Civil Relief Act, as amended, or similar
legislation or regulations as in effect from time to time.

                                      -35-

<PAGE>

     Relief Act Interest Shortfall: With respect to any Distribution Date and
any Mortgage Loan, any reduction in the amount of interest collectible on such
Mortgage Loan for the most recently ended Due Period as a result of the
application of the Servicemembers Civil Relief Act or any applicable similar
state statutes.

     REMIC: A "real estate mortgage investment conduit" within the meaning of
Section 860D of the Code. As used herein, the term "the REMIC" or "the REMICs"
shall mean one or more of the REMICs created under this Agreement.

     REMIC 1: The segregated pool of assets, with respect to which a REMIC
election is made pursuant to this Agreement, consisting of:

          (a)  the Mortgage Loans and the related Mortgage Files and collateral
               securing such Mortgage Loans,

          (b)  all payments on and collections in respect of the Mortgage Loans
               due after the Cut off Date as shall be on deposit in any
               Collection Account or in the Distribution Account and identified
               as belonging to the Trust Fund,

          (c)  property that secured a Mortgage Loan and that has been acquired
               for the benefit of the Certificateholders by foreclosure or deed
               in lieu of foreclosure,

          (d)  the hazard insurance policies and Primary Insurance Policies, if
               any, and

          (e)  all funds on deposit in the Class P Reserve Fund;

          (f)  all proceeds of clauses (a) through (e) above.

     REMIC 1 Interest: The REMIC 1 Regular Interests and the Class R-I
Certificates.

     REMIC 1 Regular Interest: Any of the ten separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
"regular interest" in REMIC 1. Each REMIC 1 Regular Interest shall accrue
interest at the related REMIC 1 Remittance Rate in effect from time to time, and
shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto. The designations for
the respective REMIC 1 Regular Interests are set forth in the Preliminary
Statement hereto.

     REMIC 1 Remittance Rate: With respect to each of the Uncertificated REMIC I
Regular Interests I-A, II-A, III-A, IV-A and ZZZ, a per annum rate equal to the
weighted average of the Group I Net WAC Rate, Group II Net WAC Rate, Group III
Net WAC Rate and Group IV Net WAC Rate weighted on the basis of the Subordinate
Component for the related Loan Group. With respect to Uncertificated REMIC I
Regular Interests I-B, II-B, III-B and IV-B, the Group I Net WAC Rate, Group II
Net WAC Rate, Group III Net WAC Rate and Group IV Net WAC Rate, respectively.
With respect to Uncertificated REMIC I Regular Interest R-II, the Group II Net
WAC Rate.

                                      -36-

<PAGE>

     REMIC 1 Subordinated Balance Ratio: The ratio among the Uncertificated
Balances of each of the REMIC 1 Regular Interests ending with the designation
"A," equal to the ratio among, with respect to each such REMIC 1 Regular
Interest, the excess of (x) the aggregate Stated Principal Balance of the
Mortgage Loans in the related Loan Group over (y) the Class Certificate Balance
of the Senior Certificates in the related Loan Group.

     REMIC 2: The segregated pool of assets consisting of all of the REMIC 1
Regular Interests, with respect to which a separate REMIC election is to be
made.

     REMIC 2 Certificate: Any Certificate, other than a Class R-I Certificate.

     REMIC 2 Regular Certificate: Any REMIC 2 Certificate, other than a Class
R-II Certificate.

     REMIC 2 Regular Interest: Any of the fourteen certificated beneficial
ownership interests in REMIC 2 issued hereunder, and, hereby, designated as a
"regular interest" in REMIC 2, as follows: Class I-A-1, Class II-A-1, Class
II-A-2, Class III-A-1, Class III-A-2, Class IV-A-1, Class IV-A-2, Class P, Class
B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates.

     REMIC Provisions: Provisions of the federal income tax law relating to real
estate mortgage investment conduits, which appear at Sections 860A through 860G
of Subchapter M of Chapter 1 of the Code, and related provisions, and
regulations promulgated thereunder, as the foregoing may be in effect from time
to time as well as provisions of applicable state laws.

     Remittance Date: With respect to each Servicer, the 18th day of each month.

     REO Acquisition: The acquisition by the applicable Servicer on behalf of
the Trustee for the benefit of the Certificateholders of any REO Property.

     REO Disposition: The final sale by the applicable Servicer of any REO
Property.

     REO Proceeds: Proceeds, net of expenses, received in respect of any REO
Property (including, without limitation, proceeds from the rental of the related
Mortgaged Property) which proceeds are required to be deposited into the
applicable Collection Account upon the related REO Disposition.

     REO Property: A Mortgaged Property acquired by the Trust Fund through
foreclosure or deed-in-lieu of foreclosure in connection with a defaulted
Mortgage Loan.

     Reportable Event: As defined in Section 8.12(a)(iii).

     Reporting Servicer: As defined in Section 8.12(a)(ii).

     Repurchase Price: With respect to any Mortgage Loan, an amount equal to the
sum of (i) the unpaid principal balance of such Mortgage Loan as of the date of
repurchase, (ii) interest on such unpaid principal balance of such Mortgage Loan
at the Mortgage Rate from the last date through which interest has been paid to
the date of repurchase, (iii) all unreimbursed Servicing

                                      -37-

<PAGE>

Advances, (iv) the amount of any costs and damages incurred by the Trust Fund as
a result of any violation of any applicable federal, state or local predatory-
or abusive-lending law arising from or in connection with the origination of
such Mortgage Loan and (v) all expenses incurred by the Master Servicer, the
Securities Administrator, the related Servicer or Trustee arising out of the
Master Servicer's, the related Servicer's or Trustee's enforcement of the
applicable Mortgage Loan Seller's or Sponsor's repurchase obligation hereunder.

     Request for Release: The Request for Release submitted by a Servicer to the
Trustee, substantially in the form of Exhibit J.

     Residential Funding Company: Residential Funding Company, LLC

     Residual Certificates: As specified in the Preliminary Statement.

     Responsible Officer: When used with respect to the Trustee, the Securities
Administrator or the Master Servicer, any vice president, any assistant vice
president, any assistant secretary, any assistant treasurer, any associate, or
any other officer of the Trustee, the Securities Administrator or the Master
Servicer customarily performing functions similar to those performed by any of
the above designated officers who at such time shall be officers to whom, with
respect to a particular matter, such matter is referred because of such
officer's knowledge of and familiarity with the particular subject and who, in
each case, shall have direct responsibility for the administration of this
Agreement.

     Rule 144A Investment Letter: As defined in Section 5.02(b).

     Sarbanes-Oxley Act: The Sarbanes-Oxley Act of 2002 and the rules and
regulations of the Commission promulgated thereunder (including any
interpretations thereof by the Commission's staff).

     Sarbanes-Oxley Certification: A written certification signed by an officer
of the Master Servicer that complies with (i) the Sarbanes-Oxley Act, and (ii)
Exchange Act Rules 13a-14(d) and 15d-14(d), as in effect from time to time;
provided that if, after the Closing Date (a) the Sarbanes-Oxley Act is amended,
(b) the Rules referred to in clause (ii) are modified or superseded by any
subsequent statement, rule or regulation of the Commission or any statement of a
division thereof, or (c) any future releases, rules and regulations are
published by the Commission from time to time pursuant to the Sarbanes-Oxley
Act, which in any such case affects the form or substance of the required
certification and results in the required certification being, in the reasonable
judgment of the Master Servicer, materially more onerous that then form of the
required certification as of the Closing Date, the Sarbanes-Oxley Certification
shall be as agreed to by the Master Servicer, and the Depositor following a
negotiation in good faith to determine how to comply with any such requirements.

     Scheduled Payment: The scheduled monthly payment on a Mortgage Loan due on
any Due Date allocable to principal and/or interest on such Mortgage Loan which,
unless otherwise specified herein, shall give effect to any Deficient Valuation
that affects the amount of the monthly payment due on such Mortgage Loan.

                                      -38-

<PAGE>

     Securities Act: The Securities Act of 1933, as amended and the rules and
regulations thereunder.

     Securities Administrator: Citibank, N.A. and any successors in interest,
and if a successor securities administrator is appointed hereunder, such
successor.

     Securities Administrator Float Period: With respect to the Distribution
Date and the related amounts in the Distribution Account, the period commencing
on the Master Servicer Remittance Date immediately preceding such Distribution
Date and ending on such Distribution Date.

     Senior Accelerated Distribution Percentage means for each Loan Group and
any Distribution Date occurring prior to the 84th Distribution Date 100%. The
related Senior Accelerated Distribution Percentage for any Distribution Date
thereafter will be as follows:

          (i) for any Distribution Date after the 84th Distribution Date but on
     or prior to the 96th Distribution Date, the related Senior Percentage for
     such Loan Group for such Distribution Date plus 70% of the related
     Subordinate Percentage for that Loan Group for such Distribution Date;

          (ii) for any Distribution Date after the 96th Distribution Date but on
     or prior to the 108th Distribution Date, the related Senior Percentage for
     such Loan Group for such Distribution Date plus 60% of the related
     Subordinate Percentage for that Loan Group for such Distribution Date;

          (iii) for any Distribution Date after the 108th Distribution Date but
     on or prior to the 120th Distribution Date, the related Senior Percentage
     for such Loan Group for such Distribution Date plus 40% of the related
     Subordinate Percentage for that Loan Group for such Distribution Date;

          (iv) for any Distribution Date after the 120th Distribution Date but
     on or prior to the 132nd Distribution Date, the related Senior Percentage
     for such Loan Group for such Distribution Date plus 20% of the related
     Subordinate Percentage for that Loan Group for such Distribution Date; and

          (v) for any Distribution Date thereafter, the Senior Percentage for
     such Loan Group for such Distribution Date.

provided, however, (i) if on any Distribution Date the Senior Percentage for any
Loan Group exceeds the initial Senior Percentage for that Loan Group, then the
Senior Accelerated Distribution Percentage for each Loan Group for that
Distribution Date will once again equal 100%; (ii) if on any Distribution Date
on or prior to the January 2010 Distribution Date, the Aggregate Subordinate
Percentage is greater than or equal to twice such percentage calculated as of
the Closing Date, then the Senior Accelerated Distribution Percentage for each
Loan Group for such Distribution Date will equal the related Senior Percentage
plus 50% of the related Subordinate Percentage and (iii) if on or after the
February 2010 Distribution Date, the Aggregate Subordinate Percentage is greater
than or equal to twice such percentage calculated as

                                      -39-

<PAGE>

of the Closing Date, then the Senior Accelerated Distribution Percentage for
each Loan Group for such Distribution Date will equal the related Senior
Percentage.

     The reductions in the Senior Accelerated Distribution Percentage for each
Loan Group described above will not occur, and the Senior Accelerated
Distribution Percentage for each Loan Group for such prior period will be
calculated without regard to clause (ii) or (iii) of the paragraph above, unless
both of the following conditions are satisfied with respect to the Mortgage
Loans, as of the last day of the month preceding the Distribution Date:

          (a) the Stated Principal Balance of the Mortgage Loans delinquent 60
     days or more as set forth in the Monthly Statements, including Mortgage
     Loans in bankruptcy, foreclosure and REO, averaged over the last six
     months, as a percentage of the aggregate Class Certificate Balance of the
     Subordinate Certificates, is less than 50% and

          (b) cumulative Realized Losses on the Mortgage Loans do not exceed:

               (i) 20% of the original aggregate Class Certificate Balance of
          the Subordinate Certificates if such Distribution Date occurs between
          and including February 2007 and January 2010; and

               (ii) 30% of the original aggregate Class Certificate Balance of
          the Subordinate Certificates if such Distribution Date occurs on or
          after February 2010.

     Notwithstanding the foregoing, upon reduction of the Class Certificate
Balances of the Senior Certificates related to a Loan Group to zero, the Senior
Accelerated Distribution Percentage, as the case may be, will equal 0%.

     Senior Certificates: As specified in the Preliminary Statement, as the
context requires.

     Senior Interest Distribution Amount: With respect to any Distribution Date
and each Loan Group, the aggregate amount of Accrued Certificate Interest to be
distributed to the holders of the related Senior Certificates for that
Distribution Date pursuant to Section 4.02(a)(i).

     Senior Percentage: means, for each Distribution Date and any Loan Group,
the percentage equal to the aggregate Class Certificate Balance of the related
Senior Certificates immediately prior to that Distribution Date divided by the
aggregate Stated Principal Balance of all of the Mortgage Loans in the related
Loan Group immediately prior to that Distribution Date (without giving effect to
any principal collections on such Mortgage Loans received or advanced and to be
distributed on such Distribution Date).

     Senior Principal Distribution Amount: With respect to each Loan Group and
any Distribution Date, the amount of related Available Funds, if any, to be
distributed to the related Senior Certificateholders pursuant to Section
4.02(a)(iii).

     Senior Subordinate Certificates: As specified in the Preliminary Statement.

                                      -40-

<PAGE>

     Servicer: Countrywide Servicing, HSBC Mortgage, American Home, Residential
Funding or SunTrust, as applicable, and if a successor Servicer to any is
appointed hereunder, such successor. When the term "Servicer" is used in this
Agreement in connection with the administration of servicing obligations with
respect to any Mortgage Loan, Mortgaged Property, REO Property or Mortgage File,
"Servicer" shall mean the Person identified as the Servicer of such Mortgage
Loan on the Mortgage Loan Schedule.

     Service(s)(ing): In accordance with Regulation AB, the act of servicing and
administering the Mortgage Loans or any other assets of the Trust Fund by an
entity that meets the definition of "servicer' set forth in Item 1101 of
Regulation AB and is subject to the disclosure requirements set forth in Item
1108 of Regulation AB. For clarification purposes, any uncapitalized occurrence
of this term in this Agreement shall have the meaning commonly understood by
participants in the residential mortgage-backed securitization market.

     Servicing Agreement: Each reconstituted servicing agreement or assignment,
assumption and recognition agreement set forth on Exhibit M hereto and relating
to a Servicer and the servicing of the related Mortgage Loans by such Servicer,
as the same may be amended from time to time.

     Servicing Advances: With respect to the Servicers and the Master Servicer
(including the Trustee in its capacity as successor master servicer), all
customary and reasonable "out of pocket" costs and expenses (including
reasonable attorneys' fees and expenses) incurred by the Servicers in the
performance of its servicing obligations under the related Servicing Agreement
or by the Master Servicer (including the Trustee in its capacity as successor
master servicer) in the performance of its obligations hereunder, including, but
not limited to, the cost of (i) the preservation, restoration, inspection and
protection of the Mortgaged Property, (ii) any enforcement or judicial
proceedings, including foreclosures, (iii) the management and liquidation of the
REO Property and (iv) any other expenses permitted to be reimbursed as Servicing
Advances under the related Servicing Agreement, as applicable.

     Servicing Criteria: The criteria set forth in paragraph (d) of Item 1122 of
Regulation AB, as such may be amended from time to time.

     Servicing Fee: With respect to each Servicer, the meaning assigned to such
term in the related Servicing Agreement.

     Servicing Fee Rate: means with respect to American Home Mortgage and
SunTrust, a fee equal to one-twelfth of 0.375% of the aggregate Stated Principal
Balance of the Mortgage Loans serviced by such Servicer as of the prior
Distribution Date (or the Cut-off Date in the case of the first Distribution
Date), with respect to HSBC Mortgage a fee equal to one-twelfth of 0.250% of the
aggregate Stated Principal Balance of the Mortgage Loans serviced by HSBC
Mortgage as of the prior Distribution Date (or the Cut-off Date in the case of
the first Distribution Date), with respect to Residential Funding Company, a fee
equal to one-twelfth of 0.300% of the aggregate Stated Principal Balance of the
Mortgage Loans serviced by Residential Funding Company and with respect to any
Mortgage Loan serviced by Countrywide Servicing as of the prior Distribution
Date (or the Cut-off Date in the case of the first Distribution Date) a fee
equal to one-twelfth of 0.175% or 0.250%, as specified in the related Servicing
Agreement,

                                      -41-

<PAGE>

during the initial fixed rate period of such Mortgage Loan and one-twelfth of
0.200% or 0.375%, as specified in the related Servicing Agreement, after the
initial fixed rate period of such Mortgage Loan, of the Stated Principal Balance
of such Mortgage Loan.

     Servicing File: With respect to each Servicer, the meaning assigned to such
term in the related Servicing Agreement.

     Servicing Function Participant: Any Subservicer or Subcontractor of any
Servicer, the Master Servicer, the Custodian or the Securities Administrator,
respectively.

     Servicing Modification: Any reduction of the interest rate on or the
outstanding principal balance of a Mortgage Loan, any extension of the final
maturity date of a Mortgage Loan, and any increase to the outstanding principal
balance of a Mortgage Loan by adding to the Stated Principal Balance unpaid
principal and interest and other amounts owing under the Mortgage Loan, in each
case pursuant to a modification of a Mortgage Loan that is in default, or for
which, in the judgment of the applicable Servicer, default is reasonably
foreseeable.

     Servicing Officer: As defined in the applicable Servicing Agreement.

     Similar Law: As defined in Section 5.02(b).

     Sponsor: HSBC Bank USA, National Association, a national banking
association, and its successors in interest.

     Standard & Poor's: Standard & Poor's Ratings Services, a division of The
McGraw-Hill Companies, Inc. If Standard & Poor's is designated as a Rating
Agency in the Preliminary Statement, for purposes of Section 13.05(c) the
address for notices to Standard & Poor's shall be Standard & Poor's, 55 Water
Street, New York, New York 10041, Attention: Residential Mortgage Surveillance
Group - (HSI Asset Loan Obligation Trust), Series 2007-AR1, or such other
address as Standard & Poor's may hereafter furnish to the Depositor and the
Securities Administrator.

     Startup Day: The Closing Date.

     Stated Principal Balance: As to each Mortgage Loan and as of any date of
determination, (a) the principal balance of the Mortgage Loan at the Cut-off
Date after giving effect to payments of principal due on or before such date
(whether or not received), minus (b) the sum of (i) all amounts previously
remitted to the Securities Administrator with respect to the related Mortgage
Loan representing payments or recoveries of principal including advances in
respect of scheduled payments of principal and (ii) any Realized Loss allocated
to Certificateholders with respect to such Mortgage Loan for any previous
Distribution Date. For purposes of any Distribution Date, the Stated Principal
Balance of any Mortgage Loan will give effect to any scheduled payments of
principal received by the related Servicer on or prior to the related
Determination Date or advanced by related Servicer for the related Remittance
Date and any unscheduled principal payments and other unscheduled principal
collections received during the related Prepayment Period, and the Stated
Principal Balance of any Mortgage Loan that has prepaid in full or has become a
Liquidated Mortgage Loan during the related Prepayment Period shall be zero.

                                      -42-

<PAGE>

     Subcontractor: Any vendor, subcontractor or other Person that is not
responsible for the overall servicing of the Mortgage Loans but performs one or
more discrete functions identified in Item 1122(d) of Regulation AB with respect
to Mortgage Loans under the direction or authority of any Servicer (or a
Subservicer of any Servicer), the Master Servicer, the Custodian or the
Securities Administrator.

     Subordinate Certificate: As specified in the Preliminary Statement.

     Subordinate Percentage: means as of any date of determination and with
respect to each Loan Group, a percentage equal to 100% minus the related Senior
Percentage as of that date for that Loan Group.

     Subordinate Component: means with respect to each Loan Group and any
Distribution Date, the aggregate Stated Principal Balance of the Mortgage Loans
in that Loan Group for that Distribution Date (without giving effect to any
principal collections on such Mortgage Loans received or advanced and to the
distributed on such Distribution Date) minus the aggregate Class Certificate
Balance of the related Senior Certificates immediately prior to that
Distribution Date.

     Subordinate Net WAC Rate: means with respect to any Distribution Date and
the Subordinate Certificates, a per annum rate equal to the weighted average of
the Group I Net WAC Rate, Group II Net WAC Rate, Group III Net WAC Rate and
Group IV Net WAC Rate weighted on the basis of the Subordinate Component for the
related Loan Group.

     Subordinate Principal Distribution Amount: With respect to any Distribution
Date and each Class of Subordinate Certificates, the sum of (i) such Class's pro
rata share, based on the Class Certificate Balance of each Class of Subordinate
Certificates then outstanding of the aggregate of the amounts calculated for
such Distribution Date under clauses (1), (2) and (3) of Section 4.02(a)(iii)(A)
(without giving effect to the Senior Percentage) to the extent not payable to
the Senior Certificates; (ii) such Class's pro rata share, based on the Class
Certificate Balance of each Class of Subordinate Certificates then outstanding,
of the principal collections described in Section 4.02(a)(iii)(B)(b) (without
giving effect to the Senior Accelerated Distribution Percentage) to the extent
such collections are not otherwise distributed to the Senior Certificates; (iii)
the product of (x) the related Prepayment Distribution Percentage and (y) the
aggregate of all Principal Prepayments received in the related Prepayment Period
to the extent not payable to the Senior Certificates; and (iv) any amounts
described in clauses (i), (ii) and (iii) as determined for any previous
Distribution Date, that remain undistributed to the extent that such amounts are
not attributable to Realized Losses which have been allocated to a Class of
Subordinate Certificates with a Lower Priority; provided, however, that the
Subordinate Principal Distribution Amount for any Class of Subordinate
Certificates on any Distribution Date shall in no event exceed the outstanding
Class Certificate Balance of such Class of Certificates immediately prior to
such date.

     Subsequent Recoveries: As of any Distribution Date, amounts received by the
Servicers (net of any related expenses permitted to be reimbursed pursuant to
the related Servicing Agreement) or surplus amounts held by the Servicers to
cover estimated expenses (including, but not limited to, recoveries in respect
of the representations and warranties made by a Mortgage Loan Seller pursuant to
Section 2.03) specifically related to a Mortgage Loan that was the

                                      -43-

<PAGE>

subject of a Cash Liquidation or an REO Disposition prior to the related
Prepayment Period that resulted in a Realized Loss.

     Subservicer: Any Person that services Mortgage Loans on behalf of a
Servicer, and is responsible for the performance (whether directly or through
subservicers or Subcontractors) of servicing functions required to be performed
under this Agreement, any related Servicing Agreement or any sub-servicing
agreement that are identified in Item 1122(d) of Regulation AB.

     Substitute Mortgage Loan: A Mortgage Loan substituted by a Mortgage Loan
Seller or the Sponsor for a Deleted Mortgage Loan which must, in the case of a
Mortgage Loan substituted by the Sponsor, on the date of such substitution, as
confirmed in a Request for Release, substantially in the form of Exhibit J, (i)
have a Stated Principal Balance, after deduction of all Scheduled Payments due
in the month of substitution, not in excess of the Stated Principal Balance of
the Deleted Mortgage Loan; (ii) be accruing interest at a rate not lower than
and not more than 1.00% higher than that of the Deleted Mortgage Loan; (iii)
have a remaining term to maturity not greater than (and not more than one year
less than) that of the Deleted Mortgage Loan; (iv) be of the same type as the
Deleted Mortgage Loan; and (v) conforms to each representation and warranty
applicable to the Deleted Mortgage Loan made in the Purchase Agreement.

     Substitution Adjustment Amount: As provided in the related Transfer
Agreement with respect to each Mortgage Loan Seller, the amount (if any) by
which the aggregate unpaid principal balance of all Substitute Mortgage Loans as
of the date of substitution is less than the aggregate unpaid principal balance
of all Deleted Mortgage Loans, increased by the aggregate amount of any
unreimbursed Advances with respect to such Deleted Mortgage Loans. Such amount
to be remitted by the applicable Mortgage Loan Seller in accordance with its
respective Transfer Agreement.

     SunTrust: SunTrust Mortgage Inc.

     Tax Returns: The federal income tax return on Internal Revenue Service Form
1066, U.S. Real Estate Mortgage Investment Conduit Income Tax Return, including
Schedule Q thereto, Quarterly Notice to Residual Interest Holders of REMIC
Taxable Income or Net Loss Allocation, or any successor forms, to be filed on
behalf of any REMIC due to its classification as a REMIC under the REMIC
Provisions, together with any and all other information, reports or returns that
may be required to be furnished to the Certificateholders or filed with the
Internal Revenue Service or any other governmental taxing authority under any
applicable provisions of federal, state or local tax laws.

     Termination Price: As defined in Section 12.01.

     Total Transfer Amount: An amount equal to the sum of the Interest Transfer
Amount and the Principal Transfer Amount for the Undercollaterized Group.

     Transfer: Any direct or indirect transfer or sale of any Ownership Interest
in a Residual Certificate.

     Transfer Affidavit: As defined in Section 5.02(c).

                                      -44-

<PAGE>

     Transfer Agreement: The various agreements by which the Sponsor purchased
the Mortgage Loans from the Mortgage Loan Sellers.

     Transfer Payments: collectively, the Interest Transfer Amount and Principal
Transfer Amount.

     Transferor Certificate: As defined in Section 5.02(b).

     Trust: The express trust created hereunder in Section 2.01(c).

     Trust Fund: The corpus of the trust created hereunder consisting of (i) the
Mortgage Loans and all interest and principal with respect thereto received on
or after the related Cut-off Date (other than such amounts which were due on the
Mortgage Loans on or prior to the related Cut-off Date); (ii) the Accounts
(other than the Reserve Account) and all amounts deposited therein pursuant to
the applicable provisions of this Agreement; (iii) property that secured a
Mortgage Loan and has been acquired by foreclosure, deed-in-lieu of foreclosure
or otherwise; (iv) the Depositor's rights under the Purchase Agreement, each
Transfer Agreement and each Servicing Agreement; (v) the Insurance Policies; and
(vi) all proceeds of the conversion, voluntary or involuntary, of any of the
foregoing.

     Trustee: Deutsche Bank National Trust Company, a national banking
association, and its successors in interest and, if a successor trustee is
appointed hereunder, such successor.

     Uncertificated Interest: With respect to any REMIC 1 Regular Interest for
any Distribution Date, one month's interest at the REMIC 1 Remittance Rate
applicable to such REMIC 1 Regular Interest for such Distribution Date, accrued
on the Uncertificated Principal Balance (or Notional Balance) thereof
immediately prior to such Distribution Date. Uncertificated Interest in respect
of any REMIC 1 Regular Interest shall accrue on the basis of a 360-day year
consisting of twelve 30-day months. Uncertificated Interest with respect to each
Distribution Date, as to any REMIC 1 Regular Interest, shall be reduced by any
interest shortfalls allocated to the Related Classes of Certificates on such
Distribution Date. In addition, Uncertificated Interest with respect to each
Distribution Date, as to any REMIC 1 Regular Interest shall be reduced by
interest portion of Realized Losses allocated to the Related Classes of
Certificates on such Distribution Date.

     Uncertificated Principal Balance: The amount of any REMIC 1 Regular
Interest outstanding as of any date of determination. As of the Closing Date,
the Uncertificated Principal Balance of each REMIC 1 Regular Interest shall
equal the amount set forth in the Preliminary Statement hereto as its Initial
Uncertificated Principal Balance (or Notional Amount). On each Distribution
Date, the Uncertificated Principal Balance of each REMIC 1 Regular Interest
shall be reduced, first, by the portion of Realized Losses allocated in
reduction of the principal balances of the related Classes of Certificates on
such Distribution Date and, second, by all distributions of principal deemed
made on such REMIC 1 Regular Interest, as applicable, on such Distribution Date
pursuant to Section 11.04. The Uncertificated Principal Balance (or Notional
Amount) of each Uncertificated REMIC 1 Regular Interest shall never be less than
zero.

                                      -45-

<PAGE>

     Undercollateralized Group: Any Certificate Group in which the aggregate
Class Certificate Balance of the related Class or Classes of Senior Certificates
is greater than the aggregate Stated Principal Balance of the Mortgage Loans of
the related Loan Group.

     Underwriters' Exemption: Any exemption listed under footnote 1 of, and
amended by, Prohibited Transaction Exemption 96-84, 61 Fed. Reg. 58234 (1996),
as amended by PTE 97-34, 62 Fed. Reg. 39021 (1997), PTE 2000-58, 65 Fed. Reg.
67765 (2000) and PTE 2002-41, 67 Fed. Reg. 54487 (2002), or any successor
exemption.

     U.S. Person: (i) A citizen or resident of the United States; (ii) a
corporation (or entity treated as a corporation for tax purposes) created or
organized in the United States or under the laws of the United States or of any
State thereof, including, for this purpose, the District of Columbia; (iii) a
partnership (or entity treated as a partnership for tax purposes) organized in
the United States or under the laws of the United States or of any State
thereof, including, for this purpose, the District of Columbia (unless provided
otherwise by future Treasury regulations); (iv) an estate whose income is
includible in gross income for United States income tax purposes regardless of
its source; or (v) a trust, if a court within the United States is able to
exercise primary supervision over the administration of the trust and one or
more U.S. Persons have authority to control substantial decisions of the trust.
Notwithstanding the last clause of the preceding sentence, to the extent
provided in Treasury regulations, certain trusts in existence on August 20,
1996, and treated as U.S. Persons prior to such date, may elect to continue to
be U.S. Persons.

     Voting Rights: The portion of the voting rights of all of the Certificates
which is allocated to any Certificate. As of any date of determination, (i)
0.50% of all Voting Rights shall be allocated pro rata to the Class R-1 and
Class R-2 Certificates; (ii) 1.00% of all Voting Rights shall be allocated to
the Class P Certificates; and (iii) the remaining Voting Rights shall be
allocated among Holders of the remaining Classes of Certificates in proportion
to the Certificate Balances of their respective Certificates on such date (such
Voting Rights to be allocated among the holders of Certificates of each such
Class in accordance with their respective Percentage Interests).

     Wells Fargo: Wells Fargo Bank, N.A., a national banking association, and
its successors in interest.

                                   ARTICLE II

                          CONVEYANCE OF MORTGAGE LOANS;
                         REPRESENTATIONS AND WARRANTIES

          Section 2.01 Conveyance of Mortgage Loans. (a) The Depositor,
concurrently with the execution and delivery hereof, hereby sells, transfers,
assigns, sets over and otherwise conveys to the Trustee for the benefit of the
Certificateholders, without recourse, all the right, title and interest of the
Depositor in and to the Trust Fund including all interest and principal received
on or with respect to the Mortgage Loans on or after the Cut-off Date (other
than Scheduled Payments due on the Mortgage Loans on or before the Cut-off
Date).

                                      -46-

<PAGE>

     Concurrently with the execution and delivery of this Agreement, the
Depositor does hereby assign to the Trustee all of its rights and interest under
(i) the Purchase Agreement, including the right to enforce the Sponsor's
obligation to repurchase or substitute defective Mortgage Loans under Section 4
of the Purchase Agreement and (ii) each Servicing Agreement and each Transfer
Agreement, to the extent assigned under the Purchase Agreement. The Trustee
hereby accepts such assignment, and as set forth herein in Section 2.03(d),
shall be entitled to exercise all the rights of the Depositor under the Purchase
Agreement as if, for such purpose, it were the Depositor.

          (b) In connection with the transfer and assignment of each Mortgage
Loan, the Depositor has delivered or caused to be delivered to the Custodian for
the benefit of the Certificateholders the following documents or instruments
with respect to each Mortgage Loan so assigned:

          (i) the original Mortgage Note bearing all intervening endorsements
     necessary to show a complete chain of endorsements from the original payee,
     endorsed in blank, "Pay to the order of _____________, without recourse",
     and, if previously endorsed, signed in the name of the last endorsee by a
     duly qualified officer of the last endorsee;

          (ii) the original Assignment of Mortgage for each Mortgage Loan, in
     form and substance acceptable for recording. The Mortgage shall be
     assigned, with assignee's name left blank;

          (iii) the original of each guarantee executed in connection with the
     Mortgage Note, if any;

          (iv) the original recorded Mortgage, with evidence of recording
     thereon. If in connection with any Mortgage Loan, the original Mortgage
     cannot be delivered with evidence of recording thereon on or prior to the
     Closing Date because of a delay caused by the public recording office where
     such Mortgage has been delivered for recordation or because such Mortgage
     has been lost or because such public recording office retains the original
     recorded Mortgage, the Depositor shall deliver or cause to be delivered to
     the Custodian, (A) in the case of a delay caused by the public recording
     office, a copy of such Mortgage certified by the applicable Mortgage Loan
     Seller, escrow agent, title insurer or closing attorney to be a true and
     complete copy of the original recorded Mortgage and (B) in the case where a
     public recording office retains the original recorded Mortgage or in the
     case where a Mortgage is lost after recordation in a public recording
     office, a copy of such Mortgage certified by such public recording office
     to be a true and complete copy of the original recorded Mortgage;

          (v) originals or a certified copy of each modification agreement, if
     any;

          (vi) the originals of all intervening assignments of Mortgage with
     evidence of recording thereon evidencing a complete chain of ownership from
     the originator of the Mortgage Loan to the last assignee, or if any such
     intervening assignment of Mortgage has not been returned from the
     applicable public recording office or has been lost or if

                                      -47-

<PAGE>

     such public recording office retains the original recorded intervening
     assignments of Mortgage, a photocopy of such intervening assignment of
     Mortgage, together with (A) in the case of a delay caused by the public
     recording office, an officer's certificate of the applicable Mortgage Loan
     Seller, escrow agent, closing attorney or the title insurer insuring the
     Mortgage stating that such intervening assignment of Mortgage has been
     delivered to the appropriate public recording office for recordation and
     that such original recorded intervening assignment of Mortgage or a copy of
     such intervening assignment of Mortgage certified by the appropriate public
     recording office to be a true and complete copy of the original recorded
     intervening assignment of Mortgage will be promptly delivered to the
     Custodian upon receipt thereof by the party delivering the officer's
     certificate or by the applicable Mortgage Loan Seller; or (B) in the case
     of an intervening assignment of mortgage where a public recording office
     retains the original recorded intervening assignment of Mortgage or in the
     case where an intervening assignment of Mortgage is lost after recordation
     in a public recording office, a copy of such intervening assignment of
     Mortgage with recording information thereon certified by such public
     recording office to be a true and complete copy of the original recorded
     intervening assignment of Mortgage;

          (vii) if the Mortgage Note, the Mortgage, any Assignment of Mortgage
     or any other related document has been signed by a Person on behalf of the
     Mortgagor, the copy of the power of attorney or other instrument that
     authorized and empowered such Person to sign;

          (viii) the original lender's title insurance policy (or a marked title
     insurance commitment, in the event that an original lender's title
     insurance policy has not yet been issued) in the form of an ALTA mortgage
     title insurance policy, containing all required endorsements and insuring
     the Trustee and its successors and assigns as to the first priority lien of
     the Mortgage in the original principal amount of the Mortgage Loan;

          (ix) if applicable, the original of any Primary Mortgage Insurance
     Policy or certificate or, an electronic certification, evidencing the
     existence of the Primary Mortgage Insurance Policy or certificate, if
     private mortgage guaranty insurance is required; and

          (x) original of any security agreement, chattel mortgage or equivalent
     document executed in connection with the Mortgage, if any.

     From time to time, the applicable Mortgage Loan Seller, the Depositor or
the applicable Servicer, as applicable, shall forward to the Custodian
additional original documents, additional documents evidencing an assumption,
modification, consolidation or extension of a Mortgage Loan, in accordance with
the terms of this Agreement, the Transfer Agreements and the Servicing
Agreements upon receipt of such documents. All such mortgage documents held by
the Custodian as to each Mortgage Loan shall constitute the "Custodial File".

     Assignments of Mortgage shall not be required to be completed and submitted
for recording with respect to any Mortgage Loan if the Trustee and each Rating
Agency have received an Opinion of Counsel from the Depositor, satisfactory in
form and substance to the

                                      -48-

<PAGE>

Trustee and each Rating Agency to the effect that the recordation of such
Assignments of Mortgage in any specific jurisdiction is not necessary to protect
the Trust Fund's interest in the related Mortgage Note. If the Assignment of
Mortgage is to be recorded, the Mortgage shall be assigned by the Mortgage Loan
Seller to "Deutsche Bank National Trust Company, as trustee under the Pooling
and Servicing Agreement dated as of January 1, 2007, for HSI Asset Loan
Obligation Trust 2007-AR1".

          (c) The Depositor does hereby establish, pursuant to the further
provisions of this Agreement and the laws of the State of New York, an express
trust (the "Trust") to be known, for convenience, as "HSI Asset Loan Obligation
Trust 2007-AR1 and Deutsche Bank National Trust Company is hereby appointed as
Trustee and Citibank N.A. is appointed as Securities Administrator in accordance
with the provisions of this Agreement. The parties hereto acknowledge and agree
that it is the policy and intention of the Trust to acquire only Mortgage Loans
meeting the requirements set forth in this Agreement, including without
limitation, the representations and warranties set forth in the Schedules
hereto.

          (d) The Trust shall have the capacity, power and authority, and the
Trustee on behalf of the Trust is hereby authorized, to accept the sale,
transfer, assignment, set over and conveyance by the Depositor to the Trust of
all the right, title and interest of the Depositor in and to the Trust Fund
(including, without limitation, the Mortgage Loans) pursuant to Section 2.01(a).

          Section 2.02 Acceptance by the Custodian of the Mortgage Loans. The
Custodian shall acknowledge, on the Closing Date, receipt by the Custodian of
the documents identified in the Initial Certification in the form annexed hereto
as Exhibit E ("Initial Certification"), and declares that it holds and will hold
such documents and the other documents delivered to it pursuant to Section 2.01,
and that it holds or will hold such other assets as are included in the Trust
Fund, in trust for the exclusive use and benefit of all present and future
Certificateholders. The Custodian shall maintain possession of the related
Mortgage Notes in the States of Minnesota, California, and Utah unless otherwise
permitted by the Rating Agencies.

     In connection with the Closing Date, the Custodian shall be required to
deliver via facsimile (with original to follow the next Business Day) to the
Depositor, the Securities Administrator and the Trustee an Initial Certification
prior to the Closing Date, or, as the Depositor agrees on the Closing Date,
certifying receipt of a Mortgage Note and Assignment of Mortgage for each
Mortgage Loan. The Custodian shall not be responsible to verify the validity,
sufficiency or genuineness of any document in any Custodian File.

     Within 90 days of the Closing Date, the Custodian shall ascertain that all
documents identified in the Document Certification and Exception Report in the
form attached hereto as Exhibit F are in its possession, and shall deliver to
the Depositor, the Securities Administrator, the Trustee, the Mortgage Loan
Seller and the Servicers, a Document Certification and Exception Report, in the
form annexed hereto as Exhibit F, to the effect that, as to each Mortgage Loan
listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid in full
or any Mortgage Loan specifically identified in such certification as an
exception and not covered by such certification): (i) all documents identified
in the Document Certification and Exception Report and required to be reviewed
by it are in its possession; (ii) such documents have been

                                      -49-

<PAGE>

reviewed by it and appear regular on their face and relate to such Mortgage
Loan; (iii) based on its examination and only as to the foregoing documents, the
information set forth in items (1), (2), (3), (15), (18) and (22) of the Data
Tape Information respecting such Mortgage Loan is correct; and (iv) each
Mortgage Note has been endorsed as provided in Section 2.01 of this Agreement.
Neither the Trustee nor the Custodian shall be responsible to verify the
validity, sufficiency or genuineness of any document in any Custodial File.

     The Custodian shall retain possession and custody of each Custodial File in
accordance with and subject to the terms and conditions set forth herein.

          Section 2.03 Remedies for Breaches of Representations and Warranties
with Respect to the Mortgage Loans.

          (a) Upon the removal of a Deleted Mortgage Loan and the substitution
of a Substitute Mortgage Loan and the deposit to the related Collection Account
of the amount required to be deposited therein in connection with such
substitution, the Custodian shall release the Mortgage File held for the benefit
of the Certificateholders relating to such Deleted Mortgage Loan to the
applicable Mortgage Loan Seller and the Trustee, upon receipt of a Request for
Release certifying that all amounts required to be deposited in accordance with
this Section 2.03(a) have been deposited in the related Collection Account,
shall execute and deliver at the applicable Mortgage Loan Seller's direction
such instruments of transfer or assignment prepared by the applicable Mortgage
Loan Seller in each case without recourse, as shall be necessary to vest title
in the applicable Mortgage Loan Seller of the Trustee's interest in any Deleted
Mortgage Loan substituted for pursuant to this Section 2.03.

          (b) In addition to the repurchase or substitution obligations referred
to in Section 2.03(d) below, the Sponsor shall indemnify the Depositor, any of
its Affiliates, the Master Servicer, each Servicer, the Securities
Administrator, the Trustee and the Trust and hold such parties harmless against
any losses, damages, penalties, fines, forfeitures, reasonable and necessary
legal fees and related costs, judgments and other costs and expenses (including,
without limitation, any taxes payable by the Trust) resulting from any third
party claim, demand, defense or assertion based on or grounded upon, or
resulting from, a breach by the Sponsor of any of its representations and
warranties or obligations contained in this Agreement.

          (c) Upon receipt of a Request for Release substantially in the form of
Exhibit J hereto, the Custodian shall release the related Custodial File held
for the benefit of the Certificateholders to the related Mortgage Loan Seller or
the Sponsor, as applicable, as directed by the applicable Servicer, and the
Trustee shall execute and deliver at such Person's direction such instruments of
transfer or assignment prepared by such Person, in each case without recourse,
as shall be necessary to transfer title from the Trustee. In accordance with
Section 13.05(a), if a Responsible Officer of the Securities Administrator has
actual knowledge of a purchase of a Mortgage Loan pursuant to this Section 2.03
or pursuant to a Transfer Agreement, the Securities Administrator shall promptly
notify each Rating Agency of such purchase.

          (d) The Trustee acknowledges that, except as provided in Section 5 of
the Purchase Agreement, the Sponsor shall not have any obligation or liability
with respect to any breach of a representation or warranty made by it with
respect to a Mortgage Loan sold by it,

                                      -50-

<PAGE>

provided that such representation or warranty was also made by a Mortgage Loan
Seller with respect to the related Mortgage Loan. It is understood and agreed
that the representations and warranties of the Sponsor set forth in Section 4 of
the Purchase Agreement and assigned to the Trustee by the Depositor hereunder
shall survive the transfer of the Mortgage Loans by the Depositor to the Trustee
on the Closing Date, and shall inure to the benefit of the Trustee and the
Certificateholders notwithstanding any restrictive or qualified endorsement on
any Mortgage Note or Assignment of Mortgage and shall continue throughout the
term of this Agreement. Upon the discovery by any of the Sponsor, the Depositor,
the Securities Administrator, the Trustee, the Master Servicer or any Servicer
of a breach of any of the Sponsor's representations and warranties set forth in
Section 4 of the Purchase Agreement, the party discovering the breach shall give
prompt written notice to the others. Within 30 days of the earlier of either
discovery by or notice to the Sponsor of any breach of any of the foregoing
representations or warranties that materially and adversely affects the value of
any Mortgage Loan or the interest of the Trustee or the Certificateholders
therein, the Sponsor shall use its best efforts to cure such breach in all
material respects and, if such defect or breach cannot be remedied, the Sponsor
shall, at the Depositor's instructions as specified in writing and provided to
the Sponsor and the Trustee, (i) if such 30 day period expires prior to the
second anniversary of the Closing Date, remove such Mortgage Loan from the Trust
Fund and substitute in its place a Substitute Mortgage Loan, in the same manner
and subject to the same conditions set forth in this Section 2.03 or (ii)
repurchase such Mortgage Loan at the Repurchase Price; provided, however, that
any such substitution pursuant to clause (i) above shall not be effected prior
to the delivery to the Custodian of a Request for Release substantially in the
form of Exhibit J, and the delivery of the Mortgage File to the Custodian for
any such Substitute Mortgage Loan. It is understood and agreed that the
obligations of the Sponsor under this Agreement to cure, repurchase or
substitute any Mortgage Loan as to which a breach of a representation and
warranty has occurred and is continuing, together with any related
indemnification obligations of the Sponsor set forth in Section 2.03(b), shall
constitute the sole remedies against the Sponsor available to the
Certificateholders, the Depositor and any of its affiliates, or the Trustee on
their behalf.

     The provisions of this Section 2.03 shall survive delivery of the
respective Custodial Files to the Custodian for the benefit of the
Certificateholders.

          Section 2.04 Execution and Delivery of Certificates. The Trustee
acknowledges the transfer and assignment to it of the Trust Fund and,
concurrently with such transfer and assignment, the Securities Administrator has
executed and delivered to, or upon the order of the Depositor, the Certificates
in authorized denominations evidencing directly or indirectly the entire
ownership of the Trust Fund. The Trustee agrees to hold the Trust Fund and
exercise the rights referred to above for the benefit of all present and future
Holders of the Certificates.

          Section 2.05 [Reserved].

          Section 2.06 [Reserved].

          Section 2.07 Representations and Warranties of the Depositor. The
Depositor hereby represents, warrants and covenants to the other parties to this
agreement that as of the date of this Agreement or as of such date specifically
provided herein:

                                      -51-

<PAGE>

          (a) The Depositor is a corporation duly organized, validly existing
and in good standing under the laws of the State of Delaware;

          (b) The Depositor has the power and authority to convey the Mortgage
Loans and to execute, deliver and perform, and to enter into and consummate
transactions contemplated by, this Agreement;

          (c) This Agreement has been duly and validly authorized, executed and
delivered by the Depositor, all requisite company action having been taken, and,
assuming the due authorization, execution and delivery hereof by the other
parties hereto, constitutes or will constitute the legal, valid and binding
agreement of the Depositor, enforceable against the Depositor in accordance with
its terms, except as such enforcement may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws relating to or affecting the
rights of creditors generally, and by general equity principles (regardless of
whether such enforcement is considered in a proceeding in equity or at law);

          (d) No consent, approval, authorization or order of, or registration
or filing with, or notice to, any governmental authority or court is required
for the execution, delivery and performance of or compliance by the Depositor
with this Agreement or the consummation by the Depositor of any of the
transactions contemplated hereby, except as have been received or obtained on or
prior to the Closing Date;

          (e) None of the execution and delivery of this Agreement, the
consummation of the transactions contemplated hereby or thereby, or the
fulfillment of or compliance with the terms and conditions of this Agreement,
(i) conflicts or will conflict with or results or will result in a breach of, or
constitutes or will constitute a default or results or will result in an
acceleration under (A) the charter or bylaws of the Depositor, or (B) of any
term, condition or provision of any material indenture, deed of trust, contract
or other agreement or instrument to which the Depositor or any of its
subsidiaries is a party or by which it or any of its subsidiaries is bound; (ii)
results or will result in a violation of any law, rule, regulation, order,
judgment or decree applicable to the Depositor of any court or governmental
authority having jurisdiction over the Depositor or its subsidiaries; or (iii)
results in the creation or imposition of any lien, charge or encumbrance which
would have a material adverse effect upon the Mortgage Loans or any documents or
instruments evidencing or securing the Mortgage Loans;

          (f) There are no actions, suits or proceedings before or against or
investigations of, the Depositor pending, or to the knowledge of the Depositor,
threatened, before any court, administrative agency or other tribunal, and no
notice of any such action, which, in the Depositor's reasonable judgment, might
materially and adversely affect the performance by the Depositor of its
obligations under this Agreement, or the validity or enforceability of this
Agreement;

          (g) The Depositor is not in default with respect to any order or
decree of any court or any order, regulation or demand of any federal, state,
municipal or governmental agency that would materially and adversely affect its
performance hereunder; and

                                      -52-

<PAGE>

          (h) Immediately prior to the transfer and assignment by the Depositor
to the Trustee on the Closing Date, the Depositor had good title to, and was the
sole owner of each Mortgage Loan, free of any interest of any other Person, and
the Depositor has transferred all right, title and interest in each Mortgage
Loan to the Trustee. The transfer of the Mortgage Note and the Mortgage as and
in the manner contemplated by this Agreement is sufficient either (i) fully to
transfer to the Trustee, for the benefit of the Certificateholders, all right,
title, and interest of the Depositor thereto as note holder and mortgagee or
(ii) to grant to the Trustee, for the benefit of the Certificateholders, the
security interest referred to in Section 13.04.

     It is understood and agreed that the representations, warranties and
covenants set forth in this Section 2.07 shall survive delivery of the
respective Mortgage Files to the Custodian and shall inure to the benefit of the
Trustee.

                                   ARTICLE III

                          ADMINISTRATION AND SERVICING
                                OF MORTGAGE LOANS

          Section 3.01 Establishment of Certain Accounts.

          (a) The Master Servicer shall establish and maintain the Master
Servicing Account on behalf of the Certificateholders. The Master Servicer
shall, promptly upon receipt, deposit in the Master Servicing Account and retain
therein the following:

          (i) the aggregate amount remitted by the Servicers to the Master
     Servicer pursuant to the Servicing Agreements;

          (ii) any amount deposited by the Servicers pursuant to the Servicing
     Agreements in connection with any losses on Permitted Investments; and

          (iii) any other amounts deposited hereunder which are required to be
     deposited in the Master Servicing Account.

     In the event that a Servicer shall remit any amount not required to be
remitted, it may at any time direct the Master Servicer in writing to withdraw
such amount from the Master Servicing Account, any provision herein to the
contrary notwithstanding. Such direction may be accomplished by delivering
notice to the Master Servicer which describes the amounts deposited in error in
the Master Servicing Account. All funds deposited in the Master Servicing
Account shall be held by the Master Servicer in trust for the Certificateholders
until disbursed in accordance with this Agreement. On each Master Servicer
Remittance Date, the entire amount on deposit in the Master Servicing Account
(subject to permitted withdrawals as set forth above) shall be remitted to the
Securities Administrator for deposit into the Distribution Account by wire
transfer in immediately available funds.

          (b) The Securities Administrator shall establish and maintain the
Distribution Account on behalf of the Certificateholders. The Securities
Administrator shall, promptly upon receipt, deposit in the Distribution Account
and retain therein the following:

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<PAGE>

          (i) the aggregate amount remitted by the Servicers to the Securities
     Administrator pursuant to the Servicing Agreements;

          (ii) any amount deposited by the Servicers pursuant to the Servicing
     Agreements in connection with any losses on Permitted Investments;

          (iii) any amount remitted by the Master Servicer from the Master
     Servicing Account pursuant to this Agreement; and

          (iv) any other amounts deposited hereunder which are required to be
     deposited in the Distribution Account.

     In the event that a Servicer or the Master Servicer shall remit any amount
not required to be remitted, it may at any time direct the Securities
Administrator in writing to withdraw such amount from the Distribution Account,
any provision herein to the contrary notwithstanding. Such direction may be
accomplished by delivering notice to the Securities Administrator which
describes the amounts deposited in error in the Distribution Account. All funds
deposited in the Distribution Account shall be held by the Securities
Administrator in trust for the Certificateholders until disbursed in accordance
with this Agreement or withdrawn in accordance with Section 4.02.

          (c) On the Closing Date, the Securities Administrator shall establish
an account (the "Class P Reserve Fund"), which shall be an Eligible Account. The
Class P Reserve Fund shall be entitled "Class P Reserve Fund, Deutsche Bank
National Trust Company, as Trustee for the benefit of the holders of the HALO
2007-AR1 Class P Certificates." On the Closing Date the Depositor will deposit
$100 into the Class P Reserve Fund, which shall be uninvested. On each
Distribution Date, the Securities Administrator shall distribute the aggregate
of all Prepayment Charges for the Mortgage Loans collected or paid by the
Servicers and received by the Securities Administrator with respect to the
preceding Prepayment Period to the Class P Certificates. On the Distribution
Date in January 2037, the Class P Certificates shall be entitled to its
outstanding Class Principal Amount from amounts on deposit in the Class P
Reserve Fund under Section 4.02(j).

          Section 3.02 Investment of Funds in the Distribution Account and the
Master Servicing Account. (a) During the Securities Administrator's Float
Period, the Securities Administrator shall hold the funds in the Distribution
Account uninvested, and shall have the benefit of the use of such funds. During
the Master Servicer's Float Period, the Master Servicer shall hold the funds in
the Master Servicing Account uninvested, and shall have the benefit of the use
of such funds.

          (b) The Securities Administrator or its Affiliates are permitted to
receive compensation that could be deemed to be in the Securities
Administrator's economic self-interest for (i) serving as investment adviser,
administrator, shareholder, servicing agent, custodian or sub-custodian with
respect to certain of the Permitted Investments, (ii) using Affiliates to effect
transactions in certain Permitted Investments and (iii) effecting transactions
in certain Permitted Investments. The Master Servicer or its Affiliates are
permitted to receive compensation that could be deemed to be in the Master
Servicer's economic self-interest for (i) serving as

                                      -54-

<PAGE>

investment adviser, administrator, shareholder, servicing agent, custodian or
sub-custodian with respect to certain of the Permitted Investments, (ii) using
Affiliates to effect transactions in certain Permitted Investments and (iii)
effecting transactions in certain Permitted Investments. Such compensation shall
not be considered an amount that is reimbursable for payable pursuant to this
Agreement.

          Section 3.03 Report on Assessment of Compliance with Relevant
Servicing Criteria. On or before March 15th of each calendar year for so long as
the Depositor is required to file reports with respect to the Trust under the
Exchange Act, commencing in March 2008, the Master Servicer, the Securities
Administrator and the Custodian, each at its own expense, shall furnish or
otherwise make available, and each such party shall cause any Servicing Function
Participant engaged by it to furnish, each at its own expense, to the Securities
Administrator and the Depositor, a report on an assessment of compliance with
the Relevant Servicing Criteria set forth in Exhibit S that contains (A) a
statement by such party of its responsibility for assessing compliance with the
Relevant Servicing Criteria, (B) a statement that such party used the Relevant
Servicing Criteria to assess compliance with the Relevant Servicing Criteria,
(C) such party's assessment of compliance with the Relevant Servicing Criteria
as of and for the fiscal year covered by the Form 10-K required to be filed
pursuant to Section 8.12, including, if there has been any material instance of
noncompliance with the Relevant Servicing Criteria, a discussion of each such
failure and the nature and status thereof, and (D) a statement that a registered
public accounting firm has issued an attestation report on such party's
assessment of compliance with the Relevant Servicing Criteria as of and for such
period.

     Promptly after receipt of each such report on assessment of compliance as
well as the reports on assessment of compliance provided to the Depositor under
the Servicing Agreements, (i) the Depositor shall review each such report and,
if applicable, consult with the Master Servicer, the Securities Administrator,
any Servicer and any Servicing Function Participant engaged by any such party as
to the nature of any material instance of noncompliance with the Relevant
Servicing Criteria by each such party, and (ii) the Master Servicer shall
confirm that the assessments, taken as a whole, address all of the Servicing
Criteria and taken individually address the Relevant Servicing Criteria for each
party as set forth on Exhibit S or as set forth in the applicable Servicing
Agreement.

     The Master Servicer shall enforce any obligation of each Servicer to cause
to be delivered to the Master Servicer an annual report on assessment of
compliance within the time frames set forth in the related Servicing Agreements,
and in such form and substance as required by the related Servicing Agreements.
The Master Servicer will promptly forward any assessment of compliance it
receives from any Servicer to the Securities Administrator.

     In the event the Master Servicer, the Securities Administrator, the
Custodian or any Servicing Function Participant engaged by any such party is
terminated, assigns its rights and obligations under, or resigns pursuant to,
the terms of this Agreement, or any other applicable agreement, as the case may
be, such party shall provide a report on assessment of compliance pursuant to
this Section 3.03, or to such other applicable agreement, for the period of time
in such reporting period prior to such termination, assignment or resignation,
notwithstanding any such termination, assignment or resignation.

                                      -55-
<PAGE>

          Section 3.04 Report on Attestation of Compliance with Relevant
Servicing Criteria. On or before March 15th of each calendar year for so long as
the Depositor is required to file reports with respect to the Trust under the
Exchange Act, commencing in March 2008, the Master Servicer, the Securities
Administrator and the Custodian, each at its own expense, shall cause, and each
such party shall cause any Servicing Function Participant engaged by it to
cause, each at its own expense, a registered public accounting firm (which may
also render other services to the Master Servicer, the Securities Administrator,
the Custodian or such other Servicing Function Participants, as the case may be)
that is a member of the American Institute of Certified Public Accountants to
furnish an attestation report to the Securities Administrator and the Depositor,
to the effect that (i) it has obtained a representation regarding certain
matters from the management of such party, which includes an assertion that such
party has complied with the Relevant Servicing Criteria, and (ii) on the basis
of an examination conducted by such firm in accordance with standards for
attestation engagements issued or adopted by the Public Company Accounting
Oversight Board, it is expressing an opinion as to whether such party's
compliance with the Relevant Servicing Criteria was fairly stated in all
material respects, or it cannot express an overall opinion regarding such
party's assessment of compliance with the Relevant Servicing Criteria. In the
event that an overall opinion cannot be expressed, such registered public
accounting firm shall state in such report why it was unable to express such an
opinion. Such report must be available for general use and not contain
restricted use language.

     Prior to executing any Form 10-K, the Master Servicer shall confirm that
each assessment submitted pursuant to Section 3.03 and the Servicing Agreements
is coupled with an attestation meeting the requirements of this Section and
notify the Depositor of any exceptions.

     The Master Servicer shall enforce any obligation of each Servicer to cause
to be delivered to the Master Servicer an attestation within the time frames set
forth in the related Servicing Agreements, and in such form and substance as may
be required by the related Servicing Agreements. The Master Servicer will
promptly forward any attestation it receives on behalf of any Servicer to the
Securities Administrator.

     In the event the Master Servicer, the Securities Administrator, the
Custodian or any Servicing Function Participant engaged by any such party, is
terminated, assigns its rights and duties under, or resigns pursuant to the
terms of, this Agreement or any other applicable agreement, as the case may be,
such party shall cause a registered public accounting firm to provide an
attestation pursuant to this Section 3.04, or to such other applicable
agreement, notwithstanding any such termination, assignment or resignation.

          Section 3.05 Annual Officer's Certificates. (a) Each Form 10-K filed
with the Commission shall include a Sarbanes-Oxley Certification exactly as set
forth in Exhibit L attached hereto, required to be included therewith pursuant
to the Sarbanes-Oxley Act. The Securities Administrator and the Custodian shall,
and shall cause any Servicing Function Participant engaged by them to, provide
to the Person who signs the Sarbanes-Oxley Certification (the "Certifying
Person"), by March 10th of each year in which the Trust is subject to the
reporting requirements of the Exchange Act and otherwise within a reasonable
period of time upon request, a certification (each, a "Back-Up Certification"),
in the form attached hereto as Exhibit L, upon which the Certifying Person, the
entity for which the Certifying Person acts as an officer, and such entity's
officers, directors and Affiliates (collectively with the Certifying

                                      -56-

<PAGE>

Person, "Certification Parties") can reasonably rely. The senior officer of the
Master Servicer in charge of the master servicing function shall serve as the
Certifying Person on behalf of the Trust. Such officer of the Certifying Person
can be contacted by facsimile at 469-220-1572. In the event any such party or
any Servicing Function Participant engaged by any such party is terminated or
resigns pursuant to the terms of this Agreement, or any applicable sub servicing
agreement, as the case may be, such party shall provide a Back-Up Certification
to the Certifying Person pursuant to this Section 3.05 with respect to the
period of time it was subject to this Agreement or any applicable sub servicing
agreement, as the case may be. Notwithstanding the foregoing, (i) the Securities
Administrator shall not be required to deliver a Back-Up Certification to the
Master Servicer if both are the same Person and the Master Servicer is the
Certifying Person and (ii) the Master Servicer shall not be obligated to sign
the Sarbanes-Oxley Certification in the event that it does not receive any
Back-Up Certification required to be furnished to it pursuant to this section or
any Servicing Agreement.

          (b) On or before March 15th of each calendar year, for so long as the
Depositor is required to file reports with respect to the Trust under the
Exchange Act, commencing in March 2008, the Master Servicer shall deliver (or
otherwise make available) (and the Master Servicer shall cause any Servicing
Function Participant engaged by it to deliver) to the Depositor and the
Securities Administrator, an Officer's Certificate substantially in the form of
Exhibit U stating, as to the signer thereof, that (A) a review of such party's
activities during the preceding calendar year or portion thereof and of such
party's performance under this Agreement, or such other applicable agreement in
the case of a Servicing Function Participant, has been made under such officer's
supervision and (B) to the best of such officer's knowledge, based on such
review, such party has fulfilled all its obligations under this Agreement, or
such other applicable agreement in the case of a Servicing Function Participant,
in all material respects throughout such year or portion thereof, or, if there
has been a failure to fulfill any such obligation in any material respect,
specifying each such failure known to such officer and the nature and status
thereof.

     In the event the Master Servicer or any Servicing Function Participant
engaged by any such party is terminated or resigns pursuant to the terms of this
Agreement, or any applicable agreement in the case of a Servicing Function
Participant, as the case may be, such party shall provide an Officer's
Certificate covering the portion of the reporting period for which it served
pursuant to this Section 3.05 or to such applicable agreement, as the case may
be, notwithstanding any such termination, assignment or resignation.

     The Master Servicer shall enforce any obligation of each Servicer to cause
to be delivered to the Master Servicer such annual Officer's Certificate (in
respect of Item 1123 of Regulation AB) within the time frames set forth in the
related Servicing Agreements, and in such form and substance as required by the
related Servicing Agreements. The Master Servicer will promptly forward any such
Officer's Certificate it receives from any Servicer to the Securities
Administrator.

          Section 3.06 Indemnification. (a) Each of the Depositor, the Master
Servicer, the Securities Administrator, the Custodian, and any Servicing
Function Participant (each, an "Indemnifying Party") engaged by any such party,
shall indemnify and hold harmless the Trustee and each other Indemnifying Party,
and each of its directors, officers, employees, agents, and

                                      -57-

<PAGE>

affiliates from and against any and all claims, losses, damages, penalties,
fines, forfeitures, reasonable legal fees and related costs, judgments and other
costs and expenses arising out of or based upon (a) any breach by such party of
any if its obligations hereunder, including particularly its obligations to
provide any annual statement of compliance, annual assessment of compliance with
Servicing Criteria or attestation report or any information, data or materials
required to be included in any Exchange Act report, (b) any material
misstatement or omission in any information, data or materials provided by such
party including any material misstatement or material omission in (i) any annual
statement of compliance or annual assessment of compliance with Servicing
Criteria delivered by it, or by any Servicing Function Participant engaged by
it, pursuant to this Agreement, or (ii) any Additional Form 10-D Disclosure,
Additional Form 10-K Disclosure or Form 8-K Disclosure Information provided by
it, or (c) the negligence, bad faith or willful misconduct of such indemnifying
party in connection with its performance hereunder. If the indemnification
provided for herein is unavailable or insufficient to hold harmless the Master
Servicer, the Securities Administrator, the Trustee, the Custodian or the
Depositor, as the case may be, then each Indemnifying Party agrees that it shall
contribute to the amount paid or payable by the Master Servicer, the Securities
Administrator, the Trustee, the Custodian or the Depositor, as applicable, as a
result of any claims, losses, damages or liabilities incurred by such party in
such proportion as is appropriate to reflect the relative fault of the
indemnified party on the one hand and the indemnifying party on the other. This
indemnification shall survive the termination of this Agreement or the
termination of any party to this Agreement.

          (b) The Depositor, the Securities Administrator, the Custodian and the
Trustee shall immediately notify the Master Servicer if a claim is made by a
third party with respect to this Agreement or the Mortgage Loans which would
entitle the Depositor, the Securities Administrator, the Custodian, the Trustee
or the Trust to indemnification from the Master Servicer, whereupon the Master
Servicer shall assume the defense of any such claim and pay all expenses in
connection therewith, including counsel fees, and promptly pay, discharge and
satisfy any judgment or decree which may be entered against it or them in
respect of such claim. If the Master Servicer and any such indemnified party
have a conflict of interest with respect to any such claim, the indemnified
party shall have the right to retain separate counsel.

          Section 3.07 Advances. (a) To the extent provided in the related
Servicing Agreement, the amount of P&I Advances to be made by each Servicer for
any Remittance Date shall equal, subject to Section 3.07(c), the sum of (i) the
aggregate amount of Scheduled Payments (with each interest portion thereof net
of the related Servicing Fee), due during the Due Period immediately preceding
such Remittance Date in respect of the Mortgage Loans, which Scheduled Payments
were not received as of the close of business on the related Determination Date,
plus (ii) with respect to each REO Property, which REO Property was acquired
during or prior to the related Prepayment Period and as to which such REO
Property an REO Disposition did not occur during the related Prepayment Period,
an amount equal to the excess, if any, of the Scheduled Payments (with each
interest portion thereof net of the related Servicing Fee) that would have been
due on the related Due Date in respect of the related Mortgage Loans, over the
net income from such REO Property transferred to the Collection Account for
distribution on such Remittance Date.

          (b) To the extent provided in the related Servicing Agreement, on each
Remittance Date, each Servicer shall remit in immediately available funds to the
Master Servicer

                                      -58-

<PAGE>

or Securities Administrator, as applicable, an amount equal to the aggregate
amount of P&I Advances, if any, to be made in respect of the Mortgage Loans and
REO Properties for the related Remittance Date either (i) from its own funds or
(ii) from the Collection Account, to the extent of funds held therein for future
distribution (in which case, it will cause to be made an appropriate entry in
the records of the Collection Account that Amounts Held for Future Distribution
have been, as permitted by this Section 3.07, used by it in discharge of any
such P&I Advance) or (iii) in the form of any combination of (i) and (ii)
aggregating the total amount of P&I Advances to be made by the applicable
Servicer with respect to the Mortgage Loans and REO Properties. To the extent
provided in the related Servicing Agreement, any Amounts Held for Future
Distribution and so used shall be appropriately reflected in the applicable
Servicer's records and replaced by such Servicer by deposit in the Collection
Account on or before any future Remittance Date to the extent required.

          (c) To the extent provided in the related Servicing Agreement, the
obligation of each Servicer to make such P&I Advances is mandatory,
notwithstanding any other provision of this Agreement but subject to (d) below,
and, with respect to any Mortgage Loan or REO Property, shall continue until a
Final Recovery Determination in connection therewith or the removal thereof from
coverage under this Agreement, except as otherwise provided in this Section.

          (d) To the extent provided in the related Servicing Agreement,
notwithstanding anything herein to the contrary, no P&I Advance or Servicing
Advance shall be required to be made hereunder by any Servicer if such P&I
Advance or Servicing Advance would, if made, constitute a Nonrecoverable P&I
Advance or Nonrecoverable Servicing Advance. To the extent provided in the
related Servicing Agreement, the determination by any Servicer that it has made
a Nonrecoverable P&I Advance or a Nonrecoverable Servicing Advance or that any
proposed P&I Advance or Servicing Advance, if made, would constitute a
Nonrecoverable P&I Advance or a Nonrecoverable Servicing Advance, respectively,
shall be evidenced by a Servicing Officer's certificate of the applicable
Servicer delivered to the Master Servicer. In addition, to the extent provided
in the related Servicing Agreement, the Servicer shall not be required to
advance any Relief Act Interest Shortfalls.

          (e) To the extent provided in the related Servicing Agreement, except
as otherwise provided herein, the Servicer shall be entitled to reimbursement
pursuant the applicable section of its related Servicing Agreement for Servicing
Advances from recoveries from the related Mortgagor or from all Liquidation
Proceeds and other payments or recoveries (including Insurance Proceeds,
Condemnation Proceeds and Subsequent Recoveries) with respect to the related
Mortgage Loan.

                                   ARTICLE IV

                                  DISTRIBUTIONS

          Section 4.01 The Distribution Account. On each Remittance Date, the
Securities Administrator shall deposit in the Distribution Account all funds
remitted to it by the Servicers pursuant to the Servicing Agreements and on each
Master Servicer Remittance Date, the Securities Administrator shall deposit in
the Distribution Account all Funds remitted to it by

                                      -59-

<PAGE>

the Master Servicer pursuant to this Agreement. The Securities Administrator may
retain or withdraw from the Distribution Account, (i) amounts necessary to
reimburse the Servicers pursuant to the Servicing Agreements, (ii) amounts
necessary to reimburse the Master Servicer for any previously unreimbursed
Advances and any Advances the Master Servicer deems to be nonrecoverable from
the related Mortgage Loan proceeds, (iii) an amount to indemnify the Master
Servicer or the Servicers for amounts due in accordance with this Agreement,
(iv) all amounts representing Prepayment Charges (payable to the Class P
Certificateholders in accordance with Section 4.02(j)), (v) to reimburse the
Master Servicer, the Securities Administrator, any Servicer or the Trustee, as
the case may be, for expenses reasonably incurred in respect of any breach or
defect giving rise to the repurchase obligation of a Mortgage Loan Seller under
a Transfer Agreement or the Sponsor under this Agreement that were included in
the Repurchase Price of the Mortgage Loan, including any expenses arising out of
the enforcement of the repurchase obligation, to the extent not otherwise paid
pursuant to the terms hereof and (vi) any other amounts that each of the
Depositor, Trustee, Master Servicer and the Securities Administrator is entitled
to receive hereunder for reimbursement, indemnification or otherwise.

          Section 4.02 Priorities of Distribution. (a) On each Distribution
Date, the Securities Administrator shall make the disbursements and transfers
from amounts then on deposit in the Distribution Account, and shall distribute
such amounts in the following order of priority and to the extent of the related
Available Funds:

          (i) to the related Senior Certificates, on a pro rata basis based on
     Accrued Certificate Interest payable on such Certificates with respect to
     such Distribution Date, Accrued Certificate Interest on such Classes of
     Certificates for such Distribution Date, plus any Accrued Certificate
     Interest thereon remaining unpaid from any previous Distribution Date
     except as provided in the last paragraph of this Section 4.02(a), in each
     case in respect of interest on such Class;

          (ii) [Reserved]

          (iii) to the Group Certificates, the Group 2 Certificates, the Group 3
     Certificates and the Group 4 Certificates from the Available Funds for Loan
     Group I, Loan Group II, Loan Group III and Loan Group IV, respectively, in
     each case in the priorities and amounts set forth in Section 4.02(b), the
     sum of the following amounts for each Loan Group (applied to reduce the
     Class Certificate Balance of such Certificates):

               (A) the Senior Percentage for that Loan Group for such
          Distribution Date times the sum of the following:

                    1. The principal portion of each Monthly Payment due during
               the related Due Period on each Outstanding Mortgage Loan whether
               or not received on or prior to the related Determination Date;

                    2. The Stated Principal Balance of any Mortgage Loan
               repurchased during the preceding calendar month (or deemed to
               have been so repurchased in accordance with Section 3.07(b))
               pursuant to Section

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<PAGE>

               2.03 or the amount of any Substitution Adjustment Amount
               deposited in the related Collection Account in connection with
               the substitution of a Deleted Mortgage Loan pursuant to Section
               2.03 during the preceding calendar month; and

                    3. The principal portion of all other collections (other
               than Scheduled Payments, Principal Prepayments in Full,
               Curtailments and amounts received in connection with a Cash
               Liquidation or REO Disposition of a Mortgage Loan described in
               Section 4.02(a)(iii)(B), including without limitation Insurance
               Proceeds, Liquidation Proceeds and REO Proceeds) including
               Subsequent Recoveries received during the preceding calendar
               month to the extent applied by the Servicer as recoveries of
               principal of the related Mortgage Loan pursuant to the related
               Servicing Agreement;

               (B) with respect to each Mortgage Loan for which a Cash
          Liquidation or a REO Disposition occurred during the preceding
          calendar month, an amount equal to the lesser of (a) the related
          Senior Percentage for such Distribution Date times the Stated
          Principal Balance of such Mortgage Loan and (b) the related Senior
          Accelerated Distribution Percentage for such Distribution Date times
          the related unscheduled collections (including without limitation
          Insurance Proceeds, Liquidation Proceeds and REO Proceeds) to the
          extent applied by the Servicer as recoveries of principal of the
          related Mortgage Loan pursuant to the related Servicing Agreement;

               (C) the related Senior Accelerated Distribution Percentage for
          such Distribution Date times the aggregate of all Principal
          Prepayments received in the related Prepayment Period;

               (D) [Reserved]

               (E) any amounts described in subsection (iii), clauses (A), (B)
          and (C) of this Section 4.02(a), as determined for any previous
          Distribution Date, which remain unpaid after application of amounts
          previously distributed pursuant to this clause (E) to the extent that
          such amounts are not attributable to Realized Losses which have been
          allocated to the Subordinate Certificates;

          (iv) to the Holders of the Class B-1 Certificates, the Accrued
     Certificate Interest thereon for such Distribution Date, plus any Accrued
     Certificate Interest thereon remaining unpaid from any previous
     Distribution Date, except as provided below;

          (v) to the Holders of the Class B-1 Certificates, an amount equal to
     the Subordinate Principal Distribution Amount for such Class of
     Certificates for such Distribution Date, applied in reduction of the Class
     Certificate Balance of the Class B-1 Certificates;

                                      -61-

<PAGE>

          (vi) to the Holders of the Class B-2 Certificates, the Accrued
     Certificate Interest thereon for such Distribution Date, plus any Accrued
     Certificate Interest thereon remaining unpaid from any previous
     Distribution Date, except as provided below;

          (vii) to the Holders of the Class B-2 Certificates, an amount equal to
     the Subordinate Principal Distribution Amount for such Class of
     Certificates for such Distribution Date, applied in reduction of the Class
     Certificate Balance of the Class B-2 Certificates;

          (viii) to the Holders of the Class B-3 Certificates, the Accrued
     Certificate Interest thereon for such Distribution Date, plus any Accrued
     Certificate Interest thereon remaining unpaid from any previous
     Distribution Date, except as provided below;

          (ix) to the Holders of the Class B-3 Certificates, an amount equal to
     the Subordinate Principal Distribution Amount for such Class of
     Certificates for such Distribution Date, applied in reduction of the Class
     Certificate Balance of the Class B-3 Certificates;

          (x) to the Holders of the Class B-4 Certificates, the Accrued
     Certificate Interest thereon for such Distribution Date, plus any Accrued
     Certificate Interest thereon remaining unpaid from any previous
     Distribution Date, except as provided below;

          (xi) to the Holders of the Class B-4 Certificates, an amount equal to
     the Subordinate Principal Distribution Amount for such Class of
     Certificates for such Distribution Date, applied in reduction of the Class
     Certificate Balance of the Class B-4 Certificates;

          (xii) to the Holders of the Class B-5 Certificates, the Accrued
     Certificate Interest thereon for such Distribution Date, plus any Accrued
     Certificate Interest thereon remaining unpaid from any previous
     Distribution Date, except as provided below;

          (xiii) to the Holders of the Class B-5 Certificates, an amount equal
     to the Subordinate Principal Distribution Amount for such Class of
     Certificates for such Distribution Date, applied in reduction of the Class
     Certificate Balance of the Class B-5 Certificates;

          (xiv) to the Holders of the Class B-6 Certificates, an amount equal to
     the Accrued Certificate Interest thereon for such Distribution Date, plus
     any Accrued Certificate Interest thereon remaining unpaid from any previous
     Distribution Date, except as provided below;

          (xv) to the Holders of the Class B-6 Certificates, an amount equal to
     the Subordinate Principal Distribution Amount for such Class of
     Certificates for such Distribution Date;

          (xvi) to the Senior Certificates related to any Loan Group, in the
     priority set forth in Section 4.02(b), the portion, if any, of the related
     Available Funds remaining after the foregoing distributions, applied to
     reduce the Class Certificate Balances of such

                                      -62-

<PAGE>

     Senior Certificates, but in no event more than the aggregate of the
     outstanding Class Certificate Balances of each such Class of Senior
     Certificates, and thereafter, to each Class of Subordinate Certificates
     then outstanding beginning with such Class with the Highest Priority, any
     portion of the related Available Funds remaining after the related Senior
     Certificates have been retired, applied to reduce the Class Certificate
     Balance of each such Class of Subordinate Certificates, but in no event
     more than the outstanding Class Certificate Balance of each such Class of
     Subordinate Certificates;

          (xvii) to the Class R-I Certificates, the balance, if any, of the
     Available Funds for any Loan Group.

     Notwithstanding the foregoing, on any Distribution Date, with respect to
the Class of Subordinate Certificates outstanding on such Distribution Date with
the Lowest Priority, or in the event the Subordinate Certificates are no longer
outstanding, the Senior Certificates, Accrued Certificate Interest thereon
remaining unpaid from any previous Distribution Date shall be distributable only
to the extent that (1) a shortfall in the amounts available to pay Accrued
Certificate Interest in any Class of related certificates results from an
interest rate reduction in connection with a Servicing Modification on a
Mortgage Loan in the related Loan Group, or (2) such unpaid Accrued Certificate
Interest was attributable to interest shortfalls relating to the failure of the
related Servicer to the Master Servicer to make any required Advance, or the
determination by the Servicer or the Master Servicer that any proposed Advance
would be a Nonrecoverable P&I Advance with respect to the related Mortgage Loan
where such Mortgage Loan has not yet been the subject of a Cash Liquidation or
REO Disposition.

          (b) Distributions of principal on the Senior Certificates on each
Distribution Date occurring prior to the Credit Support Depletion Date shall be
made as follows:

          (i) the Available Funds for Loan Group I available for distribution
     pursuant to Section 4.02(a)(iii) shall be distributed to the Class I-A-1
     Certificates until the Class Certificate Balance thereof has been reduced
     to zero;

          (ii) the Available Funds for Loan Group 2 available for distribution
     pursuant to Section 4.02(a)(iii) shall be distributed sequentially as
     follows:

               (A) to the Class R-I and Class R-II Certificates, pro rata, in
          accordance with their respective Class Certificate Balances, until the
          Class Certificate Balances thereof have been reduced to zero; and

               (B) to the Class II-A-1 and Class II-A-2 Certificates, pro rata
          in accordance with their respective Class Certificate Balances, until
          the Class Certificate Balances thereof have been reduced to zero;

          (iii) the Available Funds for Loan Group 3 available for distribution
     pursuant to Section 4.02(a)(iii) shall be distributed to the Class III-A-1
     and Class III-A-2 Certificates, pro rata in accordance with their
     respective Class Certificate Balances, until the Class Certificate Balances
     thereof have been reduced to zero; and

                                      -63-

<PAGE>

          (iv) the Available Funds for Loan Group 4 available for distribution
     pursuant to Section 4.02(a)(iii) shall be distributed to the Class IV-A-1
     and Class IV-A-2 Certificates, pro rata in accordance with their respective
     Class Certificate Balances, until the Class Certificate Balances thereof
     have been reduced to zero;

          (c) After the reduction of the Class Certificate Balances of the
Senior Certificates related to any Loan Group to zero but prior to the Credit
Support Depletion Date, if either (i) the Aggregate Subordinate Percentage on
that date is less than 200% of the Subordinate Aggregate Percentage as of the
Closing Date, (ii) the Stated Principal Balance of the Mortgage Loans in any
Loan Group delinquent 60 days or more (including, for this purpose, Mortgage
Loans in REO, foreclosure or bankruptcy status) averaged over the six months
prior to the Determination Date, as a percentage of the aggregate Class
Certificate Balance of the Subordinate Certificates is greater than or equal to
50% or (iii) the cumulative Realized Losses on the Mortgage Loans do not exceed
(a) 20% of the aggregate Class Certificate Balance of the Subordinate
Certificates as of the Closing Date if such Distribution Date occurs between and
including February 2007 and January 2010, and (b) 30% of the aggregate Class
Certificate Balance of the Subordinate Certificates as of the Closing Date if
such Distribution Date occurs on or after February 2010, then 100% of all
Principal Prepayments received or advanced with respect to the Mortgage Loans in
the Loan Group relating to the Senior Certificates of which the aggregate Class
Certificate Balance has been paid in full, will be applied on the related
Distribution Date as a distribution of principal to the remaining Senior
Certificates of such other Certificate Groups, pro rata, on the basis of the
aggregate Class Certificate Balance of the Senior Certificates of such
Certificate Groups rather than applied as a principal distribution to the
Subordinate Certificates. Such principal will be distributed on the related
Distribution Date in the same priority as those Senior Certificates would
receive other distributions of principal.

          (d) If on any Distribution Date any Loan Group is an
Undercollateralized Group and any other Loan Group is an Overcollateralized
Group, in each case after giving effect to distributions to be made to the
related Senior Certificates on such Distribution Date, all Scheduled Payments,
Principal Prepayments and any other payments of principal received or advanced
with respect to the Mortgage Loans allocable to the related Overcollateralized
Group will be paid in the following priority: (1) first, such amount, up to the
Total Transfer Amount for that Undercollateralized Group will be distributed
first to the Senior Certificates related to the Undercollateralized Group in
payment of accrued but unpaid interest, if any, and then to those Senior
Certificates as principal (in accordance with the priorities set forth in
Section 4.02(b)) and (2) second, any remaining amount will be distributed to the
Subordinate Certificates (in accordance with the priorities set forth in Section
4.02(b); provided, that if more than one Undercollateralized Group exists on any
Distribution Date, the related Transfer Payments shall be allocated among such
Undercollateralized Groups, pro rata, on the basis of the amount by which the
aggregate Class Certificate Balance of the related Senior Certificates
immediately prior to such Distribution Date is greater than the aggregate Stated
Principal Balance of the Mortgage Loans in the related Loan Group; provided,
further, that if more than one Overcollateralized Group exists on any
Distribution Date the related Transfer Payments shall be allocated among such
Overcollateralized Groups, pro rata, on the basis of the Class Certificate
Balance of the related Senior Certificates.

          (e) [Reserved]

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<PAGE>

          (f) After the reduction of the Class Certificate Balances of the
Senior Certificates of any Certificate Group to zero but prior to the Credit
Support Depletion Date, the Senior Certificates shall be entitled to no further
distributions of principal thereon, and the related Available Funds shall be
distributed solely to the holders of the Subordinate Certificates, in each case
as described herein.

          (g) [Reserved]

          (h) In addition to the foregoing distributions, with respect to any
Subsequent Recoveries, the related Servicer shall deposit such funds into the
related Collection Account. If, after taking into account such Subsequent
Recoveries, the amount of a Realized Loss with respect to any Mortgage Loan is
reduced, the amount of such Subsequent Recoveries will be applied to increase
the Class Certificate Balance of the Class of related Subordinate Certificates
with the Highest Priority to which Realized Losses for such Mortgage Loan, have
been allocated, but not by more than the amount of Realized Losses with respect
to such Mortgage Loan previously allocated to that Class of Certificates
pursuant to Section 4.04. The amount of any remaining Subsequent Recoveries from
such Mortgage Loan will be applied to increase the Class Certificate Balance of
the Class of Certificates with the next Lower Priority, up to the amount of such
Realized Losses previously allocated to that Class of Certificates pursuant to
Section 4.04. Any remaining Subsequent Recoveries from the related Mortgage Loan
will in turn be applied to increase the Class Certificate Balance of the Class
of Certificates with the next Lower Priority up to the amount of such Realized
Losses previously allocated to that Class of Certificates pursuant to Section
4.04, and so on. Holders of such Certificates will not be entitled to any
payment in respect of Accrued Certificate Interest on the amount of such
increases for any Interest Accrual Period preceding the Distribution Date on
which such increase occurs. Any application of Subsequent Recoveries to the
Senior Certificates will be made in proportion to the allocation of the original
Realized Loss to the Senior Certificates of the related Loan Group. Any such
increases shall be applied to the Class Certificate Balance of each Certificate
of such Class in accordance with its respective Percentage Interest.

          (i) Each distribution with respect to a Book-Entry Certificate shall
be paid to the Depository, as Holder thereof, and the Depository shall be solely
responsible for crediting the amount of such distribution to the accounts of its
Depository Participants in accordance with its normal procedures. Each
Depository Participant shall be responsible for disbursing such distribution to
the Certificate Owners that it represents and to each indirect participating
brokerage firm (a "brokerage firm" or "indirect participating firm") for which
it acts as agent. Each brokerage firm shall be responsible for disbursing funds
to the Certificate Owners that it represents. None of the Trustee, the
Securities Administrator, the Sponsor, the Depositor or the Master Servicer
shall have any responsibility therefor except as otherwise provided by this
Agreement or applicable law.

          (j) On each Distribution Date, the Securities Administrator shall
withdraw from the Distribution Account all amounts representing Prepayment
Charges in respect of the Mortgage Loans received during the related Prepayment
Period and will distribute these amounts to the holders of the Class P
Certificates. On the first Distribution Date immediately following the
expiration of the latest prepayment penalty term on the Mortgage Loans, the
Securities Administrator will distribute all amounts on deposit in the Class P
Reserve Fund established for

                                      -65-

<PAGE>

the benefit of the Class P Certificates pursuant to Section 3.01(e) to the
holders of the Class P Certificates, up to its Class Certificate Balance.

          (k) [Reserved]

          (l) [Reserved]

          Section 4.03 Monthly Statements to Certificateholders. (a) Not later
than each Distribution Date, the Securities Administrator shall make available
to each Certificateholder, the Master Servicer, each Servicer, the Depositor,
the Trustee and each Rating Agency a statement, based on information and to the
extent provided by the Servicers, setting forth with respect to the related
distribution:

          (i) the amount thereof allocable to principal (other than with respect
     to the Interest Only Certificates), separately identifying the aggregate
     amount of any Principal Prepayments, Liquidation Proceeds and Subsequent
     Recoveries;

          (ii) the amount thereof allocable to interest for such Distribution
     Date;

          (iii) if the distribution to the Holders of such Class of Certificates
     is less than the full amount that would be distributable to such Holders if
     there were sufficient funds available therefor, the amount of the shortfall
     and the allocation thereof as between principal and interest;

          (iv) the Class Certificate Balance of each Class of Certificates after
     giving effect to the distribution of principal on such Distribution Date;

          (v) the Pool Stated Principal Balance for the following Distribution
     Date;

          (vi) the amount of the Expense Fees (in the aggregate and separately
     stated) paid to or retained by the Servicers and any Subservicer with
     respect to such Distribution Date;

          (vii) the Interest Rate for each such Class of Certificates with
     respect to such Distribution Date;

          (viii) by Loan Group, and in the aggregate, the amount of P&I Advances
     included in the distribution on such Distribution Date and the aggregate
     amount of P&I Advances outstanding as of the close of business on the
     Determination Date immediately preceding such Distribution Date;

          (ix) by Loan Group, and in the aggregate, the number and aggregate
     outstanding principal balances of Mortgage Loans (except those Mortgage
     Loans that are liquidated as of the end of the related Prepayment Period)
     (1) as to which the Scheduled Payment is delinquent 31 to 60 days, 61 to 90
     days and 91 or more days, (2) that have become REO Property, (3) that are
     in foreclosure and (4) that are in bankruptcy, in each case as of the close
     of business on the last Business Day of the immediately preceding month;

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<PAGE>

          (x) by Loan Group, and in the aggregate, with respect to Mortgage
     Loans that became REO Properties during the preceding calendar month, the
     number and the aggregate Stated Principal Balance of such Mortgage Loans as
     of the close of business on the Determination Date preceding such
     Distribution Date and the date of acquisition thereof;

          (xi) by Loan Group, and in the aggregate, the total number and
     aggregate principal balance of any REO Properties as of the close of
     business on the Determination Date preceding such Distribution Date;

          (xii) in the aggregate and for each Class of Certificates, the
     aggregate amount of Realized Losses incurred during the preceding calendar
     month and aggregate Realized Losses through such Distribution Date; and

          (xiii) [Reserved]

          (xiv) Prepayment Charges collected by the Servicers.

          (b) For purposes of preparing the Monthly Statement, delinquencies
shall be determined and reported by the Master Servicer based on the so-called
"OTS" methodology irrespective of the method for determining delinquencies
utilized by the applicable Servicer on mortgage loans similar to the Mortgage
Loans. By way of example, a Mortgage Loan would be delinquent with respect to a
Scheduled Payment due on a Due Date if such Scheduled Payment is not made by the
close of business on the Mortgage Loan's next succeeding Due Date, and a
Mortgage Loan would be more than 30-days Delinquent with respect to such
Scheduled Payment if such Scheduled Payment were not made by the close of
business on the Mortgage Loan's second succeeding Due Date.

          (c) The Securities Administrator's responsibility for making available
the above statement to the Certificateholders, each Rating Agency, the Master
Servicer, each Servicer, the Trustee and the Depositor is limited to the
availability, timeliness and accuracy of the information derived from the Master
Servicer and the Servicers. The Securities Administrator will provide the above
statement via the Securities Administrator's internet website. The Securities
Administrator's website will initially be located at
https://www.sf.citidirect.com and assistance in using the website can be
obtained by calling the Securities Administrator's customer service desk at
(1-800) 422-2066. Parties that are unable to use the above distribution method
are entitled to have a paper copy mailed to them via first Class mail by
notifying the Securities Administrator at Citibank, N.A., 388 Greenwich Street,
14th Floor, New York, New York 10013, Attention: Structured Finance Agency and
Trust - HALO 2007-AR1. The Securities Administrator shall have the right to
change the manner in which the above statement is distributed in order to make
such distribution more convenient and/or more accessible, and the Securities
Administrator shall provide timely and adequate notification to the
Certificateholders and the parties hereto regarding any such changes. A paper
copy of the statement will also be made available upon written request.

          (d) Within a reasonable period of time after the end of each calendar
year, the Securities Administrator shall, upon written request, cause to be
furnished to each Person who at

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<PAGE>

any time during the calendar year was a Certificateholder, a statement
containing the information set forth in clauses (a)(i), (a)(ii), and (a)(vi) of
this Section 4.03 aggregated for such calendar year or applicable portion
thereof during which such Person was a Certificateholder. Such obligation of the
Securities Administrator shall be deemed to have been satisfied to the extent
that substantially comparable information shall have previously been provided by
the Securities Administrator pursuant to any requirements of the Code as from
time to time in effect.

          Section 4.04 Allocation of Realized Losses. Prior to each Distribution
Date, the Master Servicer shall determine the total amount of Realized Losses,
based solely upon the information provided by the Servicers (to the extent
provided by them), if any, that resulted from any Cash Liquidation, Servicing
Modification, Deficient Valuation or REO Disposition that occurred during the
related Prepayment Period or, in the case of a Servicing Modification that
constitutes a reduction of the interest rate on a Mortgage Loan, the amount of
the reduction in the interest portion of the Scheduled Payment due during the
related Due Period. The amount of each Realized Loss shall be based solely on
and evidenced by an Officers' Certificate provided by the Servicers. With
respect to all Realized Losses (i) the principal portion of Realized Losses,
shall be allocated by the Securities Administrator as follows: first, to the
Class B-6 Certificates until the Class Certificate Balance thereof has been
reduced to zero; second, to the Class B-5 Certificates until the Class
Certificate Balance thereof has been reduced to zero; third, to the Class B-4
Certificates until the Class Certificate Balance thereof has been reduced to
zero; fourth, to the Class B-3 Certificates until the Class Certificate Balance
thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the
Class Certificate Balance thereof has been reduced to zero; sixth, to the Class
B-1 Certificates until the Class Certificate Balance thereof has been reduced to
zero; and, thereafter, the amount of any Realized Loss on any Mortgage Loan
included in any Loan Group will be allocated among all remaining classes of
Senior Certificates related to that Loan Group on a pro rata basis until the
Class Certificate Balances thereof have been reduced to zero, and (ii) the
interest portion of Realized Losses, shall be allocated by the Securities
Administrator as follows: first, to the Subordinate Certificates in reverse
order of seniority, in reduction of the Accrued Certificate Interest thereon
payable on the related Distribution Date and then in reduction of the Class
Certificate Balance of such Subordinate Certificate, and, second, to the
remaining classes of Senior Certificates related to such Loan Group on a pro
rata basis until the Class Certificate Balances thereof have been reduced to
zero; provided, however, that (A) such Realized Losses otherwise allocable to
the Class II-A-1, Class III-A-1 and Class IV-A-1 Certificates will be allocated
to the Class II-A-2, Class III-A-2 and Class IV-A-2 Certificates, respectively,
until the Class Certificate Balances of the Class II-A-2, Class III-A-2 and
Class IV-A-2 Certificates have been reduced to zero.

     On any Distribution Date, Realized Losses will be allocated by the
Securities Administrator as set forth herein after distributions of principal on
the Certificates as set forth herein.

     As used herein, an allocation of a Realized Loss on a "pro rata basis"
among two or more specified Classes of Certificates means an allocation on a pro
rata basis, among the various Classes so specified, to each such Class of
Certificates on the basis of their then outstanding Certificate Balances prior
to giving effect to distributions to be made on such Distribution Date in the
case of the principal portion of a Realized Loss or based on the Accrued
Certificate Interest thereon payable on such Distribution Date (without regard
to any Compensating Interest

                                      -68-

<PAGE>

for such Distribution Date) in the case of an interest portion of a Realized
Loss. Except as provided in the following sentence, any allocation of the
principal portion of Realized Losses to a Class of Certificates shall be made by
reducing the Certificate Balance thereof by the amount so allocated, which
allocation shall be deemed to have occurred on such Distribution Date; provided
that no such reduction shall reduce the aggregate Certificate Balance of the
Certificates below the aggregate Stated Principal Balance of the Mortgage Loans.

          Section 4.05 [Reserved].

          Section 4.06 [Reserved].

                                    ARTICLE V

                                THE CERTIFICATES

          Section 5.01 The Certificates. The Certificates shall be substantially
in the forms attached hereto as exhibits. The Certificates shall be issuable in
registered form, in the minimum denominations, integral multiples in excess
thereof (except that one Certificate in each Class may be issued in a different
amount) and aggregate denominations per Class set forth in the Preliminary
Statement. The Depositor hereby directs the Securities Administrator to register
the Class P Certificates in the name of HSBC Securities (USA) Inc. or its
designee.

     Subject to Section 12.02 respecting the final distribution on the
Certificates, on each Distribution Date the Securities Administrator shall make
distributions to each Certificateholder of record on the preceding Record Date
either (x) by wire transfer in immediately available funds to the account of
such holder at a bank or other entity having appropriate facilities therefor, if
such Holder has so notified the Securities Administrator at least five Business
Days prior to the applicable Distribution Date or (y) by check mailed by first
Class mail to such Certificateholder at the address of such holder appearing in
the Certificate Register; provided, however, so long as such Certificate is a
Book-Entry Certificate, all distributions on such Certificate will be made
through the Depository or the Depository Participant.

     The Certificates shall be executed by manual or facsimile signature on
behalf of the Securities Administrator by an authorized officer. Certificates
bearing the manual or facsimile signatures of individuals who were, at the time
such signatures were affixed, authorized to sign on behalf of the Securities
Administrator shall bind the Securities Administrator, notwithstanding that such
individuals or any of them have ceased to be so authorized prior to the
authentication and delivery of any such Certificates or did not hold such
offices at the date of such Certificate. No Certificate shall be entitled to any
benefit under this Agreement, or be valid for any purpose, unless authenticated
by the Securities Administrator by manual signature, and such authentication
upon any Certificate shall be conclusive evidence, and the only evidence, that
such Certificate has been duly executed and delivered hereunder. All
Certificates shall be dated the date of their authentication. On the Closing
Date, the Securities Administrator shall authenticate the Certificates to be
issued at the direction of the Depositor, or any affiliate thereof.

          Section 5.02 Certificate Register; Registration of Transfer and
Exchange of Certificates. (a) The Securities Administrator shall maintain, or
cause to be maintained in

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accordance with the provisions of Section 5.06, a Certificate Register for the
Trust Fund in which, subject to the provisions of subsections (b) and (c) below
and to such reasonable regulations as it may prescribe, the Securities
Administrator shall provide for the registration of Certificates and of
transfers and exchanges of Certificates as herein provided. Upon surrender for
registration of transfer of any Certificate, the Securities Administrator shall
execute and deliver, in the name of the designated transferee or transferees,
one or more new Certificates of the same Class and aggregate Percentage
Interest.

     At the option of a Certificateholder, Certificates may be exchanged for
other Certificates of the same Class in authorized denominations and evidencing
the same aggregate Percentage Interest upon surrender of the Certificates to be
exchanged at the office or agency of the Securities Administrator. Whenever any
Certificates are so surrendered for exchange, the Securities Administrator shall
execute, authenticate, and deliver the Certificates which the Certificateholder
making the exchange is entitled to receive. Every Certificate presented or
surrendered for registration of transfer or exchange shall be accompanied by a
written instrument of transfer in form satisfactory to the Securities
Administrator duly executed by the holder thereof or his attorney duly
authorized in writing.

     No service charge to the Certificateholders shall be made for any
registration of transfer or exchange of Certificates, but payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any transfer or exchange of Certificates may be required.

     All Certificates surrendered for registration of transfer or exchange shall
be cancelled and subsequently destroyed by the Securities Administrator in
accordance with the Securities Administrator's customary procedures.

          (b) No transfer of a Private Certificate shall be made unless such
transfer is made pursuant to an effective registration statement under the
Securities Act and any applicable state securities laws or is exempt from the
registration requirements under said Act and such state securities laws. In
determining whether a transfer is being made pursuant to an effective
registration statement, the Securities Administrator shall be entitled to rely
solely upon a written notice to such effect from the Depositor. In the event
that a transfer of a Private Certificate which is a Physical Certificate is to
be made in reliance upon an exemption from the Securities Act and such laws, in
order to assure compliance with the Securities Act and such laws, the
Certificateholder desiring to effect such transfer shall certify to the
Securities Administrator in writing the facts surrounding the transfer in
substantially the form set forth in Exhibit H (the "Transferor Certificate") and
there shall be delivered to the Securities Administrator a letter in
substantially the form of Exhibit I (the "Rule 144A Investment Letter") or (ii)
there shall be delivered to the Securities Administrator at the expense of the
transferor an Opinion of Counsel stating that such transfer may be made without
registration under the Securities Act. In the event that a transfer of a Private
Certificate which is a Book-Entry Certificate is to be made in reliance upon an
exemption from the Securities Act and such laws, in order to assure compliance
with the Securities Act and such laws, the Certificateholder desiring to effect
such transfer will be deemed to have made as of the transfer date each of the
certifications set forth in the Transferor Certificate in respect of such
Certificate and the transferee will be deemed to have made as of the transfer
date each of the certifications set forth in the Rule 144A Investment Letter, in
respect of

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such Certificate, in each case as if such Certificate were evidenced by a
Physical Certificate. As directed by the Depositor, the Securities Administrator
shall provide to any Holder of a Private Certificate, and any prospective
transferee designated by any such Holder, information regarding the related
Certificates and the Mortgage Loans and such other information as shall be
necessary to satisfy the condition to eligibility set forth in Rule 144A(d)(4)
for transfer of any such Certificate without registration thereof under the
Securities Act pursuant to the registration exemption provided by Rule 144A. The
Depositor, the Master Servicer and the Trustee shall cooperate with the
Securities Administrator in providing the Rule 144A information referenced in
the preceding sentence, including providing to the Securities Administrator such
information regarding the Certificates, the Mortgage Loans and other matters
regarding the Trust Fund as the Securities Administrator shall reasonably
determine to meet its obligation under the preceding sentence. Each Holder of a
Private Certificate, desiring to effect such transfer shall, and does hereby
agree to, indemnify the Securities Administrator, the Trustee, each Servicer,
the Master Servicer and the Depositor against any liability that may result if
the transfer is not so exempt or is not made in accordance with such federal and
state laws.

     No transfer of an ERISA-Restricted Certificate shall be made unless the
Securities Administrator shall have received either (i) a representation from
the transferee of such Certificate acceptable to and in form and substance
satisfactory to the Securities Administrator (in the event such Certificate is a
Private Certificate or a Residual Certificate, such requirement is satisfied
only by the Securities Administrator's receipt of a representation letter from
the transferee substantially in the form of Exhibit I), to the effect that such
transferee is not an employee benefit plan or arrangement subject to Section 406
of ERISA, a plan subject to Section 4975 of the Code or a plan subject to any
Federal, state or local law ("Similar Law") materially similar to the foregoing
provisions of ERISA or the Code, nor a person acting on behalf of any such plan
or arrangement nor using the assets of any such plan or arrangement to effect
such transfer, or (ii) in the case of an ERISA-Restricted Certificate (other
than a Residual Certificate or the Class P Certificate) that has been the
subject of an ERISA-Qualifying Underwriting, and the purchaser is an insurance
company, a representation that the purchaser is an insurance company that is
purchasing such Certificates with funds contained in an "insurance company
general account" (as such term is defined in Section V(e) of Prohibited
Transaction Class Exemption ("PTCE") 95-60) and that the purchase and holding of
such Certificates are covered under Sections I and III of PTCE 95-60 or (iii) in
the case of any such ERISA-Restricted Certificate other than a Residual
Certificate or the Class P Certificate presented for registration in the name of
an employee benefit plan subject to Title I of ERISA, a plan or arrangement
subject to Section 4975 of the Code (or comparable provisions of any subsequent
enactments), or a plan subject to Similar Law, or a trustee of any such plan or
any other person acting on behalf of any such plan or arrangement or using such
plan's or arrangement's assets, an Opinion of Counsel satisfactory to the
Securities Administrator, which Opinion of Counsel shall not be an expense of
the Depositor, the Trustee, the Master Servicer, the Servicers, the Securities
Administrator or the Trust Fund, addressed to the Securities Administrator, to
the effect that the purchase or holding of such ERISA-Restricted Certificate
will not constitute or result in a non-exempt prohibited transaction within the
meaning of ERISA, Section 4975 of the Code or any Similar Law and will not
subject the Trustee, the Depositor, the Securities Administrator, the Master
Servicer or any Servicer to any obligation in addition to those expressly
undertaken in this Agreement or to any liability. For purposes of the preceding
sentence, with respect to an ERISA-Restricted Certificate that is not a Physical
Certificate or a Residual Certificate, in the event the

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representation letter referred to in the preceding sentence is not furnished,
such representation shall be deemed to have been made to the Securities
Administrator by the transferee's (including an initial acquirer's) acceptance
of the ERISA-Restricted Certificates. Notwithstanding anything else to the
contrary herein, (a) any purported transfer of an ERISA-Restricted Certificate
that is a Physical Certificate or Residual Certificate or the Class P
Certificate, to or on behalf of an employee benefit plan subject to ERISA, the
Code or Similar Law without the delivery to the Securities Administrator of a
representation letter or an Opinion of Counsel satisfactory to the Securities
Administrator as described above shall be void and of no effect and (b) any
purported transfer of a Residual Certificate or the Class P Certificate to a
transferee that does not make the representation in clause (i) above shall be
void and of no effect.

     None of the Class R or Class P Certificates may be sold to any employee
benefit plan subject to Title I of ERISA, any plan subject to Section 4975 of
the Code, or any plan subject to any Similar Law or any person investing on
behalf or with plan assets of such plan.

     To the extent permitted under applicable law (including, but not limited
to, ERISA), the Securities Administrator shall be under no liability to any
Person for any registration of transfer of any ERISA-Restricted Certificate that
is in fact not permitted by this Section 5.02(b) or for making any payments due
on such Certificate to the Holder thereof or taking any other action with
respect to such Holder under the provisions of this Agreement so long as, in the
case of a Physical Certificate, the transfer was registered by the Securities
Administrator in accordance with the foregoing requirements.

          (c) Each Person who has or who acquires any Ownership Interest in a
Residual Certificate shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the following provisions, and
the rights of each Person acquiring any Ownership Interest in a Residual
Certificate are expressly subject to the following provisions:

          (i) Each Person holding or acquiring any Ownership Interest in a
     Residual Certificate shall be a Permitted Transferee and shall promptly
     notify the Securities Administrator of any change or impending change in
     its status as a Permitted Transferee;

          (ii) No Ownership Interest in a Residual Certificate may be registered
     on the Closing Date or thereafter transferred, and the Securities
     Administrator shall not register the Transfer of any Residual Certificate
     unless, in addition to the certificates required to be delivered to the
     Securities Administrator under subparagraph (b) above, the Securities
     Administrator shall have been furnished with an affidavit (a "Transfer
     Affidavit") of the initial owner or the proposed transferee in the form
     attached hereto as Exhibit G;

          (iii) Each Person holding or acquiring any Ownership Interest in a
     Residual Certificate shall agree (A) to obtain a Transfer Affidavit from
     any other Person to whom such Person attempts to Transfer its Ownership
     Interest in a Residual Certificate, (B) to obtain a Transfer Affidavit from
     any Person for whom such Person is acting as nominee, trustee or agent in
     connection with any Transfer of a Residual Certificate and (C) not to
     Transfer its Ownership Interest in a Residual Certificate or to cause the
     Transfer of an

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     Ownership Interest in a Residual Certificate to any other Person if it has
     actual knowledge that such Person is a Non-Permitted Transferee;

          (iv) Any attempted or purported Transfer of any Ownership Interest in
     a Residual Certificate in violation of the provisions of this Section
     5.02(c) shall be absolutely null and void and shall vest no rights in the
     purported Transferee. If any purported transferee shall become a Holder of
     a Residual Certificate in violation of the provisions of this Section
     5.02(c), then the last preceding Permitted Transferee shall be restored to
     all rights as Holder thereof retroactive to the date of registration of
     Transfer of such Residual Certificate. The Securities Administrator shall
     be under no liability to any Person for any registration of Transfer of a
     Residual Certificate that is in fact not permitted by Section 5.02(a) and
     this Section 5.02(c) or for making any payments due on such Certificate to
     the Holder thereof or taking any other action with respect to such Holder
     under the provisions of this Agreement so long as the Transfer was
     registered after receipt of the related Transfer Affidavit, Transferor
     Certificate and the Rule 144A Letter. The Securities Administrator shall be
     entitled but not obligated to recover from any Holder of a Residual
     Certificate that was in fact a Non-Permitted Transferee at the time it
     became a Holder or, at such subsequent time as it became a Non-Permitted
     Transferee, all payments made on such Residual Certificate at and after
     either such time. Any such payments so recovered by the Securities
     Administrator shall be paid and delivered by the Securities Administrator
     to the last preceding Permitted Transferee of such Certificate; and

          (v) The Depositor shall use its best efforts to make available, upon
     receipt of written request from the Securities Administrator, all
     information necessary to compute any tax imposed under Section 860E(e) of
     the Code as a result of a Transfer of an Ownership Interest in a Residual
     Certificate to any Holder who is a Non-Permitted Transferee.

     The restrictions on Transfers of a Residual Certificate set forth in this
Section 5.02(c) shall cease to apply (and the applicable portions of the legend
on a Residual Certificate may be deleted) with respect to Transfers occurring
after delivery to the Securities Administrator of an Opinion of Counsel, which
Opinion of Counsel shall not be an expense of the Trust Fund, the Trustee, the
Securities Administrator or any Servicer, to the effect that the elimination of
such restrictions will not cause any REMIC created hereunder to fail to qualify
as a REMIC at any time that the Certificates are outstanding or result in the
imposition of any tax on the Trust Fund, a Certificateholder or another Person.
Each Person holding or acquiring any Ownership Interest in a Residual
Certificate hereby consents to any amendment of this Agreement which, based on
an Opinion of Counsel furnished to the Securities Administrator, is reasonably
necessary (a) to ensure that the record ownership of, or any beneficial interest
in, a Residual Certificate is not transferred, directly or indirectly, to a
Person that is a Non-Permitted Transferee and (b) to provide for a means to
compel the Transfer of a Residual Certificate which is held by a Person that is
a Non-Permitted Transferee to a Holder that is a Permitted Transferee.

          (d) The preparation and delivery of all certificates and opinions
referred to above in this Section 5.02 in connection with transfer shall be at
the expense of the parties to such transfers.

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          (e) Except as provided below, the Book-Entry Certificates shall at all
times remain registered in the name of the Depository or its nominee and at all
times: (i) registration of the Certificates may not be transferred by the
Securities Administrator except to another Depository; (ii) the Depository shall
maintain book-entry records with respect to the Certificate Owners and with
respect to ownership and transfers of such Book-Entry Certificates; (iii)
ownership and transfers of registration of the Book-Entry Certificates on the
books of the Depository shall be governed by applicable rules established by the
Depository; (iv) the Depository may collect its usual and customary fees,
charges and expenses from its Depository Participants; (v) the Securities
Administrator shall deal with the Depository, Depository Participants and
indirect participating firms as representatives of the Certificate Owners of the
Book-Entry Certificates for purposes of exercising the rights of holders under
this Agreement, and requests and directions for and votes of such
representatives shall not be deemed to be inconsistent if they are made with
respect to different Certificate Owners; and (vi) the Securities Administrator
may rely and shall be fully protected in relying upon information furnished by
the Depository with respect to its Depository Participants and furnished by the
Depository Participants with respect to indirect participating firms and persons
shown on the books of such indirect participating firms as direct or indirect
Certificate Owners.

     All transfers by Certificate Owners of Book-Entry Certificates shall be
made in accordance with the procedures established by the Depository Participant
or brokerage firm representing such Certificate Owner. Each Depository
Participant shall only transfer Book-Entry Certificates of Certificate Owners it
represents or of brokerage firms for which it acts as agent in accordance with
the Depository's normal procedures.

     If (x) (i) the Depository or the Depositor advises the Securities
Administrator in writing that the Depository is no longer willing or able to
properly discharge its responsibilities as Depository, and (ii) the Securities
Administrator or the Depositor is unable to locate a qualified successor, or (y)
the Depositor notifies the Depository (and the Securities Administrator
consents) of its intent to terminate the book-entry system through the
Depository and, upon receipt of notice of such intent from the Depository, the
Depository Participants holding beneficial interests in the Book-Entry
Certificates agree in writing to initiate such termination, the Securities
Administrator shall notify all Certificate Owners, through the Depository, of
the occurrence of any such event and of the availability of definitive, fully
registered Certificates (the "Definitive Certificates") to Certificate Owners
requesting the same. Upon surrender to the Securities Administrator of the
related Class of Certificates by the Depository, accompanied by the instructions
from the Depository for registration, the Securities Administrator shall issue
the Definitive Certificates. None of the Servicers, the Depositor or the
Securities Administrator shall be liable for any delay in delivery of such
instruction and each may conclusively rely on, and shall be protected in relying
on, such instructions. The Depositor shall provide the Securities Administrator
with an adequate inventory of Certificates to facilitate the issuance and
transfer of Definitive Certificates. Upon the issuance of Definitive
Certificates all references herein to obligations imposed upon or to be
performed by the Depository shall be deemed to be imposed upon and performed by
the Securities Administrator, to the extent applicable with respect to such
Definitive Certificates and the Securities Administrator shall recognize the
Holders of the Definitive Certificates as Certificateholders hereunder;
provided, that the Securities Administrator shall not by virtue of its
assumption of such obligations become liable to any party for any act or failure
to act of the Depository.

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          (f) Each Private Certificate presented or surrendered for registration
of transfer or exchange shall be accompanied by a written instrument of transfer
and accompanied by IRS Form W-8ECI, W-8BEN, W-8IMY (and all appropriate
attachments) or W-9 in form satisfactory to the Securities Administrator, duly
executed by the Certificateholder or his attorney duly authorized in writing.
Each Certificate presented or surrendered for registration of transfer or
exchange shall be canceled and subsequently disposed of by the Securities
Administrator in accordance with its customary practice. No service charge shall
be made for any registration of transfer or exchange of Private Certificates,
but the Securities Administrator may require payment of a sum sufficient to
cover any tax or governmental charge that may be imposed in connection with any
transfer or exchange of Private Certificates.

          Section 5.03 Mutilated, Destroyed, Lost or Stolen Certificates. If (a)
any mutilated Certificate is surrendered to the Securities Administrator, or the
Securities Administrator receives evidence to its satisfaction of the
destruction, loss or theft of any Certificate and (b) there is delivered to the
Depositor, the Securities Administrator and the Trustee such security or
indemnity as may be required by them to hold each of them harmless, then, in the
absence of notice to a Responsible Officer of the Securities Administrator that
such Certificate has been acquired by a bona fide purchaser, the Securities
Administrator shall execute, authenticate and deliver, in exchange for or in
lieu of any such mutilated, destroyed, lost or stolen Certificate, a new
Certificate of like Class, tenor and Percentage Interest. In connection with the
issuance of any new Certificate under this Section 5.03, the Securities
Administrator may require the payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Securities Administrator)
connected therewith. Any replacement Certificate issued pursuant to this Section
5.03 shall constitute complete and indefeasible evidence of ownership, as if
originally issued, whether or not the lost, stolen or destroyed Certificate
shall be found at any time.

          Section 5.04 Persons Deemed Owners. The Trustee, the Depositor, the
Securities Administrator and any agent of the Trustee, the Depositor or the
Securities Administrator may treat the Person in whose name any Certificate is
registered as the owner of such Certificate for the purpose of receiving
distributions as provided in this Agreement and for all other purposes
whatsoever, and neither the Trustee, the Depositor, the Securities Administrator
nor any agent of the Trustee, the Depositor or the Securities Administrator
shall be affected by any notice to the contrary.

          Section 5.05 Access to List of Certificateholders' Names and
Addresses. If three or more Certificateholders (a) request such information in
writing from the Securities Administrator, (b) state that such
Certificateholders desire to communicate with other Certificateholders with
respect to their rights under this Agreement or under the Certificates and (c)
provide a copy of the communication which such Certificateholders propose to
transmit, or if the Depositor or any Servicer shall request such information in
writing from the Securities Administrator, then the Securities Administrator
shall, within ten Business Days after the receipt of such request, provide the
Depositor, the applicable Servicer or such Certificateholders at such
recipients' expense the most recent list of the Certificateholders of such Trust
Fund held by the Securities Administrator, if any. The Depositor and every
Certificateholder, by receiving and holding a Certificate, agree that the
Securities Administrator shall not be held accountable by

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reason of the disclosure of any such information as to the list of the
Certificateholders hereunder, regardless of the source from which such
information was derived.

          Section 5.06 Maintenance of Office or Agency. The Securities
Administrator will maintain or cause to be maintained at its expense an office
or offices or agency or agencies where Certificates may be surrendered for
registration of transfer or exchange. The Securities Administrator initially
designates its offices located at 111 Wall Street, 15th Floor Window, New York,
New York 10005, Attention: Corporate Trust Services HALO 2007-AR1. The
Securities Administrator shall give prompt written notice to the
Certificateholders of any change in such location of any such office or agency.

                                   ARTICLE VI

                                  THE DEPOSITOR

          Section 6.01 Liabilities of the Depositor. The Depositor shall be
liable in accordance herewith only to the extent of the obligations specifically
and respectively imposed upon and undertaken by it herein.

          Section 6.02 Merger or Consolidation of the Depositor. (a) The
Depositor will keep in full effect its existence, rights and franchises as a
corporation, under the laws of the United States or under the laws of one of the
states thereof and will each obtain and preserve its qualification to do
business as a foreign corporation in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of this Agreement, or any of the Mortgage Loans and to perform
its respective duties under this Agreement.

          (b) Any Person into which the Depositor may be merged or consolidated,
or any Person resulting from any merger or consolidation to which the Depositor
shall be a party, or any person succeeding to the business of the Depositor,
shall be the successor of the Depositor, hereunder, without the execution or
filing of any paper or any further act on the part of any of the parties hereto,
anything herein to the contrary notwithstanding.

          Section 6.03 Limitation on Liability of the Depositor and Others.
Neither the Depositor, nor any of its respective directors, officers, employees
or agents, shall be under any liability to the Certificateholders for any action
taken or for refraining from the taking of any action in good faith pursuant to
this Agreement, or for errors in judgment; provided, however, that this
provision shall not protect the Depositor, or any such Person against any breach
of representations or warranties made by it herein or protect the Depositor, or
any such Person from any liability which would otherwise be imposed by reasons
of willful misfeasance, bad faith or negligence (or gross negligence in the case
of the Depositor) in the performance of duties or by reason of reckless
disregard of obligations and duties hereunder. The Depositor, its Affiliates,
and any of their respective directors, officers, employees or agents may rely in
good faith on any document of any kind prima facie properly executed and
submitted by any Person respecting any matters arising hereunder. The Depositor,
its Affiliates, and any of their respective directors, officers, employees or
agents shall be indemnified by the Trust Fund and held harmless against any
loss, liability or expense incurred in connection with any audit, controversy or
judicial proceeding relating to a governmental taxing authority or any legal
action relating to this

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Agreement or the Certificates other than any loss, liability or expense related
to any specific Mortgage Loan or Mortgage Loans (except as any such loss,
liability or expense shall be otherwise reimbursable pursuant to this Agreement
and any loss, liability or expense incurred by reason of willful misfeasance,
bad faith or gross negligence in the performance of duties hereunder or by
reason of reckless disregard of obligations and duties hereunder. The Depositor
shall not be under any obligation to appear in, prosecute or defend any legal
action that is not incidental to its respective duties hereunder and which in
its opinion may involve it in any expense or liability; provided, however, that
the Depositor may in its discretion undertake any such action (or direct the
Trustee to undertake such actions pursuant to Section 2.03 for the benefit of
the Certificateholders) that it may deem necessary or desirable in respect of
this Agreement and the rights and duties of the parties hereto and interests of
the Trustee and the Certificateholders hereunder. In such event, the legal
expenses and costs of such action and any liability resulting therefrom shall be
expenses, costs and liabilities of the Trust Fund, and the Depositor shall be
entitled to be reimbursed therefor out of the Distribution Account.

                                   ARTICLE VII

                                     DEFAULT

          Section 7.01 Master Servicer to Act; Appointment of Successor. (a) The
Master Servicer or the Trustee (as successor master servicer), as applicable,
shall be entitled to terminate the rights and obligations of any Servicer under
the applicable Servicing Agreement in accordance with the terms and conditions
of such Servicing Agreement and without any limitation by virtue of this
Agreement. Upon termination of a Servicer under the applicable Servicing
Agreement, the Master Servicer or the Trustee (as successor master servicer), as
applicable, shall, subject to the rights of the Master Servicer or the Trustee
(as successor master servicer), as applicable, to appoint a successor servicer
pursuant to this Section 7.01, be the successor to such Servicer in its capacity
as servicer under the applicable Servicing Agreement, provided, however, that
the Master Servicer or the Trustee (as successor master servicer), as
applicable, shall not be (i) liable for losses of the predecessor Servicer with
respect to such predecessor's investment of funds in its Collection Account;
(ii) obligated to effectuate repurchases or substitutions of Mortgage Loans
hereunder, including but not limited to repurchases or substitutions pursuant to
Section 2.03, (iii) responsible for expenses of the predecessor servicer related
to any repurchase or substitution of Mortgage Loans hereunder, including but not
limited to repurchases or substitutions pursuant to Section 2.03, (iv) deemed to
have made any of the representations and warranties of the terminated Servicer
under the applicable Servicing Agreement or (v) liable for any obligations of
the predecessor Servicer incurred prior to its termination.

          (b) It is understood and acknowledged by the parties hereto that there
will be a period of transition before the transfer of servicing obligations is
fully effective. Notwithstanding the foregoing, the Master Servicer or the
Trustee (as successor master servicer), as applicable, will have a period (not
to exceed 90 days) to complete the transfer of all servicing data and correct or
manipulate such servicing data as may be required by the Master Servicer or the
Trustee (as successor master servicer), as applicable, to correct any errors or
insufficiencies in the servicing data or otherwise enable the Master Servicer or
the Trustee (as successor master servicer), as applicable, to service the
Mortgage Loans in accordance with the applicable

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Servicing Agreement. Except as provided in Section 7.01(e) below, the Master
Servicer or the Trustee (as successor master servicer), as applicable, shall be
entitled to be reimbursed from each Servicer (or by the Trust Fund, if such
Servicer is unable to fulfill such obligation) for all costs associated with the
transfer of servicing from the predecessor servicer, including without
limitation, any costs or expenses associated with the complete transfer of all
servicing data and the completion, correction or manipulation of such servicing
data, as may be required by the Master Servicer or the Trustee (as successor
master servicer), as applicable, to correct any errors or insufficiencies in the
servicing data or otherwise to enable the Master Servicer or the Trustee (as
successor master servicer), as applicable, to service the Mortgage Loans
properly and effectively. As compensation in its role as successor servicer, the
Master Servicer or the Trustee (as successor master servicer), as applicable,
shall be entitled to the applicable Servicing Fee and any income on investments
or gain related to the related Collection Account. Notwithstanding the
foregoing, if the Master Servicer or the Trustee (as successor master servicer),
as applicable, has become the successor to a Servicer pursuant to an Event of
Default, the Master Servicer or the Trustee (as successor master servicer), as
applicable, may, if it shall be unwilling to so act, or shall, if it is
prohibited by applicable law from making P&I Advances and Servicing Advances
pursuant to the applicable Servicing Agreement, if it is otherwise unable to so
act, or at the written request of Certificateholders entitled to at least a
majority of the Voting Rights, appoint, or petition a court of competent
jurisdiction to appoint, any established mortgage loan servicing institution the
appointment of which does not adversely affect the then current rating of the
Certificates by each Rating Agency, as the successor to the Servicer under the
applicable Servicing Agreement in the assumption of all or any part of the
responsibilities, duties or liabilities of such Servicer thereunder.

          (c) Any successor to a Servicer shall be an institution which is
willing to service the Mortgage Loans, having a net worth of not less than
$25,000,000, and which executes and delivers to the Depositor, the Master
Servicer and the Trustee (as successor master servicer) an agreement accepting
such delegation and assignment, containing an assumption by such Person of the
rights, powers, duties, responsibilities, obligations and liabilities of the
applicable Servicer (other than liabilities of the predecessor servicer incurred
prior to its termination), with like effect as if originally named as a party to
such Servicing Agreement; provided, that each Rating Agency acknowledges that
its rating of the Certificates in effect immediately prior to such assignment
and delegation will not be qualified or reduced, as a result of such assignment
and delegation. Pending appointment of a successor to a Servicer under any
Servicing Agreement, the Master Servicer or the Trustee (as successor master
servicer), as applicable, unless such party is prohibited by law from so acting,
shall act in such capacity as hereinabove provided. In connection with such
appointment and assumption, the Master Servicer or the Trustee (as successor
master servicer), as applicable, may make such arrangements for the compensation
of such successor out of payments on Mortgage Loans as it and such successor
shall agree in accordance with the applicable Servicing Agreement; provided,
however, that no such compensation shall be in excess of the applicable
Servicing Fee and any income on investments or gain related to the related
Collection Account. The Master Servicer or the Trustee (as successor master
servicer), as applicable, and such successor servicer shall take such action,
consistent with this Agreement and the applicable Servicing Agreement, as shall
be necessary to effectuate any such succession. Neither the Master Servicer nor
the Trustee (as successor master servicer) shall be deemed to be in default
hereunder by reason of any failure to make, or any delay in making, any
distribution hereunder or any portion thereof or any failure to

                                      -78-

<PAGE>

perform, or any delay in performing, any duties or responsibilities hereunder,
in either case caused by the failure of any Servicer to deliver or provide, or
any delay in delivering or providing, any cash, information, documents or
records to it.

          (d) Notwithstanding the foregoing, the parties hereto agree that the
Master Servicer or the Trustee (as successor master servicer), as applicable, in
its capacity as successor servicer, immediately shall assume all of the
obligations of such terminated Servicer to make Advances and the Master Servicer
or the Trustee (as successor master servicer), as applicable, will assume the
other duties of such Servicer as soon as practicable, but in no event later than
90 days after the Master Servicer or the Trustee (as successor master servicer),
as applicable, becomes successor servicer pursuant to the preceding paragraph.
If the Master Servicer or the Trustee (as successor master servicer), as
applicable, acts as a successor servicer, it will have no obligation to make an
Advance if it determines in its reasonable judgment that such Advance is
non-recoverable. To the extent that the Master Servicer or the Trustee (as
successor master servicer) is unable to find a successor servicer that is
willing to service the Mortgage Loans for the Servicing Fee because of the
obligation of the applicable Servicer to make Advances regardless of whether
such Advance is recoverable, the applicable Servicing Agreement may be amended
to provide that the successor servicer shall have no obligation to make an
Advance if it determines in its reasonable judgment that such Advance is
non-recoverable and provides an Officer's Certificate to such effect to the
Master Servicer and the Trustee. Notwithstanding the foregoing, the Master
Servicer or the Trustee (as successor master servicer), as applicable, in its
capacity as successor servicer, shall not be responsible for the lack of
information and/or documents that it cannot obtain through reasonable efforts;
provided, however, that any failure to perform any duties or responsibilities
caused by such Servicer's failure to provide information required by this
Agreement shall not be considered a default by the Trustee (as successor master
servicer) hereunder. In the Trustee's capacity as such successor, the Trustee
(as successor master servicer) shall have the same limitations on liability
granted to the Servicer under this Agreement and the related Servicing
Agreement.

          (e) In the event that the Master Servicer or the Trustee (as successor
master servicer), as applicable, is the terminated Servicer (except in the case
where the Master Servicer in its role as successor servicer is being terminated
pursuant to an Event of Default caused solely by the Master Servicer as the
successor servicer and not by the predecessor Servicer's actions or omissions),
such costs shall be paid by such prior terminated Servicer promptly upon
presentation of reasonable documentation of such costs.

          Section 7.02 Notification to Certificateholders. (a) Upon any
termination of or appointment of a successor to any Servicer, the Securities
Administrator shall give prompt written notice thereof to Certificateholders and
each Rating Agency.

          (b) Within 60 days after the occurrence of any Event of Default, the
Trustee shall transmit by mail to all Certificateholders and each Rating Agency
notice of each such Event of Default hereunder known to the Trustee, unless such
event shall have been cured or waived.

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<PAGE>

                                  ARTICLE VIII

                             CONCERNING THE TRUSTEE

          Section 8.01 Duties of the Trustee. The Trustee, before the occurrence
of a Master Servicer Event of Default and after the curing of all Master
Servicer Events of Default that may have occurred, shall undertake to perform
such duties and only such duties as are specifically set forth in this
Agreement. In case a Master Servicer Event of Default has occurred and remains
uncured, the Trustee shall exercise such of the rights and powers vested in it
by this Agreement, and use the same degree of care and skill in their exercise
as a prudent person would exercise or use under the circumstances in the conduct
of such person's own affairs.

     The Trustee, upon receipt of all resolutions, certificates, statements,
opinions, reports, documents, orders or other instruments furnished to the
Trustee that are specifically required to be furnished pursuant to any provision
of this Agreement, shall examine them to determine whether they are in the form
required by this Agreement. The Trustee shall not be responsible for the
accuracy or content of any resolution, certificate, statement, opinion, report,
document, order, or other instrument.

     No provision of this Agreement shall be construed to relieve the Trustee
from liability for its own negligent action, its own negligent failure to act or
its own willful misconduct.

     Unless an Event of Default known to the Trustee has occurred and is
continuing:

          (a) the duties and obligations of the Trustee shall be determined
solely by the express provisions of this Agreement, the Trustee shall not be
liable except for the performance of the duties and obligations specifically set
forth in this Agreement, no implied covenants or obligations shall be read into
this Agreement against the Trustee, and the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed
therein, upon any certificates or opinions furnished to the Trustee and
conforming to the requirements of this Agreement which it believes in good faith
to be genuine and to have been duly executed by the proper authorities
respecting any matters arising hereunder;

          (b) the Trustee shall not be liable for an error of judgment made in
good faith by a Responsible Officer or Responsible Officers of the Trustee,
unless it is finally proven that the Trustee was negligent in ascertaining the
pertinent facts; and

          (c) the Trustee shall not be liable with respect to any action taken,
suffered, or omitted to be taken by it in good faith in accordance with the
direction of the Holders of Certificates evidencing not less than 25.00% of the
Voting Rights of Certificates relating to the time, method, and place of
conducting any proceeding for any remedy available to the Trustee, or exercising
any trust or power conferred upon the Trustee under this Agreement.

          Section 8.02 Certain Matters Affecting the Trustee. Except as
otherwise provided in Section 8.01:

          (a) the Trustee may rely upon and shall be protected in acting or
refraining from acting upon any resolution, Officer's Certificate, certificate
of auditors or any other

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<PAGE>

certificate, statement, instrument, opinion, report, notice, request, consent,
order, appraisal, bond or other paper or document believed by it to be genuine
and to have been signed or presented by the proper party or parties and the
Trustee shall have no responsibility to ascertain or confirm the genuineness of
any signature of any such party or parties;

          (b) the Trustee may consult with counsel, financial advisers or
accountants and the advice of any such counsel, financial advisers or
accountants and any Opinion of Counsel shall be full and complete authorization
and protection in respect of any action taken or suffered or omitted by it
hereunder in good faith and in accordance with such advice or Opinion of
Counsel;

          (c) the Trustee shall not be liable for any action taken, suffered or
omitted by it in good faith and believed by it to be authorized or within the
discretion or rights or powers conferred upon it by this Agreement;

          (d) the Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, approval, bond or other paper
or document, unless requested in writing to do so by the Holders of Certificates
evidencing not less than 25.00% of the Voting Rights allocated to each Class of
Certificates;

          (e) the Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents,
accountants, custodians, nominees or attorneys and the Trustee shall not be
responsible for any misconduct or negligence on the part of any agents,
accountants or attorneys appointed with due care by it hereunder;

          (f) the Trustee shall not be required to risk or expend its own funds
or otherwise incur any financial liability in the performance of any of its
duties or in the exercise of any of its rights or powers hereunder if it shall
have reasonable grounds for believing that repayment of such funds or indemnity
satisfactory to it against such risk or liability is not assured to it;

          (g) the Trustee shall not be liable for any loss on any investment of
funds pursuant to this Agreement;

          (h) unless a Responsible Officer of the Trustee has actual knowledge
of the occurrence of a Master Servicer Event of Default or an Event of Default,
the Trustee shall not be deemed to have knowledge of a Master Servicer Event of
Default or an Event of Default until a Responsible Officer of the Trustee shall
have received written notice thereof;

          (i) the Trustee shall be under no obligation to exercise any of the
trusts, rights or powers vested in it by this Agreement or to institute, conduct
or defend any litigation hereunder or in relation hereto at the request, order
or direction of any of the Certificateholders, pursuant to this Agreement,
unless such Certificateholders shall have offered to the Trustee reasonable
security or indemnity satisfactory to the Trustee against the costs, expenses
and liabilities which may be incurred therein or thereby; and

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<PAGE>

          (j) if the Trustee, in its role as successor master servicer under
this Agreement, assumes the servicing or master servicing with respect to any of
the Mortgage Loans, it shall not assume liability for the representations and
warranties of any Servicer or the Master Servicer, as applicable, or for any
errors or omissions of any Servicer or the Master Servicer, as applicable.

          (k) In order to comply with laws, rules, regulations and executive
orders in effect from time to time applicable to banking institutions, including
those relating to the funding of terrorist activities and money laundering
("Applicable Law"), the Trustee is required to obtain, verify and record certain
information relating to individuals and entities which maintain a business
relationship with the Trustee. Accordingly, each of the parties agrees to
provide to the Trustee upon its request from time to time such identifying
information and documentation as may be available to such party in order to
enable the Trustee to comply with Applicable Law.

          Section 8.03 Trustee Not Liable for Certificates or Mortgage Loans.
The recitals contained herein and in the Certificates shall be taken as the
statements of the Depositor and the Trustee assumes no responsibility for their
correctness. The Trustee makes no representations as to the validity or
sufficiency of this Agreement, or of the Certificates or of any Mortgage Loan or
related document. The Trustee shall not be accountable for the use or
application by the Depositor, the Master Servicer, any Servicer, or the
Securities Administrator of any funds paid to the Depositor, the Master
Servicer, such Servicer or the Securities Administrator in respect of the
Mortgage Loans or deposited in or withdrawn from any Collection Account, the
Master Servicing Account, the Distribution Account or any other fund or account
with respect to the Certificates by the Depositor, the Master Servicer, the
Servicers or the Securities Administrator.

     The Trustee shall have no responsibility for filing or recording any
financing or continuation statement in any public office at any time or to
otherwise perfect or maintain the perfection of any security interest or lien
granted to it hereunder.

          Section 8.04 Trustee May Own Certificates. The Trustee in its
individual or any other capacity may become the owner or pledgee of Certificates
with the same rights as it would have if it were not the Trustee.

          Section 8.05 Trustee's Fees Indemnification and Expenses. (a) As
compensation for its activities under this Agreement, the Trustee shall be paid
its fee by the Sponsor from the Sponsor's own funds pursuant to a separate
agreement. The Trustee shall have no lien on the Trust Fund for the payment of
such fees.

          (b) The Trustee shall be entitled to be reimbursed, from funds on
deposit in the Distribution Account, amounts sufficient to indemnify and hold
harmless the Trustee and any director, officer, employee, or agent of the
Trustee against any loss, liability, or expense (including reasonable attorneys'
fees and expenses) incurred in connection with any claim or legal action
relating to:

          (i) this Agreement or any Servicing Agreement,

          (ii) the Certificates, or

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<PAGE>

          (iii) the performance of any of the Trustee's duties under this
     Agreement or any Servicing Agreement (including, but not limited to, its
     execution of any tax returns),

other than any loss, liability, or expense (i) resulting from any breach of a
Servicer's obligations in connection with its respective Servicing Agreement for
which such Servicer has performed its obligation to indemnify the Trustee, (ii)
resulting from any breach of a Mortgage Loan Seller's obligations in connection
with its respective Transfer Agreement for which such Mortgage Loan Seller has
performed its obligation to indemnify the Trustee, (iii) resulting from any
breach of the Master Servicer's obligation hereunder for which the Master
Servicer has performed its obligation to indemnify the Trustee pursuant to this
Agreement or (iv) incurred because of willful misconduct, bad faith, or
negligence in the performance of any of the Trustee's duties under this
Agreement or any Servicing Agreement. Without limiting the foregoing, except as
otherwise agreed upon in writing by the Depositor and the Trustee, and except
for any expense, disbursement, or advance arising from the Trustee's negligence,
bad faith, or willful misconduct, the Trust Fund shall pay or reimburse the
Trustee for all reasonable expenses, disbursements, and advances incurred or
made by the Trustee in accordance with this Agreement with respect to:

          (A) the reasonable compensation, expenses, and disbursements of its
     counsel not associated with the closing of the issuance of the
     Certificates, and

          (B) the reasonable compensation, expenses, and disbursements of any
     accountant, engineer, or appraiser that is not regularly employed by the
     Trustee, to the extent that the Trustee must engage them to perform
     services under this Agreement.

     The Trustee's right to indemnity and reimbursement under this Section
8.05(b) shall survive the termination of this Agreement and the resignation or
removal of the Trustee under this Agreement.

     Except as otherwise provided in this Agreement or a separate letter
agreement between the Trustee and the Depositor, the Trustee shall not be
entitled to payment or reimbursement for any routine ongoing expenses incurred
by the Trustee in the ordinary course of its duties as Trustee under this
Agreement or for any other routine expenses incurred by the Trustee; provided,
further, that no expense shall be reimbursed hereunder if it would not
constitute an "unanticipated expense incurred by the REMIC" within the meaning
of the REMIC Provisions.

     The Trustee shall not be (a) liable for any acts or omissions of any
Servicer (other than where the Trustee (as successor master servicer) is such
Servicer), (b) obligated to make any Advance if it is prohibited from doing so
under applicable law, (c) responsible for expenses of any Servicer (other than
where the Trustee (as successor master servicer) is such Servicer) pursuant to
the terms a Servicing Agreement, (d) liable for any amount necessary to induce
any successor servicer to act as successor servicer under a Servicing Agreement
and enter into the transactions set forth or provided for therein.

          Section 8.06 Eligibility Requirements for the Trustee. The Trustee
hereunder shall at all times be a corporation or association organized and doing
business under the laws of a state or the United States of America, authorized
under such laws to exercise corporate trust powers, having a combined capital
and surplus of at least $50,000,000, subject to supervision or

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<PAGE>

examination by federal or state authority and with a credit rating which would
not cause any of the Rating Agencies to reduce their respective then current
ratings of the Certificates (or having provided such security from time to time
as is sufficient to avoid such reduction) as evidenced in writing by each Rating
Agency. If such corporation or association publishes reports of condition at
least annually, pursuant to law or to the requirements of the aforesaid
supervising or examining authority, then for the purposes of this Section 8.06
the combined capital and surplus of such corporation or association shall be
deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. In case at any time the Trustee shall cease to
be eligible in accordance with this Section 8.06, the Trustee shall resign
immediately in the manner and with the effect specified in Section 8.07. The
entity serving as Trustee may have normal banking and trust relationships with
the Depositor and its affiliates, the Master Servicer, the Securities
Administrator or the Servicers and their respective affiliates; provided,
however, that such entity cannot be an affiliate of the Depositor or a Servicer
other than the Trustee in its role as successor to the Master Servicer.

          Section 8.07 Resignation and Removal of the Trustee. The Trustee may
at any time resign and be discharged from the trusts hereby created by giving
written notice of resignation to the Depositor, the Master Servicer, the
Securities Administrator and each Rating Agency not less than 60 days before the
date specified in such notice, when, subject to Section 8.08, such resignation
is to take effect and acceptance by a successor trustee in accordance with
Section 8.08 meeting the qualifications set forth in Section 8.06. If no
successor trustee meeting such qualifications shall have been so appointed and
have accepted appointment within 30 days after the giving of such notice or
resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor trustee.

     If at any time the Trustee shall cease to be eligible in accordance with
Section 8.06 and shall fail to resign after written request thereto by the
Depositor, or if at any time the Trustee shall become incapable of acting, or
shall be adjudged as bankrupt or insolvent, or a receiver of the Trustee or of
its property shall be appointed, or any public officer shall take charge or
control of the Trustee or of its property or affairs for the purpose of
rehabilitation, conservation or liquidation, or a tax is imposed with respect to
the Trust Fund by any state in which the Trustee or the Trust Fund is located
and the imposition of such tax would be avoided by the appointment of a
different trustee, then the Depositor may remove the Trustee and, subject to the
approval of the Rating Agencies, appoint a successor trustee by written
instrument, one copy of which shall be delivered to the Trustee, one copy of
which shall be delivered to the Master Servicer, one copy of which shall be
delivered to each Servicer and one copy of which shall be delivered to the
successor trustee.

     The Holders of Certificates entitled to at least a majority of the Voting
Rights may at any time remove the Trustee and, subject to the approval of the
Rating Agencies, appoint a successor trustee by written instrument or
instruments, in triplicate, signed by such Holders or their attorneys-in-fact
duly authorized, one complete set of which shall be delivered by the successor
Trustee to each Servicer, one complete set to the Trustee so removed and one
complete set to the successor so appointed. The successor trustee shall notify
each Rating Agency of any removal of the Trustee.

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<PAGE>

     Any resignation or removal of the Trustee and appointment of a successor
trustee pursuant to this Section 8.07 shall become effective upon acceptance of
appointment by the successor trustee as provided in Section 8.08.

          Section 8.08 Successor Trustee. Any successor trustee appointed as
provided in Section 8.07 shall execute, acknowledge and deliver to the Depositor
and to its predecessor trustee and each Servicer an instrument accepting such
appointment hereunder and thereupon the resignation or removal of the
predecessor trustee shall become effective and such successor trustee, without
any further act, deed or conveyance, shall become fully vested with all the
rights, powers, duties and obligations of its predecessor hereunder, with like
effect as if originally named as trustee herein. The Depositor and the
predecessor trustee shall execute and deliver such instruments and do such other
things as may reasonably be required for more fully and certainly vesting and
confirming in the successor trustee all such rights, powers, duties, and
obligations.

     No successor trustee shall accept appointment as provided in this Section
8.08 unless at the time of its acceptance, the successor trustee is eligible
under Section 8.06 and its appointment does not adversely affect then the
current rating of the Certificates.

     Upon acceptance of appointment by a successor trustee as provided in this
Section 8.08, the Depositor shall mail notice of the succession of such trustee
hereunder to all Holders of Certificates. If the Depositor fails to mail such
notice within 10 days after acceptance of appointment by the successor trustee,
the successor trustee shall cause such notice to be mailed at the expense of the
Depositor.

          Section 8.09 Merger or Consolidation of the Trustee. Any corporation
into which the Trustee may be merged or converted or with which it may be
consolidated or any corporation resulting from any merger, conversion or
consolidation to which the Trustee shall be a party, or any corporation
succeeding to the business of the Trustee, shall be the successor of the Trustee
hereunder; provided, that such corporation shall be eligible under Section 8.06
without the execution or filing of any paper or further act on the part of any
of the parties hereto, anything herein to the contrary notwithstanding.

          Section 8.10 Appointment of Co-Trustee or Separate Trustee.
Notwithstanding any other provisions of this Agreement, at any time, for the
purpose of meeting any legal requirements of any jurisdiction in which any part
of the Trust Fund or property securing any Mortgage Note may at the time be
located, the Trustee shall have the power and shall execute and deliver all
instruments to appoint one or more Persons approved by the Trustee to act as
co-trustee or co-trustees jointly with the Trustee, or separate trustee or
separate trustees, of all or any part of the Trust Fund, and to vest in such
Person or Persons, in such capacity and for the benefit of the
Certificateholders, such title to the Trust Fund or any part thereof, whichever
is applicable, and, subject to the other provisions of this Section 8.10, such
powers, duties, obligations, rights and trusts as the Trustee may consider
appropriate. No co-trustee or separate trustee hereunder shall be required to
meet the terms of eligibility as a successor trustee under Section 8.06 and no
notice to Certificateholders of the appointment of any co-trustee or separate
trustee shall be required under Section 8.08.

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<PAGE>

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

          (a) To the extent necessary to effectuate the purposes of this Section
     8.10, all rights, powers, duties and obligations conferred or imposed upon
     the Trustee, except for the obligation of the Trustee (as successor master
     servicer) under this Agreement to advance funds on behalf of the Master
     Servicer, shall be conferred or imposed upon and exercised or performed by
     the Trustee and such separate trustee or co-trustee jointly (it being
     understood that such separate trustee or co-trustee is not authorized to
     act separately without the Trustee joining in such act), except to the
     extent that under any law of any jurisdiction in which any particular act
     or acts are to be performed (whether as Trustee hereunder or as successor
     to the Master Servicer hereunder), the Trustee shall be incompetent or
     unqualified to perform such act or acts, in which event such rights,
     powers, duties and obligations (including the holding of title to the
     applicable Trust Fund or any portion thereof in any such jurisdiction)
     shall be exercised and performed singly by such separate trustee or
     co-trustee, but solely at the direction of the Trustee;

          (b) No trustee hereunder shall be held personally liable because of
     any act or omission of any other trustee hereunder and such appointment
     shall not, and shall not be deemed to, constitute any such separate trustee
     or co-trustee as agent of the Trustee;

          (c) The Trustee may at any time accept the resignation of or remove
     any separate trustee or co-trustee; and

          (d) The Trust Fund, and not the Trustee, shall be liable for the
     payment of reasonable compensation, reimbursement and indemnification to
     any such separate trustee or co-trustee.

     Any notice, request or other writing given to the Trustee shall be deemed
to have been given to each of the separate trustees and co-trustees, when and as
effectively as if given to each of them. Every instrument appointing any
separate trustee or co-trustee shall refer to this Agreement and the conditions
of this Article VIII. Each separate trustee and co-trustee, upon its acceptance
of the trusts conferred, shall be vested with the estates or property specified
in its instrument of appointment, either jointly with the Trustee or separately,
as may be provided therein, subject to all the provisions of this Agreement,
specifically including every provision of this Agreement relating to the conduct
of, affecting the liability of, or affording protection and indemnity to, the
Trustee. Every such instrument shall be filed with the Trustee and a copy
thereof given to the Master Servicer and the Depositor.

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

          Section 8.11 [Reserved].

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<PAGE>

          Section 8.12 Commission Reporting. (a) The Securities Administrator
shall, in accordance with industry standards, prepare (for execution by the
Master Servicer) and file with the Commission, via EDGAR, the following reports
in respect of the Trust as and to the extent required under the Exchange Act:

          (i) (a) Within 15 days after each Distribution Date (subject to
     permitted extensions under the Exchange Act), the Securities Administrator
     shall prepare and file on behalf of the Trust any Form 10-D required by the
     Exchange Act, in form and substance as required by the Exchange Act. The
     Securities Administrator shall file each Form 10-D with a copy of the
     related Monthly Statement attached thereto. Any disclosure in addition to
     the Monthly Statement that is required to be included on Form 10-D
     ("Additional Form 10-D Disclosure") shall be reported by the parties set
     forth on Exhibit V to the Depositor and the Securities Administrator and
     directed and approved by the Depositor pursuant to the following paragraph
     and the Securities Administrator will have no duty or liability for the
     inaccuracy of any Additional 10 D Disclosure provided by any party other
     than the Securities Administrator, or for any failure hereunder to
     determine or prepare any Additional Form 10-D Disclosure, except to the
     extent of its obligations set forth in the next paragraph.

               (b) As set forth on Exhibit V hereto, within 5 calendar days
          after the related Distribution Date, (i) the parties specified in
          Exhibit V hereto, shall be required to provide to the Securities
          Administrator and to the Depositor, to the extent known, in
          EDGAR-compatible format, or in such other format as agreed upon by the
          Securities Administrator and such party, the form and substance of any
          Additional Form 10-D Disclosure, if applicable, together with an
          Additional Disclosure Notification, and (ii) the Depositor will
          approve, as to form and substance, or disapprove, as the case may be,
          the inclusion of the Additional Form 10-D Disclosure on Form 10-D. The
          Securities Administrator has no duty under this Agreement to monitor
          or enforce the performance by the parties listed on Exhibit V of their
          duties under this paragraph or proactively solicit or procure from
          such parties any Additional Form 10-D Disclosure information. The
          Depositor shall be responsible for any reasonable fees and expenses
          assessed or incurred by the Securities Administrator in connection
          with including any Additional Form 10-D Disclosure on Form 10-D
          pursuant to this paragraph.

               (c) After preparing the Form 10-D, the Securities Administrator
          shall, upon request, forward electronically a copy of the Form 10-D to
          the Depositor (provided that such Form 10-D includes any Additional
          Form 10-D Disclosure). Within two Business Days after receipt of such
          copy, but no later than the 12th calendar day after the Distribution
          Date, the Depositor shall notify the Securities Administrator in
          writing (which may be furnished electronically) of any changes to or
          approval of such Form 10-D. In the absence of receipt of any written
          changes or approval, or if the Depositor does not request a copy of a
          Form 10-D, the Securities Administrator shall be entitled to assume
          that such Form 10-D is in final form and the Securities Administrator
          may proceed with the process for execution and filing of the Form
          10-D. A duly authorized representative of the Master Servicer shall
          sign each Form 10-D. If a Form 10-D cannot be filed on

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<PAGE>

          time or if a previously filed Form 10-D needs to be amended, the
          Securities Administrator will follow the procedures set forth in
          paragraph (d) of this Section 8.12. Each party to this Agreement
          acknowledges that the performance by each of the Master Servicer and
          the Securities Administrator of its duties under this Section
          8.12(a)(i) related to the timely preparation, execution and filing of
          Form 10-D is contingent upon such parties strictly observing all
          applicable deadlines in the performance of their duties under this
          Section 8.12(a)(i). The Depositor acknowledges that the performance by
          each of the Master Servicer and the Securities Administrator of its
          duties under this Section 8.12(i) related to the timely preparation,
          execution and filing of Form 10-D is also contingent upon any
          Servicing Function Participant strictly observing deadlines no later
          than those set forth in this paragraph that are applicable to the
          parties to this Agreement in the delivery to the Securities
          Administrator of any necessary Additional Form 10-D Disclosure
          pursuant to any applicable agreement. Neither the Master Servicer nor
          the Securities Administrator shall have any liability for any loss,
          expense, damage, claim arising out of or with respect to any failure
          to properly prepare, execute and/or timely file such Form 10-D, where
          such failure results from the Securities Administrator's inability or
          failure to receive, on a timely basis, any information from any other
          party hereto or any Servicing Function Participant needed to prepare,
          arrange for execution or file such Form 10-D, not resulting from its
          own negligence, bad faith or willful misconduct.

               (d) Form 10-D requires the registrant to indicate (by checking
          "yes" or "no") that it "(1) has filed all reports required to be filed
          by Section 13 or 15(d) of the Exchange Act during the preceding 12
          months (or for such shorter period that the registrant was required to
          file such reports), and (2) has been subject to such filing
          requirements for the past 90 days." The Depositor hereby instructs the
          Administrator to check "Yes" for each item, unless the Depositor shall
          notify the Securities Administrator in writing, no later than the
          fifth calendar day after the related Distribution Date with respect to
          the filing of a report on Form 10-D, that the answer to either item
          should be "no." The Depositor has filed all reports required to be
          filed by Section 13 or 15(d) of the Exchange Act during the preceding
          12 months (or for such shorter period that the Depositor was required
          to file such reports) and it has been subject to such filing
          requirement for the past 90 days." The Securities Administrator shall
          be entitled to rely on such representations in preparing, executing
          and/or filing any such Form 10-D.

          (ii) (a) On or prior to the 90th day after the end of each fiscal year
     of the Trust or such earlier date as may be required by the Exchange Act
     (the "10-K Filing Deadline") (it being understood that the fiscal year for
     the Trust ends on December 31st of each year), for so long as the Depositor
     is required to file reports with respect to the Trust under the Exchange
     Act, commencing in March 2008, the Securities Administrator shall prepare
     (for execution by the Master Servicer) and file on behalf of the Trust a
     Form 10-K, in form and substance as required by the Exchange Act. Each such
     Form 10-K shall include the following items, in each case to the extent
     they have been delivered to the Securities Administrator within the
     applicable time frames set forth in this Agreement or the Servicing
     Agreements, (i) an annual compliance statement for each Servicer and the

                                      -88-

<PAGE>

     Master Servicer and any Servicing Function Participant engaged by any such
     party (together with the Custodian and the Securities Administrator, each a
     "Reporting Servicer") as described under Section 3.05(b), (ii)(A) the
     annual reports on assessment of compliance with Servicing Criteria for each
     Reporting Servicer, as described under Section 3.03, and (B) if any
     Reporting Servicer's report on assessment of compliance with Servicing
     Criteria described under Section 3.03 identifies any material instance of
     noncompliance, disclosure identifying such instance of noncompliance, or if
     any Reporting Servicer's report on assessment of compliance with Servicing
     Criteria described under Section 3.03 is not included as an exhibit to such
     Form 10-K, disclosure that such report is not included and an explanation
     why such report is not included, provided, however, that the Securities
     Administrator, at its discretion, may omit from the Form 10-K any
     assessment of compliance or attestation report described in clause (iii)
     below that is not required to be filed with such Form 10-K pursuant to
     Regulation AB; (iii)(A) the registered public accounting firm attestation
     report for each Reporting Servicer, as described under Section 3.04, and
     (B) if any registered public accounting firm attestation report described
     under Section 3.04 identifies any material instance of noncompliance,
     disclosure identifying such instance of noncompliance, or if any such
     registered public accounting firm attestation report is not included as an
     exhibit to such Form 10-K, disclosure that such report is not included and
     an explanation why such report is not included, and (iv) a Sarbanes-Oxley
     Certification as described in Section 3.05. Any disclosure or information
     in addition to (i) through (iv) above that is required to be included on
     Form 10-K ("Additional Form 10-K Disclosure") shall be reported by the
     parties set forth on Exhibit W to the Depositor and the Securities
     Administrator and directed and approved by the Depositor pursuant to the
     following paragraph and the Securities Administrator will have no duty or
     liability for any failure hereunder to determine or prepare any Additional
     Form 10-K Disclosure, except to the extent of its obligations set forth in
     the next paragraph.

               (b) As set forth on Exhibit W hereto, no later than March 10
          (with a 5 calendar day cure period, but in no event later than March
          15) of each year that the Trust is subject to the Exchange Act
          reporting requirements, commencing in 2008, (i) the parties specified
          on Exhibit W shall be required to provide to the Securities
          Administrator and to the Depositor, to the extent known, in
          EDGAR-compatible format, or in such other format as agreed upon by the
          Securities Administrator and such party, the form and substance of any
          Additional Form 10-K Disclosure, if applicable, together with an
          Additional Disclosure Notification, and (ii) the Depositor will
          approve, as to form and substance, or disapprove, as the case may be,
          the inclusion of the Additional Form 10-K Disclosure on Form 10-K. The
          Securities Administrator has no duty under this Agreement to monitor
          or enforce the performance by the parties listed on Exhibit W of their
          duties under this paragraph or proactively solicit or procure from
          such parties any Additional Form 10-K Disclosure information. The
          Depositor will be responsible for any reasonable fees and expenses
          assessed or incurred by the Securities Administrator in connection
          with including any Additional Form 10-K Disclosure on Form 10-K
          pursuant to this Section 8.12(a)(ii)(B).

                                      -89-

<PAGE>

               (c) After preparing the Form 10-K, the Securities Administrator
          shall, upon request, forward electronically a copy of the Form 10-K to
          the Depositor. Within three Business Days after receipt of such copy,
          but no later than March 25th, the Depositor shall notify the
          Securities Administrator in writing (which may be furnished
          electronically) of any changes to or approval of such Form 10-K. In
          the absence of receipt of any written changes or approval, or if the
          Depositor does not request a copy of a Form 10-K, the Securities
          Administrator shall be entitled to assume that such Form 10-K is in
          final form and the Securities Administrator may proceed with the
          process for execution and filing of the Form 10-K. A senior officer of
          the Master Servicer in charge of the master servicing function shall
          sign the Form 10-K. If a Form 10-K cannot be filed on time or if a
          previously filed Form 10-K needs to be amended, the Securities
          Administrator will follow the procedures set forth in paragraph (d) of
          this Section 8.12. Promptly (but no later than one Business Day) after
          filing with the Commission, the Securities Administrator will make
          available on its internet website a final executed copy of each Form
          10-K prepared and filed by the Securities Administrator. The parties
          to this Agreement acknowledge that the performance by the Securities
          Administrator of its duties under this Section 8.12(a)(ii) related to
          the timely preparation, execution and filing of Form 10-K is
          contingent upon such parties strictly observing all applicable
          deadlines in the performance of their duties under this Section
          8.12(a)(ii) and Sections 3.03, 3.04 and 3.05. The Depositor
          acknowledges that the performance by the Master Servicer and the
          Securities Administrator of its duties under this Section 8.12(ii)
          related to the timely preparation, execution and filing of Form 10-K
          is also contingent upon any Servicing Function Participant strictly
          observing deadlines no later than those set forth in this paragraph
          that are applicable to the parties to this Agreement in the delivery
          to the Securities Administrator of any necessary Additional Form 10-K
          Disclosure, any annual statement of compliance and any assessment of
          compliance and attestation pursuant to any applicable agreement.
          Neither the Master Servicer nor the Securities Administrator shall
          have any liability for any loss, expense, damage, claim arising out of
          or with respect to any failure to properly prepare, execute and/or
          timely file such Form 10-K, where such failure results from the
          Securities Administrator's inability or failure to obtain or receive,
          on a timely basis, any information from any other party hereto or any
          Servicing Function Participant needed to prepare, arrange for
          execution or file such Form 10-K, not resulting from its own
          negligence, bad faith or willful misconduct.

               (d) Form 10-K requires the registrant to indicate (by checking
          "yes" or "no") that it "(1) has filed all reports required to be filed
          by Section 13 or 15(d) of the Exchange Act during the preceding 12
          months (or for such shorter period that the registrant was required to
          file such reports), and (2) has been subject to such filing
          requirement for the past 90 days." The Depositor hereby instructs the
          Securities Administrator to check "Yes" for each item, unless the
          Depositor shall notify the Securities Administrator in writing, no
          later than the 15th calendar day of March in any year in which the
          Trust is subject to the reporting requirements of the Exchange Act,
          that the answer to either item should be "no." The Depositor has filed
          all reports required to be filed by Section 13 or 15(d) of the
          Exchange

                                      -90-

<PAGE>

          Act during the preceding 12 months (or for such shorter period that
          the Depositor was required to file such reports) and it has been
          subject to such filing requirement for the past 90 days." The
          Securities Administrator shall be entitled to rely on such
          representations in preparing, executing and/or filing any such Form
          10-K.

          (iii) (a) Within four (4) Business Days after the occurrence of an
     event requiring disclosure on Form 8-K (each such event, a "Reportable
     Event"), if directed by the Depositor, the Securities Administrator shall
     prepare and file on behalf of the Trust Fund any Form 8-K, as required by
     the Exchange Act, provided that the Depositor shall file the initial Form
     8-K in connection with the issuance of the Certificates. Any disclosure or
     information related to a Reportable Event or that is otherwise required to
     be included on Form 8-K ("Form 8-K Disclosure Information") shall be
     reported by the parties set forth on Exhibit X to the Depositor and the
     Securities Administrator and directed and approved by the Depositor
     pursuant to the following paragraph and the Securities Administrator will
     have no duty or liability for any failure hereunder to determine or prepare
     any Form 8-K Disclosure Information or any Form 8-K, except to the extent
     of its obligations set forth in the next paragraph.

               (b) As set forth on Exhibit X hereto, for so long as the Trust is
          subject to the Exchange Act reporting requirements, no later than the
          close of business New York City time on the 2nd Business Day after the
          occurrence of a Reportable Event (i) the parties hereto shall be
          required to provide to the Securities Administrator and the Depositor,
          to the extent known, in EDGAR-compatible format, or in such other
          format as agreed upon by the Securities Administrator and such party,
          the form and substance of any Form 8-K Disclosure Information, if
          applicable, together with an Additional Disclosure Notification, and
          (ii) the Depositor will approve, as to form and substance, or
          disapprove, as the case may be, the inclusion of the Form 8-K
          Disclosure Information. The Depositor will be responsible for any
          reasonable fees and expenses assessed or incurred by the Securities
          Administrator in connection with including any Form 8-K Disclosure
          Information on Form 8-K pursuant to this paragraph.

               (c) After preparing the Form 8-K, the Securities Administrator
          shall, upon request, forward electronically a copy of the Form 8-K to
          the Depositor. Promptly, but no later than the close of business on
          the third Business Day after the Reportable Event, the Depositor shall
          notify the Securities Administrator in writing (which may be furnished
          electronically) of any changes to or approval of such Form 8-K. In the
          absence of receipt of any written changes or approval, or if the
          Depositor does not request a copy of a Form 8-K, the Securities
          Administrator shall be entitled to assume that such Form 8-K is in
          final form and the Securities Administrator may proceed with the
          process for execution and filing of the Form 8-K. A duly authorized
          representative of the Master Servicer shall sign each Form 8-K. If a
          Form 8-K cannot be filed on time or if a previously filed Form 8-K
          needs to be amended, the Securities Administrator will follow the
          procedures set forth in paragraph (d) of this Section 8.12. The
          parties to this Agreement acknowledge that the performance by the
          Securities Administrator of its duties

                                      -91-

<PAGE>

          under this Section 8.12(d)(iii) related to the timely preparation,
          execution and filing of Form 8-K is contingent upon such parties
          strictly observing all applicable deadlines in the performance of
          their duties under this Section 8.12(D)(iii). The Depositor
          acknowledges that the performance by the Master Servicer and the
          Securities Administrator of its duties under this Section 8.12(D)(iii)
          related to the timely preparation, execution and filing of Form 8-K is
          also contingent upon any Servicing Function Participant strictly
          observing deadlines no later than those set forth in this paragraph
          that are applicable to the parties to this Agreement in the delivery
          to the Securities Administrator of any necessary Form 8-K Disclosure
          Information pursuant to the related any applicable agreement. The
          Securities Administrator shall have no liability for any loss,
          expense, damage, claim arising out of or with respect to any failure
          to properly prepare and/or timely file such Form 8-K, where such
          failure results from the Securities Administrator's inability or
          failure to obtain or receive, on a timely basis, any information from
          any other party hereto or any Servicing Function Participant needed to
          prepare, arrange for execution or file such Form 8-K, not resulting
          from its own negligence, bad faith or willful misconduct.

          (b) The Depositor acknowledges and agrees that the Securities
Administrator may include in any Exchange Act report all relevant information,
data, and exhibits as the Securities Administrator may receive in connection
with such report irrespective of any provision or Regulation AB that may permit
the exclusion of such material. By the way of example, the Securities
Administrator may file all assessments of compliance, attestation reports and
compliance statements timely received from any Item 1122 Servicing Function
Participant irrespective of any applicable minimum pool asset percentage
requirement for disclosure related to such Servicing Function Participant.

          (c) The Depositor agrees to furnish promptly to the Securities
Administrator, from time to time upon request, such additional information,
data, reports, documents, and financial statements within the Depositor's
possession or control as the Securities Administrator reasonably requests as
necessary or appropriate to prepare and file the foregoing reports. The
Securities Administrator shall make available to the Depositor copies of all
Exchange Act reports filed hereunder.

          (d) (i) On or before January 30 of the first year in which the
Securities Administrator is able to do so under applicable law, the Securities
Administrator shall prepare and file a Form 15 relating to the automatic
suspension of reporting in respect of the Trust under the Exchange Act.

          (ii) In the event that the Securities Administrator is unable to
     timely file with the Commission all or any required portion of any Form
     8-K, 10-D or 10-K required to be filed by this Agreement because required
     disclosure information was either not delivered to it or delivered to it
     after the delivery deadlines set forth in this Agreement or for any other
     reason, the Securities Administrator will promptly notify electronically
     the Depositor. In the case of Form 10-D and 10-K, the parties to this
     Agreement will cooperate to prepare and file a Form 12b-25 and a 10-DA and
     10-KA as applicable, pursuant to Rule 12b-25 of the Exchange Act. In the
     case of Form 8-K, the Securities

                                      -92-

<PAGE>

     Administrator will, upon receipt of all required Form 8-K Disclosure
     Information and upon the approval and direction of the Depositor, include
     such disclosure information on the next Form 10-D. In the event that any
     previously filed Form 8-K, 10-D or 10-K needs to be amended in connection
     with any Additional Form 10-D Disclosure (other than, in the case of Form
     10-D, for the purpose of restating any Monthly Statement), Additional Form
     10-K Disclosure or Form 8-K Disclosure Information, the Securities
     Administrator will notify electronically the Depositor and such other
     parties to this Agreement as are affected by this Amendment and such
     parties will cooperate to prepare any necessary 8-KA, 10-DA or 10-KA. Any
     Form 15, Form 12b-25 or any amendment to Form 8-K, 10-D or 10-K shall be
     signed by a duly authorized representative or senior officer in charge of
     master servicing, as applicable, of the Master Servicer. The parties to
     this Agreement acknowledge that the performance by each of the Master
     Servicer and the Securities Administrator of its duties under this Section
     8.12(d) related to the timely preparation, execution and filing of Form 15,
     a Form 12b-25 or any amendment to Form 8-K, 10-D or 10-K is contingent upon
     each such party performing its duties under this Section. Neither the
     Master Servicer nor the Securities Administrator shall have any liability
     for any loss, expense, damage, claim arising out of or with respect to any
     failure to properly prepare, execute and/or timely file any such Form 15,
     Form 12b-25 or any amendments to Forms 8-K, 10-D or 10-K, where such
     failure results from the Securities Administrator's inability or failure to
     obtain or receive, on a timely basis, any information from any other party
     hereto or any Servicing Function Participant needed to prepare, arrange for
     execution or file such Form 15, Form 12b-25 or any amendments to Forms 8-K,
     10-D or 10-K, not resulting from its own negligence, bad faith or willful
     misconduct. The Depositor shall be responsible for all costs and expenses
     of the Securities Administrator related to the preparation and filing of
     any such amendment. Notwithstanding the foregoing, if any Form 10-D needs
     to be amended solely to change the information contained in the Monthly
     Statement, the Securities Administrator shall not be required to notify the
     Depositor of such amendment.

          (e) Other than the Exchange Act reports specified above, the
Securities Administrator shall have no responsibility to file any items or
reports with the Commission under the Exchange Act or otherwise; provided,
however, the Securities Administrator and Master Servicer will cooperate with
the Depositor in connection with any additional filings with respect to the
Trust as the Depositor deems necessary under the Exchange Act.

          (f) The Depositor shall pay all costs and expenses of the Securities
Administrator related to the preparation and filing of any current report on
Form 8-K, any periodic report on Form 10-D (other than the costs and expense of
the Securities Administrator associated with the preparation and filing of the
Monthly Statement), or any amendment to any Exchange Act report. Except as
otherwise provided herein, all expenses incurred by the Securities Administrator
in connection with its preparation and filing of Exchange Act reports hereunder
shall not be reimbursable from the Trust.

          (g) Any notice required under this Section 8.12 may be given by
facsimile or by electronic mail.

                                      -93-
<PAGE>

                                   ARTICLE IX

                      ADMINISTRATION OF THE MORTGAGE LOANS
                             BY THE MASTER SERVICER

          Section 9.01 Duties of the Master Servicer; Enforcement of each
Servicer's Obligations. (a) The Master Servicer, on behalf of the Trustee, the
Securities Administrator, the Depositor and the Certificateholders, shall
monitor the performance of the obligations of each Servicer under their
respective Servicing Agreements, and (except as set forth below) shall use its
reasonable good faith efforts to cause each Servicer to duly and punctually
perform its duties and obligations under its respective Servicing Agreement.
Upon the occurrence of an Event of Default of which a Responsible Officer of the
Master Servicer or, if the Master Servicer and the applicable Servicer are the
same entity, the Trustee, has actual knowledge, the Master Servicer or the
Trustee, as applicable, shall promptly notify the Securities Administrator and
the Trustee, as applicable, and shall specify in such notice the action, if any,
the Master Servicer or the Trustee, as applicable, plans to take in respect of
such default. So long as an Event of Default shall occur and be continuing, the
Master Servicer or the Trustee, as applicable, shall take the actions specified
in Article VII.

     If (i) a Servicer reports a delinquency on a monthly report and (ii) such
Servicer, by 11 a.m. (New York Time) on the related Remittance Date, neither
makes an Advance nor provides the Securities Administrator, the Master Servicer
and the Trustee with an Officer's Certificate certifying that such an Advance
would be a Nonrecoverable P&I Advance or Nonrecoverable Servicing Advance, then
the Master Servicer or, if the Master Servicer and such Servicer are the same
entity, the Trustee, shall deposit in the Distribution Account not later than
the Business Day immediately preceding the related Distribution Date an Advance
in an amount equal to the difference between (x) with respect to each Monthly
Payment due on a Mortgage Loan that is delinquent (other than Relief Act
Interest Shortfalls) and for which the related Servicer was required to make an
Advance pursuant to the related Servicing Agreement and (y) amounts deposited in
the related Collection Account to be used for Advances with respect to such
Mortgage Loan, except to the extent the Master Servicer or the Trustee, as
applicable, determines any such Advance to be a Nonrecoverable P&I Advance or
Nonrecoverable Servicing Advance. Subject to the foregoing and Section 7.01, the
Master Servicer or the Trustee, as applicable, shall continue to make such
Advances for so long as the applicable Servicer is required to do so under its
respective Servicing Agreement. If applicable, on the Business Day immediately
preceding the Distribution Date, the Master Servicer shall deliver an Officer's
Certificate to the Trustee stating that the Master Servicer elects not to make
an Advance in a stated amount and detailing the reason(s) it deems the Advance
to be a Nonrecoverable P&I Advance or Nonrecoverable Servicing Advance. Any
amounts deposited by the Master Servicer or the Trustee, as applicable, pursuant
to this Section 9.01 shall be net of the Servicing Fee for the related Mortgage
Loans.

          (b) The Master Servicer or the Trustee (as successor master servicer),
as applicable, shall pay the costs of monitoring the Servicers (including costs
associated with (i) termination of any Servicer, (ii) the appointment of a
successor servicer or (iii) the transfer to and assumption of the servicing by
the Master Servicer or the Trustee, as applicable) and shall, to the extent
permitted under the related Servicing Agreement, seek reimbursement therefor
initially from the terminated Servicer. In the event the full costs associated
with the transition of

                                      -94-

<PAGE>

servicing responsibilities to the Master Servicer or the Trustee (as successor
master servicer), as applicable, are not paid for by the predecessor or
successor servicer (provided such successor servicer is not the Master Servicer
or the Trustee (as successor master servicer)), the Master Servicer or the
Trustee, as applicable, may be reimbursed therefor by the Trust for all costs
incurred by the Master Servicer or the Trustee (as successor master servicer),
as applicable, associated with any such transfer of servicing duties from the
applicable Servicer to the Master Servicer or the Trustee, as applicable, or any
other successor servicer.

          (c) If the Master Servicer or the Trustee (as successor master
servicer), as applicable, assumes the servicing with respect to any of the
Mortgage Loans, it will not assume liability for the representations and
warranties of the applicable Servicer it replaces or for any errors or omissions
of such Servicer.

          (d) Neither the Depositor nor the Securities Administrator shall
consent to the assignment by any Servicer of such Servicer's rights and
obligations under that Servicer's Servicing Agreement without the prior written
consent of the Master Servicer and the Trustee, which consent shall not be
unreasonably withheld.

          Section 9.02 Provision to the Securities Administrator of Loan-Level
Information. Not later than three Business Days preceding each Distribution
Date, the Master Servicer shall deliver to Securities Administrator, in a format
mutually agreed upon by the Master Servicer and Securities Administrator, "loan
level' information with respect to the Mortgage Loans as of the related
Determination date, to the extent that such information has been provided to the
Master Servicer by the Servicers.

          Section 9.03 [Reserved].

          Section 9.04 Maintenance of Fidelity Bond and Errors and Omissions
Insurance. The Master Servicer, at its expense, shall maintain in effect a
blanket fidelity bond and an errors and omissions insurance policy, affording
coverage with respect to all directors, officers, directors, employees and other
Persons acting on such Master Servicer's behalf, and covering errors and
omissions in the performance of the Master Servicer's obligations hereunder. The
errors and omissions insurance policy and the fidelity bond shall be in such
form and amount generally acceptable for entities serving as master servicers or
trustees.

          Section 9.05 Representations and Warranties of the Master Servicer.
(a) The Master Servicer hereby represents and warrants to the Depositor, the
Securities Administrator and the Trustee, for the benefit of the
Certificateholders, as of the Closing Date that:

          (i) it is a New York corporation, duly organized existing and in good
     standing under the laws of the State of New York, with corporate power and
     authority to conduct its business as presently conducted by it, and to
     enter into, execute and deliver and to perform its obligations as Master
     Servicer under this Agreement;

          (ii) the execution and delivery of this Agreement by the Master
     Servicer and its performance and compliance with the terms of this
     Agreement will not (A) violate the Master Servicer's charter or bylaws, (B)
     violate any law or regulation or any administrative decree or order to
     which it is subject or (C) constitute a default (or an

                                      -95-

<PAGE>

     event which, with notice or lapse of time, or both, would constitute a
     default) under, or result in the breach of, any material contract,
     agreement or other instrument to which the Master Servicer is a party or by
     which it is bound or to which any of its assets are subject, which
     violation, default or breach would materially and adversely affect the
     Master Servicer's ability to perform its obligations under this Agreement;

          (iii) this Agreement constitutes, assuming due authorization,
     execution and delivery hereof by the other respective parties hereto, a
     legal, valid and binding obligation of the Master Servicer, enforceable
     against it in accordance with the terms hereof, except as such enforcement
     may be limited by bankruptcy, insolvency, reorganization, moratorium and
     other laws affecting the enforcement of creditors' rights in general, and
     by general equity principles (regardless of whether such enforcement is
     considered in a proceeding in equity or at law);

          (iv) the Master Servicer is not in default with respect to any order
     or decree of any court or any order or regulation of any federal, state,
     municipal or governmental agency to the extent that any such default would
     materially and adversely affect its performance hereunder;

          (v) the Master Servicer is not a party to or bound by any agreement or
     instrument or subject to any charter provision, bylaw or any other
     corporate restriction or any judgment, order, writ, injunction, decree, law
     or regulation that may materially and adversely affect its ability as
     Master Servicer to perform its obligations under this Agreement or that
     requires the consent of any third person to the execution of this Agreement
     or the performance by the Master Servicer of its obligations under this
     Agreement;

          (vi) no litigation is pending or, to the best of the Master Servicer's
     knowledge, threatened against the Master Servicer which would prohibit its
     entering into this Agreement or performing its obligations under this
     Agreement;

          (vii) no consent, approval, authorization or order of any court or
     governmental agency or body is required for the execution, delivery and
     performance by the Master Servicer of or compliance by the Master Servicer
     with this Agreement or the consummation of the transactions contemplated by
     this Agreement, except for such consents, approvals, authorizations and
     orders (if any) as have been obtained; and

          (viii) the consummation of the transactions contemplated by this
     Agreement are in the ordinary course of business of the Master Servicer.

          (b) It is understood and agreed that the representations and
warranties set forth in this Section shall survive the execution and delivery of
this Agreement. The Master Servicer shall indemnify the Depositor, the
Securities Administrator, the Trustee and the Trust and hold them harmless
against any loss, damages, penalties, fines, forfeitures, reasonable legal fees
and related costs, judgments, and other reasonable costs and expenses resulting
from any claim, demand, defense or assertion based on or grounded upon, or
resulting from, a material breach of the Master Servicer's representations and
warranties contained in Section 9.05(a)

                                      -96-

<PAGE>

above. It is understood and agreed that the enforcement of the obligation of the
Master Servicer set forth in this Section 9.05 to indemnify the Depositor,
Securities Administrator, the Trustee and the Trust constitutes the sole remedy
of the Depositor and the Trustee, respecting a breach of the foregoing
representations and warranties. Such indemnification shall survive any
termination of the Master Servicer as Master Servicer hereunder, any termination
of this Agreement and resignation or removal of the Trustee.

     Any cause of action against the Master Servicer relating to or arising out
of the breach of any representations and warranties made in this Section 9.05
shall accrue upon discovery of such breach by either the Depositor, the Master
Servicer, the Securities Administrator or the Trustee or notice thereof by any
one of such parties to the other parties.

          Section 9.06 Master Servicer Events of Default. Each of the following
shall constitute a "Master Servicer Event of Default":

          (a) any failure by the Master Servicer to make any P&I Advance
     required to be made by the Master Servicer under the terms of this
     Agreement which continues unremedied for a period of two (2) Business Days
     after the date upon which written notice of such failure, requiring the
     same to be remedied, shall have been given to the Master Servicer by any
     other party hereto;

          (b) failure by the Master Servicer to duly observe or perform, in any
     material respect, any other covenants, obligations or agreements of the
     Master Servicer as set forth in this Agreement which failure continues
     unremedied for a period of thirty (30) days after the date on which written
     notice of such failure, requiring the same to be remedied, shall have been
     given to the Master Servicer by the Trustee or to the Master Servicer and
     Trustee by the holders of Certificates evidencing at least 25.00% of the
     Voting Rights;

          (c) a decree or order of a court or agency or supervisory authority
     having jurisdiction for the appointment of a conservator or receiver or
     liquidator in any insolvency, bankruptcy, readjustment of debt, marshaling
     of assets and liabilities or similar proceedings, or for the winding-up or
     liquidation of its affairs, shall have been entered against the Master
     Servicer and such decree or order shall have remained in force,
     undischarged or unstayed for a period of sixty (60) days;

          (d) the Master Servicer shall consent to the appointment of a
     conservator or receiver or liquidator in any insolvency, bankruptcy,
     readjustment of debt, marshaling of assets and liabilities or similar
     proceedings of or relating to the Master Servicer or relating to all or
     substantially all of its property;

          (e) the Master Servicer shall admit in writing its inability to pay
     its debts as they become due, file a petition to take advantage of any
     applicable insolvency or reorganization statute, make an assignment for the
     benefit of its creditors, or voluntarily suspend payment of its obligations
     for three (3) Business Days;

          (f) Except as otherwise set forth herein, the Master Servicer attempts
     to assign this Agreement or its responsibilities hereunder or to delegate
     its duties hereunder

                                      -97-

<PAGE>

     (or any portion thereof) without the consent of the Securities
     Administrator and the Depositor;

          (g) the indictment of the Master Servicer for the taking of any action
     by the Master Servicer, any Affiliate or any director or employee thereof
     that constitutes fraud or criminal activity in the performance of its
     obligations under this Agreement, in each case, where such indictment
     materially and adversely affects the ability of the Master Servicer to
     perform its obligations under this Agreement (subject to the condition that
     such indictment is not dismissed within ninety (90) days);

          (h) After receipt of notice from the Securities Administrator, any
     failure of the Master Servicer to remit to the Securities Administrator any
     payment required to be made to the Securities Administrator for the benefit
     of Certificateholders under the terms of this Agreement, including any
     Advance, on any Master Servicer Remittance Date which such failure
     continues unremedied for a period of one Business Day after the date upon
     which notice of such failure shall have been given to the Master Servicer
     by the Securities Administrator; or

          (i) failure of the Master Servicer to timely provide the Depositor
     with the assessment, attestation and annual statement of compliance
     required by Item 1122 of Regulation AB in accordance with Sections 3.03,
     3.04 and 3.05.

     In each and every such case, so long as a Master Servicer Event of Default
shall not have been remedied, in addition to whatever rights the Trustee may
have at law or equity or to damages, including injunctive relief and specific
performance, the Trustee, by notice in writing to the Master Servicer, may, and
upon the request of the Holders of Certificates representing at least 51.00% of
the Voting Rights shall, terminate with cause all the rights and obligations of
the Master Servicer under this Agreement.

     Upon receipt by the Master Servicer of such written notice, all authority
and power of the Master Servicer under this Agreement, shall pass to and be
vested in any successor master servicer appointed hereunder which accepts such
appointments. Upon written request from the Trustee or the Depositor, the Master
Servicer shall prepare, execute and deliver to the successor entity designated
by the Trustee any and all documents and other instruments related to the
performance of its duties hereunder as the Master Servicer and, place in such
successor's possession all such documents with respect to the master servicing
of the Mortgage Loans and do or cause to be done all other acts or things
necessary or appropriate to effect the purposes of such notice of termination,
at the Master Servicer's sole expense. The Master Servicer shall cooperate with
the Trustee and such successor master servicer in effecting the termination of
the Master Servicer's responsibilities and rights hereunder, including without
limitation, the transfer to such successor master servicer for administration by
it of all cash amounts which shall at the time be credited to the Master
Servicing Account or are thereafter received with respect to the Mortgage Loans.

          Section 9.07 Waiver of Default. By a written notice, the Trustee may
at the direction of Holders of Certificates evidencing at least 51.00% of the
Voting Rights waive any default by the Master Servicer in the performance of its
obligations hereunder and its

                                      -98-

<PAGE>

consequences. Upon any waiver of a past default, such default shall cease to
exist, and any Master Servicer Event of Default arising therefrom shall be
deemed to have been remedied for every purpose of this Agreement. No such waiver
shall extend to any subsequent or other default or impair any right consequent
thereon except to the extent expressly so waived.

          Section 9.08 Successor to the Master Servicer. Upon termination of the
Master Servicer's responsibilities and duties under this Agreement, the
Depositor shall use its reasonable good faith efforts to appoint a successor,
which shall succeed to all rights and assume all of the responsibilities, duties
and liabilities of the Master Servicer under this Agreement prior to the
termination of the Master Servicer. Any successor shall be a Fannie Mae and
Freddie Mac approved servicer in good standing and acceptable to the Depositor
and the Rating Agencies. In connection with such appointment and assumption, the
Depositor may make such arrangements for the compensation of such successor as
it and such successor shall agree; provided, however, that in no event shall the
master servicing fee paid to such successor master servicer be in excess of the
prevailing market rate at the time that the successor master servicer is
appointed. In the event that the Master Servicer's duties, responsibilities and
liabilities under this Agreement are terminated, the Master Servicer shall
continue to discharge its duties and responsibilities hereunder until the
effective date of such termination with the same degree of diligence and
prudence which it is obligated to exercise under this Agreement and shall take
no action whatsoever that might impair or prejudice the rights of its successor.
The termination of the Master Servicer shall not become effective until a
successor shall be appointed pursuant hereto and shall in no event (i) relieve
the Master Servicer of responsibility for the representations and warranties
made pursuant to Section 9.05(a) hereof and the remedies available to the
Trustee under Section 9.05(b) hereof, it being understood and agreed that the
provisions of Section 9.05 hereof shall be applicable to the Master Servicer
notwithstanding any such sale, assignment, resignation or termination of the
Master Servicer or the termination of this Agreement; or (ii) affect the right
of the Master Servicer to receive payment and/or reimbursement of any amounts
accruing to it hereunder prior to the date of termination (or during any
transition period in which the Master Servicer continues to perform its duties
hereunder prior to the date the successor master servicer fully assumes its
duties).

     If no successor master servicer has accepted its appointment within 90 days
of the time the Trustee receives the resignation of the Master Servicer, the
Trustee shall be the successor master servicer in all respects under this
Agreement and shall have all the rights and powers and be subject to all the
responsibilities, duties and liabilities relating thereto, including the
obligation to make Advances; provided, however, that any failure to perform any
duties or responsibilities caused by the Master Servicer's failure to provide
information required by this Agreement shall not be considered a default by the
Trustee hereunder. In the Trustee's capacity as such successor, the Trustee
shall have the same limitations on liability herein granted to the Master
Servicer. Notwithstanding anything herein to the contrary, the Trustee in its
role as successor master servicer shall have no obligation to monitor or
supervise any Servicer, shall only have the obligation to make Advances if it
terminates the Servicer pursuant to an Event of Default (in its role as
successor master servicer), and shall make such Advances only pursuant to
Section 7.01. As compensation therefor, the Trustee shall be entitled to receive
the compensation, reimbursement and indemnities otherwise payable to the Master
Servicer.

                                      -99-

<PAGE>

     Any successor master servicer appointed as provided herein, shall execute,
acknowledge and deliver to the Master Servicer, the Depositor and to the Trustee
an instrument accepting such appointment, wherein the successor shall make the
representations and warranties set forth in Section 9.05 hereof, and whereupon
such successor shall become fully vested with all of the rights, powers, duties,
responsibilities, obligations and liabilities of the Master Servicer, with like
effect as if originally named as a party to this Agreement. Any termination or
resignation of the Master Servicer or termination of this Agreement shall not
affect any claims that the Trustee may have against the Master Servicer arising
out of the Master Servicer's actions or failure to act prior to any such
termination or resignation or in connection with the Trustee's assumption of
such obligations, duties and responsibilities.

     Upon a successor's acceptance of appointment as such, the successor master
servicer shall notify by mail the Trustee, the Securities Administrator and the
Depositor of its appointment.

          Section 9.09 [Reserved].

          Section 9.10 Merger or Consolidation. Any Person into which the Master
Servicer may be merged or consolidated, or any Person resulting from any merger,
conversion, other change in form or consolidation to which the Master Servicer
shall be a party, or any Person succeeding to the business of the Master
Servicer, shall be the successor to the Master Servicer hereunder, without the
execution or filing of any paper or any further act on the part of any of the
parties hereto, anything herein to the contrary notwithstanding; provided,
however, that the successor or resulting Person to the Master Servicer shall (i)
be a Person (or have an Affiliate) that is qualified and approved to service
mortgage loans for Fannie Mae and Freddie Mac (provided further that a successor
master servicer that satisfies subclause (i) through an Affiliate agrees to
service the Mortgage Loans in accordance with all applicable Fannie Mae and
Freddie Mac guidelines) and (ii) have a net worth of not less than $25,000,000.

          Section 9.11 Resignation of the Master Servicer. Except as otherwise
provided in Sections 9.08 and 9.10 hereof, the Master Servicer shall not resign
from the obligations and duties hereby imposed on it unless the Master
Servicer's duties hereunder are no longer permissible under applicable law or
are in material conflict by reason of applicable law with any other activities
carried on by it and cannot be cured. Any such determination permitting the
resignation of the Master Servicer shall be evidenced by an Opinion of Counsel
that shall be independent to such effect delivered to the Trustee. No such
resignation shall become effective until the Trustee shall have assumed, or a
successor master servicer satisfactory to the Trustee and the Depositor shall
have assumed, the Master Servicer's responsibilities and obligations under this
Agreement. Notice of such resignation shall be given promptly by the Master
Servicer and the Depositor to the Trustee.

     If at any time, CitiMortgage, as Master Servicer, resigns under this
Section 9.11, or is removed as Master Servicer pursuant to Section 9.06, then at
such time Citibank shall also resign (and shall be entitled to resign) as
Securities Administrator under this Agreement.

          Section 9.12 Assignment or Delegation of Duties by the Master
Servicer. Except as expressly provided herein, the Master Servicer shall not
assign or transfer any of its

                                      -100-

<PAGE>

rights, benefits or privileges hereunder to any other Person, or delegate to or
subcontract with, or authorize or appoint any other Person to perform any of the
duties, covenants or obligations to be performed by the Master Servicer;
provided, however, that the Master Servicer shall have the right with the prior
written consent of the Depositor (which shall not be unreasonably withheld,
denied, or delayed), and upon delivery to the Trustee and the Depositor of a
letter from each Rating Agency to the effect that such action shall not result
in a downgrade of the ratings assigned to any of the Certificates, to delegate
or assign to or subcontract with or authorize or appoint any qualified Person to
perform and carry out any duties, covenants or obligations to be performed and
carried out by the Master Servicer hereunder. Notice of such permitted
assignment shall be given promptly by the Master Servicer to the Depositor and
the Trustee. If, pursuant to any provision hereof, the duties of the Master
Servicer are transferred to a successor master servicer, the entire compensation
payable to the Master Servicer pursuant hereto shall thereafter be payable to
such successor master servicer but in no event shall the fee payable to the
successor master servicer exceed that payable to the predecessor master
servicer.

          Section 9.13 Limitation on Liability of the Master Servicer. Neither
the Master Servicer nor any of the directors, officers, employees or agents of
the Master Servicer shall be under any liability to the Trustee or the
Certificateholders for any action taken or for refraining from the taking of any
action in good faith pursuant to this Agreement, or for errors in judgment;
provided, however, that this provision shall not protect the Master Servicer or
any such person against any liability that would otherwise be imposed by reason
of willful malfeasance, bad faith or negligence in the performance of its duties
or by reason of reckless disregard for its obligations and duties under this
Agreement. The Master Servicer and any director, officer, employee or agent of
the Master Servicer may rely in good faith on any document prima facie properly
executed and submitted by any Person respecting any matters arising hereunder.
The Master Servicer shall be under no obligation to appear in, prosecute or
defend any legal action that is not incidental to its duties as Master Servicer
with respect to the Mortgage Loans under this Agreement and that in its opinion
may involve it in any expenses or liability; provided, however, that the Master
Servicer may in its sole discretion undertake any such action that it may deem
necessary or desirable in respect to this Agreement and the rights and duties of
the parties hereto and the interests of the Certificateholders hereunder. In
such event, the legal expenses and costs of such action and any liability
resulting therefrom, shall be liabilities of the Trust, and the Master Servicer
shall be entitled to be reimbursed therefor out of the Distribution Account in
accordance with the provisions of Section 9.14.

     The Master Servicer shall not be liable under this Agreement for any acts
or omissions of the Servicers except to the extent that damages or expenses are
incurred as a result of such acts or omissions and such damages and expenses
would not have been incurred but for the negligence, willful malfeasance, bad
faith or recklessness of the Master Servicer in supervising, monitoring and
overseeing the performance of the obligations of the Servicers as required under
this Agreement.

          Section 9.14 Indemnification; Third Party Claims. The Master Servicer
agrees to indemnify and hold harmless the Trustee as successor master servicer
from and against any and all claims, losses, penalties, fines, forfeitures,
legal fees and related costs, judgments, and any other costs, liabilities, fees
and expenses (including, but not limited to, reasonable attorneys' fees) that
the Trustee may sustain as a result of such liability or obligations of the
Master

                                      -101-

<PAGE>

Servicer and in connection with the Trustee's assumption (not including the
Trustee's performance, except to the extent that costs or liability of the
Trustee are created or increased as a result of negligent or wrongful acts or
omissions of the Master Servicer prior to its replacement as Master Servicer) of
the Master Servicer's obligations, duties or responsibilities under such
agreement.

     The Trust will indemnify the Master Servicer and hold it harmless against
any and all claims, losses, penalties, fines, forfeitures, legal fees and
related costs, judgments, and any other costs, liabilities, fees and expenses
(including, but not limited to, reasonable attorneys' fees) that the Master
Servicer may incur or sustain in connection with, arising out of or related to
this Agreement or the Certificates, except to the extent that any such loss,
liability or expense is related to (i) a material breach of the Master
Servicer's representations and warranties in this Agreement, (ii) the Master
Servicer's willful malfeasance, bad faith or negligence or by reason of its
reckless disregard of its duties and obligations under this Agreement or (iii)
failure to provide the assessment, attestation and annual statement of
compliance in accordance with Sections 3.03, 3.04 and 3.05; provided that any
such loss, liability or expense constitutes an "unanticipated expense incurred
by the REMIC" within the meaning of Treasury Regulations Section
1.860G-1(b)(3)(ii). The Master Servicer shall be entitled to reimbursement for
any such indemnified amount from funds on deposit in the Distribution Account.

                                    ARTICLE X

                     CONCERNING THE SECURITIES ADMINISTRATOR

          Section 10.01 Duties of Securities Administrator. The Securities
Administrator shall undertake to perform such duties and only such duties as are
specifically set forth in this Agreement.

     The Securities Administrator, upon receipt of all resolutions,
certificates, statements, opinions, reports, documents, orders or other
instruments furnished to the Securities Administrator that are specifically
required to be furnished pursuant to any provision of this Agreement, shall
examine them to determine whether they are in the form required by this
Agreement; provided, however, that the Securities Administrator shall not be
responsible for the accuracy or content of any such resolution, certificate,
statement, opinion, report, document, order or other instrument. If any such
instrument is found not to conform in any material respect to the requirements
of this Agreement, the Securities Administrator shall notify the
Certificateholders of such non-conforming instrument in the event the Securities
Administrator, after so requesting, does not receive a satisfactorily corrected
instrument.

     No provision of this Agreement shall be construed to relieve the Securities
Administrator of liability for its own negligent action, its own negligent
failure to act or its own willful misconduct; provided, however, that:

          (i) the duties and obligations of the Securities Administrator shall
     be determined solely by the express provisions of this Agreement, the
     Securities Administrator shall not be liable except for the performance of
     such duties and obligations as are specifically set forth in this
     Agreement, no implied covenants or

                                      -102-

<PAGE>

     obligations shall be read into this Agreement against the Securities
     Administrator and the Securities Administrator may conclusively rely, as to
     the truth of the statements and the correctness of the opinions expressed
     therein, upon any certificates or opinions furnished to the Securities
     Administrator and conforming to the requirements of this Agreement which it
     believed in good faith to be genuine and to have been duly executed by the
     proper authorities respecting any matters arising hereunder;

          (ii) the Securities Administrator shall not be liable for any error of
     judgment made in good faith by a Responsible Officer or Responsible
     Officers of the Securities Administrator, unless it shall be conclusively
     determined by a court of competent jurisdiction, such determination not
     subject to appeal, that the Securities Administrator was negligent in
     ascertaining the pertinent facts;

          (iii) the Securities Administrator shall not be liable with respect to
     any action or inaction taken, suffered or omitted to be taken by it in good
     faith in accordance with the direction of Holders of Certificates
     evidencing not less than 25.00% of the Voting Rights of Certificates
     relating to the time, method and place of conducting any proceeding for any
     remedy available to the Securities Administrator, or exercising or omitting
     to exercise any trust or power conferred upon the Securities Administrator
     under this Agreement; and

          (iv) the Securities Administrator shall not be accountable, shall have
     no liability and makes no representation as to any acts or omissions
     hereunder of the Master Servicer or the Trustee.

          Section 10.02 Certain Matters Affecting the Securities Administrator.
Except as otherwise provided in Section 10.01:

          (i) the Securities Administrator may request and conclusively rely
     upon and shall be fully protected in acting or refraining from acting upon
     any resolution, Officer's Certificate, certificate of auditors or any other
     certificate, statement, instrument, opinion, report, notice, request,
     consent, order, appraisal, bond or other paper or document believed by it
     to be genuine and to have been signed or presented by the proper party or
     parties and the Securities Administrator shall have no responsibility to
     ascertain or confirm the genuineness of any signature of any such party or
     parties;

          (ii) the Securities Administrator may consult with counsel, financial
     advisers or accountants and the advice of any such counsel, financial
     advisers or accountants and any advice or Opinion of Counsel shall be full
     and complete authorization and protection in respect of any action taken or
     suffered or omitted by it hereunder in good faith and in accordance with
     such advice or Opinion of Counsel;

          (iii) the Securities Administrator shall not be liable for any action
     or inaction taken, suffered or omitted by it in good faith and believed by
     it to be authorized or within the discretion or rights or powers conferred
     upon it by this Agreement;

          (iv) the Securities Administrator shall not be bound to make any
     investigation into the facts or matters stated in any resolution,
     certificate, statement, instrument,

                                      -103-

<PAGE>

     opinion, report, notice, request, consent, order, approval, bond or other
     paper or document, unless requested in writing so to do by Holders of
     Certificates evidencing not less than 25.00% of the Voting Rights allocated
     to each Class of Certificates; provided, however, that if the payment
     within a reasonable time to the Securities Administrator of the costs,
     expenses or liabilities likely to be incurred by it in the making of such
     investigation is, in the opinion of the Securities Administrator, not
     reasonably assured to the Securities Administrator by the security afforded
     to it by the terms of this Agreement, the Securities Administrator may
     require reasonable indemnity against such expense or liability as a
     condition to so proceeding. Nothing in this clause (iv) shall derogate from
     the obligation of the Securities Administrator to observe any applicable
     law prohibiting disclosure of information regarding the Mortgagors,
     provided that the Securities Administrator shall have no liability for
     disclosure required by this Agreement;

          (v) the Securities Administrator may execute any of the trusts or
     powers hereunder or perform any duties hereunder either directly or by or
     through agents or attorneys or a custodian and the Securities Administrator
     shall not be responsible for any misconduct or negligence on the part of
     any such agent, attorney or custodian appointed by the Securities
     Administrator with due care;

          (vi) the Securities Administrator shall not be required to risk or
     expend its own funds or otherwise incur any financial liability in the
     performance of any of its duties or in the exercise of any of its rights or
     powers hereunder if it shall have reasonable grounds for believing that
     repayment of such funds or adequate indemnity against such risk or
     liability is not assured to it, and none of the provisions contained in
     this Agreement shall in any event require the Securities Administrator to
     perform, or be responsible for the manner of performance of, any of the
     obligations of the Master Servicer or the Trustee under this Agreement;

          (vii) the Securities Administrator shall be under no obligation to
     exercise any of the trusts, rights or powers vested in it by this Agreement
     or to institute, conduct or defend any litigation hereunder or in relation
     hereto at the request, order or direction of any of the Certificateholders,
     pursuant to the provisions of this Agreement, unless such
     Certificateholders shall have offered to the Securities Administrator
     reasonable security or indemnity satisfactory to the Securities
     Administrator against the costs, expenses and liabilities which may be
     incurred therein or thereby;

          (viii) the Securities Administrator shall have no obligation to appear
     in, prosecute or defend any legal action that is not incidental to its
     duties hereunder and which in its opinion may involve it in any expense or
     liability; provided, however, that the Securities Administrator may in its
     discretion undertake any such action that it may deem necessary or
     desirable in respect of this Agreement and the rights and duties of the
     parties hereto and the interests of the Trustee, the Securities
     Administrator and the Certificateholders hereunder. In such event, the
     legal expenses and costs of such action and any liability resulting
     therefrom shall be expenses, costs and liabilities of the Trust Fund, and
     the Securities Administrator shall be entitled to be reimbursed therefor
     out of the Collection Account.

                                      -104-

<PAGE>

          (ix) the Securities Administrator shall not be required to take notice
     or be deemed to have notice or knowledge of any default or Event of Default
     unless a Responsible Officer of the Securities Administrator shall have
     received written notice or obtained actual knowledge thereof. In the
     absence of receipt of such notice or actual knowledge, the Securities
     Administrator may conclusively assume that there is no default or Event of
     Default;

          (x) the right of the Securities Administrator to perform any
     discretionary act enumerated in this Agreement shall not be construed as a
     duty, and the Securities Administrator shall not be answerable for other
     than its negligence or willful misconduct in the performance of such act;

          (xi) the Securities Administrator shall not be required to give any
     bond or surety in respect of the execution of the Trust Fund created hereby
     or the powers granted hereunder; and

          (xii) the Securities Administrator may execute any of the trusts or
     powers hereunder or perform any duties hereunder either directly or by or
     through agents, attorneys or custodians, and the Securities Administrator
     shall not be responsible for any misconduct or negligence on the part of
     any such agent, attorney or custodian appointed by the Securities
     Administrator with due care.

     The Securities Administrator shall have no duty (A) to undertake or ensure
any recording, filing, or depositing of this Agreement or any agreement referred
to herein or any financing statement or continuation statement evidencing a
security interest, or to see to the maintenance of any such recording or filing
or depositing or to any rerecording, refiling or redepositing thereof, (B) to
procure or maintain any insurance or (C) to pay or discharge any tax,
assessment, or other governmental charge or any lien or encumbrance of any kind
owing with respect to, assessed or levied against, any part of the Trust Fund
other than from funds available in the Distribution Account.

          Section 10.03 Securities Administrator Not Liable for Certificates or
Mortgage Loans. The recitals contained herein and in the Certificates shall be
taken as the statements of the Depositor or the transferor, as the case may be,
and the Securities Administrator assumes no responsibility for their
correctness. The Securities Administrator makes no representations as to the
validity or sufficiency of this Agreement, or of the Certificates or of any
Mortgage Loan or related document other than with respect to the Securities
Administrator's execution and authentication of the Certificates. The Securities
Administrator shall not be accountable for the use or application by the
Depositor, the Trustee, the Master Servicer, of any funds paid to the Depositor,
the Trustee, any Servicer, or the Master Servicer in respect of the Mortgage
Loans or deposited in or withdrawn from any Collection Account or any other fund
or account with respect to the Certificates by the Depositor, the Trustee, any
Servicer or the Master Servicer.

     The Securities Administrator executes and authenticates the Certificates
not in its individual capacity but solely as Securities Administrator of the
Trust Fund created by this Agreement, in the exercise of the powers and
authority conferred and vested in it by this Agreement. Each of the undertakings
and agreements made on the part of the Securities

                                      -105-

<PAGE>

Administrator on behalf of the Trust Fund in the Certificates is made and
intended not as a personal undertaking or agreement by the Securities
Administrator but is made and intended for the purpose of binding only the Trust
Fund.

          Section 10.04 Securities Administrator May Own Certificates. The
Securities Administrator in its individual or any other capacity may become the
owner or pledgee of Certificates and may transact business with the parties
hereto and their Affiliates with the same rights as it would have if it were not
the Securities Administrator.

          Section 10.05 Securities Administrator's Fees and Expenses. The
Securities Administrator shall be entitled to the investment income and/or
earnings on and/or use of funds of the amounts in the Distribution Account
during the Securities Administrator Float Period. The Securities Administrator
and any director, officer, employee, agent or "control person" within the
meaning of the Securities Act of 1933, as amended, and the Securities Exchange
Act of 1934, as amended ("Control Person"), of the Securities Administrator
shall be indemnified by the Trust and held harmless against any loss, liability
or expense (including but not limited to reasonable attorney's fees) (i)
incurred in connection with any claim or legal action relating to (a) this
Agreement, (b) the Mortgage Loans or (c) the Certificates, other than any loss,
liability or expense incurred by reason of willful misfeasance, bad faith or
negligence in the performance of any of the Securities Administrator's duties
hereunder, (ii) incurred in connection with the performance of any of the
Securities Administrator's duties hereunder, other than any loss, liability or
expense incurred by reason of willful misfeasance, bad faith or negligence in
the performance of any of the Securities Administrator's duties hereunder or
(iii) incurred by reason of any action of the Securities Administrator taken at
the direction of the Certificateholders to the extent of indemnity provided by
the Certificateholders, provided that any such loss, liability or expense
constitutes an "unanticipated expense incurred by the REMIC" within the meaning
of Treasury Regulations Section 1.860G 1(b)(3)(ii). Such indemnity shall survive
the termination of this Agreement or the resignation or removal of the
Securities Administrator hereunder. Without limiting the foregoing, and except
for any such expense, disbursement or advance as may arise from the Securities
Administrator's negligence, bad faith or willful misconduct, or which would not
be an "unanticipated expense" within the meaning of the second preceding
sentence, the Securities Administrator shall be reimbursed by the Trust for all
reasonable expenses, disbursements and advances incurred or made by the
Securities Administrator in accordance with any of the provisions of this
Agreement with respect to: (A) the reasonable compensation and the expenses and
disbursements of its counsel not associated with the closing of the issuance of
the Certificates, (B) the reasonable compensation, expenses and disbursements of
any accountant, engineer, appraiser or other agent that is not regularly
employed by the Securities Administrator, to the extent that the Securities
Administrator must engage such Persons to perform acts or services hereunder and
(C) printing and engraving expenses in connection with preparing any Definitive
Certificates. The Trust shall fulfill its obligations under this paragraph from
amounts on deposit from time to time in the Distribution Account.

     The Securities Administrator shall be required to pay all expenses incurred
by it in connection with its activities hereunder and shall not be entitled to
reimbursement therefor except as provided in this Agreement.

                                      -106-

<PAGE>

          Section 10.06 Eligibility Requirements for Securities Administrator.
The Securities Administrator hereunder shall at all times be a corporation or
association organized and doing business under the laws the United States of
America or any state thereof, authorized under such laws to exercise corporate
trust powers, having a combined capital and surplus of at least $50,000,000,
subject to supervision or examination by federal or state authority and with a
credit rating of at least investment grade. If such corporation or association
publishes reports of condition at least annually, pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then for the
purposes of this Section 10.06 the combined capital and surplus of such
corporation or association shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. In
case at any time the Securities Administrator shall cease to be eligible in
accordance with the provisions of this Section 10.06, the Securities
Administrator shall resign immediately in the manner and with the effect
specified in Section 10.07 hereof. The entity serving as Securities
Administrator may have normal banking and trust relationships with the Depositor
and its affiliates or the Trustee and its affiliates.

     Any successor securities administrator (i) may not be a Mortgage Loan
Seller, the Master Servicer, a Servicer, the Depositor or an affiliate of the
Depositor unless such successor securities administrator's functions are
operated through an institutional trust department of the Securities
Administrator, (ii) must be authorized to exercise corporate trust powers under
the laws of its jurisdiction of organization, and (iii) must be rated at least
"A/F1" by Fitch, if Fitch is a Rating Agency and if rated by Fitch, or the
equivalent rating by Standard & Poor's or Moody's. If no successor securities
administrator shall have been appointed and shall have accepted appointment
within 60 days after the Securities Administrator ceases to be the Securities
Administrator pursuant to Section 10.07, then the Trustee may (but shall not be
obligated to) become the successor securities administrator. The Depositor shall
appoint a successor to the Securities Administrator in accordance with Section
10.07. The Trustee shall notify the Rating Agencies of any change of Securities
Administrator.

          Section 10.07 Resignation and Removal of Securities Administrator. The
Securities Administrator may at any time resign by giving written notice of
resignation to the Depositor and the Trustee and each Rating Agency not less
than 60 days before the date specified in such notice when, subject to Section
10.08, such resignation is to take effect, and acceptance by a successor
securities administrator in accordance with Section 10.08 meeting the
qualifications set forth in Section 10.06. If no successor securities
administrator meeting such qualifications shall have been so appointed by the
Depositor and have accepted appointment within 30 days after the giving of such
notice of resignation, the resigning Securities Administrator may petition any
court of competent jurisdiction for the appointment of a successor securities
administrator.

     If at any time the Securities Administrator shall cease to be eligible in
accordance with the provisions of Section 10.06 hereof and shall fail to resign
after written request thereto by the Depositor, or if at any time the Securities
Administrator shall become incapable of acting, or shall be adjudged as bankrupt
or insolvent, or a receiver of the Securities Administrator or of its property
shall be appointed, or any public officer shall take charge or control of the
Securities Administrator or of its property or affairs for the purpose of
rehabilitation, conservation or liquidation, or a tax is imposed with respect to
the Trust Fund by any state in which the

                                      -107-

<PAGE>

Securities Administrator or the Trust Fund is located and the imposition of such
tax would be avoided by the appointment of a different securities administrator,
then the Depositor may remove the Securities Administrator and appoint a
successor securities administrator by written instrument, in triplicate, one
copy of which instrument shall be delivered to the Securities Administrator so
removed, one copy of which shall be delivered to the Master Servicer and one
copy to the successor securities administrator.

     The Holders of Certificates entitled to at least 51.00% of the Voting
Rights may at any time remove the Securities Administrator and appoint a
successor securities administrator by written instrument or instruments, in
triplicate, signed by such Holders or their attorneys in fact duly authorized,
one complete set of which instruments shall be delivered by the successor
securities administrator to the Trustee, one complete set to the Securities
Administrator so removed and one complete set to the successor so appointed.
Notice of any removal of the Securities Administrator shall be given to each
Rating Agency by the successor securities administrator.

     Any resignation or removal of the Securities Administrator and appointment
of a successor securities administrator pursuant to any of the provisions of
this Section 10.07 shall become effective upon acceptance by the successor
securities administrator of appointment as provided in Section 10.08 hereof.

     If at any time, Citibank, as Securities Administrator, resigns under this
Section 10.07, or is removed as Securities Administrator pursuant to this
Section 10.07, then at such time CitiMortgage shall also resign (and shall be
entitled to resign) as Master Servicer under this Agreement.

          Section 10.08 Successor Securities Administrator. Any successor
securities administrator (which may be the Trustee) appointed as provided in
Section 10.07 hereof shall execute, acknowledge and deliver to the Depositor and
to its predecessor Securities Administrator and the Trustee an instrument
accepting such appointment hereunder and thereupon the resignation or removal of
the predecessor Securities Administrator shall become effective and such
successor securities administrator, without any further act, deed or conveyance,
shall become fully vested with all the rights, powers, duties and obligations of
its predecessor hereunder, with the like effect as if originally named as
Securities Administrator herein. The Depositor, the Trustee, the Master Servicer
and the predecessor Securities Administrator shall execute and deliver such
instruments and do such other things as may reasonably be required for more
fully and certainly vesting and confirming in the successor securities
administrator all such rights, powers, duties, and obligations.

     No successor securities administrator shall accept appointment as provided
in this Section 10.08 unless at the time of such acceptance such successor
securities administrator shall be eligible under the provisions of Section 10.06
hereof and its appointment shall not adversely affect then current rating of the
Certificates, as confirmed in writing by each Rating Agency.

     Upon acceptance by a successor securities administrator of appointment as
provided in this Section 10.08, the Depositor shall mail notice of the
succession of such Securities Administrator hereunder to all Holders of
Certificates. If the Depositor fails to mail such notice

                                      -108-

<PAGE>

within 10 days after acceptance by the successor securities administrator of
appointment, the successor securities administrator shall cause such notice to
be mailed at the expense of the Depositor.

          Section 10.09 Merger or Consolidation of Securities Administrator. Any
corporation or other entity into which the Securities Administrator may be
merged or converted or with which it may be consolidated or any corporation or
other entity resulting from any merger, conversion or consolidation to which the
Securities Administrator shall be a party, or any corporation or other entity
succeeding to the business of the Securities Administrator, shall be the
successor of the Securities Administrator hereunder, provided that such
corporation or other entity shall be eligible under the provisions of Section
10.06 hereof, without the execution or filing of any paper or further act on the
part of any of the parties hereto, anything herein to the contrary
notwithstanding.

          Section 10.10 Assignment or Delegation of Duties by the Securities
Administrator. Except as expressly provided herein, the Securities Administrator
shall not assign or transfer any of its rights, benefits or privileges hereunder
to any other Person, or delegate to or subcontract with, or authorize or appoint
any other Person to perform any of the duties, covenants or obligations to be
performed by the Securities Administrator; provided, however, that the
Securities Administrator shall have the right with the prior written consent of
the Depositor (which shall not be unreasonably withheld or delayed), and upon
delivery to the Trustee and the Depositor of a letter from each Rating Agency to
the effect that such action shall not result in a downgrade of the ratings
assigned to any of the Certificates, to delegate or assign to or subcontract
with or authorize or appoint any qualified Person to perform and carry out any
duties, covenants or obligations to be performed and carried out by the
Securities Administrator hereunder. Notice of such permitted assignment shall be
given promptly by the Securities Administrator to the Depositor and the Trustee.
If, pursuant to any provision hereof, the duties of the Securities Administrator
are transferred to a successor securities administrator, the entire compensation
payable to the Securities Administrator pursuant hereto shall thereafter be
payable to such successor securities administrator but in no event shall the fee
payable to the successor securities administrator exceed that payable to the
predecessor securities administrator.

          Section 10.11 Dissemination of Confidential Information.
Notwithstanding anything to the contrary herein, any and all communications
(both text and attachments) by or from the Securities Administrator or the
Master Servicer that the Securities Administrator or the Master Servicer,
respectively, in its sole discretion deems to contain confidential, proprietary,
and/or sensitive information and sent by electronic mail will be encrypted. The
recipient of the email communication will be required to complete a one-time
registration process. Information and assistance on registering and using the
email encryption technology shall be provided at Citibank's secure website at
www.citigroup.com/citigroup/citizen/privacy/email.htm or by calling (866)
535-2504 (in the U.S.) or (904) 954-6181 at any time.

                                      -109-

<PAGE>

                                   ARTICLE XI

                                REMIC PROVISIONS

          Section 11.01 REMIC Administration.

          (a) The Securities Administrator shall make an election to treat
certain segregated assets comprising the Trust Fund, as defined herein, as two
REMICs under the Code and, if necessary, under applicable state law. The assets
of each REMIC are set forth in this Agreement. Such election shall be made on
Form 1066 or other appropriate federal tax or information return (including Form
8811) or any appropriate state return for the taxable year ending on the last
day of the calendar year in which the Certificates are issued. For the purposes
of the REMIC elections in respect of the Trust Fund, Certificates and interests
to be designated as the "regular interests" and the sole class of "residual
interests" in each REMIC shall be set forth in Section 11.03. The Securities
Administrator and the Trustee shall not permit the creation of any "interests"
(within the meaning of Section 860G of the Code) in any REMIC elected in respect
of the Trust Fund other than the "regular interests" and "residual interests" so
designated.

          (b) The Closing Date is hereby designated as the "startup day" of the
Trust Fund within the meaning of Section 860G(a)(9) of the Code.

          (c) The Holder of the largest Percentage Interest of the Class R
Certificates shall act as tax matters person for each REMIC created hereunder,
within the meaning of Treasure Regulations Section 1.860F 4(d), and the
Securities Administrator is hereby designated as agent of such Certificateholder
for such purpose (or if the Securities Administrator is not so permitted, such
Holder shall be the tax matters person in accordance with the REMIC Provisions).
The Securities Administrator, as agent of the tax matters person, shall (i) act
on behalf of each REMIC in relation to any tax matter or controversy involving
the Trust Fund and (ii) represent the Trust Fund in any administrative or
judicial proceeding relating to an examination or audit by any governmental
taxing authority with respect thereto. The legal expenses, including without
limitation attorneys' or accountants' fees, and costs of any such proceeding and
any liability resulting therefrom shall be expenses of the Trust Fund and the
Securities Administrator shall be paid with amounts otherwise to be distributed
to the Certificateholders, as provided in Section 4.02(a) unless such legal
expenses and costs are incurred by reason of the Securities Administrator's
willful misfeasance, bad faith or gross negligence.

          (d) The Securities Administrator shall prepare or cause to be prepared
all of the Tax Returns that it determines are required with respect to each
REMIC created hereunder and deliver such Tax Returns in a timely manner to the
Trustee and the Trustee shall sign and file such Tax Returns in a timely manner.
The expenses of preparing such returns shall be borne by the Securities
Administrator without any right of reimbursement therefor. The Master Servicer
shall promptly provide the Securities Administrator with such information as the
Securities Administrator may from time to time request for the purpose of
enabling the Securities Administrator to prepare Tax Returns.

                                      -110-

<PAGE>

          (e) The Securities Administrator shall provide (i) to any Transferor
of a Class R Certificate such information as is necessary for the application of
any tax relating to the transfer of a Class R Certificate to any Person who is
not a Permitted Transferee, (ii) to the Certificateholders, such information or
reports as are required by the Code or the REMIC Provisions including reports
relating to interest, original issue discount and market discount or premium
(using the Prepayment Assumption) and (iii) to the Internal Revenue Service the
name, title, address and telephone number of the person who will serve as the
representative of each REMIC.

          (f) None of the Master Servicer, the Securities Administrator or the
Trustee shall (i) permit the creation of any interests in any REMIC other than
the regular and residual interests set forth in the Preliminary Statement, (ii)
receive any amount representing a fee or other compensation for services (except
as otherwise permitted by this Agreement or the related Mortgage Loan documents)
or (iii) otherwise knowingly or intentionally take any action, cause the Trust
Fund to take any action or fail to take (or fail to cause to be taken) any
action reasonably within its control and the scope of duties more specifically
set forth herein, that, under the REMIC Provisions, if taken or not taken, as
the case may be, could (i) endanger the status of any REMIC as a REMIC or (ii)
result in the imposition of a tax upon any REMIC or the Trust Fund (including
but not limited to the tax on "prohibited transactions" as defined in Section
860F(a)(2) of the Code and the tax on contributions to a REMIC set forth in
Section 860G(d) of the Code, or the tax on "net income from foreclosure
property") unless the Securities Administrator receives an Opinion of Counsel
(at the expense of the party seeking to take such action or, if such party fails
to pay such expense, and the Securities Administrator determines that taking
such action is in the best interest of the Trust Fund and the
Certificateholders, at the expense of the Trust Fund, but in no event at the
expense of the Securities Administrator) to the effect that the contemplated
action will not, with respect to the Trust Fund or any REMIC created hereunder,
endanger such status or result in the imposition of such a tax an "Adverse REMIC
Event"). The Master Servicer or the Securities Administrator, as applicable, may
consult with counsel to make such written advice, and the cost of same shall be
borne by the party seeking to take the action not expressly permitted by this
Agreement, but in no event at the expense of the Master Servicer or the
Securities Administrator. At all times as may be required by the Code, the
Master Servicer shall to the extent within its control and the scope of its
duties more specifically set forth herein, maintain substantially all of the
assets of each REMIC created hereunder as "qualified mortgages" as defined in
Section 860G(a)(3) of the Code and "permitted investments" as defined in Section
860G(a)(5) of the Code.

          (g) In the event that any tax is imposed on "prohibited transactions"
of any REMIC created hereunder as defined in Section 860F(a)(2) of the Code, on
"net income from foreclosure property" of any such REMIC as defined in Section
860G(c) of the Code, on any contributions to any such REMIC after the Startup
Day therefor pursuant to Section 860G(d) of the Code, or any other tax is
imposed by the Code or any applicable provisions of state or local tax laws,
such tax shall be paid by (i) the Master Servicer, the Trustee, or the
Securities Administrator, as applicable, if such tax arises out of or results
from negligence of the Master Servicer, the Trustee or the Securities
Administrator, as applicable, in the performance of any of its obligations under
this Agreement, (ii) the Sponsor, if such tax arises out of or results from the
Sponsor's obligation to repurchase a Mortgage Loan pursuant to Section 2.03(d),
or (iii) in all other cases, or if the Master Servicer, the Trustee or the
Securities Administrator fails to honor

                                      -111-

<PAGE>

its obligations under the preceding clause (i) or (ii), any such tax will be
paid with amounts otherwise to be distributed to the Certificateholders, as
provided in Section 4.02(a).

          (h) The Securities Administrator shall, for federal income tax
purposes, maintain books and records with respect to each REMIC created
hereunder on a calendar year and on an accrual basis or as otherwise may be
required by the REMIC Provisions.

          (i) Following the Startup Day, none of the Master Servicer, The
Securities Administrator or the Trustee shall accept any contributions of assets
to any REMIC created hereunder unless (subject to Section 11.01(f)) the Master
Servicer, the Securities Administrator and the Trustee shall have received an
Opinion of Counsel (at the expense of the party seeking to make such
contribution) to the effect that the inclusion of such assets in such REMIC will
not cause any REMIC to fail to qualify as a REMIC at any time that any
Certificates are outstanding or subject any such REMIC to any tax under the
REMIC Provisions or other applicable provisions of federal, state and local law
or ordinances.

          (j) None of the Master Servicer, the Securities Administrator or the
Trustee shall (subject to Section 11.01(f)) enter into any arrangement by which
any REMIC created hereunder will receive a fee or other compensation for
services nor permit either REMIC to receive any income from assets other than
"qualified mortgages" as defined in Section 860G(a)(3) of the Code or "permitted
investments" as defined in Section 860G(a)(5) of the Code.

          (k) Solely for the purposes of Section 1.860G-1(a)(4)(iii) of the
Treasury Regulations, the "latest possible maturity date" for each of REMIC 1
and REMIC 2 Regular Interest shall be its latest possible maturity date as set
forth or described in the Preliminary Statement.

          (l) Within 30 days after the Closing Date, the Securities
Administrator shall prepare and file with the Internal Revenue Service Form
8811, "Information Return for Real Estate Mortgage Investment Conduits (REMIC)
and Issuers of Collateralized Debt Obligations" for each REMIC created
hereunder.

          (m) None of the Trustee, the Securities Administrator or the Master
Servicer shall sell, dispose of or substitute for any of the Mortgage Loans
(except in connection with (i) the default, imminent default or foreclosure of a
Mortgage Loan, including but not limited to, the acquisition or sale of a
Mortgaged Property acquired by deed in lieu of foreclosure, (ii) the bankruptcy
of any REMIC created hereunder, (iii) the termination of the applicable REMIC
pursuant to Article XII of this Agreement or (iv) a purchase of Mortgage Loans
pursuant to Article II or III of this Agreement) nor acquire any assets for any
such REMIC, nor sell or dispose of any investments in the applicable Collection
Account or the Distribution Account for gain nor accept any contributions to any
such REMIC after the Closing Date unless it has received an Opinion of Counsel
that such sale, disposition, substitution or acquisition will not (a) affect
adversely the status of such REMIC as a REMIC or (b) unless the Master Servicer
has determined in its sole discretion to indemnify the Trust Fund against such
tax, cause such REMIC to be subject to a tax on "prohibited transactions" or
"contributions" pursuant to the REMIC Provisions.

                                      -112-

<PAGE>

          (n) The Securities Administrator shall apply for an employer
identification number from the Internal Revenue Service on a Form SS-4 or any
other acceptable method for all tax entities.

          Section 11.02 [Reserved].

          Section 11.03 Designation of REMIC(s). The Securities Administrator
shall make an election to treat the entire segregated pool of assets described
in the definition of REMIC 1, and subject to this Agreement (including the
Mortgage Loans) as a REMIC ("REMIC 1"), and shall make an election to treat the
pool of assets comprised of the uncertificated REMIC 1 Regular Interests as a
REMIC ("REMIC 2") for federal income tax purposes.

     The REMIC 1 Regular Interests will be "regular interests" in REMIC 1 and
the Class R-I Certificates will be the sole class of "residual interests" in
REMIC 1 for purposes of the REMIC Provisions (as defined herein) under the
federal income tax law.

     The Class I-A-1, Class II-A-1, Class II-A-2, Class III-A-1, Class III-A-2,
Class IV-A-1, Class IV-A-2, Class P, Class B-1, Class B-2, Class B-3 Class B-4,
Class B-5 and Class B-6 Certificates, will be "regular interests" in REMIC 2,
and the Class R-II Certificates will be the sole class of "residual interests"
therein for purposes of the REMIC Provisions (as defined herein) under federal
income tax law.

          Section 11.04 Distributions on Uncertificated REMIC 1 Regular
Interests, REMIC 2 Regular Interests, and REMIC 3 Regular Interests. (a) On each
Distribution Date, the Securities Administrator, on behalf of REMIC 1, shall be
deemed to distribute to REMIC 2 in respect of the REMIC 1 Regular Interests, the
following amounts in the following order of priority to the extent of the
Available Funds reduced by distributions made to the Class R-I Certificates
pursuant to Section 4.02(a):

          (i) Uncertificated Interest on the REMIC 1 Regular Interests for such
     Distribution Date, plus any Uncertificated Interest thereon remaining
     unpaid from any previous Distribution Date; and

          (ii) Distributions of principal from the Group II Mortgage Loans shall
     be deemed to be made to the Uncertificated REMIC I Regular Interest R-II,
     pro rata, until the Uncertificated Principal Balance of such regular
     interest has been reduced to zero. Distributions of principal shall be
     deemed to be made to the REMIC 1 Regular Interests (other than
     Uncertificated REMIC I Regular Interest R-II), in each case from the
     related Loan Group, first, to each REMIC 1 Regular Interest ending with the
     designation "A," so that the Uncertificated Balance of each such REMIC 1
     Regular Interest is equal to 0.01% of the excess of (x) the aggregate
     Stated Principal Balance of the Mortgage Loans in the related Loan Group
     over (y) the Class Certificate Balance of the Senior Certificates in such
     Loan Group (except that if any such excess is a larger number than on the
     preceding Distribution Date, the least amount of principal shall be
     distributed to such REMIC 1 Regular Interests such that the REMIC 1
     Subordinated Balance Ratio is maintained as close as possible to the
     related Subordinate Percentages for each Loan Group); second, so as to keep
     the principal balance of each such related Uncertificated REMIC I Regular

                                      -113-

<PAGE>

     Interest ending with the designation "B" equal to 0.01% of the aggregate
     Stated Principal Balance of the Mortgage Loans in the related Loan Group;
     and third, any remaining principal shall be deemed distributed to
     Uncertificated REMIC I Regular Interest ZZZ.

          (b) The amount described in Section 11.04(a)(ii) shall be deemed
distributed by REMIC 1 to REMIC 2 in respect of the REMIC 1 Regular Interests
held by the Securities Administrator, on behalf of REMIC 2 (other than the Class
R-I Certificates), until the Uncertificated Balance of each such interest is
reduced to zero.

          (c) [Reserved]

          (d) [Reserved]

          (e) The Uncertificated Interest amounts described in Section
11.04(a)(i) shall be deemed distributed by REMIC 1 ratably to each REMIC 2
Regular Interest in accordance with its entitlement to interest and the
applicable REMIC 1 Remittance Rate.

          (f) [Reserved]

          (g) In determining from time to time the amounts distributable on the
REMIC 1 Regular Interests, Realized Losses from each Loan Group shall be applied
after all distributions have been made on each Distribution Date, first, to the
related REMIC 1 Regular Interest ending with the designation "A," so that the
Uncertificated Balance of each such REMIC 1 Regular Interest is equal to 0.01%
of the excess of (x) the aggregate Scheduled Principal Balance of the Mortgage
Loans in the related Loan Group over (y) the Class Certificate Balance of the
Senior Certificates in the related Loan Group (except that if any such excess is
a larger number than in the preceding distribution period, the least amount of
Realized Losses shall be applied to such REMIC 1 Regular Interests such that the
REMIC 1 Subordinated Balance Ratio is maintained as close as possible to the
related Subordinate Percentages for each Loan Group); second, so as to keep the
principal balance of each such related Uncertificated REMIC I Regular Interest
ending with the designation "B" equal to 0.01% of the aggregate Stated Principal
Balance of the Mortgage Loans in the related Loan Group; and third, any
remaining Realized Losses from each Loan Group shall be allocated to the
Uncertificated REMIC 1 Regular Interests ZZZ.

          (h) On each Distribution Date, the Securities Administrator, on behalf
of REMIC 2, shall be deemed to distribute the amounts deemed received by REMIC 2
in respect of the REMIC 1 Regular Interests held by the Securities
Administrator, on behalf of REMIC 2, pursuant to Section 11.04(c) on such
Distribution Date, in the priority set forth in Sections 4.02(a), - (j) to the
Holders of each Class of REMIC 2 Certificates, the amounts distributable thereon
on such Distribution Date.

          (i) Notwithstanding the deemed distributions on the Uncertificated
REMIC 1 Regular Interests described in this Section 11.04, distributions of
funds from the Certificate Account shall be made only in accordance with Section
4.02.

          Section 11.05 Compliance with Withholding Requirements.
Notwithstanding any other provision of this Agreement, the Securities
Administrator, shall comply with all federal

                                      -114-

<PAGE>

withholding requirements respecting payments to Certificateholders, including
interest or original issue discount payments or advances thereof that the
Securities Administrator reasonably believes are applicable under the Code. The
consent of Certificateholders shall not be required for such withholding. In the
event the Securities Administrator does withhold any amount from interest or
original issue discount payments or advances thereof to any Certificateholder
pursuant to federal withholding requirements, the Securities Administrator shall
indicate the amount withheld to such Certificateholder pursuant to the terms of
such requirements.

                                   ARTICLE XII

                                   TERMINATION

          Section 12.01 Termination upon Liquidation or Purchase of the Mortgage
Loans. Subject to Section 12.03, the obligations and responsibilities of the
Depositor, the Master Servicer, the Securities Administrator and the Trustee
created hereby with respect to the Trust Fund shall terminate upon the earlier
of (a) the exercise of an Option to Purchase, on or after the Optional
Termination Date, in the aggregate of all Mortgage Loans (and REO Properties) at
the price (the "Termination Price") equal to the sum of (i) 100.00% of the
unpaid principal balance of each Mortgage Loan (other than in respect of REO
Property) plus accrued and unpaid interest thereon at the applicable Mortgage
Rate, (ii) the lesser of (x) the appraised value of any REO Property as
determined by the higher of two appraisals completed by two independent
appraisers selected by the Master Servicer at the expense of that Trust Fund and
(y) the unpaid principal balance of each Mortgage Loan related to any REO
Property, in each case plus accrued and unpaid interest thereon at the
applicable Mortgage Rate, (iii) all unreimbursed P&I Advances, Servicing
Advances and indemnification payments payable to the applicable Servicer and
(iv) any unreimbursed indemnification payments payable to the Trustee, the
Securities Administrator, the Master Servicer or the Depositor under this
Agreement and (b) the later of (i) the maturity or other liquidation (or any
Advance with respect thereto) of the last Mortgage Loan remaining in the Trust
Fund and the disposition of all REO Property and (ii) the distribution to
Certificateholders of all amounts required to be distributed to them pursuant to
this Agreement. In no event shall the trusts created hereby continue beyond the
expiration of 21 years from the death of the survivor of the descendants of
Joseph P. Kennedy, the late Ambassador of the United States to the Court of St.
James's, living on the date hereof.

          Section 12.02 Final Distribution on the Certificates. If on any
Remittance Date, the Master Servicer determines that there are no Outstanding
Mortgage Loans and no other funds or assets in the Trust Fund other than the
funds in any Collection Account, the Master Servicer shall direct the Securities
Administrator promptly to send a Notice of Final Distribution to each
Certificateholder. If the Master Servicer (upon instruction from the Depositor
or voluntarily) elects to exercise their option to purchase the Mortgage Loans
pursuant to clause (a) of Section 12.01, at least 20 days prior to the date the
Notice of Final Distribution is to be mailed to the affected Certificateholders,
the Master Servicer shall notify the Depositor, and the Securities Administrator
of (a) the date on which the Master Servicer intends to exercise such purchase
option and (b) the Termination Price.

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<PAGE>

     A Notice of Final Distribution, specifying the Distribution Date on which
Certificateholders may surrender their Certificates for payment of the final
distribution and cancellation, shall be given promptly by the Securities
Administrator by letter to Certificateholders mailed not earlier than the 10th
day and not later than the 15th day of the month of such final distribution. Any
such Notice of Final Distribution shall specify (a) the Distribution Date upon
which final distribution on the Certificates will be made upon presentation and
surrender of Certificates at the office therein designated, (b) the amount of
such final distribution, (c) the location of the office or agency at which such
presentation and surrender must be made and (d) that the Record Date otherwise
applicable to such Distribution Date is not applicable, distributions being made
only upon presentation and surrender of the Certificates at the office therein
specified. The Securities Administrator will give such Notice of Final
Distribution to each Rating Agency at the time such Notice of Final Distribution
is given to Certificateholders.

     Upon the final deposit with respect to the Trust Fund and the receipt by
the Custodian of a Request for Release therefor, the Custodian shall promptly
release to each Servicer the applicable Custodial Files for the Mortgage Loans
serviced by such Servicer.

     Upon presentation and surrender of the Certificates, the Securities
Administrator shall cause to be distributed to the Certificateholders of each
Class (after reimbursement of all amounts due to the Servicers under the
Servicing Agreements, the Master Servicer, the Securities Administrator, the
Depositor and the Trustee), in each case on the final Distribution Date and in
the order set forth in Section 4.02, in proportion to their respective
Percentage Interests, with respect to Certificateholders of the same Class, up
to an amount equal to (i) as to each Class of Regular Certificates, the
Certificate Balance thereof plus for each such Class accrued interest thereon in
the case of an interest-bearing Certificate and all other amounts to which such
Classes are entitled pursuant to Section 4.02 and (ii) as to the Residual
Certificates, the amount, if any, which remains on deposit in the Distribution
Account (other than the amounts retained to meet claims) after application
pursuant to clause (i) above.

     In the event that any affected Certificateholders shall not surrender
Certificates for cancellation within six months after the date specified in the
Notice of Final Distribution, the Securities Administrator shall give a second
written notice to the remaining Certificateholders to surrender their
Certificates for cancellation and receive the final distribution with respect
thereto. If within six months after such second notice all the applicable
Certificates shall not have been surrendered for cancellation, the Securities
Administrator may take appropriate steps, or may appoint an agent to take
appropriate steps, to contact the remaining Certificateholders concerning
surrender of their Certificates, and the cost thereof shall be paid out of the
funds and other assets which remain a part of the Trust Fund. If within one year
after the second notice all Certificates shall not have been surrendered for
cancellation, the Class R Certificateholders shall be entitled to all unclaimed
funds and other assets of the Trust Fund which remain subject hereto.

          Section 12.03 Additional Termination Requirements. In the event an
Option to Purchase is exercised with respect to the Mortgage Loans as provided
in Section 12.01, the Trust Fund shall be terminated in accordance with the
following additional requirements, unless the Trustee has been supplied with an
Opinion of Counsel, at the expense of the party upon whose instruction causes
the exercise of an Option to Purchase, to the effect that the failure to comply

                                      -116-

<PAGE>

with the requirements of this Section 12.03 will not (i) result in the
imposition of taxes on "prohibited transactions" on any REMIC formed hereby as
defined in Section 860F of the Code or (ii) cause any REMIC formed hereby to
fail to qualify as a REMIC at any time that any Certificates are outstanding:

          (a) The Securities Administrator on behalf of the Trustee shall sell
all of the assets of the Trust Fund to the party exercising the Option to
Purchase, and, within 90 days of such sale, shall distribute to the
Certificateholders the proceeds of such sale in complete liquidation of each
REMIC formed hereby; and

          (b) The Securities Administrator shall attach a statement to the final
federal income tax return for each REMIC formed hereby stating that pursuant to
Treasury Regulations Section 1.860F-1, the first day of the 90-day liquidation
period for each such REMIC was the date on which the Securities Administrator on
behalf of the Trustee sold the assets of the Trust Fund to the Master Servicer.

                                  ARTICLE XIII

                            MISCELLANEOUS PROVISIONS

          Section 13.01 Amendment. (a) This Agreement may be amended from time
to time by the Depositor, the Master Servicer, the Securities Administrator and
the Trustee, without the consent of any of the Certificateholders (i) to cure
any ambiguity or mistake, (ii) to correct any defective provision herein or to
supplement any provision herein which may be inconsistent with any other
provision herein, (iii) to add to the duties of the Depositor, the Master
Servicer, the Servicers, the Securities Administrator or the Trustee, (iv) to
add any other provisions with respect to matters or questions arising hereunder,
(v) to modify, alter, amend, add to or rescind any of the terms or provisions
contained in this Agreement, (vi) to comply with the requirements of the
Internal Revenue Code or (vii) to conform this Agreement to the Offering
Documents provided to investors in connection with the offering of the
Certificates; provided, that any action pursuant to clause (iv) or (v) above
shall not, as evidenced by an Opinion of Counsel (which Opinion of Counsel shall
not be an expense of the Trustee, the Master Servicer, the Securities
Administrator or the Trust Fund), adversely affect in any material respect the
interests of any Certificateholder; provided, further, that any such action
pursuant to clause (iv) or (v) above shall not be deemed to adversely affect in
any material respect the interests of the Certificateholders if the Person
requesting the amendment obtains a letter from each Rating Agency stating that
the amendment would not result in the downgrading or withdrawal of the
respective ratings then assigned to the Certificates; it being understood and
agreed that any such letter in and of itself will not represent a determination
as to the materiality of any such amendment and will represent a determination
only as to the credit issues affecting any such rating. The Trustee, the
Depositor, the Master Servicer and the Securities Administrator also may at any
time and from time to time amend this Agreement, but without the consent of the
Certificateholders to modify, eliminate or add to any of its provisions to such
extent as shall be necessary or helpful to (i) maintain the qualification of
each REMIC created hereunder under the Code, (ii) avoid or minimize the risk of
the imposition of any tax on any REMIC created hereunder pursuant to the Code
that would be a claim at any time prior to the final redemption of the
Certificates or (iii) comply with any other requirements of the Code; provided,
that the Trustee and the Master Servicer have been provided

                                      -117-

<PAGE>

an Opinion of Counsel, which opinion shall be an expense of the party requesting
such opinion but in any case shall not be an expense of the Trustee or the Trust
Fund, to the effect that such action is necessary or helpful to, as applicable,
(i) maintain such qualification, (ii) avoid or minimize the risk of the
imposition of such a tax or (iii) comply with any such requirements of the Code.

     This Agreement may also be amended from time to time by the Depositor, the
Master Servicer, the Securities Administrator and the Trustee, but with the
consent of the Holders of Certificates evidencing Percentage Interests
aggregating not less than 66 2/3% of each Class of Certificates affected thereby
for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Agreement or of modifying in any
manner the rights of the Holders of Certificates; provided, however, that no
such amendment shall (i) reduce in any manner the amount of, or delay the timing
of, payments required to be distributed on any Certificate without the consent
of the Holder of such Certificate, (ii) adversely affect in any material respect
the interests of the Holders of any Class of Certificates in a manner other than
as described in clause (i), without the consent of the Holders of Certificates
of such Class evidencing, as to such Class, Percentage Interests aggregating not
less than 66 2/3% or (iii) reduce the aforesaid percentages of Certificates the
Holders of which are required to consent to any such amendment, without the
consent of the Holders of all such Certificates then outstanding.

     Notwithstanding any contrary provision of this Agreement, the Trustee and
the Master Servicer shall not consent to any amendment to this Agreement unless
(i) it shall have first received an Opinion of Counsel, which opinion shall not
be an expense of the Trustee, the Master Servicer or the Trust Fund, to the
effect that such amendment will not cause the imposition of any tax on any REMIC
created hereunder or the Certificateholders or cause any such REMIC to fail to
qualify as a REMIC or the grantor trust to fail to qualify as a grantor trust at
any time that any Certificates are outstanding and (ii) the party seeking such
amendment shall have provided written notice to the Rating Agencies (with a copy
of such notice to the Trustee and the Master Servicer) of such amendment,
stating the provisions of the Agreement to be amended.

     Notwithstanding the foregoing provisions of this Section 13.01, with
respect to any amendment that significantly modifies the permitted activities of
the Trustee, any Certificate beneficially owned by the Depositor shall be deemed
not to be outstanding (and shall not be considered when determining the
percentage of Certificateholders consenting or when calculating the total number
of Certificates entitled to consent) for purposes of determining if the
requisite consents of Certificateholders under this Section 13.01 have been
obtained.

     Promptly after the execution of any amendment to this Agreement requiring
the consent of Certificateholders, the Trustee shall furnish written
notification of the substance or a copy of such amendment to each
Certificateholder and each Rating Agency.

     It shall not be necessary for the consent of Certificateholders under this
Section 13.01 to approve the particular form of any proposed amendment, but it
shall be sufficient if such consent shall approve the substance thereof. The
manner of obtaining such consents and of evidencing the authorization of the
execution thereof by Certificateholders shall be subject to such reasonable
regulations as the Trustee may prescribe.

                                      -118-

<PAGE>

     Nothing in this Agreement shall require the Trustee, the Master Servicer or
the Securities Administrator to enter into an amendment without receiving an
Opinion of Counsel (which opinion shall not be an expense of the Trustee, the
Master Servicer, the Securities Administrator or the Trust Fund), satisfactory
to the Trustee, the Master Servicer and the Securities Administrator, as
applicable, that (i) such amendment is permitted and is not prohibited by this
Agreement and that all requirements for amending this Agreement have been
complied with and (ii) either (A) the amendment does not adversely affect in any
material respect the interests of any Certificateholder or (B) the conclusion
set forth in the immediately preceding clause (A) is not required to be reached
pursuant to this Section 13.01.

          (b) No party hereto shall agree to amend any Servicing Agreement
unless the party requesting such amendment, at such party's expense, has
delivered to the Trustee, the Securities Administrator and the Master Servicer
an Opinion of Counsel that such amendment (i) is permitted under the terms of
the applicable Servicing Agreement and (ii) will not materially adversely affect
the interest of the Certificateholders in the Mortgage Loans.

          Section 13.02 Recordation of Agreement; Counterparts. This Agreement
is subject to recordation in all appropriate public offices for real property
records in all the counties or other comparable jurisdictions in which any or
all of the Mortgaged Properties are situated, and in any other appropriate
public recording office or elsewhere, such recordation to be effected by the
Securities Administrator at the direction and expense of the Depositor, but only
upon receipt of an Opinion of Counsel to the effect that such recordation
materially and beneficially affects the interests of the Certificateholders.

     For the purpose of facilitating the recordation of this Agreement as herein
provided and for other purposes, this Agreement may be executed simultaneously
in any number of counterparts, each of which counterparts shall be deemed to be
an original, and such counterparts shall constitute but one and the same
instrument.

          Section 13.03 Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK AND
THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HERETO AND THE
CERTIFICATEHOLDERS SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

          Section 13.04 Intention of Parties. (a) It is intended that the
conveyance of the Depositor's right, title and interest in and to property
constituting the Trust Fund pursuant to this Agreement shall constitute, and
shall be construed as, a sale of such property and not a grant of a security
interest to secure a loan. However, if such conveyance is deemed to be in
respect of a loan, it is intended that: (1) the rights and obligations of the
parties shall be established pursuant to the terms of this Agreement; (2) the
Depositor hereby grants to the Trustee for the benefit of the Holders of the
Certificates a first priority security interest to secure repayment of an
obligation in an amount equal to the aggregate Class Certificate Balances of the
Certificates in all of the Depositor's right, title and interest in, to and
under, whether now owned or hereafter acquired, in all proceeds of any and all
property constituting the Trust Fund to secure payment of the Certificates; and
(3) this Agreement shall constitute a security agreement under applicable

                                      -119-

<PAGE>

law. If such conveyance is deemed to be in respect of a loan and the trust
created by this Agreement terminates prior to the satisfaction of the claims of
any Person holding any Certificate, the security interest created hereby shall
continue in full force and effect and the Trustee shall be deemed to be the
collateral agent for the benefit of such Person, and all proceeds shall be
distributed by the Securities Administrator as herein provided.

          (b) The Depositor shall, to the extent consistent with this Agreement,
take such reasonable actions as may be necessary to ensure that, if this
Agreement were deemed to create a security interest in the Mortgage Loans and
the other property described above, such security interest would be deemed to be
a perfected security interest of first priority under applicable law and shall
be maintained as such throughout the term of this Agreement. The Depositor
shall, at its own expense, make all initial filings on or about the Closing Date
and shall forward a copy of such filing or filings to the Trustee. Without
limiting the generality of the foregoing, the Depositor shall prepare and
forward for filing, or shall cause to be forwarded for filing, at the expense of
the Depositor, all filings necessary to maintain the effectiveness of any
original filings necessary under the relevant UCC to perfect the Trustee's
security interest in or lien on the Mortgage Loans, including without limitation
(x) continuation statements, and (y) such other statements as may be occasioned
by (1) any change of name of the Sponsor, the Depositor or the Trustee, (2) any
change of location of the jurisdiction of organization of the Sponsor or the
Depositor, (3) any transfer of any interest of the Sponsor or the Depositor in
any Mortgage Loan or (4) any change under the relevant UCC or other applicable
laws. Neither the Sponsor nor the Depositor shall organize under the law of any
jurisdiction other than the State under which each is organized as of the
Closing Date (whether changing its jurisdiction of organization or organizing
under an additional jurisdiction) without giving 30 days prior written notice of
such action to its immediate and intermediate transferee, including the Trustee.
Before effecting such change, the Sponsor or the Depositor proposing to change
its jurisdiction of organization shall prepare and file in the appropriate
filing office any financing statements or other statements necessary to continue
the perfection of the interests of its immediate and intermediate transferees,
including the Trustee, in the Mortgage Loans. In connection with the
transactions contemplated by this Agreement, each of the Sponsor and the
Depositor authorizes its immediate or intermediate transferee to file in any
filing office any initial financing statements, any amendments to financing
statements, any continuation statements, or any other statements or filings
described in this paragraph (b).

          Section 13.05 Notices. (a) The Securities Administrator shall use its
best efforts to promptly provide notice to each Rating Agency with respect to
each of the following of which a Responsible Officer of the Securities
Administrator has actual knowledge:

          1. Any amendment to this Agreement;

          2. The occurrence of any Event of Default that has not been cured;

          3. The resignation or termination of a Servicer, the Master Servicer,
     the Securities Administrator or the Trustee and the appointment of any
     successor;

          4. The repurchase or substitution of Mortgage Loans pursuant to
     Section 2.03 or pursuant to a Transfer Agreement;

                                      -120-

<PAGE>

          5. The final payment to Certificateholders.

          (b) In addition, the Securities Administrator shall promptly make
available on its internet website to each Rating Agency copies of the following:

          1. Each report to Certificateholders described in Section 4.03; and

          2. Any notice of a purchase of a Mortgage Loan pursuant to Section
     2.03.

          (c) All directions, demands, consents and notices hereunder shall be
in writing and shall be deemed to have been duly given when delivered to:

          (i) in the case of the Depositor, HSI Asset Securitization
     Corporation, 452 Fifth Avenue, 10th Floor, New York, New York 10018,
     Attention: Head MBS Principal Finance, or such other address as may be
     hereafter furnished to the other parties by the Depositor in writing;

          (ii) in the case of the Master Servicer, CitiMortgage, Inc., 4000
     Regent Boulevard, Irving, TX 75063, Attention: Master Servicing Division,
     Compliance Manager - HALO 2007-AR1, or such other address as may be
     hereafter furnished to the to the other parties by CitiMortgage, Inc. in
     writing;

          (iii) in the case of the Securities Administrator, 388 Greenwich
     Street, 14th Floor, New York, New York 10013, Attention: Structured Finance
     Agency and Trust, HALO 2007-AR1, or such other address as may be hereafter
     furnished to the other parties by Citibank, N.A. in writing;

          (iv) in the case of the Trustee, the Corporate Trust Office
     (Attention: Corporate Trust Services - HB07L1), or such other address as
     may be hereafter furnished to the to the other parties by the Trustee in
     writing; and

          (v) in the case of each of the Rating Agencies, the address specified
     therefor in the definition corresponding to the name of such Rating Agency.

          Section 13.06 Severability of Provisions. If any one or more of the
covenants, agreements, provisions or terms of this Agreement shall be for any
reason whatsoever held invalid, then such covenants, agreements, provisions or
terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement or of the Certificates
or the rights of the Holders thereof.

          Section 13.07 [Reserved].

          Section 13.08 Limitation on Rights of Certificateholders. The death or
incapacity of any Certificateholder shall not operate to terminate this
Agreement or the trust created hereby, nor entitle such Certificateholder's
legal representative or heirs to claim an accounting or to take any action or
commence any proceeding in any court for a petition or winding up of the trust

                                      -121-

<PAGE>

created hereby, or otherwise affect the rights, obligations and liabilities of
the parties hereto or any of them.

     No Certificateholder shall have any right to vote (except as provided
herein) or in any manner otherwise control the operation and management of the
Trust Fund, or the obligations of the parties hereto, nor shall anything herein
set forth or contained in the terms of the Certificates be construed so as to
constitute the Certificateholders from time to time as partners or members of an
association; nor shall any Certificateholder be under any liability to any third
party by reason of any action taken by the parties to this Agreement pursuant to
any provision hereof.

     No Certificateholder shall have any right by virtue or by availing itself
of any provisions of this Agreement to institute any suit, action or proceeding
in equity or at law upon or under or with respect to this Agreement, unless such
Holder previously shall have given to the Trustee a written notice of an Event
of Default and of the continuance thereof, as herein provided, and unless the
Holders of Certificates evidencing not less than 25.00% of the Voting Rights
evidenced by the Certificates shall also have made written request to the
Trustee to institute such action, suit or proceeding in its own name as Trustee
hereunder and shall have offered to the Trustee such reasonable indemnity as it
may require against the costs, expenses, and liabilities to be incurred therein
or thereby, and the Trustee, for 60 days after its receipt of such notice,
request and offer of indemnity shall have neglected or refused to institute any
such action, suit or proceeding; it being understood and intended, and being
expressly covenanted by each Certificateholder with every other
Certificateholder and the Trustee, that no one or more Holders of Certificates
shall have any right in any manner whatever by virtue or by availing itself or
themselves of any provisions of this Agreement to affect, disturb or prejudice
the rights of the Holders of any other of the Certificates, or to obtain or seek
to obtain priority over or preference to any other such Holder or to enforce any
right under this Agreement, except in the manner herein provided and for the
common benefit of all Certificateholders. For the protection and enforcement of
the provisions of this Section 13.08, each and every Certificateholder and the
Trustee shall be entitled to such relief as can be given either at law or in
equity.

          Section 13.09 Certificates Nonassessable and Fully Paid. It is the
intention of the Depositor that Certificateholders shall not be personally
liable for obligations of the Trust Fund, that the interests in the Trust Fund
represented by the Certificates shall be nonassessable for any reason
whatsoever, and that the Certificates, upon due authentication thereof by the
Securities Administrator pursuant to this Agreement, are and shall be deemed
fully paid.

          Section 13.10 Rule of Construction. Article and section headings are
for the convenience of the reader and shall not be considered in interpreting
this Agreement or the intent of the parties hereto.

          Section 13.11 Waiver of Jury Trial. EACH PARTY HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY, WAIVES (TO THE EXTENT PERMITTED BY APPLICABLE
LAW) ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY OF ANY DISPUTE ARISING UNDER OR
RELATING TO THIS AGREEMENT AND AGREES THAT ANY SUCH DISPUTE SHALL BE TRIED
BEFORE A JUDGE SITTING WITHOUT A JURY.

                                      -122-

<PAGE>

                            [SIGNATURE PAGE FOLLOWS]

                                      -123-

<PAGE>

     IN WITNESS WHEREOF, each of the parties below have caused their names to be
signed hereto by their respective officers thereunto duly authorized as of the
day and year first above written.

                                        HSI ASSET SECURITIZATION CORPORATION,
                                        as Depositor

                                        By:
                                            ------------------------------------
                                        Name: Andrea Lenox
                                        Title: Vice President

                                        DEUTSCHE BANK NATIONAL TRUST COMPANY,
                                        solely as Trustee and not in its
                                        individual capacity

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        CITIMORTGAGE, INC., as Master Servicer

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                                 Pooling and Servicing Agreement

<PAGE>

                                        CITIBANK, N.A.,
                                        as Securities Administrator

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        WELLS FARGO BANK, N.A., as Custodian

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                                 Pooling and Servicing Agreement

<PAGE>

                                     ACKNOWLEDGED BY HSBC BANK USA,
                                     NATIONAL ASSOCIATION, as Sponsor,
                                     solely for the purposes of Section 2.03(k).

                                     By:
                                         ---------------------------------------
                                     Name: Jon E. Voigtman
                                     Title: Managing Director #14311

                                                 Pooling and Servicing Agreement

<PAGE>

                                   SCHEDULE I

                             Mortgage Loan Schedule

[To be retained in a separate closing binder entitled "[___] 2006-[__] Mortgage
Loan Schedules" at the Chicago, Illinois offices of Mayer, Brown, Rowe & Maw
LLP]

                                  SCHEDULE I-1
<PAGE>

                                    EXHIBIT A

           FORM OF CLASS [_]-A-[_] AND CLASS B-1, CLASS B-2, CLASS B-3

[THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE SENIOR CERTIFICATES
[AND THE CLASS B-1] [AND CLASS B-2 CERTIFICATES] DESCRIBED IN THE AGREEMENT (AS
DEFINED HEREIN). Include for the Class B-Certificates, as necessary]]

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO ISSUER OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS AN
INTEREST IN A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT,"
AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE"), AND CERTAIN OTHER
ASSETS.

                                   EXHIBIT A-1

<PAGE>

<TABLE>
<S>                                 <C>
Certificate No:                     1

Cut-off Date:                       January 1, 2007

First Distribution Date:            February 26, 2007

Initial Class Certificate Balance   $[__________]
of this Certificate                 [Exclude Class [_]-A- [_] Certificates
("Denomination"):

[Initial Class Certificate          [Exclude for Class [_]-A- [_] Certificates
Balances of all Certificates
of this Class:]

[* Notional Amount]                 [Include for Class [_]-A-[_] Certificates]

[Interest Rate:]                    ___________________________________________

CUSIP:                              ___________________________________________
</TABLE>

                                   EXHIBIT A-2

<PAGE>

<TABLE>
<S>                                 <C>
ISIN:                               ___________________________________________
</TABLE>

                                   EXHIBIT A-3

<PAGE>

                      HSI ASSET SECURITIZATION CORPORATION

                   HSI Asset Loan Obligation Trust, 2007-[__]
             Mortgage Pass-Through Certificates, Series 2007- [___]
                     Class[[_]-A-[_]][B-1] [B-2] [Class B-3]

          evidencing a percentage interest in the distributions allocable to the
          Certificates of the above-referenced Class.

     [Principal in respect of this Certificate is distributable monthly as set
forth herein. Accordingly, the Class Certificate Balance at any time may be less
than the Class Certificate Balance as set forth herein.] This Certificate does
not evidence an obligation of, or an interest in, and is not guaranteed by the
Depositor, the Trustee or any other party to the Agreement referred to below or
any of their respective affiliates. Neither this Certificate nor the Mortgage
Loans are guaranteed or insured by any governmental agency or instrumentality.

     This certifies that CEDE & CO. is the registered owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the denomination of
this Certificate [Notional Balance] by the aggregate of the denominations of all
Certificates [Class Notional Balance] of the Class to which this Certificate
belongs) in certain monthly distributions of [principal] [and] [interest]
pursuant to a Pooling and Servicing Agreement dated as of the Cut-off Date
specified above (the "Agreement") among HSI Asset Securitization Corporation, as
depositor (the "Depositor"), CitiMortgage, Inc. as master servicer (the "Master
Servicer"), Citibank N.A., as securities administrator (the "Securities
Administrator") Wells Fargo Bank, N.A., as custodian (the "Custodian"), and
Deutsche Bank National Trust Company, as trustee (the "Trustee"). To the extent
not defined herein, the capitalized terms used herein have the meanings assigned
in the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

     Reference is hereby made to the further provisions of this Certificate set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

     This Certificate shall not be entitled to any benefit under the Agreement
or be valid for any purpose unless manually authenticated by an authorized
signatory of the Securities Administrator.

                                      * * *

                                   EXHIBIT A-4

<PAGE>

     IN WITNESS WHEREOF, the Securities Administrator has caused this
Certificate to be duly executed.

Dated:
       -------------------
                                        CITIBANK, N.A.,
                                        not in its individual capacity,
                                        but solely as Securities Administrator

                                        By:
                                           -------------------------------------

Authenticated:

By:
   ----------------------------------
   Authorized Signatory of
   CITIBANK, N.A.,
   not in its individual capacity,
   but solely as Securities
   Administrator

                                   EXHIBIT A-5

<PAGE>

                      HSI ASSET SECURITIZATION CORPORATION

                    HSI Asset Loan Obligation Trust 2007-[__]
                       Mortgage Pass-Through Certificates

     This Certificate is one of a duly authorized issue of Certificates
designated as HSI Asset Loan Obligation Trust 2007-[__] Mortgage Pass-Through
Certificates, of the Series specified on the face hereof (herein collectively
called the "Certificates"), and representing a beneficial ownership interest in
the Trust Fund created by the Agreement.

     The Certificateholder, by its acceptance of this Certificate, agrees that
it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that neither the Trustee nor the Securities Administrator
is liable to the Certificateholders for any amount payable under this
Certificate or the Agreement or, except as expressly provided in the Agreement,
subject to any liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced thereby, and the rights, duties and
immunities of the Trustee.

     Pursuant to the terms of the Agreement, a distribution will be made on the
25th day of each month or, if such day is not a Business Day, the Business Day
immediately following (the "Distribution Date"), commencing on the first
Distribution Date specified on the face hereof, to the Person in whose name this
Certificate is registered at the close of business on the applicable Record Date
in an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to Holders of Certificates
of the Class to which this Certificate belongs on such Distribution Date
pursuant to the Agreement. The Class [I-A- [_]] Certificates have no Class
Certificate Balance.]

     Distributions on this Certificate shall be made by wire transfer of
immediately available funds to the account of the Holder hereof at a bank or
other entity having appropriate facilities therefor, if such Certificateholder
shall have so notified the Securities Administrator in writing at least five
Business Days prior to the related Record Date and such Certificateholder shall
satisfy the conditions to receive such form of payment set forth in the
Agreement, or, if not, by check mailed by first class mail to the address of
such Certificateholder appearing in the Certificate Register. The final
distribution on each Certificate will be made in like manner, but only upon
presentment and surrender of such Certificate at the offices designated by the
Securities Administrator for such purposes or such other location specified in
the notice to Certificateholders of such final distribution.

     The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the parties to the Agreement with the consent of the Holders of Certificates
affected by such amendment evidencing the requisite Percentage Interest, as
provided in the Agreement. Any such consent by the Holder of this Certificate
shall be conclusive and binding on such Holder and upon all future Holders of
this Certificate and of any Certificate issued upon the transfer hereof or in
exchange therefor or in

                                   EXHIBIT A-6

<PAGE>

lieu hereof whether or not notation of such consent is made upon this
Certificate. The Agreement also permits the amendment thereof, in certain
limited circumstances, without the consent of the Holders of any of the
Certificates.

     As provided in the Agreement and subject to certain limitations therein set
forth, the transfer of this Certificate is registrable in the Certificate
Register of the Securities Administrator upon surrender of this Certificate for
registration of transfer at the offices designated by the Securities
Administrator for such purposes, accompanied by a written instrument of transfer
in form satisfactory to the Securities Administrator duly executed by the holder
hereof or such holder's attorney duly authorized in writing, and thereupon one
or more new Certificates of the same Class in authorized denominations and
evidencing the same aggregate Percentage Interest in the Trust Fund will be
issued to the designated transferee or transferees.

     The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

     No service charge will be made for any such registration of transfer or
exchange, but the Securities Administrator may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection
therewith.

     The Trustee, the Depositor and the Securities Administrator and any agent
of the Trustee, the Depositor or the Securities Administrator may treat the
Person in whose name this Certificate is registered as the owner hereof for all
purposes, and neither the Trustee, the Depositor, the Securities Administrator
nor any such agent shall be affected by any notice to the contrary.

     The Master Servicer, upon the instruction of the Depositor or at its own
discretion, shall purchase the Mortgage Loans and therefore cause the
termination of the Trust on any Optional Termination Date, which is any
Distribution Date in which the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due Period is less than or
equal to 10% of the aggregate Stated Principal Balance of the Mortgage Loans as
of the Cut-off Date.

     The obligations and responsibilities created by the Agreement will
terminate as provided in Section 12.01 of the Agreement.

     Any term used herein that is defined in the Agreement shall have the
meaning assigned in the Agreement, and nothing herein shall be deemed
inconsistent with that meaning.

                                   EXHIBIT A-7

<PAGE>

                                   ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
unto
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

(Please print or typewrite name and address including postal zip code of
assignee)

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust Fund.

     I (We) further direct the Securities Administrator to issue a new
Certificate of a like denomination and Class, to the above named assignee and
deliver such Certificate to the following address:
________________________________________________________________________________

Dated:
       ------------------------------

                                        ----------------------------------------
                                        Signature by or on behalf of assignor

                            DISTRIBUTION INSTRUCTIONS

     The assignee should include the following for purposes of distribution:

     Distributions shall be made, by wire transfer or otherwise, in immediately
available funds to ____________________________________________________________,

_______________________________________________________________________________,

for the account of ____________________________________________________________,

account number __________, or, if mailed by check, to _________________________.

Applicable statements should be mailed to _____________________________________,

_______________________________________________________________________________

     This information is provided by __________________________________________,

the assignee named above, or __________________________________________________,

as its agent.

                                   EXHIBIT A-8
<PAGE>

                                    EXHIBIT B

                    FORM OF CLASS B-[4] [-5] [-6] CERTIFICATE

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE SENIOR CERTIFICATES,
CLASS B-1, CLASS B-2 CERTIFICATES, [AND] CLASS B-3 CERTIFICATES, [AND CLASS B-4
CERTIFICATES,] [AND CLASS B-5 CERTIFICATES] DESCRIBED IN THE AGREEMENT (AS
DEFINED HEREIN).

THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE
RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT AND LAWS OR
IS SOLD OR TRANSFERRED IN TRANSACTIONS WHICH ARE EXEMPT FROM REGISTRATION UNDER
SUCH ACT AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE WITH
THE PROVISIONS OF SECTION 5.02 OF THE AGREEMENT.

NO TRANSFER OF THIS CERTIFICATE (OR ANY INTEREST HEREIN) MAY BE MADE TO ANY
PERSON, UNLESS THE TRANSFEREE PROVIDES THE TRUSTEE, THE DEPOSITOR AND THE MASTER
SERVICER WITH EITHER (A) A CERTIFICATION PURSUANT TO SECTION 5.02(d) OF THE
AGREEMENT OR (B) AN OPINION OF COUNSEL ACCEPTABLE TO AND IN FORM AND SUBSTANCE
SATISFACTORY TO THE TRUSTEE, THE DEPOSITOR AND THE MASTER SERVICER TO THE EFFECT
THAT THE PURCHASE AND HOLDING OF THIS CERTIFICATE IS PERMISSIBLE UNDER
APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED
TRANSACTION UNDER SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE") (OR COMPARABLE PROVISIONS OF ANY SUBSEQUENT
ENACTMENTS) AND WILL NOT SUBJECT THE TRUSTEE, THE COMPANY OR THE MASTER SERVICER
TO ANY OBLIGATION OR LIABILITY (INCLUDING OBLIGATIONS AND LIABILITIES UNDER
ERISA OR SECTION 4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE
AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE TRUSTEE, THE
DEPOSITOR OR THE MASTER SERVICER.

                                   EXHIBIT B-1

<PAGE>

<TABLE>
<S>                                       <C>
Certificate No. [____]                    [____]% Pass-Through Rate

Class [B-___] Subordinate

Date of Pooling and Servicing Agreement   Principal Balance of the Class B-_____
and Cut-off Date:                         Certificates as of the Cut-off Date:
January 1, 2007                           $________

First Distribution Date:                  Initial Class Certificate Balance of
February 26, 2007                         this Certificate:
                                          $[______________]
Master Servicer:
CitiMortgage, Inc.

Assumed Final Distribution Date:          CUSIP
[______________]                          [______________]
</TABLE>

                                   EXHIBIT B-2

<PAGE>

                      HSI ASSET SECURITIZATION CORPORATION

                   HSI Asset Loan Obligation Trust, 2007-[__]
             Mortgage Pass-Through Certificates, Series 2007-[___]
                                  Class B[-__]

          evidencing a percentage interest in the distributions allocable to the
          Certificates of the above-referenced Class.

     Principal in respect of this Certificate is distributable monthly as set
forth herein. Accordingly, the Class Certificate Balance at any time may be less
than the Class Certificate Balance as set forth herein. This Certificate does
not evidence an obligation of, or an interest in, and is not guaranteed by the
Depositor, the Trustee or any other party to the Agreement referred to below or
any of their respective affiliates. Neither this Certificate nor the Mortgage
Loans are guaranteed or insured by any governmental agency or instrumentality.

     This certifies that CEDE & CO. is the registered owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Initial Class
Certificate Balance of this Certificate by the aggregate Initial Class
Certificate Balance of all Class B-___ Certificates, both as specified above) in
certain monthly distributions of principal and interest pursuant to a Pooling
and Servicing Agreement dated as of the Cut-off Date specified above (the
"Agreement") among HSI Asset Securitization Corporation, as depositor (the
"Depositor"), CitiMortgage, Inc., as master servicer (in such capacity, the
"Master Servicer"), Citibank N., A. as securities administrator (the "Securities
Administrator"), Wells Fargo Bank, N.A. as custodian (the "Custodian"), and
Deutsche Bank National Trust Company, as trustee (the "Trustee"). To the extent
not defined herein, the capitalized terms used herein have the meanings assigned
in the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

     No transfer of this Class B Certificate will be made unless such transfer
is exempt from the registration requirements of the Securities Act of 1933, as
amended, and any applicable state securities laws or is made in accordance with
said Act and laws. In the event that such a transfer is to be made, (i) the
Trustee or the Depositor may require an opinion of counsel acceptable to and in
form and substance satisfactory to the Trustee and the Depositor that such
transfer is exempt (describing the applicable exemption and the basis therefore)
from or is being made pursuant to the registration requirements of the
Securities Act of 1933, as amended, and of any applicable statute of any state
and (ii) the transferee shall execute an investment letter in the form described
by Section 5.02(b) of the Agreement. The Holder hereof desiring to effect such
transfer shall, and does hereby agree to, indemnify the Trustee, the Depositor,
the Master Servicer and the Certificate Registrar acting on behalf of the
Trustee against any liability that may result if the transfer is not so exempt
or is not made in accordance with such Federal and state laws.

     As described above, no transfer of this Certificate (or any interest
herein) shall be made unless the transferee provides the Trustee, the Depositor
and the Master Servicer with either (a) a certification pursuant to Section
5.02(b) of the Agreement stating that either (i) the transferee is

                                   EXHIBIT B-3

<PAGE>

not an employee benefit or other plan subject to the prohibited transaction
provisions of ERISA or Section 4975 of the Code (each, a "Plan"), or any Person
(including, without limitation, an investment manager, a named fiduciary or a
trustee of any Plan) who is using "plan assets," within the meaning of the U.S.
Department of Labor regulation promulgated at 29 C.F.R. Section 2510.3-101, of
any Plan (each, a "Plan Investor") to effect such acquisition or (ii) the
transferee is an insurance company, the source of funds used to purchase or hold
such Certificate (or any interest therein) is an "insurance company general
account" (as defined in U.S. Department of Labor Prohibited Transaction Class
Exemption ("PTCE") 95-60 and the conditions set forth in Sections I and III of
PTCE 95-60 have been satisfied, or (b) an opinion of counsel acceptable to and
in form and substance satisfactory to the Trustee, the Depositor and the Master
Servicer to the effect that the purchase and holding of this Certificate is
permissible under applicable law, will not constitute or result in a non-exempt
prohibited transaction under Section 406 of ERISA or Section 4975 of the Code
(or comparable provisions of any subsequent enactments), and will not subject
the Trustee, the Depositor or the Master Servicer to any obligation or liability
(including obligations or liabilities under ERISA or Section 4975 of the Code)
in addition to those undertaken in the Agreement, which opinion of counsel shall
not be an expense of the Trustee, the Depositor or the Master Servicer.

     Reference is hereby made to the further provisions of this Certificate set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

     This Certificate shall not be entitled to any benefit under the Agreement
or be valid for any purpose unless manually authenticated by an authorized
signatory of the Securities Administrator.

                                     * * *

                                   EXHIBIT B-4

<PAGE>

     IN WITNESS WHEREOF, the Securities Administrator has caused this
Certificate to be duly executed.

Dated:
       ------------------------------
                                        CITIBANK, N.A.,
                                        not in its individual capacity, but
                                        solely as Securities Administrator

                                        By:
                                            ------------------------------------

Authenticated:

By:
    ---------------------------------
    Authorized Signatory of
    CITIBANK, N.A.,
    not in its individual capacity,
    but solely as Securities
    Administrator

                                   EXHIBIT B-5

<PAGE>

                      HSI ASSET SECURITIZATION CORPORATION

                    HSI Asset Loan Obligation Trust 2007-[__]
                       Mortgage Pass-Through Certificates

     This Certificate is one of a duly authorized issue of Certificates
designated as HSI Asset Loan Obligation Trust 2007-[__] Mortgage Pass-Through
Certificates, of the Series specified on the face hereof (herein collectively
called the "Certificates"), and representing a beneficial ownership interest in
the Trust Fund created by the Agreement.

     The Certificateholder, by its acceptance of this Certificate, agrees that
it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that neither the Trustee nor the Securities Administrator
is liable to the Certificateholders for any amount payable under this
Certificate or the Agreement or, except as expressly provided in the Agreement,
subject to any liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced thereby, and the rights, duties and
immunities of the Trustee.

     Pursuant to the terms of the Agreement, a distribution will be made on the
25th day of each month or, if such day is not a Business Day, the Business Day
immediately following (the "Distribution Date"), commencing on the first
Distribution Date specified on the face hereof, to the Person in whose name this
Certificate is registered at the close of business on the applicable Record Date
in an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to Holders of the Class
B-[_] Certificates on such Distribution Date pursuant to the Agreement.

     Distributions on this Certificate shall be made by wire transfer of
immediately available funds to the account of the Holder hereof at a bank or
other entity having appropriate facilities therefor, if such Certificateholder
shall have so notified the Securities Administrator in writing at least five
Business Days prior to the related Record Date and such Certificateholder shall
satisfy the conditions to receive such form of payment set forth in the
Agreement, or, if not, by check mailed by first class mail to the address of
such Certificateholder appearing in the Certificate Register. The final
distribution on each Certificate will be made in like manner, but only upon
presentment and surrender of such Certificate at the offices designated by the
Securities Administrator for such purposes or such other location specified in
the notice to Certificateholders of such final distribution. The Initial Class
Certificate Balance of this Certificate is set forth above. The Class
Certificate Balance hereof will be reduced to the extent of the distributions
allocable to principal and any Realized Losses allocable hereto.

     The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the parties to the Agreement with the consent of the Holders of Certificates
affected by such amendment evidencing the requisite Percentage Interest, as
provided in the Agreement. Any such consent by the Holder of this Certificate
shall be conclusive and binding on such Holder and upon all future Holders of
this

                                   EXHIBIT B-6

<PAGE>

Certificate and of any Certificate issued upon the transfer hereof or in
exchange therefor or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

     As provided in the Agreement and subject to certain limitations therein set
forth, the transfer of this Certificate is registrable in the Certificate
Register of the Securities Administrator upon surrender of this Certificate for
registration of transfer at the offices designated by the Securities
Administrator for such purposes, accompanied by a written instrument of transfer
in form satisfactory to the Securities Administrator duly executed by the holder
hereof or such holder's attorney duly authorized in writing, and thereupon one
or more new Certificates of the same Class in authorized denominations and
evidencing the same aggregate Percentage Interest in the Trust Fund will be
issued to the designated transferee or transferees.

     The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

     No service charge will be made for any such registration of transfer or
exchange, but the Securities Administrator may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection
therewith.

     The Trustee, the Depositor and the Securities Administrator and any agent
of the Trustee, the Depositor or the Securities Administrator may treat the
Person in whose name this Certificate is registered as the owner hereof for all
purposes, and neither the Trustee, the Depositor, the Securities Administrator
nor any such agent shall be affected by any notice to the contrary.

     The Master Servicer, upon the instruction of the Depositor or at its own
discretion, shall purchase the Mortgage Loans and therefore cause the
termination of the Trust on any Optional Termination Date, which is any
Distribution Date in which the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due Period is less than or
equal to 10% of the aggregate Stated Principal Balance of the Mortgage Loans as
of the Cut-off Date.

     The obligations and responsibilities created by the Agreement will
terminate as provided in Section 12.01 of the Agreement.

     Any term used herein that is defined in the Agreement shall have the
meaning assigned in the Agreement, and nothing herein shall be deemed
inconsistent with that meaning.

                                   EXHIBIT B-7

<PAGE>

                                   ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
unto
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

(Please print or typewrite name and address including postal zip code of
assignee)

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust Fund.

     I (We) further direct the Securities Administrator to issue a new
Certificate of a like denomination and Class, to the above named assignee and
deliver such Certificate to the following address:
________________________________________________________________________________

Dated:
       ------------------------------

                                        ----------------------------------------
                                        Signature by or on behalf of assignor

                            DISTRIBUTION INSTRUCTIONS

    The assignee should include the following for purposes of distribution:

     Distributions shall be made, by wire transfer or otherwise, in immediately
available funds to ____________________________________________________________,
_______________________________________________________________________________,
for the account of ____________________________________________________________,
account number __________, or, if mailed by check, to _________________________.
Applicable statements should be mailed to _____________________________________,
_______________________________________________________________________________

     This information is provided by __________________________________________,
the assignee named above, or __________________________________________________,
as its agent.

                                   EXHIBIT B-8
<PAGE>

                                    EXHIBIT C

                      FORM OF CLASS R-[_] CERTIFICATE

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "RESIDUAL
INTEREST" IN TWO "REAL ESTATE MORTGAGE INVESTMENT CONDUITS," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
PROPOSED TRANSFEREE DELIVERS TO THE SECURITIES ADMINISTRATOR A TRANSFER
AFFIDAVIT IN ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED (I) TO A
PERSON OTHER THAN A PERMITTED TRANSFEREE IN COMPLIANCE WITH SECTION 5.02I OF THE
AGREEMENT OR (II) UNLESS THE TRANSFEREE DELIVERS TO THE SECURITIES ADMINISTRATOR
A REPRESENTATION LETTER TO THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE
BENEFIT PLAN SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT
OF 1974, AS AMENDED ("ERISA"), OR A PLAN SUBJECT TO SECTION 4975 OF THE CODE OR
A PLAN SUBJECT TO MATERIALLY SIMILAR PROVISIONS OF APPLICABLE FEDERAL, STATE OR
LOCAL LAW ("SIMILAR LAW") OR A PERSON INVESTING ON BEHALF OF OR WITH PLAN ASSETS
OF SUCH A PLAN. IN THE EVENT THAT SUCH REPRESENTATION IS VIOLATED, OR ANY
ATTEMPT IS MADE TO TRANSFER TO A PLAN OR ARRANGEMENT SUBJECT TO SECTION 406 OF
ERISA, A PLAN SUBJECT TO SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO SIMILAR
LAW, OR A PERSON ACTING ON BEHALF OF ANY SUCH PLAN OR ARRANGEMENT OR USING THE
ASSETS OF ANY SUCH PLAN OR ARRANGEMENT, SUCH ATTEMPTED TRANSFER OR ACQUISITION
SHALL BE VOID AND OF NO EFFECT.

<TABLE>
<S>                                        <C>
Certificate No.:                           R-[_]

Cut-off Date:                              January 1, 2007

First Distribution Date:                   February 26, 2007

Percentage Interest of this Certificate:   100.00%

Interest Rate:                             None
</TABLE>

                                   EXHIBIT C-1
<PAGE>

<TABLE>
<S>                                        <C>
CUSIP:                                     _________________________

ISN:                                       _________________________
</TABLE>

                                   EXHIBIT C-2
<PAGE>

                      HSI ASSET SECURITIZATION CORPORATION

                    HSI Asset Loan Obligation Trust 2007-[__]
              Mortgage Pass-Through Certificates, Series 2007-[__]

                                Class R-[_]

          evidencing a percentage interest in the distributions allocable to the
          Certificates of the above-referenced Class.

     Distributions in respect of this Certificate are distributable monthly as
set forth herein. This Class R-[_] Certificate has no Certificate Balance and is
not entitled to distributions in respect of principal or interest. This
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Trustee or any other party to the Agreement
referred to below or any of their respective affiliates. Neither this
Certificate nor the Mortgage Loans are guaranteed or insured by any governmental
agency or instrumentality.

     This certifies that HSBC SECURITIES (USA) INC. is the registered owner of
the Percentage Interest specified above of any monthly distributions due to the
Class R-[_] Certificates pursuant to a Pooling and Servicing Agreement dated as
of the Cut-off Date specified above (the "Agreement") among HSI Asset
Securitization Corporation, as depositor (the "Depositor"), CitiMortgage, Inc.,
as master servicer (the "Master Servicer"), Citibank N.A., as securities
administrator (the "Securities Administrator") Wells Fargo Bank, N.A. as
custodian (the "Custodian"), and Deutsche Bank National Trust Company, as
trustee (the "Trustee"). To the extent not defined herein, the capitalized terms
used herein have the meanings assigned in the Agreement. This Certificate is
issued under and is subject to the terms, provisions and conditions of the
Agreement, to which Agreement the Holder of this Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.

     Any distribution of the proceeds of any remaining assets of the Trust will
be made only upon presentment and surrender of this Class R-[_] Certificate at
the offices designated by the Securities Administrator for such purpose, or such
other location specified in the notice to Certificateholders.

     No transfer of a Class R-[_] Certificate shall be made unless the
Securities Administrator shall have received a representation letter from the
transferee of such Certificate, acceptable to and in form and substance
satisfactory to the Securities Administrator, to the effect that such transferee
is not an employee benefit plan or arrangement subject to Section 406 of ERISA,
a plan or arrangement subject to Section 4975 of the Code or a plan subject to
Similar Law, or a person acting on behalf of any such plan or arrangement nor
using the assets of any such plan or arrangement to effect such transfer, which
representation letter shall not be an expense of the Trustee, the Securities
Administrator, the Depositor, the Master Servicer or the Trust Fund. In the
event that such representation is violated, or any attempt is made to transfer
to a plan or arrangement subject to Section 406 of ERISA or a plan subject to
Section 4975 of the Code or a plan subject to Similar Law, or a person acting on
behalf of any such plan or arrangement or using the assets of any such plan or
arrangement, such attempted transfer or acquisition shall be void and of no
effect.

                                   EXHIBIT C-3

<PAGE>

     Each Holder of this Class R-[_] Certificate shall be deemed by the
acceptance or acquisition an Ownership Interest in this Class R-[_] Certificate
to have agreed to be bound by the following provisions, and the rights of each
Person acquiring any Ownership Interest in this Class R-[_] Certificate are
expressly subject to the following provisions: (i) each Person holding or
acquiring any Ownership Interest in this Class R-[_] Certificate shall be a
Permitted Transferee and shall promptly notify the Securities Administrator of
any change or impending change in its status as a Permitted Transferee, (ii) no
Ownership Interest in this Class R-[_] Certificate may be registered on the
Closing Date or thereafter transferred, and the Securities Administrator shall
not register the Transfer of this Certificate unless, in addition to the
certificates required to be delivered to the Securities Administrator under
Section 5.02(b) of the Agreement, the Securities Administrator shall have been
furnished with a Transfer Affidavit of the initial owner or the proposed
transferee in the form attached as Exhibit G to the Agreement, (iii) each Person
holding or acquiring any Ownership Interest in this Class R-[_] Certificate
shall agree (A) to obtain a Transfer Affidavit from any other Person to whom
such Person attempts to Transfer its Ownership Interest this Class R-[_]
Certificate, (B) to obtain a Transfer Affidavit from any Person for whom such
Person is acting as nominee, trustee or agent in connection with any Transfer of
this Class R-[_] Certificate, (C) not to cause income with respect to the Class
R-[_] Certificate to be attributable to a foreign permanent establishment or
fixed base, within the meaning of an applicable income tax treaty, of such
Person or any other U.S. Person and (D) not to Transfer the Ownership Interest
in this Class R-[_] Certificate or to cause the Transfer of the Ownership
Interest in this Class R-[_] Certificate to any other Person if it has actual
knowledge that such Person is a Non-Permitted Transferee and (iv) any attempted
or purported Transfer of the Ownership Interest in this Class R-[_] Certificate
in violation of the provisions herein shall be absolutely null and void and
shall vest no rights in the purported Transferee.

     Reference is hereby made to the further provisions of this Certificate set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

     This Certificate shall not be entitled to any benefit under the Agreement
or be valid for any purpose unless manually authenticated by an authorized
signatory of the Securities Administrator.

                                     * * *

                                   EXHIBIT C-4

<PAGE>

     IN WITNESS WHEREOF, the Securities Administrator has caused this
Certificate to be duly executed.

Dated:
       -----------------

                                        CITIBANK, N.A.,
                                        not in its individual capacity, but
                                        solely as Securities Administrator

                                        By:
                                            ------------------------------------

Authenticated:

By:
    ----------------------------------
    Authorized Signatory of
    CITIBANK, N.A.,
    not in its individual capacity,
    but solely as Securities
    Administrator

                                   EXHIBIT C-5

<PAGE>

                      HSI ASSET SECURITIZATION CORPORATION

                    HSI Asset Loan Obligation Trust 2007-[__]
                       Mortgage Pass-Through Certificates

     This Certificate is one of a duly authorized issue of Certificates
designated as HSI Asset Loan Obligation Trust 2007-[__] Mortgage Pass-Through
Certificates, of the Series specified on the face hereof (herein collectively
called the "Certificates"), and representing a beneficial ownership interest in
the Trust Fund created by the Agreement.

     The Certificateholder, by its acceptance of this Certificate, agrees that
it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that neither the Trustee nor the Securities Administrator
is liable to the Certificateholders for any amount payable under this
Certificate or the Agreement or, except as expressly provided in the Agreement,
subject to any liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced thereby, and the rights, duties and
immunities of the Trustee.

     Pursuant to the terms of the Agreement, a distribution will be made on the
25th day of each month or, if such day is not a Business Day, the Business Day
immediately following (the "Distribution Date"), commencing on the first
Distribution Date specified on the face hereof, to the Person in whose name this
Certificate is registered at the close of business on the applicable Record Date
in an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to Holders of Certificates
of the Class to which this Certificate belongs on such Distribution Date
pursuant to the Agreement. The Record Date applicable to each Distribution Date
is the last Business Day of the month next preceding the month of such
Distribution Date.

     Distributions on this Certificate shall be made by wire transfer of
immediately available funds to the account of the Holder hereof at a bank or
other entity having appropriate facilities therefor, if such Certificateholder
shall have so notified the Securities Administrator in writing at least five
Business Days prior to the related Record Date and such Certificateholder shall
satisfy the conditions to receive such form of payment set forth in the
Agreement, or, if not, by check mailed by first class mail to the address of
such Certificateholder appearing in the Certificate Register. The final
distribution on each Certificate will be made in like manner, but only upon
presentment and surrender of such Certificate at the offices designated by the
Securities Administrator for such purpose, or such other location specified in
the notice to Certificateholders of such final distribution.

     The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the parties to the Agreement with the consent of the Holders of Certificates
affected by such amendment evidencing the requisite Percentage Interest, as
provided in the Agreement. Any such consent by the Holder of this Certificate
shall be conclusive and binding on such Holder and upon all future Holders of
this

                                   EXHIBIT C-6

<PAGE>

Certificate and of any Certificate issued upon the transfer hereof or in
exchange therefor or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

     As provided in the Agreement and subject to certain limitations therein set
forth, the transfer of this Certificate is registrable in the Certificate
Register of the Securities Administrator upon surrender of this Certificate for
registration of transfer at the offices designated by the Securities
Administrator for such purposes, accompanied by a written instrument of transfer
in form satisfactory to the Securities Administrator duly executed by the holder
hereof or such holder's attorney duly authorized in writing, and thereupon one
or more new Certificates of the same Class in authorized denominations and
evidencing the same aggregate Percentage Interest in the Trust Fund will be
issued to the designated transferee or transferees.

     The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

     No service charge will be made for any such registration of transfer or
exchange, but the Securities Administrator may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection
therewith.

     The Trustee, the Depositor and the Securities Administrator and any agent
of the Trustee, the Depositor or the Securities Administrator may treat the
Person in whose name this Certificate is registered as the owner hereof for all
purposes, and neither the Trustee, the Depositor, the Securities Administrator
nor any such agent shall be affected by any notice to the contrary.

     The Master Servicer, upon the instruction of the Depositor or at its own
discretion, shall purchase the Mortgage Loans and therefore cause the
termination of the Trust on any Optional Termination Date, which is any
Distribution Date in which the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due Period is less than or
equal to 10% of the aggregate Stated Principal Balance of the Mortgage Loans as
of the Cut-off Date.

     The obligations and responsibilities created by the Agreement will
terminate as provided in Section 12.01 of the Agreement.

     Any term used herein that is defined in the Agreement shall have the
meaning assigned in the Agreement, and nothing herein shall be deemed
inconsistent with that meaning.

                                   EXHIBIT C-7

<PAGE>

                                   ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
unto
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

(Please print or typewrite name and address including postal zip code of
assignee)

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust Fund.

     I (We) further direct the Securities Administrator to issue a new
Certificate of a like denomination and Class, to the above named assignee and
deliver such Certificate to the following address:

________________________________________________________________________________

Dated:
       -----------------

                                        ----------------------------------------
                                        Signature by or on behalf of assignor

                            DISTRIBUTION INSTRUCTIONS

     The assignee should include the following for purposes of distribution:

Distributions shall be made, by wire transfer or otherwise, in immediately
available funds to ____________________________________________________________,
_______________________________________________________________________________,
for the account of ____________________________________________________________,
account number __________, or, if mailed by check, to _________________________.
Applicable statements should be mailed to _____________________________________,
________________________________________________________________________________

     This information is provided by __________________________________________,
the assignee named above, or __________________________________________________,
as its agent.

                                   EXHIBIT C-8
<PAGE>

                                    EXHIBIT D

                           FORM OF CLASS P CERTIFICATE

NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
PROPOSED TRANSFEROR DELIVERS TO THE SECURITIES ADMINISTRATOR A TRANSFEROR
CERTIFICATE IN THE FORM OF EXHIBIT H TO THE AGREEMENT REFERRED TO HEREIN AND
EITHER (I) THE SECURITIES ADMINISTRATOR RECEIVES EITHER A RULE 144A INVESTMENT
LETTER OR REGULATION S INVESTMENT LETTER IN THE FORM OF EXHIBIT I-A AND EXHIBIT
I-B, RESPECTIVELY, TO THE AGREEMENT REFERRED TO HEREIN OR (II) THE SECURITIES
ADMINISTRATOR RECEIVES AN OPINION OF COUNSEL, DELIVERED AT THE EXPENSE OF THE
TRANSFEROR, STATING THAT SUCH TRANSFER MAY BE MADE WITHOUT REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED.

NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
TRANSFEREE DELIVERS TO THE SECURITIES ADMINISTRATOR A REPRESENTATION LETTER TO
THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE
I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"),
OR A PLAN SUBJECT TO SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO MATERIALLY
SIMILAR PROVISIONS OF APPLICABLE FEDERAL, STATE OR LOCAL LAW ("SIMILAR LAW") OR
A PERSON INVESTING ON BEHALF OF OR WITH PLAN ASSETS OF SUCH A PLAN. IN THE EVENT
THAT SUCH REPRESENTATION IS VIOLATED, OR ANY ATTEMPT IS MADE TO TRANSFER TO A
PLAN OR ARRANGEMENT SUBJECT TO SECTION 406 OF ERISA, A PLAN SUBJECT TO SECTION
4975 OF THE CODE OR A PLAN SUBJECT TO SIMILAR LAW, OR A PERSON ACTING ON BEHALF
OF ANY SUCH PLAN OR ARRANGEMENT OR USING THE ASSETS OF ANY SUCH PLAN OR
ARRANGEMENT, SUCH ATTEMPTED TRANSFER OR ACQUISITION SHALL BE VOID AND OF NO
EFFECT.

<TABLE>
<S>                                        <C>
Certificate No.:                           P-1

Cut-off Date:                              January 1, 2007

First Distribution Date:                   February 26, 2007

Percentage Interest of this Certificate:   100%

Interest:                                  None

CUSIP:                                     ____________________________________

ISIN:                                      ____________________________________
</TABLE>

                                   EXHIBIT D-1

<PAGE>

                      HSI ASSET SECURITIZATION CORPORATION

                    HSI Asset Loan Obligation Trust 2007-[_]
               Mortgage Pass-Through Certificates, Series 2007-[_]

                                     Class P

     evidencing a percentage interest in the distribution of Prepayment Charges
     allocable to the Certificates of the above-referenced Class.

          Distributions in respect of this Certificate are distributable monthly
as set forth herein. This Certificate does not evidence an obligation of, or an
interest in, and is not guaranteed by the Depositor, the Trustee or any other
party to the Agreement referred to below or any of their respective affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

          This certifies that HSBC SECURITIES (USA) INC. is the registered owner
of the Percentage Interest evidenced by this Certificate in certain monthly
distributions of Prepayment Charges pursuant to a Pooling and Servicing
Agreement dated as of the Cut-off Date specified above (the "Agreement") among
HSI Asset Securitization Corporation, as depositor (the "Depositor"),
CitiMortgage, Inc., as master servicer (in such capacity, the "Master
Servicer"), Citibank, N.A., as securities administrator (in such capacity, the
"Securities Administrator"), Wells Fargo Bank, N.A., as custodian, and Deutsche
Bank National Trust Company, as trustee (the "Trustee"). To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

          This Certificate does not have an Interest Rate and will solely be
entitled to receive distributions of Prepayment Charges to the extent set forth
in the Agreement. In addition, any distribution of the proceeds of any remaining
assets of the Trust will be made only upon presentment and surrender of this
Certificate at the offices designated by the Securities Administrator for such
purpose, or such other location specified in the notice to Certificateholders.

          No transfer of a Certificate of this Class shall be made unless such
disposition is exempt from the registration requirements of the Securities Act
of 1933, as amended (the "1933 Act"), and any applicable state securities laws
or is made in accordance with the 1933 Act and such laws. In the event of any
such transfer, the Securities Administrator shall require the transferor to
execute a transferor certificate (in substantially the form attached to the
Agreement) and deliver either (i) a Rule 144A Investment Letter or a Regulation
S Investment Letter, as applicable, in either case substantially in the form
attached as Exhibit I-A and Exhibit I-B, respectively, to the Agreement, or (ii)
a written Opinion of Counsel to the Securities Administrator that such transfer
may be made pursuant to an exemption, describing the applicable exemption and
the basis therefor, from the 1933 Act or is being made pursuant to the 1933 Act,
which Opinion of Counsel shall be an expense of the transferor.

                                   EXHIBIT D-2

<PAGE>

          No transfer of a Certificate of this Class shall be made unless the
Securities Administrator shall have received a representation letter from the
transferee of such Certificate, acceptable to and in form and substance
satisfactory to the Securities Administrator, to the effect that such transferee
is not an employee benefit plan subject to Section 406 of ERISA, Section 4975 of
the Code or any materially similar provisions of applicable federal, state or
local law ("Similar Law"), or a person acting on behalf of or investing plan
assets of any such plan, which representation letter shall not be an expense of
the Securities Administrator.

          Reference is hereby made to the further provisions of this Certificate
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

          This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually authenticated by an
authorized signatory of the Securities Administrator.

                                      * * *

                                   EXHIBIT D-3

<PAGE>

          IN WITNESS WHEREOF, the Securities Administrator has caused this
Certificate to be duly executed.

Dated:
       --------------------

                                        CITIBANK, N.A.,
                                        not in its individual capacity, but
                                        solely as Securities Administrator

                                        By:
                                            ------------------------------------

Authenticated:

By:
    ---------------------------------
    Authorized Signatory of
    CITIBANK, N.A.,
    not in its individual capacity,
    but solely as Securities
    Administrator

                                   EXHIBIT D-4

<PAGE>

                      HSI ASSET SECURITIZATION CORPORATION

                    HSI Asset Loan Obligation Trust 2007-[_]
                       Mortgage Pass-Through Certificates

          This Certificate is one of a duly authorized issue of Certificates
designated as HSI Asset Loan Obligation Trust 2007-[__] Mortgage Pass-Through
Certificates, of the Series specified on the face hereof (herein collectively
called the "Certificates"), and representing a beneficial ownership interest in
the Trust Fund created by the Agreement.

          The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account
constituting Prepayment Charges for payment hereunder and that neither the
Trustee nor the Securities Administrator is liable to the Certificateholders for
any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

          This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

          Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such day is not a Business Day, the Business
Day immediately following (the "Distribution Date"), commencing on the first
Distribution Date specified on the face hereof, to the Person in whose name this
Certificate is registered at the close of business on the applicable Record Date
in an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to Holders of Certificates
of the Class to which this Certificate belongs on such Distribution Date
pursuant to the Agreement. The Record Date applicable to each Distribution Date
is the last Business Day of the month next preceding the month of such
Distribution Date.

          Distributions on this Certificate shall be made by wire transfer of
immediately available funds to the account of the Holder hereof at a bank or
other entity having appropriate facilities therefor, if such Certificateholder
shall have so notified the Securities Administrator in writing at least five
Business Days prior to the related Record Date and such Certificateholder shall
satisfy the conditions to receive such form of payment set forth in the
Agreement, or, if not, by check mailed by first class mail to the address of
such Certificateholder appearing in the Certificate Register. The final
distribution on each Certificate will be made in like manner, but only upon
presentment and surrender of such Certificate at the offices designated by the
Securities Administrator for such purposes or such other location specified in
the notice to Certificateholders of such final distribution.

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the parties to the Agreement with the consent of the Holders of Certificates
affected by such amendment evidencing the requisite Percentage Interest, as
provided in the Agreement. Any such consent by the Holder of this Certificate
shall be conclusive and binding on such Holder and upon all future Holders of
this

                                   EXHIBIT D-5

<PAGE>

Certificate and of any Certificate issued upon the transfer hereof or in
exchange therefor or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register of the Securities Administrator upon surrender of this
Certificate for registration of transfer at the offices designated by the
Securities Administrator for such purposes, accompanied by a written instrument
of transfer in form satisfactory to the Securities Administrator duly executed
by the holder hereof or such holder's attorney duly authorized in writing, and
thereupon one or more new Certificates of the same Class in authorized
denominations and evidencing the same aggregate Percentage Interest in the Trust
Fund will be issued to the designated transferee or transferees.

          The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

          No service charge will be made for any such registration of transfer
or exchange, but the Securities Administrator may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection
therewith.

          The Trustee, the Depositor and the Securities Administrator and any
agent of the Trustee, the Depositor or the Securities Administrator may treat
the Person in whose name this Certificate is registered as the owner hereof for
all purposes, and neither the Trustee, the Depositor, the Securities
Administrator nor any such agent shall be affected by any notice to the
contrary.

          The Master Servicer, upon the instruction of the Depositor or at its
own discretion, shall purchase the Mortgage Loans and therefore cause the
termination of the Trust on the initial Optional Termination Date, which is any
Distribution Date in which the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due Period is less than or
equal to 10% of the aggregate Stated Principal Balance of the Mortgage Loans as
of the Cut-off Date.

          The obligations and responsibilities created by the Agreement will
terminate as provided in Section 12.01 of the Agreement.

          Any term used herein that is defined in the Agreement shall have the
meaning assigned in the Agreement, and nothing herein shall be deemed
inconsistent with that meaning.

                                   EXHIBIT D-6

<PAGE>

                                   ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
unto
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

(Please print or typewrite name and address including postal zip code of
assignee)

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust Fund.

          I (We) further direct the Securities Administrator to issue a new
Certificate of a like denomination and Class, to the above named assignee and
deliver such Certificate to the following address:

________________________________________________________________________________

Dated:
       ---------------

                                        ----------------------------------------
                                        Signature by or on behalf of assignor

                            DISTRIBUTION INSTRUCTIONS

     The assignee should include the following for purposes of distribution:

          Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to ________________________________________________,
_______________________________________________________________________________,
for the account of ____________________________________________________________,
account number __________, or, if mailed by check, to _________________________.
Applicable statements should be mailed to _____________________________________,
________________________________________________________________________________

          This information is provided by _____________________________________,
the assignee named above, or __________________________________________________,
as its agent.

                                   EXHIBIT D-7
<PAGE>

                                    EXHIBIT E

                   FORM OF INITIAL CERTIFICATION OF CUSTODIAN

                                     [date]

HSI Asset Securitization Corporation
452 Fifth Avenue
New York, New York 10018

Wells Fargo Bank, N.A.
1015 10th Avenue SE
Minneapolis, Minnesota 55414

Deutsche Bank National Trust Company
1761 East St. Andrew Place
Santa Ana, California 92705-4934

     Re: HSI Asset Securitization Corporation, Series 2007-[__]

Ladies and Gentlemen:

     In accordance with Section 2.02 of the Pooling and Servicing Agreement (the
"Pooling and Servicing Agreement") dated as of January 1, 2007 among HSI Asset
Securitization Corporation, as depositor, Wells Fargo Bank, N.A., as custodian,
CitiMortgage, Inc., as master servicer, Citibank, N.A., as securities
administrator, and Deutsche Bank National Trust Company, as trustee, for each
Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage Loan
listed in the attached schedule), it has received:

          (i) the original Mortgage Note, endorsed as provided in the following
     form: "Pay to the order of ________, without recourse"; and

          (ii) a duly executed assignment of the Mortgage (which may be included
     in a blanket assignment or assignments).

     Based on its review and examination and only as to the foregoing documents,
such documents appear regular on their face and related to such Mortgage Loan.

     The Custodian has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Pooling and Servicing Agreement. The Custodian makes no representations as to:
(i) the validity, legality, sufficiency, enforceability or genuineness of any of
the documents contained in each Mortgage File of any of the Mortgage Loans
identified on the Mortgage Loan Schedule, or (ii) the collectability,
insurability, effectiveness or suitability of any such Mortgage Loan.

     Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Pooling and Servicing Agreement.

                                   EXHIBIT E-1

<PAGE>

                                        WELLS FARGO BANK, N.A., as Custodian

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                   EXHIBIT E-2
<PAGE>

                                    EXHIBIT F

                         FORM OF DOCUMENT CERTIFICATION
                        AND EXCEPTION REPORT OF CUSTODIAN

                                                                   ______, 20___

HSI Asset Securitization Corporation
452 Fifth Avenue
New York, New York 10018

Wells Fargo Bank, N.A.
1015 10th Avenue SE
Minneapolis, Minnesota 55414

Deutsche Bank National Trust Company
1761 East St. Andrew Place
Santa Ana, California 92705-4934

Wells Fargo Bank, N.A.
1 Home Campus
Des Moines, Iowa 50328-0001

     Re: HSI Asset Securitization Corporation, Series 2007-[__]

Ladies and Gentlemen:

     In accordance with Section 2.02 of the Pooling and Servicing Agreement (the
"Pooling and Servicing Agreement") dated as of January 1, 2007 among HSI Asset
Securitization Corporation, as depositor, Wells Fargo Bank, N.A., as custodian,
CitiMortgage, Inc., as master servicer, Citibank, N.A., as securities
administrator, and Deutsche Bank National Trust Company, as trustee, the
undersigned, as Custodian, hereby certifies that as to each Mortgage Loan listed
in the Mortgage Loan Schedule (other than any Mortgage Loan paid in full or
listed on the attached Document Exception Report) it has received:

          (i) The original Mortgage Note, endorsed in the form provided in
     Section 2.01 of the Pooling and Servicing Agreement, with all intervening
     endorsements

                                   EXHIBIT F-1

<PAGE>

     showing a complete chain of endorsement from the applicable mortgage loan
     seller to the last endorsee.

          (ii) The original recorded Mortgage.

          (iii) A duly executed assignment of the Mortgage in the form provided
     in Section 2.01 of the Pooling and Servicing Agreement; or, if the Mortgage
     Loan Seller has certified or the Custodian otherwise knows that the related
     Mortgage has not been returned from the applicable recording office, a copy
     of the assignment of the Mortgage (excluding information to be provided by
     the recording office).

          (iv) The original or duplicate original recorded assignment or
     assignments of the Mortgage showing a complete chain of assignment from the
     applicable mortgage loan seller to the last endorsee.

          (v) The original or duplicate original lender's title policy and all
     riders thereto or, any one of an original title binder, an original
     preliminary title report or an original title commitment, or a copy thereof
     certified by the title company.

     Based on its review and examination and only as to the foregoing documents,
(a) such documents appear regular on their face and related to such Mortgage
Loan, and (b) the information set forth in items (1), (2), (3), (15), (18) and
(22) of the Data Tape Information accurately reflects information set forth in
the Custodial File.

     The Custodian has made no independent examination of any documents
contained in each Mortgage File beyond the review of the Custodial File
specifically required in the Pooling and Servicing Agreement. The Custodian
makes no representation as to: (i) the validity, legality, sufficiency,
enforceability or genuineness of any of the documents contained in each Mortgage
File of any of the Mortgage Loans identified on the Mortgage Loan Schedule, or
(ii) the collectability, insurability, effectiveness or suitability of any such
Mortgage Loan. Notwithstanding anything herein to the contrary, the Custodian
has made no determination and makes no representations as to whether (i) any
endorsement is sufficient to transfer all right, title and interest of the party
so endorsing, as noteholder or assignee thereof, in and to that Mortgage Note or
(ii) any assignment is in recordable form or sufficient to effect the assignment
of and transfer to the assignee thereof, under the Mortgage to which the
assignment relates.

     Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Pooling and Servicing Agreement.

                                        WELLS FARGO BANK, N.A., as Custodian

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                   EXHIBIT F-2

<PAGE>

                                    EXHIBIT G

                       FORM OF RESIDUAL TRANSFER AFFIDAVIT

                    HSI Asset Loan Obligation Trust 2007-[__]
             Mortgage Pass-Through Certificates, Series 2007- [___]

STATE OF __________)
                   ) ss.:
COUNTY OF _________)

     The undersigned, being first duly sworn, deposes and says as follows:

     1. The undersigned is an officer of ___________________, the proposed
Transferee of an Ownership Interest in a Class R Certificate (the "Certificate")
issued pursuant to the Pooling and Servicing Agreement (the "Agreement"),
relating to the above-referenced Series, dated as of January 1, 2007 among HSI
Asset Securitization Corporation, as depositor, Wells Fargo Bank, N.A., as
custodian, CitiMortgage, Inc., as master servicer, Citibank, N.A., as securities
administrator, and Deutsche Bank National Trust Company, as trustee. Capitalized
terms used, but not defined herein, shall have the meanings ascribed to such
terms in the Agreement. The Transferee has authorized the undersigned to make
this affidavit on behalf of the Transferee for the benefit of the Depositor, the
Securities Administrator and the Trustee.

     2. The Transferee is, as of the date hereof, and will be, as of the date of
the Transfer, a Permitted Transferee. The Transferee is acquiring its Ownership
Interest in the Certificate for its own account. The Transferee has no knowledge
that any such affidavit is false.

     3. The Transferee has been advised of, and understands that (i) a tax will
be imposed on Transfers of the Certificate to Persons that are Non-Permitted
Transferees; (ii) such tax will be imposed on the transferor, or, if such
Transfer is through an agent (which includes a broker, nominee or middleman) for
a Person that is a Non-Permitted Transferee, on the agent; and (iii) the Person
otherwise liable for the tax shall be relieved of liability for the tax if the
subsequent Transferee furnished to such Person an affidavit that such subsequent
Transferee is a Permitted Transferee and, at the time of Transfer, such Person
does not have actual knowledge that the affidavit is false.

     4. The Transferee has been advised of, and understands that a tax will be
imposed on a "pass-through entity" holding the Certificate if at any time during
the taxable year of the pass-through entity a Person that is a Non-Permitted
Transferee is the record holder of an interest in such entity. The Transferee
understands that such tax will not be imposed for any period with respect to
which the record holder furnishes to the pass-through entity an affidavit that
such record holder is a Permitted Transferee and the pass-through entity does
not have actual knowledge that such affidavit is false. (For this purpose, a
"pass-through entity" includes a regulated investment company, a real estate
investment trust or common trust fund, a partnership, trust or estate, and
certain cooperatives and, except as may be provided in Treasury Regulations,
persons holding interests in pass-through entities as a nominee for another
Person.)

                                   EXHIBIT G-1

<PAGE>

     5. The Transferee has reviewed the provisions of Section 5.02(c) of the
Agreement and understands the legal consequences of the acquisition of an
Ownership Interest in the Certificate including, without limitation, the
restrictions on subsequent Transfers and the provisions regarding voiding the
Transfer and mandatory sales. The Transferee expressly agrees to be bound by and
to abide by the provisions of Section 5.02(c) of the Agreement and the
restrictions noted on the face of the Certificate. The Transferee understands
and agrees that any breach of any of the representations included herein shall
render the Transfer to the Transferee contemplated hereby null and void.

     6. The Transferee agrees to require a Transfer Affidavit from any Person to
whom the Transferee attempts to Transfer its Ownership Interest in the
Certificate, and in connection with any Transfer by a Person for whom the
Transferee is acting as nominee, trustee or agent, and the Transferee will not
Transfer its Ownership Interest or cause any Ownership Interest to be
Transferred to any Person that the Transferee knows is a Non-Permitted
Transferee. In connection with any such Transfer by the Transferee, the
Transferee agrees to deliver to the Securities Administrator a certificate
substantially in the form set forth as Exhibit H to the Agreement (a "Transferor
Certificate") to the effect that, among other things, such Transferee has no
actual knowledge that the Person to which the Transfer is to be made is a
Non-Permitted Transferee.

     7. The Transferee does not have the intention to impede the assessment or
collection of any tax legally required to be paid with respect to the
Certificate. The Transferee has historically paid its debts as they have come
due and intends to pay its debts as they come due in the future. The Transferee
intends to pay all taxes due with respect to the Certificate as they become due.

     8. The Transferee's taxpayer identification number is __________.

     9. The Transferee is not a Disqualified Non-U.S. Person as defined in the
Agreement.

     10. The Transferee is aware that the Certificate may be a "noneconomic
residual interest" within the meaning of proposed Treasury regulations
promulgated pursuant to the Code and that the transferor of a noneconomic
residual interest will remain liable for any taxes due with respect to the
income on such residual interest, unless no significant purpose of the transfer
was to impede the assessment or collection of tax.

     11. The Transferee will not cause income from the Residual Certificate to
be attributable to a foreign permanent establishment or fixed base, within the
meaning of an applicable income tax treaty, of the Transferee or any other U.S.
Person.

     12. Check the applicable paragraph:

     [ ] The present value of the anticipated tax liabilities associated with
holding the Certificate, as applicable, does not exceed the sum of:

          (i) the present value of any consideration given to the Transferee to
     acquire such Certificate;

                                   EXHIBIT G-2

<PAGE>

          (ii) the present value of the expected future distributions on such
     Certificate; and

          (iii) the present value of the anticipated tax savings associated with
     holding such Certificate as the related REMIC generates losses.

     For purposes of this calculation, (i) the Transferee is assumed to pay tax
at the highest rate currently specified in Section 11(b) of the Code (but the
tax rate in Section 55(b)(1)(B) of the Code may be used in lieu of the highest
rate specified in Section 11(b) of the Code if the Transferee has been subject
to the alternative minimum tax under Section 55 of the Code in the preceding two
years and will compute its taxable income in the current taxable year using the
alternative minimum tax rate) and (ii) present values are computed using a
discount rate equal to the short-term Federal rate prescribed by Section 1274(d)
of the Code for the month of the transfer and the compounding period used by the
Transferee.

     [ ] The transfer of the Certificate complies with U.S. Treasury Regulations
Sections 1.860E-1(c)(5) and (6) and, accordingly,

          (i) the Transferee is an "eligible corporation," as defined in U.S.
     Treasury Regulations Section 1.860E-1(c)(6)(i), as to which income from the
     Certificate will only be taxed in the United States;

          (ii) at the time of the transfer, and at the close of the Transferee's
     two fiscal years preceding the year of the transfer, the Transferee had
     gross assets for financial reporting purposes (excluding any obligation of
     a person related to the Transferee within the meaning of U.S. Treasury
     Regulations Section 1.860E-1(c)(6)(ii)) in excess of $100 million and net
     assets in excess of $10 million;

          (iii) the Transferee will transfer the Certificate only to another
     "eligible corporation," as defined in U.S. Treasury Regulations Section
     1.860E-1(c)(6)(i), in a transaction that satisfies the requirements of
     Sections 1.860E-1(c)(4)(i), (ii) and (iii) and Section 1.860E-1(c)(5) of
     the U.S. Treasury Regulations; and

          (iv) the Transferee determined the consideration paid to it to acquire
     the Certificate based on reasonable market assumptions (including, but not
     limited to, borrowing and investment rates, prepayment and loss
     assumptions, expense and reinvestment assumptions, tax rates and other
     factors specific to the Transferee) that it has determined in good faith.

          [ ] None of the above.

     13. The Transferee is not an employee benefit plan that is subject to Title
I of ERISA or a plan that is subject to Section 4975 of the Code or a plan
subject to any Federal, state or local law that is substantially similar to
Title I of ERISA or Section 4975 of the Code, and the Transferee is not acting
on behalf of or investing plan assets of such a plan.

                                     * * *

                                   EXHIBIT G-3

<PAGE>

     IN WITNESS WHEREOF, the Transferee has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
duly authorized officer and its corporate seal to be hereunto affixed, duly
attested, this ___ day of _______, 20__.

                                        ----------------------------------------
                                        Print Name of Transferee

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

[Corporate Seal]

ATTEST:
        -----------------------------

-------------------------------------
[Assistant] Secretary

     Personally appeared before me the above-named __________, known or proved
to me to be the same person who executed the foregoing instrument and to be the
___________ of the Transferee, and acknowledged that he executed the same as his
free act and deed and the free act and deed of the Transferee.

     Subscribed and sworn before me this ___ day of _______, 20__.

                                        ----------------------------------------
                                                      NOTARY PUBLIC

                                        My Commission expires the __ day of
                                        _________, 20__

                                   EXHIBIT G-4

<PAGE>

                                    EXHIBIT H

                         FORM OF TRANSFEROR CERTIFICATE

                                                                __________, 20__

HSI Asset Securitization Corporation
452 Fifth Avenue
New York, New York 10018
Attention: Head MBS Principal Finance

Citibank, N.A.,
   as Securities Administrator
388 Greenwich Street, 14th Floor
New York, New York 10013
Attention: Corporate Trust Services - HSI Asset Loan Obligation Trust 2007-AR1

     Re: HSI Asset Loan Obligation Trust 2007-AR1 Mortgage Pass-Through
         Certificates, Series 2007-AR1, Class [__]

Ladies and Gentlemen:

     In connection with our disposition of the above Certificates we certify
that (a) we understand that the Certificates have not been registered under the
Securities Act of 1933, as amended (the "Act"), and are being disposed by us in
a transaction that is exempt from the registration requirements of the Act, (b)
we have not offered or sold any Certificates to, or solicited offers to buy any
Certificates from, any person, or otherwise approached or negotiated with any
person with respect thereto, in a manner that would be deemed, or taken any
other action which would result in, a violation of Section 5 of the Act and (c)
to the extent we are disposing of a Residual Certificate, (i) we have no
knowledge the Transferee is a Non-Permitted Transferee, (ii) after conducting a
reasonable investigation of the financial condition of the Transferee, we have
no knowledge and no reason to believe that the Transferee will not pay all taxes
with respect to the Residual Certificates as they become due and (iii) we have
no reason to believe that the statements made in paragraphs 7, 10 and 11 of the
Transferee's Residual Transfer Affidavit are false.

     In connection with any disposition of the above Certificates in accordance
with Rule 904 of Regulation S we hereby certify that:

          a.   the offer of the Certificates was not made to a person in the
               United States;

          b.   at the time the buy order was originated, the transferee was
               outside the United States or the Transferor and any person acting
               on its behalf responsibly believed the transferee was outside the
               United States;

          c.   no directed selling efforts have been made in contravention of
               the requirements of Rule 903 or Rule 904 of Regulation S, as
               applicable;

                                   EXHIBIT H-1

<PAGE>

          d    the transaction is not part of a plan or scheme to evade the
               registration requirements of the Securities Act, as amended; and

          e.   the transferee is not a U.S. person (as defined in Regulation S).

                                        Very truly yours,

                                        ----------------------------------------
                                        Print Name of Transferor

                                        By:
                                            ------------------------------------
                                            Authorized Officer

                                   EXHIBIT H-2
<PAGE>

                                    EXHIBIT I

                       FORM OF RULE 144A INVESTMENT LETTER

                                                              ____________, 20__

HSI Asset Securitization Corporation
452 Fifth Avenue
New York, New York 10018
Attention: Head MBS Principal Finance

Citibank, N.A.,
   as Securities Administrator
388 Greenwich Street, 14th Floor
New York, New York 10013

Attention: Corporate Trust Services - HSI Asset Loan Obligation Trust 2007-AR1

     Re: HSI Asset Loan Obligation Trust 2007-AR1
         Mortgage Pass-Through Certificates, Series 2007-AR1, Class [__]

Ladies and Gentlemen:

     In connection with our acquisition of the above Certificates we certify
that (a) we understand that the Certificates are not being registered under the
Securities Act of 1933, as amended (the "Act"), or any state securities laws and
are being transferred to us in a transaction that is exempt from the
registration requirements of the Act and any such laws, (b) we have such
knowledge and experience in financial and business matters that we are capable
of evaluating the merits and risks of investments in the Certificates, (c) we
have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Certificates and all matters relating
thereto or any additional information deemed necessary to our decision to
purchase the Certificates, (d) in the case of an ERISA-Restricted Certificate,
we are not an employee benefit plan that is subject to Title I of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA"), or a plan or
arrangement that is subject to Section 4975 of the Internal Revenue Code of
1986, as amended, or a plan subject to materially similar provisions of
applicable federal, state or local law, nor are we acting on behalf of any such
plan or arrangement nor using the assets of any such plan or arrangement to
effect such acquisition or, with respect to an ERISA-Restricted Certificate
other than a Class P Certificate, a Class X Certificate or a Residual
Certificate, such Certificate has been the subject of an ERISA-Qualifying
Underwriting and the purchaser is an insurance company that is purchasing this
certificate with funds contained in an "insurance company general account" (as
such term is defined in Section V(e) of Prohibited Transaction Class Exemption
("PTCE") 95-60) and that the purchase and holding of such Certificates are
covered under Sections I and III of PTCE 95-60, (e) in the case of an
ERISA-Restricted Trust Certificate, either (i) we are not an employee benefit
plan that is subject to Title I of ERISA, or a plan or arrangement that is
subject to Section 4975 of the Internal Revenue Code of 1986, as amended, nor a
person acting on behalf of any such plan, nor are we using the assets of any
such plan to effect such transfer or (ii) our acquisition and holding of the
ERISA-Restricted Trust Certificate is eligible for exemptive relief

                                   EXHIBIT I-1

<PAGE>

under the statutory exemption for non-fiduciary service providers under Section
408(b)(17) of ERISA and Section 4975(d)(20) of the Code, PTCE 84-14, PTCE 90-1,
PTCE 91-38, PTCE 95-60 or PTCE 96-23 or some other applicable exemption, (f) we
have not, nor has anyone acting on our behalf offered, transferred, pledged,
sold or otherwise disposed of the Certificates, any interest in the Certificates
or any other similar security to, or solicited any offer to buy or accept a
transfer, pledge or other disposition of the Certificates, any interest in the
Certificates or any other similar security from, or otherwise approached or
negotiated with respect to the Certificates, any interest in the Certificates or
any other similar security with, any person in any manner, or made any general
solicitation by means of general advertising or in any other manner, or taken
any other action, that would constitute a distribution of the Certificates under
the Securities Act or that would render the disposition of the Certificates a
violation of Section 5 of the Securities Act or require registration pursuant
thereto, nor will act, nor has authorized or will authorize any person to act,
in such manner with respect to the Certificates, and (g) we are a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act and have completed either of the forms of certification to that effect
attached hereto as Annex 1 or Annex 2. We are aware that the sale to us is being
made in reliance on Rule 144A. We are acquiring the Certificates for our own
account or for resale pursuant to Rule 144A and further, understand that such
Certificates may be resold, pledged or transferred only (i) to a person
reasonably believed to be a qualified institutional buyer that purchases for its
own account or for the account of a qualified institutional buyer to whom notice
is given that the resale, pledge or transfer is being made in reliance on Rule
144A, or (ii) pursuant to another exemption from registration under the
Securities Act.

                                   EXHIBIT I-2

<PAGE>

                                                            ANNEX 1 TO EXHIBIT I

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

          [For Transferees Other Than Registered Investment Companies]

     The undersigned (the "Buyer") hereby certifies as follows to the parties
listed in the Rule 144A Transferee Certificate to which this certification
relates with respect to the Certificates described therein:

     1. As indicated below, the undersigned is the President, Chief Financial
Officer, Senior Vice President or other executive officer of the Buyer.

     2. In connection with purchases by the Buyer, the Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933, as amended ("Rule 144A"), because (i) the Buyer owned and/or
invested on a discretionary basis $________(1) in securities (except for the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year (such amount being calculated in accordance with Rule 144A and (ii)
the Buyer satisfies the criteria in the category marked below.

          [ ]  Corporation, etc. The Buyer is a corporation (other than a bank,
               savings and loan association or similar institution),
               Massachusetts or similar business trust, partnership, or
               charitable organization described in Section 501(c)(3) of the
               Internal Revenue Code of 1986, as amended.

          [ ]  Bank. The Buyer (a) is a national bank or banking institution
               organized under the laws of any State, territory or the District
               of Columbia, the business of which is substantially confined to
               banking and is supervised by the State or territorial banking
               commission or similar official or is a foreign bank or equivalent
               institution, and (b) has an audited net worth of at least
               $25,000,000 as demonstrated in its latest annual financial
               statements, a copy of which is attached hereto.

          [ ]  Savings and Loan. The Buyer (a) is a savings and loan
               association, building and loan association, cooperative bank,
               homestead association or similar institution, which is supervised
               and examined by a State or Federal authority having supervision
               over any such institutions or is a foreign savings and loan
               association or equivalent institution and (b) has an audited net
               worth of at least $25,000,000 as demonstrated in its latest
               annual financial statements, a copy of which is attached hereto.

          [ ]  Broker-dealer. The Buyer is a dealer registered pursuant to
               Section 15 of the Securities Exchange Act of 1934.

----------
(1)  Buyer must own and/or invest on a discretionary basis at least $100,000,000
     in securities unless Buyer is a dealer, and, in that case, Buyer must own
     and/or invest on a discretionary basis at least $10,000,000 in securities.

                                   EXHIBIT I-3

<PAGE>

          [ ]  Insurance Company. The Buyer is an insurance company whose
               primary and predominant business activity is the writing of
               insurance or the reinsuring of risks underwritten by insurance
               companies and which is subject to supervision by the insurance
               commissioner or a similar official or agency of a State,
               territory or the District of Columbia.

          [ ]  State or Local Plan. The Buyer is a plan established and
               maintained by a State, its political subdivisions, or any agency
               or instrumentality of the State or its political subdivisions,
               for the benefit of its employees.

          [ ]  ERISA Plan. The Buyer is an employee benefit plan within the
               meaning of Title I of the Employee Retirement Income Security Act
               of 1974.

          [ ]  Investment Advisor. The Buyer is an investment advisor registered
               under the Investment Advisors Act of 1940.

          [ ]  Small Business Investment Company. Buyer is a small business
               investment company licensed by the U.S. Small Business
               Administration under Section 301(c) or (d) of the Small Business
               Investment Act of 1958.

          [ ]  Business Development Company. Buyer is a business development
               company as defined in Section 202(a)(22) of the Investment
               Advisors Act of 1940.

     3. The term "securities" as used herein does not include (i) securities of
issuers that are affiliated with the Buyer, (ii) securities that are part of an
unsold allotment to or subscription by the Buyer, if the Buyer is a dealer,
(iii) securities issued or guaranteed by the U.S. or any instrumentality
thereof, (iv) bank deposit notes and certificates of deposit, (v) loan
participations, (vi) repurchase agreements, (vii) securities owned but subject
to a repurchase agreement and (viii) currency, interest rate and commodity
swaps.

     4. For purposes of determining the aggregate amount of securities owned
and/or invested on a discretionary basis by the Buyer, the Buyer used the cost
of such securities to the Buyer and did not include any of the securities
referred to in the preceding paragraph, except (i) where the Buyer reports its
securities holdings in its financial statements on the basis of their market
value, and (ii) no current information with respect to the cost of those
securities has been published. If clause (ii) in the preceding sentence applies,
the securities may be valued at market. Further, in determining such aggregate
amount, the Buyer may have included securities owned by subsidiaries of the
Buyer, but only if such subsidiaries are consolidated with the Buyer in its
financial statements prepared in accordance with generally accepted accounting
principles and if the investments of such subsidiaries are managed under the
Buyer's direction. However, such securities were not included if the Buyer is a
majority-owned, consolidated subsidiary of another enterprise and the Buyer is
not itself a reporting company under the Securities Exchange Act of 1934, as
amended.

     5. The Buyer acknowledges that it is familiar with Rule 144A and
understands that the seller to it and other parties related to the Certificates
are relying and will continue to rely on

                                   EXHIBIT I-4

<PAGE>

the statements made herein because one or more sales to the Buyer may be in
reliance on Rule 144A.

     6. Until the date of purchase of the Rule 144A Securities, the Buyer will
notify each of the parties to which this certification is made of any changes in
the information and conclusions herein. Until such notice is given, the Buyer's
purchase of the Certificates will constitute a reaffirmation of this
certification as of the date of such purchase. In addition, if the Buyer is a
bank or savings and loan is provided above, the Buyer agrees that it will
furnish to such parties updated annual financial statements promptly after they
become available.

                                        ----------------------------------------
                                        Print Name of Transferee

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------
                                        Date:
                                              ----------------------------------

                                   EXHIBIT I-5

<PAGE>

                                                            ANNEX 2 TO EXHIBIT I

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

           [For Transferees That Are Registered Investment Companies]

     The undersigned (the "Buyer") hereby certifies as follows to the parties
listed in the Rule 144A Transferee Certificate to which this certification
relates with respect to the Certificates described therein:

     1. As indicated below, the undersigned is the President, Chief Financial
Officer or Senior Vice President of the Buyer or, if the Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933, as amended ("Rule 144A"), because Buyer is part of a Family of
Investment Companies (as defined below), is such an officer of the Adviser.

     2. In connection with purchases by Buyer, the Buyer is a "qualified
institutional buyer" as defined in SEC Rule 144A because (i) the Buyer is an
investment company registered under the Investment Company Act of 1940, as
amended, and (ii) as marked below, the Buyer alone, or the Buyer's Family of
Investment Companies, owned at least $100,000,000 in securities (other than the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year. For purposes of determining the amount of securities owned by the
Buyer or the Buyer's Family of Investment Companies, the cost of such securities
was used, except (i) where the Buyer or the Buyer's Family of Investment
Companies reports its securities holdings in its financial statements on the
basis of their market value, and (ii) no current information with respect to the
cost of those securities has been published. If clause (ii) in the preceding
sentence applies, the securities may be valued at market.

          [ ]  The Buyer owned $_______ in securities (other than the excluded
               securities referred to below) as of the end of the Buyer's most
               recent fiscal year (such amount being calculated in accordance
               with Rule 144A).

          [ ]  The Buyer is part of a Family of Investment Companies which owned
               in the aggregate $_______ in securities (other than the excluded
               securities referred to below) as of the end of the Buyer's most
               recent fiscal year (such amount being calculated in accordance
               with Rule 144A).

     3. The term "Family of Investment Companies" as used herein means two or
more registered investment companies (or series thereof) that have the same
investment adviser or investment advisers that are affiliated (by virtue of
being majority owned subsidiaries of the same parent or because one investment
adviser is a majority owned subsidiary of the other).

     4. The term "securities" as used herein does not include (i) securities of
issuers that are affiliated with the Buyer or are part of the Buyer's Family of
Investment Companies, (ii) securities issued or guaranteed by the U.S. or any
instrumentality thereof, (iii) bank deposit notes and certificates of deposit,
(iv) loan participations, (v) repurchase agreements, (vi) securities owned but
subject to a repurchase agreement and (vii) currency, interest rate and
commodity swaps.

                                   EXHIBIT I-6

<PAGE>

     5. The Buyer is familiar with Rule 144A and understands that the parties
listed in the Rule 144A Transferee Certificate to which this certification
relates are relying and will continue to rely on the statements made herein
because one or more sales to the Buyer will be in reliance on Rule 144A. In
addition, the Buyer will only purchase for the Buyer's own account.

     6. Until the date of purchase of the Certificates, the undersigned will
notify the parties listed in the Rule 144A Transferee Certificate to which this
certification relates of any changes in the information and conclusions herein.
Until such notice is given, the Buyer's purchase of the Certificates will
constitute a reaffirmation of this certification by the undersigned as of the
date of such purchase.

                                        ----------------------------------------
                                        Print Name of Transferee

                                        By:
                                            -----------------------------------
                                        Name:
                                              ---------------------------------
                                        Title:
                                               --------------------------------

                                        IF AN ADVISER:

                                        ----------------------------------------
                                        Print Name of Transferee

                                        Date:
                                              ---------------------------------

                                   EXHIBIT I-7
<PAGE>

                                    EXHIBIT J

                           FORM OF REQUEST FOR RELEASE
                                 (for Custodian)

To:  Wells Fargo Bank, N.A.
     1015 10th Avenue SE
     Minneapolis, Minnesota 55414

     Re:  Pooling and Servicing Agreement (the "Pooling and Servicing
          Agreement") dated as of January 1, 2007 among HSI Asset Securitization
          Corporation, as depositor, Wells Fargo Bank, N.A., as custodian,
          CitiMortgage, Inc., as master servicer, Citibank, N.A., as securities
          administrator, and Deutsche Bank National Trust Company, as trustee.

     In connection with the administration of the Mortgage Loans held by you as
the Custodian on behalf of the Certificateholders, we request the release, and
acknowledge receipt, of the (Custodial File/[specify documents]) for the
Mortgage Loan described below, for the reason indicated.

Mortgagor's Name, Address & Zip Code: __________________________________________

Mortgage Loan Number: __________________________________________________________

Send Custodial File to: ________________________________________________________

Delivery Method (check one)

[ ]  1.   Regular mail

[ ]  2.   Overnight courier (Tracking information: )

          If neither box 1 nor 2 is checked, regular mail shall be assumed.

Reason for Requesting Documents (check one)

[ ]  1.   Mortgage Loan Paid in Full. (The Servicer hereby certifies that all
          amounts received in connection therewith have been credited to the
          Collection Account as provided in the Pooling and Servicing
          Agreement.)

[ ]  2.   Mortgage Loan Repurchase Pursuant to Subsection 2.03 of the Pooling
          and Servicing Agreement. (The Servicer hereby certifies that the
          repurchase price has been credited to the Collection Account as
          provided in the Pooling and Servicing Agreement.)

[ ]  3.   Mortgage Loan Liquidated by _________________. (The Servicer hereby
          certifies that all proceeds of foreclosure, insurance, condemnation or
          other

                                   EXHIBIT J-1

<PAGE>

          liquidation have been finally received and credited to the Collection
          Account pursuant to the Pooling and Servicing Agreement.)

[ ]  4.   Mortgage Loan in Foreclosure.

[ ]  5.   Other (explain). _____________________________________________________

     If box 1, 2 or 3 above is checked, and if all or part of the Custodial File
was previously released to us, please release to us our previous request and
receipt on file with you, as well as any additional documents in your possession
relating to the specified Mortgage Loan.

     If box 4 or 5 above is checked, upon our return of all of the above
documents to you as the Trustee, please acknowledge your receipt by signing in
the space indicated below, and returning this form if requested by us.

                                        [                                      ]
                                         --------------------------------------

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------
                                        Date:
                                              ----------------------------------

ACKNOWLEDGED AND AGREED:

[WELLS FARGO BANK, N.A.]

By:
    ---------------------------------
Name:
      -------------------------------
Title:
       ------------------------------
Date:
      -------------------------------

                                   EXHIBIT J-2

<PAGE>

                                    EXHIBIT K

                         CONTENTS OF EACH MORTGAGE FILE

     With respect to each Mortgage Loan, the Mortgage File shall include each of
the following items, which shall be available for inspection by the Depositor
and which shall be retained by the Servicer or delivered to and retained by the
Custodian:

          (a) The documents or instruments set forth as items (i) to (ix) in
     Section 2.01(b) of the Pooling and Servicing Agreement.

          (b) Residential loan application.

          (c) Mortgage Loan closing statement.

          (d) Verification of employment and income.

          (e) Verification of acceptable evidence of source and amount of
     downpayment.

          (f) Credit report on Mortgagor.

          (g) Residential appraisal report.

          (h) Photograph of the Mortgaged Property.

          (i) Survey of the Mortgaged Property.

          (j) Copy of each instrument necessary to complete identification of
     any exception set forth in the exception schedule in the title policy,
     i.e., map or plat, restrictions, easements, sewer agreements, home
     association declarations, etc.

          (k) All required disclosure statements and statement of Mortgagor
     confirming receipt thereof.

          (l) If available, termite report, structural engineer's report, water
     portability and septic certification.

          (m) Sales contract, if applicable.

          (n) Hazard insurance policy.

          (o) Tax receipts, insurance premium receipts, ledger sheets, payment
     history from date of origination, insurance claim files, correspondence,
     current and historical computerized data files, and all other processing,
     underwriting and closing papers and records which are customarily contained
     in a mortgage loan file and which are required to document the Mortgage
     Loan or to service the Mortgage Loan.

          (p) Amortization schedule, if available.

                                   EXHIBIT K-1

<PAGE>

          (q) Payment history for Mortgage Loans that have been closed for more
     than 90 days.

                                   EXHIBIT K-2

<PAGE>

                                    EXHIBIT L

                   FORM OF SARBANES-OXLEY CERTIFICATION TO BE
           PROVIDED BY MASTER SERVICER (OR OTHER CERTIFICATION PARTY)
                                 WITH FORM 10-K

                    HSI Asset Loan Obligation Trust 2007-[__]
                       Mortgage Pass-Through Certificates
                                Series 2007-[__]

     This Certification is being made pursuant to Section 3.05 and Section 8.12
of the Pooling and Servicing Agreement dated as of January 1, 2007 (the "Pooling
and Servicing Agreement") relating to the above-referenced Series, among HSI
Asset Securitization Corporation, as depositor, Wells Fargo Bank, N.A., as
custodian, CitiMortgage, Inc., as master servicer, Citibank, N.A., as securities
administrator, and Deutsche Bank National Trust Company, as trustee. Capitalized
terms used but not defined herein shall have the meanings assigned in the
Pooling and Servicing Agreement.

     1. I have reviewed this annual report on Form 10-K, and all reports on Form
10-D required to be filed in respect of the period covered by this report on
Form 10-K of HSI Asset Loan Obligation Trust 2007-AR1 (the "Exchange Act
periodic reports");

     2. Based on my knowledge, the Exchange Act periodic reports, taken as a
whole, do not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect
to the period covered by this report;

     3. Based on my knowledge, all of the distribution, servicing and other
information required to be provided under Form 10-D for the period covered by
this report is included in the Exchange Act periodic reports;

     4. I am responsible for reviewing the activities performed by each Servicer
and based on my knowledge and the compliance review conducted in preparing the
Servicer compliance statement required in this report under Item 1123 of
Regulation AB, and except as disclosed in the Exchange Act periodic reports,
each Servicer has fulfilled its obligations under its related Servicing
Agreement; and

     5. All of the reports on assessment of compliance with servicing criteria
for asset-backed securities and their related attestation reports on assessment
of compliance with servicing criteria for asset-backed securities required to be
included in this report in accordance with Item 1122 of Regulation AB and
Exchange Act Rules 13a-18 and 15d-18 have been included as an exhibit to this
report, except as otherwise disclosed in this report. Any material instances of
noncompliance described in such reports have been disclosed in this report on
Form 10-K.

     In giving the certifications above, I have reasonably relied on information
provided to me by the following parties: [_______].

                                   EXHIBIT L-1

<PAGE>

                                        CITIMORTGAGE, INC.
                                        as Master Servicer

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------
                                        Date:
                                              ----------------------------------

                                   EXHIBIT L-2

<PAGE>

                                    EXHIBIT M

          1. Master Mortgage Loan Purchase and Servicing Agreement, between HSBC
Mortgage Corporation (USA) and HSBC Bank USA, National Association, each as
reconstituted pursuant to an Assignment, Assumption and Recognition Agreement,
dated as of January 1, 2007, among HSBC Bank (USA), National Association, HSI
Asset Securitization Corporation and acknowledged by CitiMortgage, Inc., as
master servicer and Deutsche Bank National Trust Company, as trustee.

          2. Servicing Agreement, as amended by Amendment Reg AB, dated as of
September 1, 2006, between HSBC Bank (USA), Nation Association and Countrywide
Home Loans, Inc, each as reconstituted pursuant to an Assignment, Assumption and
Recognition Agreement, dated as of January 1, 2007, among HSBC Bank (USA),
National Association, HSI Asset Securitization Corporation, Countrywide Home
Loans, Inc., Countrywide Home Loans Servicing LP and acknowledged by
CitiMortgage, Inc., as master servicer and Deutsche Bank National Trust Company,
as trustee.

          3. Master Mortgage Loan Purchase and Servicing Agreement, dated as of
June 21, 2006, between HSBC Bank (USA), Nation Association, American Home
Mortgage Corp., and American Home Mortgage Servicing, Inc. each as reconstituted
pursuant to an Assignment, Assumption and Recognition Agreement, dated as of
January 1, 2007, among HSBC Bank (USA), National Association, HSI Asset
Securitization Corporation, Countrywide American Home Mortgage Corp., American
Home Mortgage Servicing, Inc., and acknowledged by CitiMortgage, Inc., as master
servicer and Deutsche Bank National Trust Company, as trustee.

          4. Standard Terms and Provisions of Sale and Servicing Agreement,
dated as of July 1, 2006, between HSBC Bank (USA) and Residential Funding
Corporation, each as reconstituted pursuant to an Assignment, Assumption and
Recognition Agreement, dated as of January 1, 2007, among HSBC Bank (USA),
National Association, HSI Asset Securitization Corporation, Residential Funding
Corporation and acknowledged by CitiMortgage, Inc., as master servicer and
Deutsche Bank National Trust Company, as trustee.

          5. Mortgage Loan Purchase Agreement, dated as of November 1, 2006,
between HSBC Bank (USA), Nation Association and SunTrust Mortgage, Inc., each as
reconstituted pursuant to an Assignment, Assumption and Recognition Agreement,
dated as of January 1, 2007, among HSBC Bank (USA), National Association, HSI
Asset Securitization Corporation, SunTrust Mortgage, Inc., and acknowledged by
CitiMortgage, Inc., as master servicer and Deutsche Bank National Trust Company,
as trustee.

                                   EXHIBIT M-1

<PAGE>

                                  [EXHIBIT N-1]

                     FORM OF SERVICER (OR SERVICING FUNCTION
                       PARTICIPANT) BACK-UP CERTIFICATION

CitiMortgage, Inc.,
4000 Regent Blvd.
Irving, TX 75063

Attention: Master Servicing Division, Compliance Manager - HALO 2007-AR1

     Re: HSI Asset Securitization Loan Obligation Trust 2007-AR1

     [_______], the [_______] of [_______] (the "Company") hereby certifies to
the Depositor, the Master Servicer, the Trustee and the Securities
Administrator, and each of their officers, directors and affiliates that:

          (1) I have reviewed the Company's report on assessment of compliance
     with the servicing criteria set forth in Item 1122(d) of Regulation AB (the
     "Servicing Criteria"), provided in accordance with Rules 13a-18 and 15d-18
     under the Securities Exchange Act of 1934, as amended (the "Exchange Act")
     and Item 1122 of Regulation AB (the "Servicing Assessment"), the registered
     public accounting firm's attestation report provided in accordance with
     Rules 13a-18 and 15d-18 under the Exchange Act and Section 1122(b) of
     Regulation AB (the "Attestation Report"), and all servicing reports,
     officer's certificates and other information relating to the servicing of
     the Mortgage Loans by [____] during 200[__] that were delivered by [____]
     to any of the Depositor, the Master Servicer, the Securities Administrator,
     and the Trustee pursuant to the Agreement (collectively, the "Company
     Servicing Information");

          (2) Based on my knowledge, the Company Servicing Information, taken as
     a whole, does not contain any untrue statement of a material fact or omit
     to state a material fact necessary to make the statements made, in the
     light of the circumstances under which such statements were made, not
     misleading with respect to the period of time covered by the Company
     Servicing Information;

          (3) Based on my knowledge, all of the Company Servicing Information
     required to be provided by the Company under the Agreement has been
     provided to the Depositor, the Master Servicer, the Securities
     Administrator and the Trustee;

          (4) I am responsible for reviewing the activities performed by [____]
     as [____] under the Agreement, and based on my knowledge and the compliance
     review conducted in preparing the Servicing Assessment or the Attestation
     Report, the Company has fulfilled its obligations under the Agreement in
     all material respects; and

          (5) The Servicing Assessment and Attestation Report required to be
     provided by [____] and [by any Subservicer or Subcontractor] pursuant to
     the Agreement, have been provided to the Depositor, the Master Servicer,
     the Securities Administrator and the Trustee. Any material instances of
     noncompliance described in such reports have been

                                   EXHIBIT N-1

<PAGE>

     disclosed to the Depositor, the Master Servicer, the Securities
     Administrator and the Trustee. Any material instance of noncompliance with
     the Servicing Criteria has been disclosed in such reports.

     Capitalized terms used but not defined herein have the meanings ascribed to
them in the Pooling Servicing Agreement, dated as of January 1, 2007 (the
"Pooling and Servicing Agreement"), by and among HSI Asset Securitization
Corporation, as depositor, CitiMortgage, Inc., as master servicer, Citibank,
N.A., as securities administrator, Wells Fargo Bank, N.A., as custodian and
Deutsche Bank National Trust Company, as trustee.

                                        [                                      ]
                                         --------------------------------------
                                        as [                                   ]
                                            -----------------------------------

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------
                                        Date:
                                              ----------------------------------

                                   EXHIBIT N-2

<PAGE>

                                    EXHIBIT O

                                   [Reserved]

                                   EXHIBIT O-1

<PAGE>

                                    EXHIBIT P

                                   [Reserved]

                                   EXHIBIT P-1

<PAGE>

                                    EXHIBIT Q

                               TRANSFER AGREEMENTS

                                   EXHIBIT Q-1

<PAGE>

                                    EXHIBIT R

                                   [Reserved]

                                   EXHIBIT R-1
<PAGE>

                                    EXHIBIT S

                            SERVICING CRITERIA MATRIX

     The assessment of compliance to be delivered by CitiMortgage, Inc.
("CitiMortgage"), in its capacity as Master Servicer and by Citibank, N.A.
("Citibank"), in its capacity as Securities Administrator, shall address, at a
minimum, the criteria identified below as "Applicable Servicing Criteria":

     Capitalized terms used herein but not defined herein shall have the
meanings assigned to them in the Pooling and Servicing Agreement dated as of
January 1, 2007 (the "Pooling and Servicing Agreement"), by and among HSI Asset
Securitization Corporation, as depositor, Wells Fargo Bank, N.A., as custodian,
CitiMortgage, Inc., as master servicer, Citibank, N.A., as securities
administrator, and Deutsche Bank National Trust Company, as trustee.

<TABLE>
<CAPTION>
                                                                     MASTER      SECURITIES
REG AB REFERENCE                   SERVICING CRITERIA               SERVICER   ADMINISTRATOR   CUSTODIAN
----------------   ----------------------------------------------   --------   -------------   ---------
<S>                <C>                                              <C>        <C>             <C>
                   GENERAL SERVICING  CONSIDERATIONS

1122(d)(1)(i)      Policies and procedures are instituted to            X
                   monitor any performance or other triggers and
                   events of default in accordance with the
                   transaction agreements.

1122(d)(1)(ii)     If any material servicing activities are
                   outsourced to third parties, policies and
                   procedures are instituted to monitor the third
                   party's performance and compliance with such
                   servicing activities.

1122(d)(1)(iii)    Any requirements in the transaction agreements       X
                   to maintain a back-up servicer for the pool
                   assets are maintained.

1122(d)(1)(iv)     A fidelity bond and errors and omissions             X
                   policy is in effect on the party participating
                   in the servicing function throughout the
                   reporting period in the amount of coverage
                   required by and otherwise in accordance with
                   the terms of the transaction agreements.

                   CASH COLLECTION AND ADMINISTRATION

1122(d)(2)(i)      Payments on pool assets are deposited into the       X            X
                   appropriate custodial bank accounts and
                   related bank clearing accounts no more than
                   two business days following receipt, or such
                   other number of days specified in the
                   transaction agreements.

1122(d)(2)(ii)     Disbursements made via wire transfer on behalf       X            X
                   of an obligor or to an investor are made only
                   by authorized personnel.

1122(d)(2)(iii)    Advances of funds or guarantees regarding            X
                   collections, cash flows or distributions, and
                   any interest or other fees charged for such
                   advances, are made, reviewed and approved as
                   specified in the transaction agreements.
</TABLE>

                                   EXHIBIT S-1

<PAGE>

<TABLE>
<CAPTION>
                                                                     MASTER      SECURITIES
REG AB REFERENCE                   SERVICING CRITERIA               SERVICER   ADMINISTRATOR   CUSTODIAN
----------------   ----------------------------------------------   --------   -------------   ---------
<S>                <C>                                              <C>        <C>             <C>
1122(d)(2)(iv)     The related accounts for the transaction, such       X            X
                   as cash reserve accounts or accounts
                   established as a form of over
                   collateralization, are separately maintained
                   (e.g., with respect to commingling of cash) as
                   set forth in the transaction agreements.

1122(d)(2)(v)      Each custodial account is maintained at a            X            X
                   federally insured depository institution as
                   set forth in the transaction agreements. For
                   purposes of this criterion, "federally insured
                   depository institution" with respect to a
                   foreign financial institution means a foreign
                   financial institution that meets the
                   requirements of Rule 13k-1(b)(1) of the
                   Securities Exchange Act.

1122(d)(2)(vi)     Unissued checks are safeguarded so as to             X            X
                   prevent unauthorized access.

1122(d)(2)(vii)    Reconciliations are prepared on a monthly            X            X
                   basis for all asset-backed securities related
                   bank accounts, including custodial accounts
                   and related bank clearing accounts. These
                   reconciliations are (A) mathematically
                   accurate; (B) prepared within 30 calendar days
                   after the bank statement cutoff date, or such
                   other number of days specified in the
                   transaction agreements; (C) reviewed and
                   approved by someone other than the person who
                   prepared the reconciliation; and (D) contain
                   explanations for reconciling items. These
                   reconciling items are resolved within 90
                   calendar days of their original
                   identification, or such other number of days
                   specified in the transaction agreements.

                   INVESTOR REMITTANCES AND REPORTING

1122(d)(3)(i)      Reports to investors, including those to be                       X
                   filed with the Commission, are maintained in
                   accordance with the transaction agreements and
                   applicable Commission requirements.
                   Specifically, such reports (A) are prepared in
                   accordance with timeframes and other terms set
                   forth in the transaction agreements; (B)
                   provide information calculated in accordance
                   with the terms specified in the transaction
                   agreements; (C) are filed with the Commission
                   as required by its rules and regulations; and
                   (D) agree with investors' or the trustee's
                   records as to the total unpaid principal
                   balance and number of pool assets serviced by
                   the Servicer.

1122(d)(3)(ii)     Amounts due to investors are allocated and                        X
                   remitted in accordance with timeframes,
                   distribution priority and other terms set
                   forth in the transaction agreements.

1122(d)(3)(iii)    Disbursements made to an investor are posted                      X
                   within two business days to the Servicer's
</TABLE>

                                   EXHIBIT S-2

<PAGE>

<TABLE>
<CAPTION>
                                                                     MASTER      SECURITIES
REG AB REFERENCE                   SERVICING CRITERIA               SERVICER   ADMINISTRATOR   CUSTODIAN
----------------   ----------------------------------------------   --------   -------------   ---------
<S>                <C>                                              <C>        <C>             <C>
                   investor records, or such other number of days
                   specified in the transaction agreements.

1122(d)(3)(iv)     Amounts remitted to investors per the investor                    X
                   reports agree with cancelled checks, or other
                   form of payment, or custodial bank statements.

                   POOL ASSET ADMINISTRATION

1122(d)(4)(i)      Collateral or security on pool assets is                                        X
                   maintained as required by the transaction
                   agreements or related pool asset documents.

1122(d)(4)(ii)     Pool assets and related documents are                                           X
                   safeguarded as required by the transaction
                   agreements

1122(d)(4)(iii)    Any additions, removals or substitutions to
                   the asset pool are made, reviewed and approved
                   in accordance with any conditions or
                   requirements in the transaction agreements.

1122(d)(4)(iv)     Payments on pool assets, including any
                   payoffs, made in accordance with the related
                   pool asset documents are posted to the
                   Servicer's obligor records maintained no more
                   than two business days after receipt, or such
                   other number of days specified in the
                   transaction agreements, and allocated to
                   principal, interest or other items (e.g.,
                   escrow) in accordance with the related pool
                   asset documents.

1122(d)(4)(v)      The Servicer's records regarding the pool
                   assets agree with the Servicer's records with
                   respect to an obligor's unpaid principal
                   balance.

1122(d)(4)(vi)     Changes with respect to the terms or status of      X
                   an obligor's pool assets (e.g., loan
                   modifications or re-agings) are made, reviewed
                   and approved by authorized personnel in
                   accordance with the transaction agreements and
                   related pool asset documents.

1122(d)(4)(vii)    Loss mitigation or recovery actions (e.g.,          X
                   forbearance plans, modifications and deeds in
                   lieu of foreclosure, foreclosures and
                   repossessions, as applicable) are initiated,
                   conducted and concluded in accordance with the
                   timeframes or other requirements established
                   by the transaction agreements.

1122(d)(4)(viii)   Records documenting collection efforts are
                   maintained during the period a pool asset is
                   delinquent in accordance with the transaction
                   agreements. Such records are maintained on at
                   least a monthly basis, or such other period
                   specified in the transaction agreements, and
                   describe the entity's activities in monitoring
                   delinquent pool assets including, for example,
                   phone calls, letters and payment rescheduling
                   plans in cases where delinquency is deemed
</TABLE>

                                   EXHIBIT S-3

<PAGE>

<TABLE>
<CAPTION>
                                                                     MASTER      SECURITIES
REG AB REFERENCE                   SERVICING CRITERIA               SERVICER   ADMINISTRATOR   CUSTODIAN
----------------   ----------------------------------------------   --------   -------------   ---------
<S>                <C>                                              <C>        <C>             <C>
                   temporary (e.g., illness or unemployment).

1122(d)(4)(ix)     Adjustments to interest rates or rates of
                   return for pool assets with variable rates are
                   computed based on the related pool asset
                   documents.

1122(d)(4)(x)      Regarding any funds held in trust for an
                   obligor (such as escrow accounts): (A) such
                   funds are analyzed, in accordance with the
                   obligor's pool asset documents, on at least an
                   annual basis, or such other period specified
                   in the transaction agreements; (B) interest on
                   such funds is paid, or credited, to obligors
                   in accordance with applicable pool asset
                   documents and state laws; and (C) such funds
                   are returned to the obligor within 30 calendar
                   days of full repayment of the related pool
                   assets, or such other number of days specified
                   in the transaction agreements.

1122(d)(4)(xi)     Payments made on behalf of an obligor (such as
                   tax or insurance payments) are made on or
                   before the related penalty or expiration
                   dates, as indicated on the appropriate bills
                   or notices for such payments, provided that
                   such support has been received by the servicer
                   at least 30 calendar days prior to these
                   dates, or such other number of days specified
                   in the transaction agreements.

1122(d)(4)(xii)    Any late payment penalties in connection with
                   any payment to be made on behalf of an obligor
                   are paid from the Servicer's funds and not
                   charged to the obligor, unless the late
                   payment was due to the obligor's error or
                   omission.

1122(d)(4)(xiii)   Disbursements made on behalf of an obligor are
                   posted within two business days to the
                   obligor's records maintained by the servicer,
                   or such other number of days specified in the
                   transaction agreements.

1122(d)(4)(xiv)    Delinquencies, charge-offs and uncollectible         X
                   accounts are recognized and recorded in
                   accordance with the transaction agreements.

1122(d)(4)(xv)     Any external enhancement or other support,                       X*
                   identified in Item 1114(a)(1) through (3) or
                   Item 1115 of Regulation AB, is maintained as
                   set forth in the transaction agreements.
</TABLE>

----------
*    Solely with respect to premiums paid on certificate insurance policies, if
     any.

                                   EXHIBIT S-4
<PAGE>

                                    EXHIBIT T

Trustee: Deutsche Bank National Trust Company

Securities Administrator: Citibank, N.A.

Master Servicer: CitiMortgage, Inc.

Custodian: Wells Fargo Bank, N.A.

Sponsor: HSBC Bank USA, National Association

Servicers: HSBC Mortgage Corporation (USA), Countrywide Home Loans Servicing LP,
American Home Mortgage Servicing, Inc., Residential Funding Company, LLC and
SunTrust Mortgage, Inc.

                                   EXHIBIT T-1
<PAGE>

                                    EXHIBIT U

                      FORM OF ANNUAL COMPLIANCE CERTIFICATE

Via Overnight Delivery

[DATE]

HSI Asset Securitization Corporation,
452 Fifth Avenue
New York, New York 10018
Attention: Head MBS Principal Finance

Citibank, N.A.,
388 Greenwich Street, 14th Floor
New York, New York 10013
Attention: Corporate Trust Services - [___] 2007-[__]

     RE:  Annual officer's certificate delivered pursuant to Section 3.05 of
          that certain Pooling Servicing Agreement, dated as of January 1, 2007
          (the "Pooling and Servicing Agreement"), among HSI Asset
          Securitization Corporation, as depositor (the "Depositor"),
          CitiMortgage, Inc. as master servicer (the "Master Servicer"),
          Citibank, N.A. as securities administrator (the "Securities
          Administrator") and Wells Fargo Bank, N.A. as custodian, (the
          "Custodian") and Deutsche Bank National Trust Company, as trustee (the
          "Trustee")

[_______], the undersigned, a duly authorized [_______] of [Master Servicer]
[Securities Administrator] [Name of Subservicer], does hereby certify the
following for the [calendar year][identify other period] ending on December 31,
20[__]:

1.   A review of the activities of the [Master Servicer] [Securities
     Administrator] during the preceding calendar year (or portion thereof) and
     of its performance under the Agreement for such period has been made under
     my supervision.

2.   To the best of my knowledge, based on such review, the [Master Servicer]
     [Securities Administrator] has fulfilled all of its obligations under the
     Agreement in all material respects throughout such year (or applicable
     portion thereof), or, if there has been a failure to fulfill any such
     obligation in any material respect, I have specifically identified to the
     Depositor and the [Master Servicer][Securities Administrator] each such
     failure known to me and the nature and status thereof, including the steps
     being taken by the [Master Servicer] [Securities Administrator] to remedy
     such default.

                                   EXHIBIT U-1

<PAGE>

Certified By:

-------------------------------------
Name:
      -------------------------------
Title:
       ------------------------------

                                   EXHIBIT U-2
<PAGE>

                                    EXHIBIT V

                         ADDITIONAL FORM 10-D DISCLOSURE

ADDITIONAL FORM 10-D DISCLOSURE

<TABLE>
<CAPTION>
           ITEM ON FORM 10-D                        PARTY RESPONSIBLE
-------------------------------------   ----------------------------------------
<S>                                     <C>
ITEM 1: DISTRIBUTION AND POOL
PERFORMANCE INFORMATION

Information included in the             Master Servicer, each Servicer(1)
[Monthly Statement]                     Securities Administrator

Any information required by 1121        Depositor
which is NOT included on the [Monthly
Statement]

ITEM 2: LEGAL PROCEEDINGS

Any legal proceeding pending against
the following entities or their
respective property, that is material
to Certificateholders, including any
proceeding known to be contemplated
by governmental authorities:

-    Issuing Entity (Trust Fund)        Master Servicer, Securities
                                        Administrator, Each Servicer(1) and
                                        Depositor

-    Sponsor (Seller)                   Seller (if a party to the Pooling and
                                        Servicing Agreement) or Depositor

-    Depositor                          Depositor

-    Trustee                            Trustee

-    Securities Administrator           Securities Administrator

-    Master Servicer                    Master Servicer

-    Each Servicer                      Each Servicer(1)

-    Custodian                          Custodian

-    1110(b) Originator                 Depositor

-    Any 1108(a)(2) Servicer (other     Each Servicer(1)
     than the Servicers, the Master
     Servicer or Securities
     Administrator)

-    Any other party contemplated by    Depositor
     1100(d)(1)

ITEM 3: SALE OF SECURITIES AND USE OF   Depositor
PROCEEDS

Information from Item 2(a) of Part II
of Form 10-Q:

With respect to any sale of
securities by the sponsor, depositor
or issuing entity, that are backed by
the same asset pool or are otherwise
issued by the issuing entity, whether
or not registered, provide the sales
and use of proceeds information in
Item 701 of Regulation S-K.
</TABLE>

----------
(1)  This information to be provided pursuant to the applicable Servicing
     Agreement.

                                 EXHIBIT V-1

<PAGE>

ADDITIONAL FORM 10-D DISCLOSURE

<TABLE>
<CAPTION>
           ITEM ON FORM 10-D                        PARTY RESPONSIBLE
-------------------------------------   ----------------------------------------
<S>                                     <C>
Pricing information can be omitted if
securities were not registered.

ITEM 4: DEFAULTS UPON SENIOR            Securities Administrator
SECURITIES

Information from Item 3 of Part II of
Form 10-Q:

Report the occurrence of any Event of
Default (after expiration of any
grace period and provision of any
required notice)

ITEM 5: SUBMISSION OF MATTERS TO A      Securities Administrator
VOTE OF SECURITY HOLDERS

Information from Item 4 of Part II of
Form 10-Q

ITEM 6: SIGNIFICANT OBLIGORS OF POOL    Depositor
ASSETS

Item 1112(b) - Significant Obligor
Financial Information*

*    This information need only be
     reported on the Form 10-D for
     the distribution period in which
     updated information is required
     pursuant to the Item.

ITEM 7: SIGNIFICANT ENHANCEMENT
PROVIDER INFORMATION

Item 1114(b)(2) - Credit Enhancement
Provider Financial Information*

-    Determining applicable             Depositor
     disclosure threshold

-    Requesting required financial
     Depositor information
     (including any required
     accountants' consent to the use
     thereof) or effecting
     incorporation by reference

ITEM 1115(B) - DERIVATIVE
COUNTERPARTY FINANCIAL INFORMATION*

-    Determining current maximum        Depositor
     probably exposure

-    Determining current significance   Depositor
     percentage

-    Requesting required financial      Depositor
     information (including any
     required accountants' consent to
     the use thereof) or effecting
     incorporation by reference.

*    This information need only be
     reported on the Form 10-D for
     the distribution period in which
     updated information is required
     pursuant to the Items.
</TABLE>

                                   EXHIBIT V-2

<PAGE>

ADDITIONAL FORM 10-D DISCLOSURE

<TABLE>
<CAPTION>
           ITEM ON FORM 10-D                        PARTY RESPONSIBLE
-------------------------------------   ----------------------------------------
<S>                                     <C>
ITEM 8: OTHER INFORMATION

Disclose any information required to    Any party responsible for the applicable
be reported on Form 8-K during the      Form 8-K Disclosure item
period covered by the Form 10-D but
not reported

ITEM 9: EXHIBITS

Monthly Statement to                    Securities Administrator
Certificateholders

Exhibits required by Item 601 of        Depositor
Regulation S-K, such as material
agreements
</TABLE>

                                   EXHIBIT V-3

<PAGE>

                                    EXHIBIT W

                         ADDITIONAL FORM 10-K DISCLOSURE

                         ADDITIONAL FORM 10-K DISCLOSURE

<TABLE>
<CAPTION>
          ITEM ON FORM 10-K                         PARTY RESPONSIBLE
-------------------------------------   ----------------------------------------
<S>                                     <C>
ITEM 1B: UNRESOLVED STAFF COMMENTS      Depositor

ITEM 9B: OTHER INFORMATION

Disclose any information required to    Any party responsible for disclosure
be reported on Form 8-K during the      items on Form 8-K
fourth quarter covered by the Form
10-K but not reported

ITEM 15: EXHIBITS, FINANCIAL            Securities Administrator
STATEMENT SCHEDULES                     Depositor

REG AB ITEM 1112(B): SIGNIFICANT
OBLIGORS OF POOL ASSETS

Significant Obligor Financial           Depositor
Information*

*    This information need only be
     reported on the Form 10-K if
     updated information is required
     pursuant to the Item.

REG AB ITEM 1114(B)(2): CREDIT
ENHANCEMENT PROVIDER FINANCIAL
INFORMATION

-    Determining applicable             Depositor
     disclosure threshold

-    Requesting required financial      Depositor
     information (including any
     required accountants' consent to
     the use thereof) or effecting
     incorporation by reference

*    This information need only be
     reported on the Form 10-K if
     updated information is required
     pursuant to the Item.

REG AB ITEM 1115(B): DERIVATIVE
COUNTERPARTY FINANCIAL INFORMATION

-    Determining current maximum        Depositor
     portable exposure

-    Determining current significance   Depositor
     percentage.

-    Requesting required financial      Depositor
     information (including any
     required accountants' consent to
     the use thereof) or effecting
     incorporation by reference

*    This information need only be
     reported on the Form 10-K if
     updated information is required
     pursuant to the Item.

REG AB ITEM 1117: LEGAL PROCEEDINGS

Any legal proceeding pending against
the following entities or their
respective property, that is material
to Certificateholders, including any
proceeding known to be contemplated
by governmental authorities:

-    Issuing Entity (Trust Fund)        Servicer and Depositor

-    Sponsor (Seller)                   Seller (if a party to the Pooling and
                                        Servicing
</TABLE>

                                   EXHIBIT W-1

<PAGE>

                         ADDITIONAL FORM 10-K DISCLOSURE

<TABLE>
<CAPTION>
          ITEM ON FORM 10-K                         PARTY RESPONSIBLE
-------------------------------------   ----------------------------------------
<S>                                     <C>
                                        Agreement) or Depositor

-    Depositor                          Depositor

-    Trustee                            Trustee

-    Securities Administrator           Securities Administrator

-    Master Servicer                    Master Servicer

-    Servicer                           Servicer

-    Custodian                          Custodian

-    1110(b) Originator                 Depositor

-    Any 1108(a)(2) Servicer (other     Servicer
     than the Servicers, Master
     Servicer or Securities
     Administrator)

-    Any other party contemplated by    Depositor
     1100(d)(1)

REG AB ITEM 1119: AFFILIATIONS AND
RELATIONSHIPS

Whether (a) the Sponsor (Seller),       Depositor as to (a)
Depositor or Issuing Entity is an       Sponsor/Seller as to (a)
affiliate of the following parties,
and (b) to the extent known and
material, any of the following
parties are affiliated with one
another:

-    Master Servicer                    Master Servicer

-    Servicer                           Servicer(1)

-    Securities Administrator           Securities Administrator

-    Trustee                            Trustee

-    Any other 1108(a)(3) servicer      Servicer(1)

-    Any 1110 Originator                Depositor/Sponsor

-    Any 1112(b) Significant Obligor    Depositor/Sponsor

-    Any 1114 Credit Enhancement        Depositor/Sponsor
     Provider

-    Any 1115 Derivative Counterparty   Depositor/Sponsor
     Provider

-    Any other 1101(d)(1) material      Depositor/Sponsor
     party

Whether there are any "outside the      Depositor as to (a)
ordinary course business                Sponsor/Seller as to (a)
arrangements" other than would be
obtained in an arm's length
transaction between (a) the Sponsor
(Seller), Depositor or Issuing Entity
on the one hand, and (b) any of the
following parties (or their
affiliates) on the other hand, that
exist currently or within the past
two years and that are material to a
Certificateholder's understanding of
the Certificates:

-    Master Servicer                    Master Servicer

-    Servicer                           Servicer(1)

-    Securities Administrator           Securities Administrator

-    Trustee                            Depositor/Sponsor

-    Any other 1108(a)(3) servicer      Depositor/Sponsor

-    Any 1110 Originator                Depositor/Sponsor
</TABLE>

                                   EXHIBIT W-2

<PAGE>

                         ADDITIONAL FORM 10-K DISCLOSURE

<TABLE>
<CAPTION>
          ITEM ON FORM 10-K                         PARTY RESPONSIBLE
-------------------------------------   ----------------------------------------
<S>                                     <C>
-    Any 1112(b) Significant Obligor    Depositor/Sponsor

-    Any 1114 Credit Enhancement        Depositor/Sponsor
     Provider

-    Any other 1101(d)(1) material      Depositor/Sponsor
     party

Whether there are any specific          Depositor as to (a) Sponsor/Seller
relationships involving the             as to (a)
transaction or the pool assets
between (a) the Sponsor (Seller),
Depositor or Issuing Entity on the
one hand, and (b) any of the
following parties (or their
affiliates) on the other hand, that
exist currently or within the past
two years and that are material:

-    Master Servicer                    Master Servicer

-    Servicer                           Servicer(1)

-    Securities Administrator           Securities Administrator

-    Trustee                            Depositor/Sponsor

-    Any other 1108(a)(3) servicer      Servicer

-    Any 1110 Originator                Depositor/Sponsor

-    Any 1112(b) Significant Obligor    Depositor/Sponsor

-    Any 1114 Credit Enhancement        Depositor/Sponsor
     Provider

-    Any 1115 Derivate Counterparty     Depositor/Sponsor
     Provider

-    Any other 1101(d)(1) material      Depositor/Sponsor
     party
</TABLE>

----------
(1)  This information to be provided pursuant to the applicable Servicing
     Agreement.

                                   EXHIBIT W-3

<PAGE>

                                    EXHIBIT X

                         FORM 8-K DISCLOSURE INFORMATION

                         FORM 8-K DISCLOSURE INFORMATION

<TABLE>
<CAPTION>
          ITEM ON FORM 8-K                         PARTY RESPONSIBLE
-------------------------------------   ----------------------------------------
<S>                                     <C>
ITEM 1.01- ENTRY INTO A MATERIAL        All parties other than the Trustee
DEFINITIVE AGREEMENT

Disclosure is required regarding
entry into or amendment of any
definitive agreement that is material
to the securitization, even if
depositor is not a party.

Examples: servicing agreement,
custodial agreement.

Note: disclosure not required as to
definitive agreements that are fully
disclosed in the prospectus

ITEM 1.02- TERMINATION OF A MATERIAL    All parties other than the Trustee
DEFINITIVE AGREEMENT

Disclosure is required regarding
termination of any definitive
agreement that is material to the
securitization (other than expiration
in accordance with its terms), even
if depositor is not a party.

Examples: servicing agreement,
custodial agreement.

ITEM 1.03- BANKRUPTCY OR RECEIVERSHIP   Depositor

Disclosure is required regarding the
bankruptcy or receivership, with
respect to any of the following:

-    Sponsor (Seller)                   Depositor/Sponsor (Seller)

-    Depositor                          Depositor

-    Master Servicer                    Master Servicer

-    Affiliated Servicer                Servicer(1)

-    Other Servicer servicing 20% or    Servicer(1)
     more of the pool assets at the
     time of the report

-    Other material servicers           Servicer(1)

-    Trustee                            Trustee

-    Securities Administrator           Securities Administrator

-    Significant Obligor                Depositor

-    Credit Enhancer (10% or more)      Depositor

-    Derivative Counterparty            Depositor
</TABLE>

----------
(1)  This information to be provided pursuant to the applicable Servicing
     Agreement.

                                  EXHIBIT X-1

<PAGE>

                         FORM 8-K DISCLOSURE INFORMATION

<TABLE>
<CAPTION>
           ITEM ON FORM 8-K                         PARTY RESPONSIBLE
-------------------------------------   ----------------------------------------
<S>                                     <C>
-    Custodian                          Custodian

ITEM 2.04- TRIGGERING EVENTS THAT       Depositor
ACCELERATE OR INCREASE A DIRECT
FINANCIAL OBLIGATION OR AN OBLIGATION
UNDER AN OFF-BALANCE SHEET
ARRANGEMENT

Includes an early amortization,
performance trigger or other event,
including event of default, that
would materially alter the payment
priority/distribution of cash
flows/amortization schedule.

Disclosure will be made of events
other than waterfall triggers which
are disclosed in the monthly
statements to the certificateholders.

ITEM 3.03- MATERIAL MODIFICATION TO     Depositor
RIGHTS OF SECURITY HOLDERS

Disclosure is required of any
material modification to documents
defining the rights of
Certificateholders, including the
Pooling and Servicing Agreement.

ITEM 5.03- AMENDMENTS OF ARTICLES OF    Depositor
INCORPORATION OR BYLAWS; CHANGE OF
FISCAL YEAR

Disclosure is required of any
amendment "to the governing documents
of the issuing entity".

ITEM 6.01- ABS INFORMATIONAL AND        Depositor
COMPUTATIONAL MATERIAL

ITEM 6.02- CHANGE OF SERVICER OR        Master Servicer/ Depositor/ Servicer(1)
SECURITIES ADMINISTRATOR

Requires disclosure of any removal,
replacement, substitution or addition
of any master servicer, affiliated
servicer, other servicer servicing
10% or more of pool assets at time of
report, other material servicers or
trustee.

Reg AB disclosure about any new         Servicer(1)/Master Servicer/Depositor
servicer or master servicer is also
required.

Reg AB disclosure about any new         Trustee
Trustee is also required.

ITEM 6.03- CHANGE IN CREDIT             Depositor
ENHANCEMENT OR EXTERNAL SUPPORT

Covers termination of any enhancement
in manner other than by its terms,
the addition of an
</TABLE>

----------
(1)  This information to be provided pursuant to the applicable Servicing
     Agreement.

                                  EXHIBIT X-2

<PAGE>

                         FORM 8-K DISCLOSURE INFORMATION

<TABLE>
<CAPTION>
           ITEM ON FORM 8-K                         PARTY RESPONSIBLE
-------------------------------------   ----------------------------------------
<S>                                     <C>
enhancement, or a material change in
the enhancement provided. Applies to
external credit enhancements as well
as derivatives.

Reg AB disclosure about any new         Depositor
enhancement provider is also
required.

ITEM 6.04- FAILURE TO MAKE A REQUIRED   Securities Administrator
DISTRIBUTION

ITEM 6.05- SECURITIES ACT UPDATING      Depositor
DISCLOSURE

If any material pool characteristic
differs by 5% or more at the time of
issuance of the securities from the
description in the final prospectus,
provide updated Reg AB disclosure
about the actual asset pool.

If there are any new servicers or       Depositor
originators required to be disclosed
under Regulation AB as a result of
the foregoing, provide the
information called for in Items 1108
and 1110 respectively.

ITEM 7.01- REG FD DISCLOSURE            All parties other than the Trustee

ITEM 8.01- OTHER EVENTS                 Depositor

Any event, with respect to which
information is not otherwise called
for in Form 8-K, that the registrant
deems of importance to
certificateholders.

ITEM 9.01- FINANCIAL STATEMENTS AND     Responsible party for
EXHIBITS                                reporting/disclosing the financial
                                        statement or exhibit
</TABLE>

                                  EXHIBIT X-3
<PAGE>

                                    EXHIBIT Y

                       ADDITIONAL DISCLOSURE NOTIFICATION

**   SEND TO CITIBANK VIA FAX TO (212) 816-5527 AND VIA EMAIL TO
     JENNIFER.MCCOURT@CITIGROUP.COM AND VIA OVERNIGHT MAIL TO THE ADDRESS
     IMMEDIATELY BELOW. SEND TO THE DEPOSITOR AT THE ADDRESS BELOW**

Citibank, N.A.,
as Securities Administrator
388 Greenwich, 14th Floor
New York, New York 10013
Attention: Structured Finance Agency and Trust - HSI Asset Loan Obligation
           2007-AR1
Fax: (212) 816-5527
E-mail: jennifer.mccourt@citigroup.com

HSI Asset Securitization Corporation
452 Fifth Avenue
New York, New York 10018
Attention: Head MBS Principal Finance

Attn: Corporate Trust Services - [DEAL NAME]-SEC REPORT PROCESSING

RE: **Additional Form [__] Disclosure**Required

Ladies and Gentlemen:

     In accordance with Section [__] of the Pooling and Servicing Agreement,
dated as of [__] [__], 2007, among [__], as [__], [__], as [__], [__], as [__]
and [__], as [__]. The Undersigned, as [__], hereby notifies you that certain
events have come to our attention that [will][may] need to be disclosed on Form
[__].

Description of Additional Form [__] Disclosure:

     List of Any Attachments hereto to be included in the Additional Form [__]
Disclosure:

     Any inquiries related to this notification should be directed to [__],
phone number: [__]; email address: [__].

                                   EXHIBIT Y-1

<PAGE>

                                        [NAME OF PARTY]
                                        as [role]

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                   EXHIBIT Y-2EX-10.1

 

Exhibit 10.1

 

SECOND AMENDED AND RESTATED

CREDIT AND GUARANTY AGREEMENT

dated as of December 28, 2006

among

COFFEYVILLE RESOURCES, LLC,

COFFEYVILLE PIPELINE, INC.,

COFFEYVILLE REFINING & MARKETING, INC.,

COFFEYVILLE NITROGEN FERTILIZERS, INC.,

COFFEYVILLE CRUDE TRANSPORTATION, INC.,

COFFEYVILLE TERMINAL, INC.,

CL JV HOLDINGS, LLC,

as Holdings,

CERTAIN SUBSIDIARIES OF HOLDINGS,

as Guarantors,

VARIOUS LENDERS,

GOLDMAN SACHS CREDIT PARTNERS L.P.,

and

CREDIT SUISSE SECURITIES (USA) LLC,

as Joint Lead Arrangers and Joint Bookrunners,

CREDIT SUISSE,

as Administrative Agent, Collateral Agent,

Funded LC Issuing Bank and Revolving Issuing Bank

DEUTSCHE BANK TRUST COMPANY AMERICAS,

as Syndication Agent

and

ABN AMRO BANK N.V.,

as Documentation Agent

 

$1,075,000,000 Senior Secured First Priority Credit Facilities

 

 

TABLE OF CONTENTS

Page

	 	 	 	 	 
	SECTION 1. DEFINITIONS AND INTERPRETATION
	 	 	2	 
	1.1. Definitions
	 	 	2	 
	1.2. Accounting Terms
	 	 	39	 
	1.3. Interpretation, etc.
	 	 	40	 
	 
	 	 	 	 
	SECTION 2. LOANS AND LETTERS OF CREDIT
	 	 	40	 
	2.1. Tranche D Term Loans
	 	 	40	 
	2.2. Revolving Loans
	 	 	41	 
	2.3. Swing Line Loans
	 	 	42	 
	2.4. Issuance of Letters of Credit and Purchase of Participations Therein
	 	 	44	 
	2.5. Pro Rata Shares; Availability of Funds
	 	 	53	 
	2.6. Use of Proceeds
	 	 	53	 
	2.7. Evidence of Debt; Register; Lenders’ Books and Records; Notes
	 	 	54	 
	2.8. Interest on Loans
	 	 	55	 
	2.9. Conversion/Continuation
	 	 	57	 
	2.10. Default Interest
	 	 	58	 
	2.11. Fees
	 	 	58	 
	2.12. Scheduled Payments/Commitment Reductions
	 	 	60	 
	2.13. Voluntary Prepayments/Commitment Reductions
	 	 	60	 
	2.14. Mandatory Prepayments/Commitment Reductions
	 	 	62	 
	2.15. Application of Prepayments/Reductions
	 	 	64	 
	2.16. General Provisions Regarding Payments
	 	 	65	 
	2.17. Ratable Sharing
	 	 	66	 
	2.18. Making or Maintaining Eurodollar Rate Loans
	 	 	67	 
	2.19. Increased Costs; Capital Adequacy
	 	 	69	 
	2.20. Taxes; Withholding, etc.
	 	 	70	 
	2.21. Obligation to Mitigate
	 	 	74	 
	2.22. Defaulting Lenders
	 	 	74	 
	2.23. Removal or Replacement of a Lender
	 	 	75	 
	 
	 	 	 	 
	SECTION 3. CONDITIONS PRECEDENT
	 	 	76	 
	3.1. Effective Date
	 	 	76	 
	3.2. Conditions to Each Credit Extension
	 	 	80	 
	 
	 	 	 	 
	SECTION 4. REPRESENTATIONS AND WARRANTIES
	 	 	81	 
	4.1. Organization; Requisite Power and Authority; Qualification
	 	 	81	 
	4.2. Capital Stock and Ownership
	 	 	81	 
	4.3. Due Authorization
	 	 	81	 
	4.4. No Conflict
	 	 	81	 
	4.5. Governmental Consents
	 	 	82	 
	4.6. Binding Obligation
	 	 	82	 
	4.7. Historical Financial Statements
	 	 	82	 

ii

 

	 	 	 	 	 
	4.8. Projections
	 	 	82	 
	4.9. No Material Adverse Change
	 	 	83	 
	4.10. No Restricted Junior Payments
	 	 	83	 
	4.11. Adverse Proceedings, etc.
	 	 	83	 
	4.12. Payment of Taxes
	 	 	83	 
	4.13. Properties
	 	 	83	 
	4.14. Environmental Matters
	 	 	84	 
	4.15. No Defaults
	 	 	86	 
	4.16. Material Contracts
	 	 	86	 
	4.17. Governmental Regulation
	 	 	86	 
	4.18. Margin Stock
	 	 	86	 
	4.19. Employee Matters
	 	 	86	 
	4.20. Employee Benefit Plans
	 	 	87	 
	4.21. Certain Fees
	 	 	87	 
	4.22. Solvency
	 	 	87	 
	4.23. Related Agreements
	 	 	88	 
	4.24.
Compliance with Statutes, etc.
	 	 	88	 
	4.25. Disclosure
	 	 	88	 
	4.26. Patriot Act
	 	 	88	 
	4.27. First Buyer
	 	 	89	 
	 
	 	 	 	 
	SECTION 5. AFFIRMATIVE COVENANTS
	 	 	89	 
	5.1. Financial Statements and Other Reports
	 	 	89	 
	5.2. Existence
	 	 	94	 
	5.3. Payment of Taxes and Claims
	 	 	94	 
	5.4. Maintenance of Properties
	 	 	95	 
	5.5. Insurance
	 	 	95	 
	5.6. Books and Records; Inspections
	 	 	96	 
	5.7. Lenders Meetings
	 	 	96	 
	5.8. Compliance with Laws
	 	 	96	 
	5.9. Environmental
	 	 	96	 
	5.10. Subsidiaries
	 	 	100	 
	5.11. Additional Material Real Estate Assets
	 	 	101	 
	5.12. Interest Rate Protection
	 	 	101	 
	5.13. Swap Agreement
	 	 	101	 
	5.14. Further Assurances
	 	 	102	 
	5.15. Miscellaneous Business Covenants
	 	 	102	 
	5.16. [Reserved]
	 	 	102	 
	5.17. Refinery Revenue Bonds
	 	 	102	 
	 
	 	 	 	 
	SECTION 6. NEGATIVE COVENANTS
	 	 	103	 
	6.1. Indebtedness
	 	 	104	 
	6.2. Liens
	 	 	107	 
	6.3. Equitable Lien
	 	 	109	 
	6.4. No Further Negative Pledges
	 	 	109	 
	6.5. Restricted Junior Payments
	 	 	110	 
	6.6. Restrictions on Subsidiary Distributions
	 	 	112	 

iii

 

	 	 	 	 	 
	6.7. Investments
	 	 	113	 
	6.8. Financial Covenants
	 	 	115	 
	6.9. Fundamental Changes; Disposition of Assets; Acquisitions
	 	 	118	 
	6.10. Disposal of Subsidiary Interests
	 	 	120	 
	6.11. Sales and Lease-Backs
	 	 	121	 
	6.12. Transactions with Shareholders and Affiliates
	 	 	121	 
	6.13. Conduct of Business
	 	 	121	 
	6.14. Permitted Activities of Holdings
	 	 	121	 
	6.15. Amendments or Waivers of Certain Related Agreements
	 	 	122	 
	6.16. [Reserved]
	 	 	122	 
	6.17. Fiscal Year
	 	 	122	 
	6.18. [Reserved]
	 	 	122	 
	6.19. [Reserved]
	 	 	122	 
	6.20. Maximum Amount of Hedged Production
	 	 	122	 
	 
	 	 	 	 
	SECTION 7. GUARANTY
	 	 	122	 
	7.1. Guaranty of the Obligations
	 	 	122	 
	7.2. Contribution by Guarantors
	 	 	122	 
	7.3. Payment by Guarantors
	 	 	123	 
	7.4. Liability of Guarantors Absolute
	 	 	123	 
	7.5. Waivers by Guarantors
	 	 	125	 
	7.6. Guarantors’ Rights of Subrogation, Contribution, etc.
	 	 	126	 
	7.7. Subordination of Other Obligations
	 	 	127	 
	7.8. Continuing Guaranty
	 	 	127	 
	7.9. Authority of Guarantors or Company
	 	 	127	 
	7.10. Financial Condition of Company
	 	 	127	 
	7.11. Bankruptcy, etc.
	 	 	128	 
	7.12. Discharge of Guaranty Upon Sale of Guarantor
	 	 	128	 
	 
	 	 	 	 
	SECTION 8. EVENTS OF DEFAULT
	 	 	129	 
	8.1. Events of Default
	 	 	129	 
	 
	 	 	 	 
	SECTION 9. AGENTS
	 	 	132	 
	9.1. Powers and Duties
	 	 	132	 
	9.2. General Immunity
	 	 	132	 
	9.3. Agents Entitled to Act as Lender
	 	 	134	 
	9.4. Lenders’ Representations, Warranties and Acknowledgment
	 	 	135	 
	9.5. Right to Indemnity
	 	 	135	 
	9.6. Successor Administrative Agent and Swing Line Lender
	 	 	135	 
	9.7. Collateral Documents and Guaranty
	 	 	136	 
	 
	 	 	 	 
	SECTION 10. MISCELLANEOUS
	 	 	137	 
	10.1. Notices
	 	 	137	 
	10.2. Expenses
	 	 	137	 
	10.3. Indemnity
	 	 	138	 
	10.4. Set-Off
	 	 	139	 
	10.5. Amendments and Waivers
	 	 	139	 

iv

 

	 	 	 	 	 
	10.6. Successors and Assigns; Participations
	 	 	142	 
	10.7. Independence of Covenants
	 	 	146	 
	10.8. Survival of Representations, Warranties and Agreements
	 	 	146	 
	10.9. No Waiver; Remedies Cumulative
	 	 	146	 
	10.10. Marshalling; Payments Set Aside
	 	 	146	 
	10.11. Severability
	 	 	146	 
	10.12. Obligations Several; Independent Nature of Lenders’ Rights
	 	 	147	 
	10.13. Headings
	 	 	147	 
	10.14. APPLICABLE LAW
	 	 	147	 
	10.15. CONSENT TO JURISDICTION
	 	 	147	 
	10.16. WAIVER OF JURY TRIAL
	 	 	148	 
	10.17. Confidentiality
	 	 	148	 
	10.18. Usury Savings Clause
	 	 	149	 
	10.19. Counterparts
	 	 	149	 
	10.20. Effectiveness
	 	 	149	 
	10.21. Patriot Act
	 	 	149	 
	10.22. Electronic Execution of Assignments
	 	 	150	 
	10.23. Amendment and Restatement
	 	 	150	 
	10.24. Reaffirmation and Grant of Security Interests
	 	 	150	 

v

 

	 	 	 	 	 	 	 
	APPENDICES:

	 	 	A-1	 	 	Tranche D Term Loan Commitments
	 

	 	 	A-2	 	 	Funded Letter of Credit Commitments
	 

	 	 	A-3	 	 	Revolving Commitments
	 

	 	 	B	 	 	Notice Addresses
	 
	 	 	 	 	 	 
	SCHEDULES:

	 	 	3.1	(i)	 	Closing Date Mortgaged Properties
	 

	 	 	3.1	(k)	 	Environmental Reports
	 

	 	 	4.1	 	 	Jurisdictions of Organization and Qualification
	 

	 	 	4.2	 	 	Capital Stock and Ownership
	 

	 	 	4.11	 	 	Adverse Proceedings
	 

	 	 	4.13	 	 	Real Estate Assets
	 

	 	 	4.14	 	 	Environmental Matters
	 

	 	 	4.16	 	 	Material Contracts
	 

	 	 	6.1	 	 	Certain Indebtedness
	 

	 	 	6.2	 	 	Certain Liens
	 

	 	 	6.7	 	 	Certain Investments
	 

	 	 	6.12	 	 	Certain Affiliate Transactions
	 
	 	 	 	 	 	 
	EXHIBITS:

	 	 	A-1	 	 	Funding Notice
	 

	 	 	A-2	 	 	Conversion/Continuation Notice
	 

	 	 	A-3	 	 	Issuance Notice
	 

	 	 	B-1	 	 	Tranche D Term Loan Note
	 

	 	 	B-2	 	 	Revolving Loan Note
	 

	 	 	B-3	 	 	Swing Line Note
	 

	 	 	C	 	 	Compliance Certificate
	 

	 	 	D	 	 	Opinions of Counsel
	 

	 	 	E	 	 	Assignment Agreement
	 

	 	 	F	 	 	Certificate Re Non-bank Status
	 

	 	 	G-1	 	 	Effective Date Certificate
	 

	 	 	G-2	 	 	Solvency Certificate
	 

	 	 	H	 	 	Counterpart Agreement
	 

	 	 	I	 	 	Pledge and Security Agreement
	 

	 	 	J	 	 	Mortgage

vi

 

SECOND AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT

          This SECOND AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT, dated as of December 28, 2006
is entered into by and among COFFEYVILLE RESOURCES, LLC, a Delaware limited liability company
(“Company”), COFFEYVILLE PIPELINE, INC., a Delaware corporation (“Pipeline”), COFFEYVILLE REFINING
& MARKETING, INC., a Delaware corporation (“Refining”), COFFEYVILLE NITROGEN FERTILIZERS, INC., a
Delaware corporation (“Fertilizers”), COFFEYVILLE CRUDE TRANSPORTATION, INC., a Delaware
corporation (“Transportation”), COFFEYVILLE TERMINAL, INC., a Delaware corporation (“Terminal”), CL
JV HOLDINGS, LLC, a Delaware limited liability company (“CL JV” and together with Pipeline,
Refining, Fertilizers, Transportation and Terminal, collectively, “Holdings”) and CERTAIN
SUBSIDIARIES OF HOLDINGS, as Guarantors, the Lenders party hereto from time to time, GOLDMAN SACHS
CREDIT PARTNERS L.P. (“GSCP”) and CREDIT SUISSE SECURITIES (USA) LLC, as Joint Lead Arrangers and
Joint Bookrunners (in such capacity, collectively, the “Arrangers”), CREDIT SUISSE, as
Administrative Agent (together with its permitted successors in such capacity, “Administrative
Agent”), as Collateral Agent (together with its permitted successors in such capacity, “Collateral
Agent”), as Funded LC Issuing Bank and as Revolving Issuing Bank, DEUTSCHE BANK TRUST COMPANY
AMERICAS (“Deutsche Bank”), as Syndication Agent (in such capacity, the “Syndication Agent”) and
ABN AMRO BANK N.V. (“ABN”), as Documentation Agent (in such capacity, the “Documentation Agent”).

RECITALS:

     WHEREAS, capitalized terms used in these Recitals shall have the respective meanings set forth
for such terms in Section 1.1 hereof;

     WHEREAS, Company, Holdings, certain Subsidiaries of Company as Guarantors, GSCP, as sole lead
arranger, sole bookrunner and syndication agent, and the agents and lenders party thereto from time
to time entered into that certain AMENDED AND RESTATED FIRST LIEN CREDIT AND GUARANTY AGREEMENT,
dated as of June 29, 2006 (the “Existing Credit Agreement”);

     WHEREAS, On the Effective Date, (a) the Existing Credit Agreement will be amended and restated
in the form hereof and (b) all loans and credit linked deposits will be repaid and/or terminated in
their entirety under the Existing Credit Agreement;

     WHEREAS, Company has requested the Lenders to extend credit hereunder in the form of (a)
Tranche D Term Loans to be established on the Effective Date in an aggregate principal amount of
$775,000,000, (b) Credit-Linked Deposits to be established on the Effective Date in an aggregate
principal amount of $150,000,000 and (c) Revolving Loans, Revolving Letters of Credit and Swingline
Loans to be established, made or issued at any time and from time to time on or after the Effective
Date and prior to the Revolving Commitment Termination Date in an aggregate principal and face
amount at any time outstanding not to exceed $150,000,000 (subject to the limitations set forth
herein);

 

     WHEREAS, the proceeds of the Tranche D Term Loans, Credit-Linked Deposits and Revolving Loans
established or made, as the case may be, on the Effective Date will be used to (a) repay the
Existing Tranche C Term Loans made under the Existing Credit Agreement, (b) to repay the Existing
Revolving Loans and terminate the existing Revolving Commitments, (c) repay all amounts due or
outstanding under the and the Second Lien Credit Agreement, (d) establish the new Credit Linked
Deposits funded hereunder, (e) pay fees and expenses incurred in connection therewith, (f) pay
dividend to its existing shareholders in the amount of $250,000,000 and (g) to make certain other
changes as more fully set forth herein, each of which to become effective on the Effective Date.

     WHEREAS, the Lenders are willing to extend such credit and the Issuing Bank is willing to
issue Letters of Credit on the terms and subject to the conditions set forth herein;

     WHEREAS, Company has agreed to secure all of its Obligations by granting or reaffirming its
grant, as applicable, to Collateral Agent, for the benefit of Secured Parties, a First Priority
Lien on substantially all of its assets, including a pledge of all of the Capital Stock of each of
its Domestic Subsidiaries and 65% of all the Capital Stock of each of its Foreign Subsidiaries;

     WHEREAS, Guarantors have agreed to guarantee the obligations of Company hereunder and to
secure their respective Obligations by granting or reaffirming its grant, as applicable, to
Collateral Agent, for the benefit of Secured Parties, a First Priority Lien on substantially all of
their respective assets, including a pledge of all of the Capital Stock of each of their respective
Domestic Subsidiaries (including Company) and 65% of all the Capital Stock of each of their
respective Foreign Subsidiaries;

     WHEREAS, it is the intent of the parties hereto that this Agreement not constitute a novation
of the obligations and liabilities of the parties under the Existing Credit Agreement and that this
Agreement amend and restate in its entirety the Existing Credit Agreement and re-evidence the
Obligations outstanding on the Effective Date as contemplated hereby;

     WHEREAS, it is the intent of Credit Parties to confirm that all Obligations of the Credit
Parties under the other Credit Documents, as amended hereby, shall continue in full force and
effect and that, from and after the Effective Date, all references to the “Credit Agreement”
contained therein shall be deemed to refer to this Agreement; and

     NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants
herein contained, the parties hereto agree that this Agreement shall, upon satisfaction of the
conditions set forth in Section 3.1, be amended and restated to read in its entirety as follows:

SECTION 1. DEFINITIONS AND INTERPRETATION

     1.1. Definitions. The following terms used herein, including in the preamble, recitals,
exhibits and schedules hereto, shall have the following meanings:

2

 

          “2006 Carryover” means the difference between $260,000,000 and the amount spent by the Company
or any of its Subsidiaries on Capital Expenditures during Fiscal Year 2006.

          “AcquisitionCo” Coffeyville Acquisition LLC, a Delaware limited liability company.

          “Actual Production” means, as of any date of determination, Company’s and the Guarantors’
estimated future production of refined products based on the actual production of refined products
for the three month period immediately preceding such date of determination.

          “Adjusted Eurodollar Rate” means, with respect to any Eurodollar Rate Loan for any Interest
Period, an interest rate per annum equal to the product of (a) LIBOR in effect for such Interest
Period and (b) Statutory Reserves.

          “Administrative Agent” as defined in the preamble hereto.

          “Adverse Proceeding” means any action, suit, proceeding (whether administrative, judicial or
otherwise), governmental investigation or arbitration (whether or not purportedly on behalf of any
of Holdings or any of their respective Subsidiaries) at law or in equity, or before or by any
Governmental Authority, domestic or foreign, whether pending or, to the knowledge of any of
Holdings or any of their respective Subsidiaries, threatened against or affecting any of Holdings
or any of their respective Subsidiaries or any property of any of Holdings or any of their
Subsidiaries.

          “Affected Lender” as defined in Section 2.18(b).

          “Affected Loans” as defined in Section 2.18(b).

          “Affiliate” means, as applied to any Person, any other Person directly or indirectly
controlling, controlled by, or under common control with, that Person. For the purposes of this
definition, “control” (including, with correlative meanings, the terms “controlling”, “controlled
by” and “under common control with”), as applied to any Person, means the possession, directly or
indirectly, of the power (i) to vote 10% or more of the Securities having ordinary voting power for
the election of directors of such Person or (ii) to direct or cause the direction of the management
and policies of that Person, whether through the ownership of voting securities or by contract or
otherwise; provided, however, that GSCP shall not be considered an affiliate of Holdings.

          “Agent” means each of Syndication Agent, Documentation Agent, Administrative Agent and
Collateral Agent.

          “Aggregate Amounts Due” as defined in Section 2.17.

          “Aggregate Payments” as defined in Section 7.2.

          “Agreement” means (i) in respect of the period prior to the Effective Date, the Existing
Credit Agreement and (ii) in respect of any period on or after the Effective Date, this

3

 

Second Amended and Restated Credit and Guaranty Agreement, dated as of December 28, 2006, as
it may be further amended, supplemented or otherwise modified from time to time.

          “Applicable Margin’’ means (a) (i) with respect to Revolving Loans that are Eurodollar Rate
Loans, (A) from the Effective Date until the Company has achieved a change in the Revolving Credit
Status, 3.00% per annum and (B) thereafter, a percentage per annum based on the Revolving Credit
Status in effect from time to time as set forth below

	 	 	 
	 	 	Applicable Margin
	Revolving Credit Status	 	for Revolving Loans
	Revolving Credit Level I Status
	 	3.25%
	Revolving Credit Level II Status
	 	3.00%
	Revolving Credit Level III Status
	 	2.75%
	Revolving Credit Level IV Status
	 	2.50%

; and (ii) with respect to Term Loans that are Eurodollar Rate Loans and Funded Letters of Credit,
(A) from the Effective Date until the Company has achieved a change in the Term Loan Status, 3.00%
per annum and (B) thereafter, a percentage per annum based on the Term Loan Status in effect from
time to time as set forth below

	 	 	 
	 	 	Applicable Margin
	 	 	for Term Loans and Funded Letters
	Term Loan Status	 	of Credit
	Term Loan Level I Status
	 	3.25%
	Term Loan Level II Status
	 	3.00%
	Term Loan Level III Status
	 	2.75%
	Term Loan Level IV Status
	 	2.50%

; and (b) with respect to Swing Line Loans, Revolving Loans and Term Loans that are Base Rate
Loans, an amount equal to (i) the Applicable Margin for Eurodollar Rate Loans as set forth in
clause (a) above minus (ii) 1.00% per annum. Within one Business Day of receipt of a change in
Revolving Credit Status or Term Loan Status, as applicable, Administrative Agent shall notify each
Lender of the Applicable Margin in effect from such date. At any time, and for so long as, an
Event of Default shall have occurred and be continuing, the Applicable Margin shall be determined
as if Revolving Credit Level I Status and Term Loan Level I Status were in effect.

4

 

No reduction in the Applicable Margin hereunder shall be effected for so long as any Event of
Default has occurred and is continuing.

          “Applicable Reserve Requirement” means, at any time, for any Eurodollar Rate Loan or a Credit
Linked Deposit, the maximum rate, expressed as a decimal, at which reserves (including, without
limitation, any basic marginal, special, supplemental, emergency or other reserves) are required to
be maintained with respect thereto against “Eurocurrency liabilities” (as such term is defined in
Regulation D) under regulations issued from time to time by the Board of Governors of the Federal
Reserve System or other applicable banking regulator. Without limiting the effect of the
foregoing, the Applicable Reserve Requirement shall reflect any other reserves required to be
maintained by such member banks with respect to (i) any category of liabilities which includes
deposits by reference to which the applicable Adjusted Eurodollar Rate or any other interest rate
of a Loan is to be determined, or (ii) any category of extensions of credit or other assets which
include Eurodollar Rate Loans. A Eurodollar Rate Loan or a Credit Linked Deposit shall be deemed
to constitute Eurocurrency liabilities. The rate of interest on Eurodollar Rate Loans or a Credit
Linked Deposit shall be adjusted automatically on and as of the first day of the relevant Interest
Period following the effective date of any change in the Applicable Reserve Requirement.

          “Arrangers” as defined in the preamble hereto.

          “Asset Sale” means a sale, lease or sub-lease (as lessor or sublessor), sale and leaseback,
assignment, conveyance, transfer or other disposition to, or any exchange of property with, any
Person (other than Holdings, Company or any Guarantor Subsidiary), in one transaction or a series
of transactions, of all or any part of any of Holdings’ or any of their respective Subsidiaries’
businesses, assets or properties of any kind, whether real, personal, or mixed and whether tangible
or intangible, whether now owned or hereafter acquired, including, without limitation, the Capital
Stock of any of Company’s Subsidiaries, other than (i) inventory or other assets sold, leased or
subleased, assigned, conveyed, transferred or disposed (including bulk sales or leases) in the
ordinary course of business (excluding any such sales by operations or divisions discontinued or to
be discontinued), (ii) the sale, assignment, conveyance, transfer, disposition or other transfer of
accounts receivable (only in connection with the compromise thereof) in the ordinary course of
business and disposals or replacements of damaged, worn-out or obsolete assets or assets no longer
useful in the business, (iii) any sale or disposition deemed to occur in connection with creating,
granting or exercising remedies, including foreclosure, in respect of any Liens permitted pursuant
to Section 6.2, (iv) any transfer of property or assets or issuance of Capital Stock that
constitutes a Restricted Junior Payment permitted by Section 6.5 or Investment permitted to be made
by Section 6.7, (v) the sale or other disposition of cash or Cash Equivalents in the ordinary
course of business, (vi) the termination in the ordinary course of business of any Hedging
Agreement (excluding the Swap Agreement) permitted to be entered into hereunder and otherwise
permitted to be terminated hereunder and (vii) sales of other assets for aggregate consideration of
less than $2,000,000 in the aggregate during any Fiscal Year.

          “Assignment Agreement” means an Assignment and Assumption Agreement substantially in the form
of Exhibit E, with such amendments or modifications as may be approved by Administrative Agent.

5

 

          “Assignment Effective Date” as defined in Section 10.6(b).

          “Authorized Officer” means, as applied to any Person, any individual holding the position of
chairman of the board (if an officer), chief executive officer, president or one of its vice
presidents (or the equivalent thereof), and such Person’s chief financial officer or treasurer.

          “Available Amount” means, on any date (the “Reference Date”), an amount equal at such time to
(a) the sum of, without duplication, (i) at any time after the Term Loan Repayment Amount is at
least $100,000,000 (which amounts may include amounts received from an IPO) and there are no
outstanding New Term Loans, (x) the cumulative amount of Consolidated Excess Cash Flow for all
Fiscal Years completed after the Effective Date and prior to the Reference Date, but excluding
Fiscal Year 2006, minus (y) the portion of such Consolidated Excess Cash Flow that has been
applied, or will be required to be applied, to the prepayment of Loans in accordance with Section
2.14(d) after the Effective Date and on or prior to the Reference Date and (ii) the amount of any
capital contributions (other than capital contributions made pursuant to Section 6.8(e)) in cash to
Holdings directly or indirectly from Parent after the Effective Date and on or prior to the
Reference Date, including contributions with the proceeds from any issuance of equity securities by
Holdings, but excluding proceeds of an IPO used to prepay the Loans pursuant to Section 2.14,
minus (b) the aggregate amount of Investments, Capital Expenditures and Permitted
Acquisitions made by Holdings or any of its Subsidiaries after the Effective Date and on or prior
to the Reference Date from the Available Amount as of such Reference Date pursuant to Sections
6.7(p), 6.8(c) and 6.9(g) minus (c) the aggregate amount of payments made after the
Effective Date and on or prior to the Reference Date from the Available Amount as of such Reference
Date pursuant to Section 6.5(a)(vii), 6.5(a)(viii) and 6.5(c).

          “Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy,” as now and
hereafter in effect, or any successor statute.

          “Base Rate” means, for any day, a base rate calculated as a fluctuating rate per annum as
shall be in effect from time to time, equal to the greatest of:

	 	(a)	 	the Prime Rate in effect on such day;
	 
	 	(b)	 	the Federal Funds Effective Rate on such day plus 1/2 of 1%; and

          As used in this definition, the term “Prime Rate” means the rate of interest per annum
announced from time to time by the Administrative Agent as its prime rate in effect at its
principal office in New York City. If for any reason the Administrative Agent shall have
determined (which determination shall be conclusive absent manifest error) that it is unable to
ascertain the Federal Funds Effective Rate, for any reason, including the inability or failure of
the Administrative Agent to obtain sufficient quotation in accordance with the terms hereof, the
Base Rate shall be determined with out regard to clause (b) above until the circumstances giving
rise to such inability no longer exist. Any change in the Base Rate due to a change in the Prime
Rate or the Federal Funds Effective Rate shall be effective as of the effective day of such change
in the Prime Rate or the Federal Funds Effective Rate, respectively.

6

 

          “Base Rate Loan” means a Loan bearing interest at a rate determined by reference to the Base
Rate.

          “Beneficiary” means each Agent, Issuing Bank, Lender and Lender Counterparty.

          “Business Day” means (i) any day excluding Saturday, Sunday and any day which is a legal
holiday under the laws of the State of New York or is a day on which banking institutions located
in such state are authorized or required by law or other governmental action to close and (ii) with
respect to all notices, determinations, fundings and payments in connection with the Adjusted
Eurodollar Rate or any Eurodollar Rate Loans or a Credit Linked Deposit, the term “Business Day”
shall mean any day which is a Business Day described in clause (i) and which is also a day for
trading by and between banks in Dollar deposits in the London interbank market.

          “Capital Lease” means, as applied to any Person, any lease of any property (whether real,
personal or mixed) by that Person as lessee that, in conformity with GAAP, is or should be
accounted for as a capital lease on the balance sheet of that Person.

          “Capital Stock” means any and all shares, interests, participations or other equivalents
(however designated) of capital stock of a corporation, any and all equivalent ownership interests
in a Person (other than a corporation), including, without limitation, partnership interests and
membership interests, and any and all warrants, rights or options to purchase or other arrangements
or rights to acquire any of the foregoing.

          “Cash” means money, currency or a credit balance in any demand or Deposit Account.

          “Cash Equivalents” means, as at any date of determination, (i) marketable securities (a)
issued or directly and unconditionally guaranteed as to interest and principal by the United States
Government or (b) issued by any agency of the United States the obligations of which are backed by
the full faith and credit of the United States, in each case maturing within one year after such
date; (ii) marketable direct obligations issued by any state of the United States of America or any
political subdivision of any such state or any public instrumentality thereof, in each case
maturing within one year after such date and having, at the time of the acquisition thereof, a
rating of at least A-1 from S&P or at least P-1 from Moody’s; (iii) commercial paper maturing no
more than one year from the date of creation thereof and having, at the time of the acquisition
thereof, a rating of at least A-1 from S&P at least P-1 from Moody’s; (iv) certificates of deposit
or bankers’ acceptances maturing within one year after such date and issued or accepted by any
Lender or by any commercial bank organized under the laws of the United States of America or any
state thereof or the District of Columbia that (a) is at least “adequately capitalized” (as defined
in the regulations of its primary Federal banking regulator) and (b) has Tier 1 capital (as defined
in such regulations) of not less than $100,000,000; (v) shares of any money market mutual fund that
(a) has substantially all of its assets invested continuously in the types of investments referred
to in clauses (i), (ii) and (vi), (b) has net assets of not less than $500,000,000, and (c) has the
highest rating obtainable from either S&P or Moody’s; (vi) fully collateralized repurchase
agreements with a term of not more than 30 days

7

 

for underlying securities of the type described in clauses (i), (ii) and (v) above entered
into with any bank meeting the qualifications specified in clause (v) above or securities dealers
of recognized national standing; and (vii) customary overnight sweep investment instruments entered
into in the ordinary course of business with Wachovia, as cash management bank, or any successor
cash management bank.

          “Certificate re Non-Bank Status” means a certificate substantially in the form of Exhibit F.

          “Change of Control” means, at any time, (i) (x) prior to an IPO, Sponsors shall cease to
beneficially own and control at least at least 35% on a fully diluted basis of the economic
interest in the Capital Stock of Parent and at least 51% on a fully diluted basis of the voting
interests in the Capital Stock of Parent and (y) after a registered initial public offering of the
Capital Stock of Parent, Sponsors shall cease to beneficially own and control, directly or
indirectly, on a fully diluted basis at least 35% of the economic and voting interests in the
Capital Stock of Parent (it being understood any one or more of the Sponsors may individually or
collectively satisfy the minimum ownership and control requirements of this clause (i)); (ii) any
Person or “group” (within the meaning of Rules 13d-3 and 13d-5 under the Exchange Act) other than
any one or more of the Sponsors (a) shall have acquired beneficial ownership of 35% or more on a
fully diluted basis of the voting and/or economic interest in the Capital Stock of Parent, in the
aggregate, and the percentage voting and/or economic interest voting and/or economic interest
acquired by such Person or “group” exceeds, in the aggregate, the percentage of voting and/or
economic interest voting and/or economic interest owned by Sponsors or (b) shall have obtained the
power (whether or not exercised) to elect a majority of the members of the board of directors (or
similar governing body) of any of Parent; (iii) Parent shall cease to beneficially own and control,
directly or indirectly (including through any of Holdings), 100% on a fully diluted basis of the
economic and voting interest in the Capital Stock of Company; (iv) Holdings (on a collective basis)
shall cease to beneficially own and control 100% on a fully diluted basis of the economic and
voting interest in the Capital Stock of Company; or (v) the majority of the seats (other than
vacant seats) on the board of directors (or similar governing body) of Parent cease to be occupied
by Persons who either (a) were members of the board of directors (or similar governing body) of
Parent on the Effective Date or (b) were nominated for election by the board of directors (or
similar governing body) of Parent, a majority of whom were directors on the Effective Date or whose
election or nomination for election was previously approved by a majority of such directors.

          “CL JV” as defined in the preamble hereto.

          “Class” means (i) with respect to Lenders, each of the following classes of Lenders: (a)
Lenders having Tranche D Term Loan Exposure, (b) Lenders having Revolving Exposure (including Swing
Line Lender), (c) Lenders having Funded Letters of Credit Exposure and (d) Lenders having New Term
Loan Exposure and (ii) with respect to Loans, each of the following classes of Loans: (a) Tranche D
Term Loans, (b) Revolving Loans (including Swing Line Loans) and (c) New Term Loans.

          “Closing Date” means the date of the initial Credit Extension under the Initial Credit
Agreement, which date was June 24, 2005.

8

 

          “Closing Date Mortgaged Property” as defined in Section 3.1(i).

          “Collateral” means, collectively, all of the real, personal and mixed property (including
Capital Stock) in which Liens are purported to be granted pursuant to the Collateral Documents as
security for the Obligations.

          “Collateral Agent” as defined in the preamble hereto.

          “Collateral Documents” means the Pledge and Security Agreement, the Intercreditor Agreement,
the Mortgages, the Landlord Consents and Estoppels, if any, and all other instruments, documents
and agreements delivered by any Credit Party pursuant to this Agreement or any of the other Credit
Documents in order to grant to Collateral Agent, for the benefit of Lenders, a Lien on any real,
personal or mixed property of that Credit Party as security for the Obligations.

          “Collateral Questionnaire” means a certificate in form reasonably satisfactory to Collateral
Agent that provides information with respect to the personal or mixed property of each Credit
Party.

          “Commitment” means any Revolving Commitment, Tranche D Term Loan Commitment or Funded Letter
of Credit Commitment.

          “Commodity Agreement” means any commodity exchange, swap, forward, cap, floor collar or other
similar agreement or arrangement, including the Swap Agreement, each of which is for the purpose of
hedging the exposure of Company and the Guarantors to fluctuations in the price of nitrogen
fertilizers, hydrocarbons and refined products in their operations and not for speculative
purposes.

          “Company” as defined in the preamble hereto.

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

          “Consent Decree” shall mean the Consent Decree entered into by the United States of America,
the Kansas Department of Health and Environment ex rel State of Kansas, Coffeyville Resources
Refining & Marketing, LLC, and Coffeyville Resources Terminal, LLC that was lodged with the United
States District Court for the District of Kansas on March 4, 2004 and was subject to public comment
until March 18, 2004, including any subsequent amendments thereto.

          “Consolidated Adjusted EBITDA” means, for any period, an amount determined for Company and its
Subsidiaries on a consolidated basis equal to (i) the sum, without duplication, of the amounts for
such period of (a) Consolidated Net Income, (b) Consolidated Interest Expense, (c) provisions for
taxes based on income, (d) total depreciation expense, (e) total amortization expense, (f) other
non-Cash items reducing Consolidated Net Income (excluding any such non-Cash item to the extent
that it represents an accrual or reserve for potential Cash items in any future period or
amortization of a prepaid Cash item that was paid in a prior period; provided, for the
avoidance of doubt, this exclusion shall not

9

 

include the following non-cash items to the extent they are not specifically linked to an
accrual or reserve for a potential Cash item in any future period or amortization of a prepaid Cash
item that was paid in a prior period: (1) compensation charge arising from the grant of or issuance
of stock, stock options or other equity based awards, (2) non-cash impact attributable to the
application of the purchase method of accounting in accordance with GAAP, (3) non-cash gain or
loss, together with any related provision for taxes on such gain or loss, realized in connection
with: (i) any sale or other disposition of assets or (ii) the disposition of any securities by such
Person or any of its Subsidiaries or the extinguishment of any Indebtedness of such Person or any
of its Subsidiaries, (4) unrealized gains and losses arising out of derivative transactions and (5)
any impairment charge or asset write-off pursuant to Financial Accounting Standards Board Statement
No. 142 and No. 144 and the amortization of intangibles arising pursuant to No. 141), (g) any fees
and expenses related to the Acquisition and Permitted Acquisitions, to the extent reducing
Consolidated Net Income for such period, (h) any non-recurring expenses or charges incurred in
connection with any issuance of Indebtedness, equity securities or any refinancing transaction, (i)
management fees to the extent permitted by Section 6.5(a)(v), (j) any unusual or non-recurring
charges during any period properly classified as such on the balance sheet of Company in conformity
with GAAP in an aggregate amount not to exceed 7.5% of the amount of Consolidated Adjusted EBITDA
prior to the adjustment provided for in this clause (j) as determined in such period, (k) any net
after-tax loss from disposed or discontinued operations and any net after-tax losses on disposal of
disposed or discontinued operations, (l) any incremental property taxes related to abatement
non-renewal, (m) any losses reducing Consolidated Net Income attributable to minority equity
interests in Company or any of its Subsidiaries and (n) Major Scheduled Turnaround Expenses for any
fiscal periods after the Closing Date, minus (ii) the sum, without duplication, of the
amounts for such period of (a) other non-Cash items increasing Consolidated Net Income (excluding
any such non-Cash item to the extent it represents the reversal of an accrual or reserve for
potential Cash item in any prior period) and (b) any income increasing Consolidated Net Income
attributable to minority equity interests in Company or any of its Subsidiaries.

          “Consolidated Capital Expenditures” means, for any period, the aggregate of all expenditures
of Company and its Subsidiaries during such period determined on a consolidated basis that, in
accordance with GAAP, are or should be included in “purchase of property and equipment” or similar
items reflected in the consolidated statement of cash flows of Company and its Subsidiaries;
provided that, solely for purposes of Section 6.8(c), the term “Consolidated Capital
Expenditures” shall not include (a) the purchase of plant, property or equipment made within one
year (or within eighteen months if a binding agreement to reinvest is entered into within twelve
months) of the sale of any asset to the extent purchased with the proceeds of such sale made
pursuant to and in accordance with Section 2.14(a), (b) the purchase of plant, property or
equipment made within one year (or within eighteen months if a binding agreement to reinvest is
entered into within twelve months) of the receipt of insurance or condemnation proceeds the extent
purchased with such insurance or condemnation proceeds pursuant to and in accordance with Section
2.14(b), or (c) any capital expenditures deemed to be made as part of a Permitted Acquisition,

          “Consolidated Cash Interest Expense” means, for any period, Consolidated Interest Expense for
such period, excluding any amount not payable in Cash.

10

 

          “Consolidated Current Assets” means, as at any date of determination, the total assets of
Company and its Subsidiaries on a consolidated basis that may properly be classified as current
assets in conformity with GAAP, excluding Cash and Cash Equivalents and the current portion of
deferred income taxes.

          “Consolidated Current Liabilities” means, as at any date of determination, the total
liabilities of Company and its Subsidiaries on a consolidated basis that may properly be classified
as current liabilities in conformity with GAAP, excluding the current portion of long term debt and
the current portion of deferred income taxes.

          “Consolidated Excess Cash Flow” means, for any period, an amount (if positive) equal to: (i)
the sum, without duplication, of the amounts for such period of (a) Consolidated Adjusted EBITDA,
plus (b) the Consolidated Working Capital Adjustment plus (c) extraordinary Cash
gains excluded from Consolidated Adjusted EBITDA, plus (d) net decreases in cash required
to be on deposit with counterparties pursuant to outstanding derivative instruments permitted
hereunder, minus (ii) the sum, without duplication, of the amounts for such period of (a)
scheduled repayments of Consolidated Total Debt (excluding (i) repayments of Revolving Loans or
Swing Line Loans except to the extent the Revolving Commitments are permanently reduced in
connection with such repayments and (ii) the repayment of Existing Tranche C Term Loans on the
Effective Date), (b) Consolidated Capital Expenditures ((x) excluding any Consolidated Capital
Expenditures funded through the utilization of the Available Amount, and (y) net of any proceeds of
(1) any related financings with respect to such Consolidated Capital Expenditures and (2) any sales
of assets used to finance such Consolidated Capital Expenditures), (c) Consolidated Cash Interest
Expense, (d) provisions for current taxes of Holdings, Company and its Subsidiaries and payable in
cash with respect to such period, (e) any Cash consideration paid in respect of Permitted
Acquisitions in an aggregate amount not to exceed at any time prior to an IPO, $20,000,000 per
Fiscal Year, and at any time after an IPO, $40,000,000 per Fiscal Year (excluding any such amounts
funded through the utilization of the Available Amount), (f) any Cash amounts made by Holdings
pursuant to Sections 6.5(a)(i) through (iv) and 6.5(a)(vi) to the extent such amounts have not been
deducted from Consolidated Net Income, (g) Cash amounts which have been included in Consolidated
Adjusted EBITDA for such period pursuant to clauses (i)(g), (i)(h), (i)(i), (i)(j), (i)(k), (i)(l),
(i)(m) and (i)(n) of the definition thereof, (h) extraordinary Cash losses (including any premiums
associated with the prepayment of Indebtedness to the extent such payment is accounted for as an
extraordinary item) and (i) net increases in cash required to be on deposit with counterparties
pursuant to outstanding derivative instruments permitted hereunder.

          “Consolidated Interest Expense” means, for any period, total interest expense (including that
portion attributable to Capital Leases in accordance with GAAP and capitalized interest) of Company
and its Subsidiaries on a consolidated basis with respect to all outstanding Indebtedness of
Company and its Subsidiaries, including all commissions, discounts and other fees and charges owed
with respect to letters of credit (including Funded Letters of Credit) and net costs under Interest
Rate Agreements, but excluding, however, any amounts referred to in Section 2.11(f) payable on or
before the Effective Date.

          “Consolidated Net Income” means, for any period, (i) the net income (or loss) of Company and
its Subsidiaries on a consolidated basis for such period taken as a single

11

 

accounting period determined in conformity with GAAP, excluding (ii) (a) the income
(or loss) of any Person (other than a Subsidiary of Company) in which any other Person (other than
Company or any of its Subsidiaries) has a joint interest, except to the extent of the amount of
dividends or other distributions actually paid to Company or any of its Subsidiaries by such Person
during such period, (b) except as may be permitted in Section 6.8(d), the income (or loss) of any
Person accrued prior to the date it becomes a Subsidiary of Company or is merged into or
consolidated with Company or any of its Subsidiaries or that Person’s assets are acquired by
Company or any of its Subsidiaries, (c) the income of any Subsidiary of Company to the extent that
the declaration or payment of dividends or similar distributions by that Subsidiary of that income
is not at the time permitted by operation of the terms of its charter or any agreement, instrument,
judgment, decree, order, statute, rule or governmental regulation applicable to that Subsidiary,
(d) any after-tax gains or losses attributable to Asset Sales or returned surplus assets of any
Pension Plan, and (e) (to the extent not included in clauses (a) through (d) above) any net
extraordinary gains or net extraordinary losses.

          “Consolidated Total Debt” means, as at any date of determination, (a) the aggregate stated
balance sheet amount of all Indebtedness (other than Indebtedness under clauses (iv), (vi) and (x)
of the definition thereof), of Company and its Subsidiaries determined on a consolidated basis in
accordance with GAAP, minus (b) the aggregate amount of Cash included in the cash accounts
listed on the consolidated balance sheet of Holdings, Company and the Guarantor Subsidiaries as at
such date up to a maximum amount of $40,000,000 to the extent the use thereof for application to
payment of Indebtedness is not prohibited by law or any contract to which Holdings, Company or any
Guarantor Subsidiary is a party.

          “Consolidated Working Capital” means, as at any date of determination, the excess of
Consolidated Current Assets over Consolidated Current Liabilities.

          “Consolidated Working Capital Adjustment” means, for any period on a consolidated basis, the
amount (which may be a negative number) by which Consolidated Working Capital as of the beginning
of such period exceeds (or is less than) Consolidated Working Capital as of the end of such period.

          “Construction Account” means a Deposit Account maintained by Company or any Guarantor
Subsidiary at a financial institution reasonably acceptable to the Administrative Agent which is
subject to the First Priority security interest and Lien of the Collateral Agent, for the benefit
of the Secured Parties, together with all monies on deposit therein.

          “Contractual Obligation” means, as applied to any Person, any provision of any Security issued
by that Person or of any indenture, mortgage, deed of trust, contract, undertaking, agreement or
other instrument to which that Person is a party or by which it or any of its properties is bound
or to which it or any of its properties is subject.

          “Contributing Guarantors” as defined in Section 7.2.

          “Conversion/Continuation Date” means the effective date of a continuation or conversion, as
the case may be, as set forth in the applicable Conversion/Continuation Notice.

12

 

          “Conversion/Continuation Notice” means a Conversion/Continuation Notice substantially in the
form of Exhibit A-2.

          “Counterpart Agreement” means a Counterpart Agreement substantially in the form of Exhibit H
delivered by a Credit Party pursuant to Section 5.10.

          “Credit Date” means the date of a Credit Extension.

          “Credit Document” means any of this Agreement, the Notes, if any, the Collateral Documents,
any documents or certificates executed by Company in favor of Issuing Banks relating to Letters of
Credit, and all other documents, instruments or agreements executed and delivered by a Credit Party
for the benefit of any Agent, any Issuing Bank or any Lender in connection herewith.

          “Credit Extension” means the making of a Loan, the funding of a Credit Linked Deposit on the
Effective Date or the issuing of a Letter of Credit.

          “Credit Linked Deposit” means with respect to each Lender, the cash deposit, if any, made by
such Lender pursuant to Section 2.4(i), as the same may be (a) reduced from time to time pursuant
to Sections 2.4(f) or (h) or 2.13(b)(iii) or (b) reduced or increased from time to time pursuant to
assignments by or to such Lender pursuant to Section 10.6.

          “Credit Linked Deposit Account” means the account established at the Funded LC Issuing Bank in
the name of, or as designated by, the Administrative Agent for the benefit of the Funded LC Issuing
Bank and the Funded Letter of Credit Participants that shall be used for the purposes set forth in
Section 2.4.

          “Credit Party” means each Person (other than any Agent, Issuing Bank or any Lender or any
other representative thereof) from time to time party to a Credit Document.

          “Crude Gathering System” means the pipeline system owned by Transportation as of the Effective
Date (excluding the pipeline from Broom Station in Caney, Kansas, to the Coffeyville Refinery).

          “Cure Amount” as defined in Section 6.8(e).

          “Cure Right” as defined in Section 6.8(e).

          “Currency Agreement” means any foreign exchange contract, currency swap agreement, futures
contract, option contract, synthetic cap or other similar agreement or arrangement, each of which
is for the purpose of hedging the foreign currency risk associated with Company’ and its
Subsidiaries’ operations and not for speculative purposes.

          “Default” means a condition or event that, after notice or lapse of time or both, would
constitute an Event of Default.

          “Default Excess” means, with respect to any Defaulting Lender, the excess, if any, of such
Defaulting Lender’s Pro Rata Share of the aggregate outstanding principal amount

13

 

of Loans of all Lenders (calculated as if all Defaulting Lenders (other than such Defaulting
Lender) had funded all of their respective Defaulted Loans) over the aggregate outstanding
principal amount of all Loans of such Defaulting Lender.

          “Default Period” means, with respect to any Defaulting Lender, the period commencing on the
date of the applicable Funding Default and ending on the earliest of the following dates: (i) the
date on which all Commitments are cancelled or terminated and/or the Obligations are declared or
become immediately due and payable, (ii) the date on which (a) the Default Excess with respect to
such Defaulting Lender shall have been reduced to zero (whether by the funding by such Defaulting
Lender of any Defaulted Loans of such Defaulting Lender or by the non-pro rata application of any
voluntary or mandatory prepayments of the Loans in accordance with the terms of Section 2.13 or
Section 2.14 or by a combination thereof) and (b) such Defaulting Lender shall have delivered to
Company and Administrative Agent a written reaffirmation of its intention to honor its obligations
hereunder with respect to its Commitments, and (iii) the date on which Company, Administrative
Agent and Requisite Lenders waive all Funding Defaults of such Defaulting Lender in writing.

          “Defaulted Loan” as defined in Section 2.22.

          “Defaulting Lender” as defined in Section 2.22.

          “Deposit Account” means a demand, time, savings, passbook or like account with a bank, savings
and loan association, credit union or like organization, other than an account evidenced by a
negotiable certificate of deposit.

          “Documentation Agent” as defined in the preamble hereto.

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

          “Domestic Subsidiary” means any Subsidiary organized under the laws of the United States of
America, any State thereof or the District of Columbia.

          “Effective Date” means December 28, 2006, the date on which the conditions precedent set forth
in Section 3.1 shall have been satisfied or waived.

          “Effective Date Certificate” means an Effective Date Certificate substantially in the form of
Exhibit G-1.

          “Eligible Assignee” means (i) any Lender, any Affiliate of any Lender and any Related Fund
(any two or more Related Funds being treated as a single Eligible Assignee for all purposes
hereof), and (ii) any commercial bank, insurance company, investment or mutual fund or other entity
that is an “accredited investor” (as defined in Regulation D under the Securities Act) and which
extends credit or buys loans as one of its businesses; provided, no Affiliate of any of
Holdings shall be an Eligible Assignee.

          “Employee Benefit Plan” means any “employee benefit plan” as defined in Section 3(3) of ERISA
which is or was sponsored, maintained or contributed to by, or required to

14

 

be contributed by, any of Holdings, any of their respective Subsidiaries or any of their
respective ERISA Affiliates.

          “Environmental Claim” means any notice of violation, claim, action, suit, proceeding, demand,
abatement order or other order or directive (conditional or otherwise), by any Governmental
Authority or any other Person, arising pursuant to or in connection with any actual or alleged
violation of, or liability under, any Environmental Law.

          “Environmental Laws” means any and all current or future foreign or domestic, federal or state
(or any subdivision of either of them), statutes, ordinances, orders, rules, regulations,
judgments, Governmental Authorizations, or any other requirements of Governmental Authorities
(including, without limitation, the Consent Decree) relating to (i) environmental matters,
including any Hazardous Materials Activity; (ii) occupational safety and health, industrial
hygiene; or (iii) the protection of human health (as it relates to Releases of or exposure to
Hazardous Materials), the environment or natural resources, in any manner applicable to Holdings or
its Subsidiaries or the Facilities.

          “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to
time, and any successor thereto.

          “ERISA Affiliate” means, as applied to any Person, (i) any corporation which is a member of a
controlled group of corporations within the meaning of Section 414(b) of the Internal Revenue Code
of which that Person is a member; (ii) any trade or business (whether or not incorporated) which is
a member of a group of trades or businesses under common control within the meaning of Section
414(c) of the Internal Revenue Code of which that Person is a member; and (iii) any member of an
affiliated service group within the meaning of Section 414(m) or (o) of the Internal Revenue Code
of which that Person, any corporation described in clause (i) above or any trade or business
described in clause (ii) above is a member. Any former ERISA Affiliate of any of Holdings or any
of their respective Subsidiaries shall continue to be considered an ERISA Affiliate of Holdings or
any such Subsidiary within the meaning of this definition with respect to the period such entity
was an ERISA Affiliate of Holdings or such Subsidiary and with respect to liabilities arising after
such period for which Holdings or such Subsidiary could be liable under the Internal Revenue Code
or ERISA.

          “ERISA Event” means (i) a “reportable event” within the meaning of Section 4043 of ERISA and
the regulations issued thereunder with respect to any Pension Plan (excluding those for which the
provision for 30-day notice to the PBGC has been waived by regulation); (ii) the failure to meet
the minimum funding standard of Section 412 of the Internal Revenue Code with respect to any
Pension Plan (whether or not waived in accordance with Section 412(d) of the Internal Revenue Code)
or the failure to make by its due date a required installment under Section 412(m) of the Internal
Revenue Code with respect to any Pension Plan or the failure to make any required contribution to a
Multiemployer Plan; (iii) the provision by the administrator of any Pension Plan pursuant to
Section 4041(a)(2) of ERISA of a notice of intent to terminate such plan in a distress termination
described in Section 4041(c) of ERISA; (iv) the withdrawal by any of Holdings, any of their
respective Subsidiaries or any of their respective ERISA Affiliates from any Pension Plan with two
or more contributing sponsors or the termination of any such Pension Plan resulting in liability to
any of Holdings, any of their

15

 

respective Subsidiaries or any of their respective Affiliates pursuant to Section 4063 or 4064
of ERISA; (v) the institution by the PBGC of proceedings to terminate any Pension Plan, or the
occurrence of any event or condition which would be reasonably likely to constitute grounds under
ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan; (vi)
the imposition of liability on any of Holdings, any of their respective Subsidiaries or any of
their respective ERISA Affiliates pursuant to Section 4062(e) or 4069 of ERISA or by reason of the
application of Section 4212(c) of ERISA; (vii) the withdrawal of any of Holdings, any of their
respective Subsidiaries or any of their respective ERISA Affiliates in a complete or partial
withdrawal (within the meaning of Sections 4203 and 4205 of ERISA) from any Multiemployer Plan if
there is any potential withdrawal liability therefore, or the receipt by any of Holdings, any of
their respective Subsidiaries or any of their respective ERISA Affiliates of notice from any
Multiemployer Plan that it is in reorganization or insolvency pursuant to Section 4241 or 4245 of
ERISA, or that it intends to terminate or has terminated under Section 4041A or 4042 of ERISA;
(viii) the occurrence of an act or omission which could give rise to the imposition on any of
Holdings, any of their respective Subsidiaries or any of their respective ERISA Affiliates of any
material fines, penalties, taxes or related charges under Chapter 43 of the Internal Revenue Code
or under Section 409, Section 502(c), (i) or (l), or Section 4071 of ERISA in respect of any
Employee Benefit Plan; (ix) the assertion of a material claim (other than routine claims for
benefits) against any Employee Benefit Plan other than a Multiemployer Plan or the assets thereof,
or against any of Holdings, any of their respective Subsidiaries or any of their respective ERISA
Affiliates in connection with any Employee Benefit Plan; (x) receipt from the Internal Revenue
Service of notice of the failure of any Pension Plan (or any other Employee Benefit Plan intended
to be qualified under Section 401(a) of the Internal Revenue Code) to qualify under Section 401(a)
of the Internal Revenue Code, or the failure of any trust forming part of any Pension Plan to
qualify for exemption from taxation under Section 501(a) of the Internal Revenue Code, in each case
that cannot be cured without material liability to Holdings; or (xi) the imposition of a Lien
pursuant to Section 401(a)(29) or 412(n) of the Internal Revenue Code or pursuant to ERISA with
respect to any Pension Plan.

          “Eurodollar Rate Loan” means a Loan bearing interest at a rate determined by reference to the
Adjusted Eurodollar Rate.

          “Event of Default” means each of the conditions or events set forth in Section 8.1.

          “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and
any successor statute.

          “Existing Credit Agreement” as defined in the recitals.

          “Existing Lenders” means each financial institution that is a “Lender” as defined in the
Existing Credit Agreement.

          “Existing Letters of Credit” means the letters of credit issued for the account of Company
under the Existing Credit Agreement outstanding on the Effective Date.

16

 

          “Existing Revolving Commitments” means all Commitments of the Existing Lenders to make
Revolving Loans (as defined in the Existing Credit Agreement) immediately prior to the
effectiveness of this Agreement.

          “Existing Revolving Loans” means the Revolving Loans (as defined in the Existing Credit
Agreement) outstanding immediately prior to the effectiveness of this Agreement and made pursuant
to Section 2.2 of the Existing Credit Agreement.

          “Existing Tranche C Term Loans” means the Tranche C Term Loans (as defined in the Existing
Credit Agreement) made by an Existing Lender to Company pursuant to Section 2.1(a) of the Existing
Credit Agreement.

          “Facility” means any real property (including all buildings, fixtures or other improvements
located thereon) now or hereafter owned, leased, operated or otherwise occupied by any of Holdings
or any of their respective Subsidiaries or Affiliates.

          “Fair Share Contribution Amount” as defined in Section 7.2.

          “Fair Share” as defined in Section 7.2.

          “Federal Funds Effective Rate” means for any day, the rate per annum equal to the weighted
average of the rates on overnight Federal funds transactions with members of the Federal Reserve
System arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank of
New York on the Business Day next succeeding such day; provided, (i) if such day is not a
Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the
next preceding Business Day as so published on the next succeeding Business Day, and (ii) if no
such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day
shall be the average rate charged to Administrative Agent, in its capacity as a Lender, on such
day on such transactions as determined by Administrative Agent.

          “Fertilizers” as defined in the preamble hereto.

          “Financial Officer Certification” means, with respect to the financial statements for which
such certification is required, the certification of the chief financial officer of Company that
such financial statements fairly present, in all material respects, the financial condition of
Company and its Subsidiaries as at the dates indicated and the results of their operations and
their cash flows for the periods indicated, subject to changes resulting from audit and normal
year-end adjustments.

          “Financial Plan” as defined in Section 5.1(i).

          “First Priority” means, with respect to any Lien purported to be created in any Collateral
pursuant to any Collateral Document, that such Lien is the only Lien to which such Collateral is
subject, other than any Permitted Lien.

          “Fiscal Quarter” means a fiscal quarter of any Fiscal Year.

17

 

          “Fiscal Year” means the fiscal year of Company and its Subsidiaries ending on December 31 of
each calendar year.

          “Flood Hazard Property” means any Real Estate Asset subject to a mortgage in favor of
Collateral Agent, for the benefit of the Lenders, and located in an area designated by the Federal
Emergency Management Agency as having special flood or mud slide hazards.

          “Foreign Subsidiary” means any Subsidiary that is not a Domestic Subsidiary.

          “Funded LC Issuing Bank” means initially Credit Suisse and thereafter with respect to any
Funded Letter of Credit, any Lender (including any Person who is a Lender as of the Effective Date
but subsequently, after agreeing to become a Funded LC Issuing Bank, ceases to be a Lender) which,
at the request of Company, and with the consent of Administrative Agent (not to be unreasonably
withheld), agrees in such Lender’s sole discretion to become a Funded LC Issuing Bank for the
purposes of issuing such Funded Letter of Credit, together with its permitted successors and
assigns in such capacity.

          “Funding Default” as defined in Section 2.22.

          “Funding Guarantors” as defined in Section 7.2.

          “Funded LC Deposit Bank” means Credit Suisse.

          “Funded Letter of Credit” as defined in Section 2.4(b).

          “Funded Letter of Credit Commitment” means the commitment of a Lender to make or otherwise
fund a Credit Linked Deposit and “Funded Letter of Credit Commitments” means such commitments of
all Lenders in the aggregate. The amount of each Lender’s Funded Letter of Credit Commitment, if
any, is set forth in the Register or in the applicable Assignment Agreement, subject to any
adjustment or reduction pursuant to the terms and conditions hereof. The aggregate amount of the
Funded Letter of Credit Commitments as of the Effective Date is $150,000,000.

          “Funded Letter of Credit Commitment Period” means the period from the Effective Date to but
excluding the Funded Letter of Credit Termination Date.

          “Funded Letter of Credit Exposure” means with respect to any Lender, at any time, the sum of
(a) the amount of any Unpaid Drawings in respect of which payments from such Lender’s Credit Linked
Deposit have been made (or were required to be made) to a Funded LC Issuing Bank pursuant to
Section 2.4(f) at such time and (b) such Lender’s Pro Rata Share of the Funded Letters of Credit
Outstanding at such time (excluding the portion thereof consisting of Unpaid Drawings in respect of
which payments from such Lender’s Credit Linked Deposit have been made (or were required to be
made) to a Funded LC Issuing Bank pursuant to Section 2.4(f)); provided that at any time when the
Funded Letters of Credit Outstanding is zero, the Funded Letter of Credit Exposure of any Lender
shall be equal to such Lender’s Funded Letter of Credit Commitment.

          “Funded Letter of Credit Fee” as defined in Section 2.11(b).

18

 

          “Funded Letter of Credit Outstanding” means at any time, the sum of, without duplication, (a)
the aggregate Stated Amount of all outstanding Funded Letters of Credit and (b) the aggregate
amount of all Unpaid Drawings in respect of all Funded Letters of Credit.

          “Funded Letter of Credit Participant” means each Lender having a Funded Letter of Credit
Commitment.

          “Funded Letter of Credit Participation” as defined in Section 2.4(h).

          “Funded Letter of Credit Participation Interests” means the right of any Funded Letter of
Credit Participant to receive any payments contemplated by this Agreement in respect of such Funded
Letter of Credit Participant’s Pro Rata Share of the Credit Linked Deposits in accordance with this
Agreement.

          “Funded Letter of Credit Termination Date” means the earliest to occur of (i) the fourth
anniversary of the Effective Date; (ii) the date on which the Funded Letters of Credit Outstanding
have been reduced to zero pursuant to Section 2.13(b)(iii) and all Credit Linked Deposits have been
repurchased by the applicable Lenders; and (iii) the date of the termination of the Funded Letter
of Credit Commitments pursuant to Section 8.1.

          “Funding Notice” means a notice substantially in the form of Exhibit A-1.

          “GAAP” means, subject to the limitations on the application thereof set forth in Section 1.2,
United States generally accepted accounting principles in effect as of the date of determination
thereof.

          “Governmental Acts” means any act or omission, whether rightful or wrongful, of any present or
future de jure or de facto government or Governmental Authority.

          “Governmental Authority” means any federal, state, municipal, national or other government,
governmental department, commission, board, bureau, court, agency or instrumentality or political
subdivision thereof or any entity or officer exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to any government or any court, in each
case whether associated with a state of the United States, the United States, or a foreign entity
or government.

          “Governmental Authorization” means any permit, license, authorization, plan, directive,
consent order or consent decree of or from any Governmental Authority.

          “Grantor” as defined in the Pledge and Security Agreement.

          “Guaranteed Obligations” as defined in Section 7.1.

          “Guarantor” means each of Holdings and each Domestic Subsidiary of Holdings (other than
Company).

          “Guarantor Subsidiary” means each Guarantor other than Holdings.

19

 

          “Guaranty” means the guaranty of each Guarantor set forth in Section 7.

          “Hazardous Materials” means any chemical, material or substance, exposure to which is
prohibited, limited or regulated by any Governmental Authority or which may or could pose a hazard
to the health and safety of the owners, occupants or any Persons in the vicinity of any Facility or
to the indoor or outdoor environment.

          “Hazardous Materials Activity” means any past, current, proposed or threatened activity, event
or occurrence involving any Hazardous Materials, including the use, manufacture, possession,
storage, holding, presence, existence, location, Release, threatened Release, discharge, placement,
generation, transportation, processing, construction, treatment, abatement, removal, remediation,
disposal, disposition or handling of any Hazardous Materials, and any corrective action or response
action with respect to any of the foregoing.

          “Hedge Agreement” means an Interest Rate Agreement, a Currency Agreement or a Commodity
Agreement entered into with a Lender Counterparty in order to satisfy the requirements of this
Agreement or otherwise in the ordinary course of Holdings’ or any of its Subsidiaries’ businesses.

          “Highest Lawful Rate” means the maximum lawful interest rate, if any, that at any time or from
time to time may be contracted for, charged, or received under the laws applicable to any Lender
which are presently in effect or, to the extent allowed by law, under such applicable laws which
may hereafter be in effect and which allow a higher maximum nonusurious interest rate than
applicable laws now allow.

          “Historical Financial Statements” means as of the Effective Date, (i) the audited financial
statements of Company and its Subsidiaries, for the immediately preceding three Fiscal Years,
consisting of balance sheets and the related consolidated statements of income, stockholders’
equity and cash flows for such Fiscal Years, and (ii) the unaudited financial statements of Company
and its Subsidiaries as at the most recently ended Fiscal Quarter, consisting of a balance sheet
and the related consolidated statements of income, stockholders’ equity and cash flows for the
three-, six-or nine-month period, as applicable, ending on such date, and, in the case of clauses
(i) and (ii), certified by the chief financial officer of Company that they fairly present, in all
material respects, the financial condition of Company and its Subsidiaries as at the dates
indicated and the results of their operations and their cash flows for the periods indicated,
subject to changes resulting from audit and normal year-end adjustments.

          “Holdings” as defined in the preamble hereto.

          “Increased-Cost Lenders” as defined in Section 2.23.

          “Indebtedness”, as applied to any Person, means, without duplication, (i) all indebtedness for
borrowed money; (ii) that portion of obligations with respect to Capital Leases that is classified
as a liability on a balance sheet in conformity with GAAP; (iii) notes payable and drafts accepted
representing extensions of credit whether or not representing obligations for borrowed money; (iv)
any obligation owed for all or any part of the deferred purchase price of property or services
(excluding (x) trade payables and accrued expenses arising in the ordinary

20

 

course of business and (y) obligations incurred under ERISA), which purchase price is (a) due
more than six months from the date of incurrence of the obligation in respect thereof or (b)
evidenced by a note or similar written instrument; (v) all indebtedness secured by any Lien on any
property or asset owned or held by that Person regardless of whether the indebtedness secured
thereby shall have been assumed by that Person or is nonrecourse to the credit of that Person;
provided however, in the case of non-recourse Indebtedness, the amount of such
Indebtedness shall be limited to the value of the assets securing such indebtedness; (vi) the face
amount of any letter of credit issued for the account of that Person or as to which that Person is
otherwise liable for reimbursement of drawings; (vii) the direct or indirect guaranty, endorsement
(otherwise than for collection or deposit in the ordinary course of business), co-making,
discounting with recourse or sale with recourse by such Person of the Indebtedness of another;
(viii) any obligation of such Person the primary purpose or intent of which is to provide assurance
to an obligee that the obligation of the obligor thereof will be paid or discharged, or any
agreement relating thereto will be complied with, or the holders thereof will be protected (in
whole or in part) against loss in respect thereof; provided that such obligation shall not
be deemed Indebtedness unless the underlying obligation would be deemed Indebtedness; (ix) any
liability of such Person for an obligation of another through any agreement (contingent or
otherwise) (a) to purchase, repurchase or otherwise acquire such obligation or any security
therefor, or to provide funds for the payment or discharge of such obligation (whether in the form
of loans, advances, stock purchases, capital contributions or otherwise) or (b) to maintain the
solvency or any balance sheet item, level of income or financial condition of another if, in the
case of any agreement described under subclauses (a) or (b) of this clause (ix), the primary
purpose or intent thereof is as described in clause (viii) above; provided that such
obligation shall not be deemed Indebtedness unless the underlying obligation would be deemed
Indebtedness; and (x) all net obligations of such Person in respect of any exchange traded or over
the counter derivative transaction, including, without limitation, any Interest Rate Agreement,
Currency Agreement or Commodity Agreement, whether entered into for hedging or speculative
purposes; provided, in no event shall obligations under any Interest Rate Agreement, any
Currency Agreement or Commodity Agreement be deemed “Indebtedness” for any purpose under Section
6.8.

          “Indemnified Liabilities” means, collectively, any and all liabilities, obligations, losses,
damages (including natural resource damages), penalties, claims (including Environmental Claims),
reasonable out-of-pocket costs (including the costs of any Remedial Action necessary to remove,
remediate, clean up or abate any Hazardous Materials Activity), reasonable out-of-pocket expenses
and disbursements of any kind or nature whatsoever (including the reasonable out-of-pocket fees and
disbursements of counsel for Indemnitees in connection with any investigative, administrative or
judicial proceeding commenced or threatened by any Person, whether or not any such Indemnitee shall
be designated as a party or a potential party thereto, and any fees or expenses incurred by
Indemnitees in enforcing this indemnity), whether direct, indirect or consequential and whether
based on any federal, state or foreign laws, statutes, rules or regulations (including securities
and commercial laws, statutes, rules or regulations and Environmental Laws), on common law or
equitable cause or on contract or otherwise, that may be imposed on, incurred by, or asserted
against any such Indemnitee, in any manner relating to or arising out of (i) this Agreement or the
other Credit Documents or the transactions contemplated hereby or thereby (including the Lenders’
agreement to make Credit Extensions or the use or intended use of the proceeds thereof, or any
enforcement of any of the

21

 

Credit Documents (including any sale of, collection from, or other realization upon any of the
Collateral or the enforcement of the Guaranty)); (ii) the statements contained in the engagement
letter between GSCP and Company with respect to the transactions contemplated by this Agreement; or
(iii) any Environmental Claim or any Hazardous Materials Activity relating to or arising from,
directly or indirectly, any past or present activity, operation, land ownership, or practice of
Holdings or any of its Subsidiaries.

          “Indemnitee” as defined in Section 10.3.

          “Initial Credit Agreement” means the First Lien Credit and Guaranty Agreement, dated as of
June 24, 2005 and amended as of July 8, 2005, by and among Company, Holdings, certain Subsidiaries
of Company as Guarantors, GSCP, as joint lead arranger, joint bookrunner, syndication agent,
administrative agent and collateral agent, and Credit Suisse, Cayman Islands Branch, as joint lead
arranger and joint bookrunner.

          “Installment” as defined in Section 2.12(a).

          “Installment Date” as defined in Section 2.12(a).

          “Intercreditor Agreement” means an Intercreditor Agreement substantially in the form of
Exhibit L, as it may be amended, restated, supplemented or otherwise modified from time to time.

          “Interest Coverage Ratio” means the ratio as of the last day of any Fiscal Quarter of (i)
Consolidated Adjusted EBITDA for the four-Fiscal Quarter period then ended, to (ii) Consolidated
Cash Interest Expense for such four-Fiscal Quarter period.

          “Interest Payment Date” means with respect to (i) any Loan that is a Base Rate Loan, each
April 1, July 1, October 1 and January 1 of each year, commencing on April 1, 2007 and the final
maturity date of such Loan or the Funded Letter of Credit Termination Date, as applicable; and (ii)
any Loan that is a Eurodollar Rate Loan and with respect to the Credit Linked Deposit, the last day
of each Interest Period applicable to such Loan or the Credit Linked Deposit, as the case may be;
provided, in the case of each Interest Period of longer than three months “Interest Payment
Date” shall also include each date that is three months, or an integral multiple thereof, after the
commencement of such Interest Period.

          “Interest Period” means (i) in connection with a Eurodollar Rate Loan, an interest period of
one-, two-, three- or six-months, and to the extent available to each applicable Lender, nine- and
twelve-months, as selected by Company in the applicable Funding Notice or Conversion/Continuation
Notice, (x) initially, commencing on the Credit Date or Conversion/Continuation Date thereof, as
the case may be; and (y) thereafter, commencing on the day on which the immediately preceding
Interest Period expires; provided, (a) if an Interest Period would otherwise expire on a
day that is not a Business Day, such Interest Period shall expire on the next succeeding Business
Day unless no further Business Day occurs in such month, in which case such Interest Period shall
expire on the immediately preceding Business Day; (b) 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, subject to clauses (c) and (d), of
this definition, end on the last Business Day of a

22

 

calendar month; (c) no Interest Period with respect to any portion of any Class of Term Loans
shall extend beyond such Class’s Term Loan Maturity Date; and (d) no Interest Period with respect
to any portion of the Revolving Loans shall extend beyond the Revolving Commitment Termination Date
and (ii) in connection with a Credit Linked Deposit, each period initially, commencing on the
Effective Date until the first Business Day to occur after April 1, 2007 and (ii) thereafter, a
three month period ending the first Business Day after April, July, October and January;
provided that a single Interest Period shall at all times apply to all Credit Linked
Deposits.

          “Interest Rate Agreement” means any interest rate swap agreement, interest rate cap agreement,
interest rate collar agreement, interest rate hedging agreement or other similar agreement or
arrangement, each of which is for the purpose of hedging the interest rate exposure associated with
Company’s and its Subsidiaries’ operations and not for speculative purposes.

          “Interest Rate Determination Date” means, with respect to any Interest Period, the date that
is two Business Days prior to the first day of such Interest Period.

          “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended to the date hereof
and from time to time hereafter, and any successor statute.

          “Investment” means (i) any direct or indirect purchase or other acquisition by any Holdings or
any of their respective Subsidiaries of, or of a beneficial interest in, any of the Securities of
any other Person (other than a Guarantor Subsidiary); (ii) any direct or indirect redemption,
retirement, purchase or other acquisition for value, by any Holdings or any of their respective
Subsidiaries from any Person (other than Company or any Guarantor Subsidiary), of any Capital Stock
of such Person; and (iii) any direct or indirect loan, advance (other than advances to employees
for moving, entertainment and travel expenses, drawing accounts and similar expenditures in the
ordinary course of business) or capital contribution by any Holdings or any of their respective
Subsidiaries to any other Person (other than Company or any Guarantor Subsidiary), including all
indebtedness and accounts receivable from that other Person that are not current assets or did not
arise from sales to that other Person in the ordinary course of business. The amount of any
Investment shall be the original cost of such Investment plus the cost of all additions thereto,
net of any repayments, interest, returns, profits, distributions, income and similar amounts
actually received in cash in respect of any such Investment, without any adjustments for increases
or decreases in value, or write-ups, write-downs or write-offs with respect to such Investment.

          “IPO” a registered initial public offering of voting Capital Stock of Company, any Holdings,
or any Parent.

          “Issuance Notice” means an Issuance Notice substantially in the form of Exhibit A-3.

          “Issuing Bank” means each of a Funded LC Issuing Bank and a Revolving Issuing Bank.

          “Landlord Consent and Estoppel” means, with respect to any Leasehold Property, a letter,
certificate or other instrument in writing from the lessor under the related lease,

23

 

pursuant to which, among other things, the landlord consents to the granting of a Mortgage on
such Leasehold Property by the Credit Party tenant, such Landlord Consent and Estoppel to be in
form and substance acceptable to Collateral Agent reasonably acceptable, but in any event
sufficient for Collateral Agent to obtain a Title Policy with respect to such Mortgage.

          “Leasehold Property” means any leasehold interest of any Credit Party as lessee under any
lease of real property with an annual rent of $1,000,000 or more, other than (i) any leasehold
interest with respect to which Company was not able to obtain a Landlord Consent and Estoppel,
despite the use of its commercially reasonable efforts and (ii) any leasehold interest as to which
the Collateral Agent shall determine in its reasonable discretion and in consultation with Company
that the costs of obtaining a leasehold mortgage with respect thereto are excessive in relation to
the value of the security afforded thereby.

          “Lender” means each financial institution listed on the signature pages hereto as a Lender and
any other Person that becomes a party hereto pursuant to an Assignment Agreement.

          “Lender Consent Letters” means the lender consent letters authorizing the Administrative Agent
to execute this Agreement.

          “Lender Counterparty” means each Lender or any Affiliate of a Lender counterparty to a Hedge
Agreement (including any Person who is a Lender (and any Affiliate thereof) as of the Closing Date
or the Effective Date, as the case may be, but subsequently, whether before or after entering into
a Hedge Agreement, ceases to be a Lender and any Person who enters into a Hedge Agreement in
connection with the transactions contemplated by the Related Agreements prior to the Effective Date
and was a Lender as of the Closing Date) including, without limitation, each such Affiliate that
enters into a joinder agreement with Collateral Agent.

          “Letter of Credit” means a Revolving Letter of Credit or a Funded Letter of Credit.

          “Letter of Credit Participant” means Revolving Letter of Credit Participants and Funded Letter
of Credit Participants.

          “LIBOR” means, with respect to any Eurodollar Rate Loan for any Interest Period, the rate per
annum determined by the Administrative Agent at approximately 11:00 a.m. (London time) on the date
that is two Business Days prior to the beginning of the relevant Interest Period by reference to
the British Bankers’ Association Interest Settlement Rates for deposits in Dollars (as set forth by
the Bloomberg Information Service or any successor thereto or any other service selected by the
Administrative Agent which has been nominated by the British Bankers’ Association as an authorized
information vendor for the purpose of displaying such rates) for a period equal to such Interest
Period; provided that, to the extent that an interest rate is not ascertainable pursuant to
the foregoing provisions of this definition, the “LIBOR” shall be the interest rate per annum
determined by the Administrative Agent to be the average of the rates per annum at which deposits
in Dollars are offered for such relevant Interest Period to major banks in the London interbank
market in London, England by the Administrative Agent at

24

 

approximately 11:00 a.m. (London time) on the date that is two Business Days prior to the
beginning of such Interest Period.

          “Lien” means any lien, mortgage, pledge, assignment, security interest, charge or encumbrance
of any kind (including any agreement to give any of the foregoing, any conditional sale or other
title retention agreement, and any lease in the nature thereof) and any option, trust or other
preferential arrangement having the practical effect of any of the foregoing.

          “Loan” means a Tranche D Term Loan, a Revolving Loan, a New Term Loan and a Swing Line Loan.

          “Major Scheduled Turnaround” means (i) with respect to the Coffeyville Refinery, a scheduled
shutdown of refinery process units primarily for purposes of conducting maintenance, of at least
twenty (20) consecutive days which shutdown shall occur no more than two times prior to the Tranche
D Loan Maturity Date and (ii) with respect to the Coffeyville Nitrogen Plan, a scheduled shutdown
primarily for purposes of conducting maintenance, of at least seven (7) consecutive days which
shutdown shall not occur more than two times in any twenty-four (24) month period.

          “Major Scheduled Turnaround Expenses” means expenses which have been incurred by Company or
its Subsidiaries to complete a Major Scheduled Turnaround but only to the extent such amounts would
be treated as expenses under GAAP.

          “Management Agreement” means, collectively, each of those certain Management Agreements, dated
as of the Closing Date, by and between each Sponsor and Holdings, as such agreements may be amended
or modified in accordance with the terms and provisions hereof.

          “Margin Stock” as defined in Regulation U of the Board of Governors of the Federal Reserve
System as in effect from time to time.

          “Material Adverse Effect” means a material adverse effect on and/or material adverse
developments with respect to (i) the properties, business, assets, liabilities, condition
(financial or otherwise) or results of operation of all Holdings and their respective Subsidiaries
taken as a whole; (ii) the ability of any Credit Party to fully and timely perform its Obligations;
(iii) the legality, validity, binding effect or enforceability against a Credit Party of a Credit
Document to which it is a party; or (iv) the rights, remedies and benefits, available to, or
conferred upon, any Agent and any Lender or any Secured Party under the Credit Documents.

          “Material Contract” means any contract or other arrangement to which any of Holdings or any of
their respective Subsidiaries is a party (other than the Credit Documents) for which breach,
nonperformance, cancellation or failure to renew could reasonably be expected to have a Material
Adverse Effect, including, without limitation, the Swap Agreement.

          “Material Real Estate Asset’’ means (i) (a) any fee-owned Real Estate Asset having a fair
market value in excess of $1,000,000 as of the date of the acquisition thereof and (b) all
Leasehold Properties other than those with respect to which the aggregate annual payments under the
term of the lease are less than $1,000,000 per annum or (ii) any Real Estate

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Asset that the Collateral Agent has determined in its reasonable judgment after consultation
with Company is material to the properties, assets, liabilities, condition (financial or otherwise)
results of operation of all Holdings and all of their Subsidiaries, including Company.

          “Minority Investments” means any Person (other than a Subsidiary) in which Holdings or any of
its Subsidiaries own capital stock or other equity interests.

          “Moody’s” means Moody’s Investor Services, Inc.

          “Mortgage” means a Mortgage substantially in the form of Exhibit J, as it may be amended,
supplemented or otherwise modified from time to time.

          “Multiemployer Plan” means any Employee Benefit Plan which is a “multiemployer plan” as
defined in Section 3(37) of ERISA.

          “NAIC” means The National Association of Insurance Commissioners, and any successor thereto.

          “Narrative Report” means, with respect to the financial statements for which such narrative
report is required, a narrative report describing the operations of Company and its Subsidiaries in
the form prepared for presentation to senior management thereof for the applicable month, Fiscal
Quarter or Fiscal Year and for the period from the beginning of the then current Fiscal Year to the
end of such period to which such financial statements relate.

          “Net Asset Sale Proceeds” means, with respect to any Asset Sale, an amount equal to: (i) Cash
payments (including any Cash received by way of deferred payment pursuant to, or by monetization
of, a note receivable or otherwise, but only as and when so received) received by Company or any of
its Subsidiaries from such Asset Sale, minus (ii) any actual costs incurred in connection
with such Asset Sale, including (a) Taxes paid, payable or reasonably estimated to be payable by
seller or any of its Affiliates as a result of such Asset Sale, (b) payment of the outstanding
principal amount of, premium or penalty, if any, and interest on any Indebtedness (other than the
Loans) that is secured by a Lien on the stock or assets in question and that is required to be
repaid under the terms thereof as a result of such Asset Sale, (c) a reasonable reserve for any
liabilities (fixed or contingent) attributable to Seller’s indemnities and representations and
warranties to purchase in respect of such Asset Sale, and (d) reasonable and customary fees,
commissions and expenses paid by Company or any of its Subsidiaries, as applicable, in connection
with such Asset Sale.

          “Net Insurance/Condemnation Proceeds” means an amount equal to: (i) any Cash payments or
proceeds received by Company or any of its Subsidiaries (a) under any all risk property insurance
policy in respect of a covered loss thereunder (other than the proceeds of business interruption
insurance) or (b) as a result of the taking of any assets of Company or any of its Subsidiaries by
any Person pursuant to the power of eminent domain, condemnation or otherwise, or pursuant to a
sale of any such assets to a purchaser with such power under threat of such a taking, minus
(ii) (a) any actual and reasonable costs incurred by Company or any of its Subsidiaries in
connection with the adjustment or settlement of any claims of Company or such Subsidiary in respect
thereof or otherwise in connection with the repairs or replacement of affected assets to the extent
permitted pursuant to Section 2.14(b), and (b) any actual costs

26

 

incurred in connection with any sale of such assets as referred to in clause (i)(b) of this
definition, including Taxes paid, payable or reasonably estimated to be payable in connection
therewith, reasonable fees and expenses of professional advisors, title and recordation expenses
and reasonable indemnification expenses.

          “New Term Loan Exposure” means, with respect to any Lender, as of any date of determination,
the outstanding principal amount of the New Term Loans of such Lender.

          “New Term Loans” as defined in Section 2.4(f).

          “Non-US Lender” as defined in Section 2.20(c).

          “Nonpublic Information” means information which has not been disseminated in a manner making
it available to investors generally, within the meaning of Regulation D.

          “Note” means a Tranche D Term Note, a Revolving Loan Note or a Swing Line Note.

          “Notice” means a Funding Notice, an Issuance Notice, or a Conversion/Continuation Notice.

          “Obligations” means all obligations of every nature of each Credit Party from time to time
owed to the Agents (including former Agents), the Lenders or any of them, the Issuing Banks and
Lender Counterparties, under any Credit Document, any Hedge Agreement (including, without
limitation, with respect to a Hedge Agreement, obligations owed thereunder to any person who was a
Lender or an Affiliate of a Lender at the time such Hedge Agreement was entered into) or any
Interest Rate Agreements, Currency Agreements and Commodity Agreements entered into with financial
institutions other than Lender Counterparties with respect to which the Company has notified the
Administrative Agent thereof, such obligations “Specified Secured Hedge Indebtedness”, and in an
aggregate amount not to exceed $25,000,000 less the amount of Indebtedness secured by Liens
permitted by Section 6.2(u), whether for principal, interest (including interest which, but for the
filing of a petition in bankruptcy with respect to such Credit Party, would have accrued on any
Obligation, whether or not a claim is allowed against such Credit Party for such interest in the
related bankruptcy proceeding), reimbursement of amounts drawn under Letters of Credit, payments
for early termination of Hedge Agreements, fees, expenses, indemnification or otherwise.

          “Obligee Guarantor” as defined in Section 7.7.

          “Organizational Documents” means (i) with respect to any corporation, its certificate or
articles of incorporation or organization, as amended, and its by-laws, as amended, (ii) with
respect to any limited partnership, its certificate of limited partnership, as amended, and its
partnership agreement, as amended, (iii) with respect to any general partnership, its partnership
agreement, as amended, and (iv) with respect to any limited liability company, its articles of
organization, as amended, and its operating agreement, as amended. In the event any term or
condition of this Agreement or any other Credit Document requires any Organizational Document to be
certified by a secretary of state or similar governmental official, the reference to

27

 

any such “Organizational Document” shall only be to a document of a type customarily certified
by such governmental official.

          “Parent” means AcquisitionCo and any direct or indirect parent of AcquisitionCo or any
corporation or other entity into which AcquisitionCo may be merged or consolidated prior to or in
connection with an IPO or which otherwise may be formed by AcquisitionCo and which owns directly or
indirectly all of the Capital Stock of Holdings, including CVR Energy, Inc.

          “PBGC” means the Pension Benefit Guaranty Corporation or any successor thereto.

          “Pension Plan” means any Employee Benefit Plan, other than a Multiemployer Plan, which is
subject to Section 412 of the Internal Revenue Code or Section 302 of ERISA.

          “Permitted Acquisition” means any acquisition by Company or any of its wholly-owned
Subsidiaries, whether by purchase, merger or otherwise, of all or substantially all of the assets
of, all of the Capital Stock of, or a business line or unit or a division of, any Person;
provided,

          (i) immediately prior to, and after giving effect thereto, no Default or Event of Default
shall have occurred and be continuing or would result therefrom;

          (ii) all transactions in connection therewith shall be consummated, in all material respects,
in accordance with all applicable laws and in conformity with all applicable Governmental
Authorizations;

          (iii) in the case of the acquisition of Capital Stock, no less than 75% (or 51% in the case
of non-Guarantor Subsidiaries to the extent permitted by Section 5.10) of the Capital Stock (except
for any such Securities in the nature of directors’ qualifying shares required pursuant to
applicable law) acquired or otherwise issued by such Person or any newly formed Subsidiary of
Company in connection with such acquisition shall be owned by Company or a Guarantor Subsidiary
thereof, and Company shall have taken, or caused to be taken, as of the date such Person becomes a
Subsidiary of Company, each of the actions set forth in Sections 5.10 (subject to the exceptions
and limitations with respect to non-Guarantor Subsidiaries therein) and/or 5.11, as applicable;

          (iv) Company and its Subsidiaries shall be in compliance with the financial covenants set
forth in Section 6.8 on a pro forma basis after giving effect to such acquisition as of the last
day of the Fiscal Quarter most recently ended for which financial statements are available (as
determined in accordance with Section 6.8(d));

          (v) Company shall have delivered to Administrative Agent (A) at least ten (10) Business Days
prior to such proposed acquisition, a Compliance Certificate evidencing compliance with Section 6.8
as required under clause (iv) above, together with all relevant financial information with respect
to such acquired assets, including, without limitation, the aggregate consideration for such
acquisition and any other information required to demonstrate compliance with Section 6.8; and

28

 

          (vi) any Person or assets or division as acquired in accordance herewith (y) shall be in
substantially similar business or lines of business in which Company and/or its Subsidiaries are
engaged as of the Effective Date or reasonably incidental or ancillary thereto.

          “Permitted Cure Securities” means equity Securities of Holdings having no mandatory
redemption, repurchase, repayment or similar requirements prior to the date which occurs six (6)
months after the final maturity date of Tranche D Term Loans and upon which all dividends or
distributions, at the election of Holdings, may be payable in additional shares of such Security.

          “Permitted Liens” means each of the Liens permitted pursuant to Section 6.2.

          “Permitted Sale Leaseback” means any Sale Leaseback consummated by Company or any of its
Subsidiaries after the Effective Date, provided that such Sale Leaseback is consummated for fair
value as determined at the time of consummation in good faith by Company.

          “Person” means and includes natural persons, corporations, limited partnerships, general
partnerships, limited liability companies, limited liability partnerships, joint stock companies,
joint ventures, associations, companies, trusts, banks, trust companies, land trusts, business
trusts or other organizations, whether or not legal entities, and Governmental Authorities.

          “Phase I Report” means, with respect to any Facility, a report that (i) conforms to the ASTM
Standard Practice for Environmental Site Assessments, E 1527-00 or, if reasonably requested by the
Administrative Agent, USEPA’s standards for “All Appropriate Inquiry”, (ii) was conducted no more
than six months prior to the date such report is required to be delivered hereunder by one or more
environmental consulting firms reasonably satisfactory to Administrative Agent, and (iii) if
reasonably requested by the Administrative Agent, contains (a) an assessment of asbestos-containing
materials at such Facility, (b) an estimate of the reasonable worst-case cost of investigating and
remediating any Hazardous Materials or Hazardous Materials Activity identified as giving rise to an
actual or potential material violation of any Environmental Law or as presenting a material risk of
giving rise to a material Environmental Claim, and (c) an assessment of Holdings’, its
Subsidiaries’ and the Facility’s current and past compliance with Environmental Laws and an
estimate of the cost of rectifying any non-compliance with current Environmental Laws identified
therein and the cost of compliance with reasonably anticipated future Environmental Laws identified
therein; provided, however, that for items (iii)(b) and (iii)(c) above, the report
need only provide cost estimates for matters that could reasonably be expected to result in
liability to or expenditures by Holdings or its Subsidiaries in excess of $1,500,000.

          “Pipeline” as defined in the preamble hereto.

          “Platform” as defined in Section 5.1(r).

          “Pledge and Security Agreement” means the First Lien Pledge and Security Agreement executed by
Company and each Guarantor on the Effective Date substantially in the form of Exhibit I, as
amended, restated, supplemented or otherwise modified from time to time.

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          “Principal Office” means, for each of Administrative Agent, Swing Line Lender and the Issuing
Banks, such Person’s “Principal Office” as set forth on Appendix B, or such other office or office
of a third party or sub-agent, as appropriate, as such Person may from time to time designate in
writing to Company, Administrative Agent and each Lender.

          “Pro Rata Share” means (i) with respect to all payments, computations and other matters
relating to the Tranche D Term Loan of any Lender, the percentage obtained by dividing (a) the
Tranche D Term Loan Exposure of that Lender by (b) the aggregate Tranche D Term Loan Exposure of
all Lenders; (ii) with respect to all payments, computations and other matters relating to the
Revolving Commitment or Revolving Loans of any Lender or any Revolving Letters of Credit issued or
participations purchased therein by any Lender or any participations in any Swing Line Loans
purchased by any Lender, the percentage obtained by dividing (a) the Revolving Exposure of that
Lender by (b) the aggregate Revolving Exposure of all Lenders; (iii) with respect to all payments,
computations and other matters relating to the Funded Letters of Credit or Credit Linked Deposit of
any Lender, the percentage obtained by dividing (a) the Funded Letter of Credit Exposure of that
Lender by (b) the aggregate Funded Letter of Credit Exposure of all Lenders; and (iv) with respect
to all payments, computations and other matters relating to the New Term Loan of any Lender, the
percentage obtained by dividing (a) the New Term Loan Exposure of that Lender by (b) the aggregate
New Term Loan Exposure of all Lenders. For all other purposes with respect to each Lender, “Pro
Rata Share” means the percentage obtained by dividing (A) an amount equal to the sum of the Tranche
D Term Loan Exposure, Revolving Exposure, Funded Letter of Credit Exposure and New Term Loan
Exposure of that Lender, by (B) an amount equal to the sum of the aggregate Tranche D Term Loan
Exposure, the aggregate Revolving Exposure, the aggregate Funded Letter of Credit Exposure and the
aggregate New Term Loan Exposure of all Lenders.

          “Projections” as defined in Section 4.8.

          “Qualified IPO” a registered initial public offering of voting Capital Stock of Company, any
Holdings, or any Parent (to the extent such registered initial public offering does not result in a
Change of Control), which generates gross proceeds of at least $250,000,000 and the proceeds of
which are applied to generate a Term Loan Repayment Amount, when aggregated with prepayments
pursuant to Sections 2.13 and/or 2.14, of not less than $275,000,000.

          “Qualified Subordinated Indebtedness” means Indebtedness of the Company or any Holdings
otherwise permitted to be incurred pursuant to Section 6.1; provided that such Indebtedness
is (i) subordinated to the Obligations on terms customary at the time for high-yield subordinated
debt securities issued in a public offering, (ii) matures after, and does not require any scheduled
amortization or other scheduled payments of principal prior to, the final maturity of the Loans
hereunder (it being understood that such Indebtedness may have mandatory prepayment, repurchase or
redemptions provisions satisfying the requirement of clause (iii) hereof), and (iii) has terms and
conditions (other than interest rate, redemption premiums and subordination terms), taken as a
whole, that are not materially less favorable to Borrower as the terms and conditions customary at
the time for high-yield subordinated debt securities issued in a public offering; provided
that a certificate of a Responsible Officer delivered to Administrative Agent at least 15 Business
Days prior to the incurrence of such Indebtedness, together with a

30

 

reasonably detailed description of the material terms and conditions of such Indebtedness or
drafts of the documentation relating thereto, stating that Holdings has determined in good faith
that such terms and conditions satisfy the requirements of this definition shall be conclusive
evidence that such terms and conditions satisfy the foregoing requirement unless Administrative
Agent notifies Holdings within 10 days of receipt of such certificate that it disagrees with such
determination.

          “Ratings Confirmation” means a confirmation of the Company’s corporate family rating of B2
(with a stable outlook) or better by Moody’s and the Company’s corporate or issuer credit rating of
B (with a stable outlook) or better by S&P.

          “RCRA Administrative Orders” means (a) the Administrative Order on Consent between the Seller
and the EPA dated October 21, 1994 pursuant to RCRA Docket No. VII-94-H-0020; and (b) the
Administrative Order on Consent between the Seller and the EPA dated January 12, 1996 pursuant to
RCRA Docket No. VII-95-H-0011, in each case including any subsequent amendments thereto.

          “Real Estate Asset” means, at any time of determination, any interest (fee, leasehold or
otherwise) then owned by any Credit Party in any real property.

          “Record Document” means, with respect to any Leasehold Property, (i) the lease evidencing such
Leasehold Property or a memorandum thereof, executed and acknowledged by the owner of the affected
real property, as lessor, or (ii) if such Leasehold Property was acquired or subleased from the
holder of a Recorded Leasehold Interest, the applicable assignment or sublease document, executed
and acknowledged by such holder, in each case in form sufficient to give such constructive notice
upon recordation and otherwise in form reasonably satisfactory to Collateral Agent.

          “Recorded Leasehold Interest” means a Leasehold Property with respect to which a Record
Document has been recorded in all places necessary or desirable, in Administrative Agent’s
reasonable judgment, to give constructive notice of such Leasehold Property to third-party
purchasers and encumbrancers of the affected real property.

          “Refining” as defined in the preamble hereto.

          “Refunded Swing Line Loans” as defined in Section 2.3(b)(iv).

          “Register” as defined in Section 2.7(b).

          “Regulation D” means Regulation D of the Board of Governors of the Federal Reserve System, as
in effect from time to time.

          “Reimbursement Date” as defined in Section 2.4(d).

          “Related Agreements” means, collectively, the Swap Agreement and the Management Agreement.

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          “Related Fund” means, with respect to any Lender that is an investment fund, any other
investment fund that invests in commercial loans and that is managed or advised by the same
investment advisor as such Lender or by an Affiliate of such investment advisor.

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

          “Remedial Action” means all actions taken to (i) clean up, remove, remediate, contain, treat,
monitor, assess, evaluate or in any other way address Hazardous Materials in the environment; (ii)
perform pre-remedial studies and investigations and post-remedial operation and maintenance
activities; or (iii) any response actions authorized by 42 U.S.C. 9601 et. seq. or applicable state
law.

          “Replacement Lender” as defined in Section 2.23.

          “Requisite Class Lenders” means, at any time of determination, (i) for the Class of Lenders
having Tranche D Term Loan Exposure, Lenders holding more than 50% of the aggregate Tranche D Term
Loan Exposure of all Lenders; (ii) for the Class of Lenders having Revolving Exposure, Lenders
holding more than 50% of the aggregate Revolving Exposure of all Lenders; (iii) for each Class of
Lenders having Funded Letter of Credit Exposure, Lenders holding more than 50% of the aggregate
Funded Letter of Credit Exposure of that Class; and (iv) for the Class of Lenders having New Term
Loan Exposure, Lenders holding more than 50% of the aggregate New Term Loan Exposure of all
Lenders.

          “Requisite Lenders” means one or more Lenders having or holding Tranche D Term Loan Exposure,
Revolving Exposure, Funded Letter of Credit Exposure and/or New Term Loan Exposure representing
more than 50% of the sum of (i) the aggregate Tranche D Term Loan Exposure of all Lenders, (ii) the
aggregate Revolving Letter of Credit Exposure of all Lenders, (iii) the aggregate Funded Letter of
Credit Exposure of all Lenders and (iv) the aggregate New Term Loan Exposure of all Lenders.

          “Restricted Junior Payment” means (i) any dividend or other distribution, direct or indirect,
on account of any shares of any class of stock of Holdings or Company now or hereafter outstanding,
except a dividend or other distribution payable solely in shares of Capital Stock; (ii) any
redemption, retirement, sinking fund or similar payment, purchase or other acquisition for value,
direct or indirect, of any shares of any class of stock of Holdings or Company now or hereafter
outstanding; (iii) any payment made to retire, or to obtain the surrender of, any outstanding
warrants, options or other rights to acquire shares of any class of stock of Holdings or Company
now or hereafter outstanding; (iv) management or similar fees payable to Sponsors or any of its
Affiliates; and (v) any payment or prepayment of principal of, premium, if any, or interest on, or
redemption, repurchase, retirement, defeasance (including in substance or legal defeasance),
sinking fund or similar payment with respect to obligations arising as a result of terminations or
reductions in the Swap Agreement.

          “Revolving Commitment” means the commitment of a Lender to make or otherwise fund any
Revolving Loan and to acquire participations in Revolving Letters of Credit

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and Swingline Loans hereunder and “Revolving Commitments” means such commitments of all
Lenders in the aggregate. The amount of each Lender’s Revolving Commitment, if any, is set forth
in the Register or in the applicable Assignment Agreement, subject to any adjustment or reduction
pursuant to the terms and conditions hereof. The aggregate amount of the Revolving Commitments as
of the Effective Date is $150,000,000.

          “Revolving Commitment Period” means the period from the Effective Date to but excluding the
Revolving Commitment Termination Date.

          “Revolving Commitment Termination Date” means the earliest to occur of (i) the sixth
anniversary of the Effective Date as such date may be extended pursuant to Section 10.5(e); and
(ii) the date of the termination of the Revolving Commitments pursuant to Section 8.1.

          “Revolving Credit Level I Status” means, in the case of Revolving Loans, (a) with respect to
any determination made after June 30, 2007, if the Company has not consummated a Qualified IPO, or
(b) (i) the Company’s corporate family rating is B3 (regardless of outlook) or lower by Moody’s, or
(ii) the Company’s corporate or issuer credit rating is B– (regardless of outlook) or lower by S&P.

          “Revolving Credit Level II Status” means, in the case of Revolving Loans, the Company has not
achieved Revolving Credit Level I Status, Revolving Credit Level III Status, or Revolving Credit
Level IV Status.

          “Revolving Credit Level III Status” means, in the case of Revolving Loans, (a) the Company has
consummated a Qualified IPO, (b) the Company’s corporate family rating is B2 (with a stable
outlook) or better by Moody’s, and (c) the Company’s corporate or issuer credit rating is B (with a
stable outlook) or better by S&P, but not Revolving Credit Level IV Status.

          “Revolving Credit Level IV Status” means, in the case of Revolving Loans, (a) the Company has
consummated a Qualified IPO, (b) the Company’s corporate family rating is B1 (with a stable
outlook) or better by Moody’s, and (c) the Company’s corporate or issuer credit rating is B+ (with
a stable outlook) or better by S&P.

          “Revolving Credit Status” means the existence of Revolving Credit Level I Status, Revolving
Credit Level II Status, Revolving Credit Level III Status, or Revolving Credit Level IV Status, as
the case may be. Changes in the Applicable Margin resulting from changes in Revolving Credit
Status shall become effective as of the first Business Day following (a) the day that changes in
ratings from Moody’s or S&P become effective and/or (as applicable) (b) the day that the Company
consummates a Qualified IPO.

          “Revolving Exposure” means, with respect to any Lender as of any date of determination, (i)
prior to the termination of the Revolving Commitments, that Lender’s Revolving Commitment; and (ii)
after the termination of the Revolving Commitments, the sum of (a) the aggregate outstanding
principal amount of the Revolving Loans of that Lender, (b) in the case of any Issuing Bank, the
aggregate Revolving Letter of Credit Usage in respect of all Revolving Letters of Credit issued by
that Lender (net of any participations by Lenders in such

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Revolving Letters of Credit), (c) the aggregate amount of all participations by that Lender
in any outstanding Revolving Letters of Credit or any unreimbursed drawing under any Revolving
Letter of Credit, (d) in the case of Swing Line Lender, the aggregate outstanding principal amount
of all Swing Line Loans (net of any participations therein by other Lenders), and (e) the aggregate
amount of all participations therein by that Lender in any outstanding Swing Line Loans.

          “Revolving Issuing Bank” means with respect to any Revolving Letter of Credit, any Lender
(including any Person who is a Lender as of the Effective Date but subsequently, after agreeing to
become a Revolving Issuing Bank, ceases to be a Lender) which, at the request of Company, and with
the consent of Administrative Agent (not to be unreasonably withheld), agrees in such Lender’s sole
discretion to become a Revolving Issuing Bank for the purposes of issuing such Revolving Letter of
Credit, together with its permitted successors and assigns in such capacity. As of the Effective
Date, Credit Suisse shall be a Revolving Issuing Bank.

          “Revolving Letter of Credit” means a commercial or standby letter of credit issued or to be
issued by an Issuing Bank pursuant to this Agreement.

          “Revolving Letter of Credit Participant” as defined in Section 2.4(g).

          “Revolving Letter of Credit Sublimit” means the lesser of (i) $75,000,000 and (ii) the
aggregate unused amount of the Revolving Commitments then in effect.

          “Revolving Letter of Credit Usage” means, as at any date of determination, the sum of (i) the
maximum aggregate amount which is, or at any time thereafter may become, available for drawing
under all Revolving Letters of Credit then outstanding, and (ii) the aggregate amount of all
drawings under Revolving Letters of Credit honored by an Issuing Bank and not theretofore
reimbursed by or on behalf of Company.

          “Revolving Loan” means a Loan made by a Lender to Company pursuant to Section 2.2(a) and/or
2.22.

          “Revolving Loan Note” means a promissory note in the form of Exhibit B-2, as it may be
amended, supplemented or otherwise modified from time to time.

          “S&P” means Standard & Poor’s Ratings Group, a division of The McGraw Hill Corporation.

          “Sale Leaseback” means any transaction or series of related transactions pursuant to which
Company or any of its Subsidiaries (a) sells, transfers or otherwise disposes of any property, real
or personal, whether now owned or hereafter acquired, and (b) as part of such transaction,
thereafter rents or leases such property or other property that it intends to use for substantially
the same purpose or purposes as the property being sold, transferred or disposed.

          “Second Lien Credit Agreement” means the Second Lien Credit and Guaranty Agreement dated as of
June 24, 2005 and amended as of July 8, 2005, among Company, Holdings, GSCP as joint lead arranger,
joint bookrunner, syndication agent and Credit Suisse as

34

 

joint lead arranger, joint bookrunner and administrative agent and the other agents and
lenders party thereto.

          “Second Lien Term Loans” means the Second Lien Term Loans in an aggregate principal amount
outstanding of $275,000,000 made on the Closing Date under the Second Lien Credit Agreement.

          “Secured Parties” has the meaning assigned to that term in the Pledge and Security Agreement.

          “Securities” means any stock, shares, partnership interests, voting trust certificates,
certificates of interest or participation in any profit-sharing agreement or arrangement, options,
warrants, bonds, debentures, notes, or other evidences of indebtedness, secured or unsecured,
convertible, subordinated or otherwise, or in general any instruments commonly known as
“securities” or any certificates of interest, shares or participations in temporary or interim
certificates for the purchase or acquisition of, or any right to subscribe to, purchase or acquire,
any of the foregoing.

          “Securities Act” means the Securities Act of 1933, as amended from time to time, and any
successor statute.

          “Seller” means Coffeyville Group Holdings, LLC.

          “Series” as defined in Section 2.4(f).

          “Settlement Confirmation” as defined in Section 10.6(b).

          “Settlement Service” as defined in Section 10.6(d).

          “Significant Subsidiary” means any Subsidiary of Holdings now existing or hereafter acquired
or formed which, on a consolidated basis for such Subsidiary and all of its Subsidiaries, (i) for
the period of the most recent four full Fiscal Quarters of Holdings accounted for more than 5% of
the total consolidated revenues of Holdings and its Subsidiaries for such period or (ii) as at the
end of the most recent Fiscal Year, was the owner of more than 5% of the total consolidated assets
of Holdings and its Subsidiaries as at the end of such Fiscal Year; provided that each of
Coffeyville Resources Nitrogen Fertilizers, LLC, Coffeyville Refining & Marketing, LLC and
Coffeyville Resources Crude Transportation, LLC shall be a Significant Subsidiary.

          “Solvency Certificate” means a Solvency Certificate of the chief financial officer of Company
substantially in the form of Exhibit G-2.

          “Solvent” means, with respect to any Credit Party, that as of the date of determination, both
(i) (a) the sum of such Credit Party’s debt (including contingent liabilities) does not exceed the
present fair saleable value of such Credit Party’s present assets; (b) such Credit Party’s capital
is not unreasonably small in relation to its business; and (c) such Person has not incurred and
does not intend to incur, or believe (nor should it reasonably believe) that it will incur, debts
beyond its ability to pay such debts as they become due; and (ii) such Person is

35

 

“solvent” within the meaning given that term and similar terms under applicable laws relating
to fraudulent transfers and conveyances. For purposes of this definition, the amount of any
contingent liability at any time shall be computed as the amount that, in light of all of the facts
and circumstances existing at such time, represents the amount that can reasonably be expected to
become an actual or matured liability (irrespective of whether such contingent liabilities meet the
criteria for accrual under Statement of Financial Accounting Standard No. 5).

          “Specified Secured Hedge Indebtedness” as defined in the definition of “Obligations”.

          “Sponsors” means each of (i) GS Capital Partners V Fund, L.P and its Affiliates (excluding
portfolio companies) and (ii) Kelso & Company, L.P. and its Affiliates (excluding portfolio
companies), and “Sponsors” shall refer collectively to the Persons referred to in clauses (i) and
(ii).

          “Stated Amount” of any Letter of Credit means the maximum amount from time to time available
to be drawn thereunder, determined without regard to whether any conditions to drawing could then
be met.

          “Statutory Reserves” means a fraction (expressed as a decimal), the numerator of which is the
number one and the denominator of which is the number one minus the aggregate of the maximum
reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed
as a decimal established by the Board and any other banking authority, domestic or foreign, to
which the Administrative Agent or any Lender (including any branch, Affiliate, or other fronting
office making or holding a Loan) is subject for Eurocurrency Liabilities (as defined in Regulation
D of the Board). Such reserve percentages shall include those imposed pursuant to such Regulation
D. LIBOR and EURIBOR Loans shall be deemed to constitute Eurocurrency Liabilities and to be
subject to such reserve requirements without benefit of or credit for pro-ration, exemptions or
offsets that may be available from time to time to any Lender under such Regulation D. Statutory
Reserves shall be adjusted automatically on and as of the effective date of any change in any
reserve percentage.

          “Subject Transaction” as defined in Section 6.8(d).

          “Subsidiary” means, with respect to any Person, any corporation, partnership, limited
liability company, association, joint venture or other business entity of which more than 50% of
the total voting power of shares of stock or other ownership interests entitled (without regard to
the occurrence of any contingency) to vote in the election of the Person or Persons (whether
directors, managers, trustees or other Persons performing similar functions) having the power to
direct or cause the direction of the management and policies thereof is at the time owned or
controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that
Person or a combination thereof; provided, in determining the percentage of ownership
interests of any Person controlled by another Person, no ownership interest in the nature of a
“qualifying share” of the former Person shall be deemed to be outstanding. For purposes hereof,
except where otherwise expressly set forth herein, Company shall be deemed a Subsidiary of
Holdings.

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          “Swap Agreement” means the ISDA Master Agreement dated as of June 24, 2005 by and between J.
Aron & Company (or any other subsidiary of The Goldman Sachs Group, Inc. that succeeds to J. Aron &
Company) and Company (including the schedules and any credit annex thereto and the confirmations
thereunder, including, without limitation, any confirmations entered into after the Closing Date),
pursuant to which the parties thereto have entered into certain commodity price derivative
transactions, as each may be amended, restated, supplemented or otherwise modified from time to
time to the extent permitted herein.

          “Swap Agreement Documents” means the Swap Agreement and each other document executed in
connection with the Swap Agreement, and any documents executed in connection with any refinancings
or replacements thereof to the extent permitted under Section 6.15, as each such document may be
amended, restated, supplemented or otherwise modified from time to time to the extent permitted
under Section 6.15.

          “Swing Line Lender” means Credit Suisse in its capacity as Swing Line Lender hereunder,
together with its permitted successors and assigns in such capacity.

          “Swing Line Loan” means a Loan made by Swing Line Lender to Company pursuant to Section 2.3.

          “Swing Line Note” means a promissory note in the form of Exhibit B-3, as it may be amended,
supplemented or otherwise modified from time to time.

          “Swing Line Sublimit” means the lesser of (i) $20,000,000, and (ii) the aggregate unused
amount of Revolving Commitments then in effect.

          “Syndication Agent” as defined in the preamble hereto.

          “Tax” means any present or future tax, levy, impost, duty, assessment, charge, fee, deduction
or withholding of any nature and whatever called, by whomsoever, on whomsoever and wherever
imposed, levied, collected, withheld or assessed.

          “Term Loan” means a Tranche D Term Loan or a New Term Loan.

          “Term Loan Level I Status” means, in the case of Term Loans and Funded Letters of Credit, (a)
with respect to any determination made after June 30, 2007, if the Company has not consummated a
Qualified IPO, or (b) (i) the Company’s corporate family rating is B3 (regardless of outlook) or
lower by Moody’s, or (ii) the Company’s corporate or issuer credit rating is B– (regardless of
outlook) or lower by S&P.

          “Term Loan Level II Status” means, in the case of Term Loans and Funded Letters of Credit, the
Company has not achieved Term Loan Level I Status, Term Loan Level III Status, or Term Loan Level
IV Status.

          “Term Loan Level III Status” means, in the case of Term Loans and Funded Letters of Credit,
(a) the Company has consummated a Qualified IPO, (b) the Company’s corporate family rating is B2
(with a stable outlook) or better by Moody’s, and (c) the

37

 

Company’s corporate or issuer credit rating is B (with a stable outlook) or better by S&P, but
not Term Loan Level IV Status.

          “Term Loan Level IV Status” means, in the case of Term Loans and Funded Letters of Credit, (a)
the Company has consummated a Qualified IPO, (b) the Company’s corporate family rating is B1 (with
a stable outlook) or better by Moody’s, and (c) the Company’s corporate or issuer credit rating is
B+ (with a stable outlook) or better by S&P.

          “Term Loan Maturity Date” means each of the Tranche D Term Loan Maturity Date and the Funded
Letter of Credit Termination Date, as applicable.

          “Term Loan Repayment Amount” means the aggregate principal amount of Term Loans actually
repaid or prepaid since the Effective Date (excluding repayments of Existing Tranche C Term Loans
on the Effective Date) pursuant to Sections 2.12, 2.13(a) and 2.14(d) of this Agreement and
excluding any New Term Loans.

          “Term Loan Status” means the existence of Term Loan Level I Status, Term Loan Level II Status,
Term Loan Level III Status, or Term Loan Level IV Status, as the case may be. Changes in the
Applicable Margin resulting from changes in Term Loan Status shall become effective as of the first
Business Day following (a) the day that changes in ratings from Moody’s or S&P become effective
and/or (as applicable) (b) the day that the Company consummates a Qualified IPO.

          “Terminal” as defined in the preamble hereto.

          “Terminated Lender” as defined in Section 2.23.

          “Title Policy” as defined in Section 3.1(i)(iv).

          “Total Credit Linked Deposit” means, at any time, the sum of all Credit Linked Deposits at
such time, as the same may be reduced from time to time pursuant to Section 2.4(f) or 2.13(b)(iii).

          “Total Funded Letter of Credit Commitment” shall mean the sum of the Funded Letter of Credit
Commitments of all the Lenders.

          “Total Leverage Ratio” means the ratio as of the last day of any Fiscal Quarter or other date
of determination of (i) Consolidated Total Debt as of such day to (ii) Consolidated Adjusted EBITDA
for the four-Fiscal Quarter period ending on such date (or if such date of determination is not the
last day of a Fiscal Quarter, for the four-Fiscal Quarters period ending as of the most recently
concluded Fiscal Quarter).

          “Total Utilization of Revolving Commitments” means, as at any date of determination, the sum
of (i) the aggregate principal amount of all outstanding Revolving Loans (other than Revolving
Loans made for the purpose of repaying any Refunded Swing Line Loans or reimbursing an Issuing Bank
for any amount drawn under any Revolving Letter of Credit, but not yet so applied), (ii) the
aggregate principal amount of all outstanding Swing Line Loans, and (iii) the Revolving Letter of
Credit Usage.

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          “Tranche D Term Loan” means a Tranche D Term Loan made by a Lender to Company pursuant to
Section 2.1(a).

          “Tranche D Term Loan Commitment” means the commitment of a Lender to make or otherwise fund a
Tranche D Term Loan and “Tranche D Term Loan Commitments” means such commitments of all Lenders in
the aggregate. The amount of each Lender’s Tranche D Term Loan Commitment, if any, is set forth on
Appendix A-1 or in the applicable Assignment Agreement, subject to any adjustment or reduction
pursuant to the terms and conditions hereof. The aggregate amount of the Tranche D Term Loan
Commitments as of the Effective Date is $775,000,000.

          “Tranche D Term Loan Exposure” means, with respect to any Lender, as of any date of
determination, the outstanding principal amount of the Tranche D Term Loans of such Lender;
provided, at any time prior to the making of the Tranche D Term Loans, the Tranche D Term
Loan Exposure of any Lender shall be equal to such Lender’s Tranche D Term Loan Commitment.

          “Tranche D Term Loan Maturity Date” means the earlier of (i) the seventh anniversary of the
Effective Date, and (ii) the date that all Tranche D Term Loans shall become due and payable in
full hereunder, whether by acceleration or otherwise.

          “Tranche D Term Loan Note” means a promissory note in the form of Exhibit B-1, as it may be
amended, supplemented or otherwise modified from time to time.

          “Transaction Costs” means the fees, costs and expenses payable by Holdings, Company or any of
Company’s Subsidiaries on or before the Effective Date in connection with the transactions
contemplated by the Credit Documents and other credit documents related thereto, and the Related
Agreements.

          “Transportation” as defined in the preamble hereto.

          “Type of Loan” means (i) with respect to any Term Loans or any Revolving Loans, a Base Rate
Loan or a Eurodollar Rate Loan, and (ii) with respect to Swing Line Loans, a Base Rate Loan.

          “UCC” means the Uniform Commercial Code (or any similar or equivalent legislation) as in
effect in any applicable jurisdiction.

          “Unadjusted Eurodollar Rate Component” means that component of the interest costs to Company
in respect of a Eurodollar Rate Loan that is based upon the rate obtained pursuant to clause (i) of
the definition of Adjusted Eurodollar Rate.

          “Unpaid Drawing” as defined in Section 2.4(e).

     1.2. Accounting Terms. Except as otherwise expressly provided herein, all accounting terms
not otherwise defined herein shall have the meanings assigned to them in conformity with GAAP.
Financial statements and other information required to be delivered by Company to Lenders pursuant
to
Section 5.1(a), 5.1(b) and 5.1(c) shall be prepared in accordance with GAAP

39

 

as in effect at
the time of such preparation (and delivered together with the reconciliation statements provided
for in Section 5.1(e), if applicable). If at any time any change in GAAP would affect the
computation of any financial ratio or requirement set forth in any Credit Document, and Company
shall so request, Administrative Agent and Company shall negotiate in good faith to amend such
ratio or requirement to preserve the original intent thereof in light of such change in GAAP
(subject to the approval of Requisite Lenders), provided that, until so amended, such ratio
or requirement shall continue to be computed in accordance with GAAP prior to such change therein
and Company shall provide to Administrative Agent and Lenders reconciliation statements provided
for in Section 5.1(e).

     1.3. Interpretation, etc. Any of the terms defined herein may, unless the context otherwise
requires, be used in the singular or the plural, depending on the reference. References herein to
any Section, Appendix, Schedule or Exhibit shall be to a Section, an Appendix, a Schedule or an
Exhibit, as the case may be, hereof unless otherwise specifically provided. The use herein of the
word “include” or “including”, when following any general statement, term or matter, shall not be
construed to limit such statement, term or matter to the specific items or matters set forth
immediately following such word or to similar items or matters, whether or not no limiting language
(such as “without limitation” or “but not limited to” or words of similar import) is used with
reference thereto, but rather shall be deemed to refer to all other items or matters that fall
within the broadest possible scope of such general statement, term or matter. This Agreement
restates and replaces, in its entirety, the Existing Credit Agreement; any reference in any of the
other Credit Documents to the Existing Credit Agreement (however defined) shall mean this
Agreement.

SECTION 2. LOANS AND LETTERS OF CREDIT

     2.1. Tranche D Term Loans.

               (a) Loan Commitments. Subject to the terms and conditions hereof, each
Lender having a Tranche D Term Loan Commitment severally agrees to lend to the Company on
the Effective Date, a Tranche D Term Loan in an amount equal to such Lender’s Tranche D
Term Loan Commitment. Company may make only one borrowing under the Tranche D Term Loan
Commitment which shall be on the Effective Date. Any amount borrowed under this Section
2.1(a) and subsequently repaid or prepaid may not be reborrowed. Subject to Sections
2.13(a) and 2.14, all amounts owed hereunder with respect to the Tranche D Term Loans
shall be paid in full no later than the Tranche D Term Loan Maturity Date. Each Lender’s
Tranche D Term Loan Commitment shall terminate immediately and without further action on
the Effective Date after giving effect to the funding of such Lender’s Tranche D Term Loan
Commitment on such date.

               (b) Borrowing Mechanics for the Tranche D Term Loans.

          (i) Company shall deliver to Administrative Agent a fully executed Funding Notice no
later than (x) one day prior to the Effective Date in the case of Eurodollar Rate Loans and
(y) on the Effective Date in the case of Base Rate Loans.

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Promptly upon receipt by
Administrative Agent of such Funding Notice, Administrative Agent shall notify each Lender
of the proposed borrowing.

          (ii) Each Lender shall make its Tranche D Term Loan available to Administrative Agent
not later than 12:00 p.m. (New York City time) on the Effective Date, by wire transfer of
same day funds in Dollars, at the Principal Office designated by Administrative Agent. Upon
satisfaction or waiver of the conditions precedent set forth in Section 3.4, Administrative
Agent shall make the proceeds of the Tranche D Term Loans available to Company on the
Effective Date by causing an amount of same day funds in Dollars equal to the proceeds of
all such Loans received by Administrative Agent from Lenders to be credited to the account
of Company as designated in writing to Administrative Agent by Company.

     2.2. Revolving Loans.

               (a) Revolving Commitments. During the Revolving Commitment Period, subject
to the terms and conditions hereof, each Lender severally agrees to make Revolving Loans
to Company in an aggregate amount up to but not exceeding such Lender’s Revolving
Commitment; provided, that after giving effect to the making of any Revolving
Loans in no event shall the Total Utilization of Revolving Commitments exceed the
Revolving Commitments then in effect. Amounts borrowed pursuant to this Section 2.2(a)
may be repaid and reborrowed during the Revolving Commitment Period. Each Lender’s
Revolving Commitment shall expire on the Revolving Commitment Termination Date and all
Revolving Loans and all other amounts owed hereunder with respect to the Revolving Loans
and the Revolving Commitments shall be paid in full no later than such date.

               (b) Borrowing Mechanics for Revolving Loans.

          (i) Except pursuant to Section 2.4(d), Revolving Loans shall be made in an aggregate
minimum amount of $1,000,000 and integral multiples of $500,000 in excess of that amount.

          (ii) Whenever Company desires that Lenders make Revolving Loans, Company shall deliver
to Administrative Agent a telephonic notice promptly (and in any event prior to the actual
Credit Extension) followed by a fully executed and delivered Funding Notice no later than
1:00 p.m. (New York City time) at least three Business Days in advance of the proposed
Credit Date in the case of a Eurodollar Rate Loan, and at least one Business Day in advance
of the proposed Credit Date in the case of a Revolving Loan that is a Base Rate Loan.
Except as otherwise provided herein, a Funding Notice for a Revolving Loan that is a
Eurodollar Rate Loan shall be irrevocable on and after the related Interest Rate
Determination Date, and Company shall be bound to make a borrowing in accordance therewith.

          (iii) Notice of receipt of each Funding Notice in respect of Revolving Loans, together
with the amount of each Lender’s Pro Rata Share thereof, if any, together with the
applicable interest rate, shall be provided by Administrative Agent to each

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applicable
Lender with reasonable promptness, on the date of receipt of such Funding Notice.

          (iv) Each Lender shall make the amount of its Revolving Loan available to
Administrative Agent not later than 12:00 p.m. (New York City time) on the applicable Credit
Date by wire transfer of same day funds in Dollars, at the Principal Office designated by
Administrative Agent. Except as provided herein, upon satisfaction or waiver of the
conditions precedent specified herein, Administrative Agent shall make the proceeds of such
Revolving Loans available to Company on the applicable Credit Date by causing an amount of
same day funds in Dollars equal to the proceeds of all such Revolving Loans received by
Administrative Agent from Lenders to be credited to the account of Company at the Principal
Office designated by Administrative Agent or such other account as may be designated in
writing to Administrative Agent by Company.

     2.3. Swing Line Loans.

               (a) Swing Line Loans Commitments. During the Revolving Commitment Period,
subject to the terms and conditions hereof, Swing Line Lender hereby agrees to make Swing
Line Loans to Company in the aggregate amount up to but not exceeding the Swing Line
Sublimit; provided, that after giving effect to the making of any Swing Line Loan,
in no event shall the Total Utilization of Revolving Commitments exceed the Revolving
Commitments then in effect. Amounts borrowed pursuant to this Section 2.3 may be repaid
and reborrowed during the Revolving Commitment Period. Swing Line Lender’s Revolving
Commitment shall expire on the Revolving Commitment Termination Date and all Swing Line
Loans and all other amounts owed hereunder with respect to the Swing Line Loans and the
Revolving Commitments shall be paid in full no later than such date.

               (b) Borrowing Mechanics for Swing Line Loans.

          (i) Swing Line Loans shall be made in an aggregate minimum amount of $100,000 and
integral multiples of $100,000 in excess of that amount.

          (ii) Whenever Company desires that Swing Line Lender make a Swing Line Loan, Company
shall deliver to Swing Line Lender a Funding Notice no later than 12:00 p.m. (New York City
time) on the proposed Credit Date.

          (iii) Swing Line Lender shall make the amount of its Swing Line Loan available to
Borrower not later than 2:00 p.m.(New York City time) on the applicable Credit Date by wire
transfer of same day funds in Dollars to Borrower’s account specified in notice of
Borrowing. Except as provided herein, upon satisfaction or waiver of the conditions
precedent specified herein, Swing Line Lender shall make the proceeds of such Swing Line
Loans available to Company on the applicable Credit Date by
causing an amount of same day funds in Dollars equal to the proceeds of all such Swing
Line Loans to be credited to the account of Company designated in writing to Swing Line
Lender by Company.

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          (iv) With respect to any Swing Line Loans which have not been voluntarily prepaid by
Company pursuant to Section 2.13, Swing Line Lender may at any time in its sole and absolute
discretion, deliver to Administrative Agent (with a copy to Company), no later than 11:00
a.m. (New York City time) at least one Business Day in advance of the proposed Credit Date,
a notice (which shall be deemed to be a Funding Notice given by Company) requesting that
each Lender holding a Revolving Commitment make Revolving Loans that are Base Rate Loans to
Company on such Credit Date in an amount equal to the amount of such Swing Line Loans (the
“Refunded Swing Line Loans”) outstanding on the date such notice is given which Swing Line
Lender requests Lenders to prepay. Anything contained in this Agreement to the contrary
notwithstanding, (1) the proceeds of such Revolving Loans made by the Lenders other than
Swing Line Lender shall be immediately delivered by Administrative Agent to Swing Line
Lender (and not to Company) and applied to repay a corresponding portion of the Refunded
Swing Line Loans and (2) on the day such Revolving Loans are made, Swing Line Lender’s Pro
Rata Share of the Refunded Swing Line Loans shall be deemed to be paid with the proceeds of
a Revolving Loan made by Swing Line Lender to Company, and such portion of the Swing Line
Loans deemed to be so paid shall no longer be outstanding as Swing Line Loans and shall no
longer be due under the Swing Line Note of Swing Line Lender but shall instead constitute
part of Swing Line Lender’s outstanding Revolving Loans to Company and shall be due under
the Revolving Loan Note issued by Company to Swing Line Lender. Company hereby authorizes
Administrative Agent and Swing Line Lender to charge Company’s accounts with Administrative
Agent and Swing Line Lender (up to the amount available in each such account) in order to
immediately pay Swing Line Lender the amount of the Refunded Swing Line Loans to the extent
of the proceeds of such Revolving Loans made by Lenders, including the Revolving Loans
deemed to be made by Swing Line Lender, are not sufficient to repay in full the Refunded
Swing Line Loans. If any portion of any such amount paid (or deemed to be paid) to Swing
Line Lender should be recovered by or on behalf of Company from Swing Line Lender in
bankruptcy, by assignment for the benefit of creditors or otherwise, the loss of the amount
so recovered shall be ratably shared among all Lenders in the manner contemplated by Section
2.17.

          (v) If for any reason Revolving Loans are not made pursuant to Section 2.3(b)(iv) in an
amount sufficient to repay any amounts owed to Swing Line Lender in respect of any
outstanding Swing Line Loans on or before the third Business Day after demand for payment
thereof by Swing Line Lender, each Lender holding a Revolving Commitment shall be deemed to,
and hereby agrees to, have purchased a participation in such outstanding Swing Line Loans,
and in an amount equal to its Pro Rata Share of the applicable unpaid amount together with
accrued interest thereon. Upon one Business Day’s notice from Swing Line Lender, each
Lender holding a Revolving Commitment shall deliver to Swing Line Lender an amount equal to
its respective participation in the applicable unpaid amount in same day funds at the
Principal Office of Swing Line Lender. In order to evidence such participation each Lender
holding a Revolving
Commitment agrees to enter into a participation agreement at the request of Swing Line
Lender in form and substance reasonably satisfactory to Swing Line Lender. In the event any
Lender holding a Revolving Commitment fails to make available to Swing Line Lender the
amount of such Lender’s participation as provided in this paragraph, Swing

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Line Lender shall
be entitled to recover such amount on demand from such Lender together with interest thereon
for three Business Days at the rate customarily used by Swing Line Lender for the correction
of errors among banks and thereafter at the Base Rate, as applicable.

          (vi) Notwithstanding anything contained herein to the contrary, (1) each Lender’s
obligation to make Revolving Loans for the purpose of repaying any Refunded Swing Line Loans
pursuant to the second preceding paragraph and each Lender’s obligation to purchase a
participation in any unpaid Swing Line Loans pursuant to the immediately preceding paragraph
shall be absolute and unconditional and shall not be affected by any circumstance, including
without limitation (A) any set-off, counterclaim, recoupment, defense or other right which
such Lender may have against Swing Line Lender, any Credit Party or any other Person for any
reason whatsoever; (B) the occurrence or continuation of a Default or Event of Default; (C)
any adverse change in the business, operations, properties, assets, condition (financial or
otherwise) or prospects of any Credit Party; (D) any breach of this Agreement or any other
Credit Document by any party thereto; or (E) any other circumstance, happening or event
whatsoever, whether or not similar to any of the foregoing; provided that such
obligations of each Lender are subject to the condition that Swing Line Lender believed in
good faith that all conditions under Section 3.2 to the making of the applicable Refunded
Swing Line Loans or other unpaid Swing Line Loans, were satisfied at the time such Refunded
Swing Line Loans or unpaid Swing Line Loans were made, or the satisfaction of any such
condition not satisfied had been waived by the Requisite Lenders prior to or at the time
such Refunded Swing Line Loans or other unpaid Swing Line Loans were made; and (2) Swing
Line Lender shall not be obligated to make any Swing Line Loans (A) if it has elected not to
do so after the occurrence and during the continuation of a Default or Event of Default or
(B) at a time when a Funding Default exists unless Swing Line Lender has entered into
arrangements satisfactory to it and Company to eliminate Swing Line Lender’s risk with
respect to the Defaulting Lender’s participation in such Swing Ling Loan, including by cash
collateralizing such Defaulting Lender’s Pro Rata Share of the outstanding Swing Line Loans.

     2.4. Issuance of Letters of Credit and Purchase of Participations Therein.

               (a) Revolving Letters of Credit. During the Revolving Commitment Period and
prior to the date that is thirty days prior to the Revolving Loan Commitment Termination
Date, subject to the terms and conditions hereof, each Revolving Issuing Bank agrees to
issue Revolving Letters of Credit for the account of Company or any other requesting
Credit Party (so long as Company is a co-applicant for such Letter of Credit) in the
aggregate amount up to but not exceeding the Revolving Letter of Credit Sublimit;
provided, that (i) each Revolving Letter of Credit shall be denominated in
Dollars; (ii) the Stated Amount of each Revolving Letter of Credit shall not be less than
$50,000 or such lesser amount as is acceptable to the applicable Revolving Issuing
Bank; (iii) after giving effect to such issuance, in no event shall the Total Utilization
of Revolving Commitments exceed the Revolving Commitments then in effect; (iv) after
giving effect to such issuance, in no event shall the Revolving Letter of Credit Usage
exceed the Revolving Letter of Credit Sublimit then in effect; (v) in no event shall any

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standby Revolving Letter of Credit have an expiration date later than the earlier of (1)
the Revolving Commitment Termination Date and (2) the date which is one year from the date
of issuance of such standby Revolving Letter of Credit; and (vi) in no event shall any
commercial Revolving Letter of Credit (x) have an expiration date later than the earlier
of (1) the date that is five Business Days prior to the Revolving Loan Commitment
Termination Date and (2) the date which is 180 days from the date of issuance of such
commercial Revolving Letter of Credit or (b) be issued if such commercial Revolving Letter
of Credit is otherwise unacceptable to the applicable Revolving Issuing Bank in its
reasonable discretion. Subject to the foregoing, a Revolving Issuing Bank may agree that
a standby Revolving Letter of Credit will automatically be extended for one or more
successive periods not to exceed one year each, unless such Revolving Issuing Bank elects
not to extend for any such additional period; provided, a Revolving Issuing Bank
shall not extend any such Revolving Letter of Credit if it has received written notice
that an Event of Default has occurred and is continuing at the time such Revolving Issuing
Bank must elect to allow such extension; provided, further, in the event a
Funding Default exists, a Revolving Issuing Bank shall not be required to issue any
Revolving Letter of Credit unless Revolving Issuing Bank has entered into arrangements
satisfactory to it and Company to eliminate such Revolving Issuing Bank’s risk with
respect to the participation in Revolving Letters of Credit of the Defaulting Lender,
including by cash collateralizing such Defaulting Lender’s Pro Rata Share of the Revolving
Letter of Credit Usage.

               (b) Funded Letters of Credit. Subject to and upon the terms and conditions
herein set forth, at any time and from time to time after the Effective Date and during
the Funded Letter of Credit Commitment Period, Company may request that a Funded LC
Issuing Bank issue for the account of Company a standby letter of credit or letters of
credit under the Funded Letter of Credit Commitment (each, a “Funded Letter of Credit”),
provided that each Funded Letter of Credit shall be used by Company solely to support the
obligations of Company and its Subsidiaries under the Swap Agreement. Notwithstanding the
foregoing, (i) each Funded Letter of Credit shall be denominated in Dollars; (ii) the
Stated Amount of each Funded Letter of Credit shall not be less than $5,000,000 or such
lesser amount as is acceptable to such Funded LC Issuing Bank; (iii) no Funded Letter of
Credit shall be issued the Stated Amount of which, when added to the Funded Letters of
Credit Outstanding at such time, would exceed the Total Funded Letter of Credit Commitment
or the Total Credit Linked Deposit then in effect; and (iv) in no event shall any standby
Funded Letter of Credit have an expiration date later than the earlier of (1) the Funded
Letter of Credit Termination Date and (2) the date which is one year from the date of
issuance of such standby Funded Letter of Credit; provided that each Funded Letter of
Credit will automatically be extended for one or more successive periods not to exceed one
year each until the Funded Letter of Credit Termination Date. Each Existing Letter of
Credit which is a funded letter credit issued pursuant to the Existing Credit Agreement
and
outstanding on the Effective Date shall be deemed to be a Funded Letter of Credit
hereunder. The Total Funded Letter of Credit Commitment shall terminate on the Funded
Letter of Credit Termination Date.

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               (c) Notice of Issuance. Whenever any Credit Party desires the issuance of a
Letter of Credit, it shall deliver to Administrative Agent and to the relevant Issuing
Bank, an Issuance Notice no later than 12:00 p.m. (New York City time) at least three
Business Days (in the case of standby letters of credit) or five Business Days (in the
case of commercial letters of credit), or in each case such shorter period as may be
agreed to by an Issuing Bank in any particular instance, in advance of the proposed date
of issuance. Upon satisfaction or waiver of the conditions set forth in Section 3.2, an
Issuing Bank shall issue the requested Letter of Credit only in accordance with such
Issuing Bank’s standard operating procedures. Upon the issuance of any Revolving Letter
of Credit or amendment or modification to a Revolving Letter of Credit, the applicable
Issuing Bank shall promptly notify each Lender of such issuance, which notice shall be
accompanied by a copy of such Revolving Letter of Credit or amendment or modification to a
Revolving Letter of Credit and the amount of such Lender’s respective participation in
such Revolving Letter of Credit pursuant to Section 2.4(e). Upon the issuance of any
Funded Letter of Credit or amendment or modification to a Funded Letter of Credit, the
applicable Funded LC Issuing Bank shall promptly notify each Funded Letter of Credit
Participant of such issuance, which notice shall be accompanied by a copy of such Funded
Letter of Credit or amendment or modification to a Funded Letter of Credit and the amount
of such Funded Letter of Credit Participant’s respective participation in such Funded
Letter of Credit pursuant to Section 2.4(h).

               (d) Responsibility of Issuing Bank With Respect to Requests for Drawings and
Payments. In determining whether to honor any drawing under any Letter of Credit by
the beneficiary thereof, such Issuing Bank shall be responsible only to examine the
documents delivered under such Letter of Credit with reasonable care so as to ascertain
whether they appear on their face to be in accordance with the terms and conditions of
such Letter of Credit. As between Company and such Issuing Bank, Company assumes all
risks of the acts and omissions of, or misuse of the Letters of Credit issued by such
Issuing Bank, by the respective beneficiaries of such Letters of Credit. In furtherance
and not in limitation of the foregoing, such Issuing Bank shall not be responsible for:
(i) the form, validity, sufficiency, accuracy, genuineness or legal effect of any document
submitted by any party in connection with the application for and issuance of any such
Letter of Credit, even if it should in fact prove to be in any or all respects invalid,
insufficient, inaccurate, fraudulent or forged; (ii) the validity or sufficiency of any
instrument transferring or assigning or purporting to transfer or assign any such Letter
of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part,
which may prove to be invalid or ineffective for any reason; (iii) failure of the
beneficiary of any such Letter of Credit to comply fully with any conditions required in
order to draw upon such Letter of Credit; (iv) errors, omissions, interruptions or delays
in transmission or delivery of any messages, by mail, cable, telegraph, telex or
otherwise, whether or not they be in cipher; (v) errors in interpretation of technical
terms; (vi) any loss or delay in the transmission or otherwise
of any document required in order to make a drawing under any such Letter of Credit
or of the proceeds thereof; (vii) the misapplication by the beneficiary of any such Letter
of Credit of the proceeds of any drawing under such Letter of Credit; or (viii) any
consequences arising from causes beyond the control of such Issuing Bank, including

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any
Governmental Acts; none of the above shall affect or impair, or prevent the vesting of,
any of such Issuing Bank’s rights or powers hereunder. Without limiting the foregoing and
in furtherance thereof, any action taken or omitted by such Issuing Bank under or in
connection with the Letters of Credit or any documents and certificates delivered
thereunder, if taken or omitted in good faith, shall not give rise to any liability on the
part of such Issuing Bank to Company. Notwithstanding anything to the contrary contained
in this Section 2.4(d), Company shall retain any and all rights it may have against an
Issuing Bank for any liability arising solely out of the gross negligence or willful
misconduct of such Issuing Bank.

               (e) Reimbursement by Company of Amounts Drawn or Paid Under Letters of
Credit. In the event an Issuing Bank has determined to honor a drawing under a Letter
of Credit, it shall immediately notify Company and Administrative Agent, and Company shall
reimburse (each such amount so paid until reimbursed an “Unpaid Drawing”) such Issuing
Bank on or before the Business Day immediately following the date on which such drawing is
honored (the “Reimbursement Date”) in an amount in Dollars and in same day funds equal to
the amount of such honored drawing; provided, anything contained herein to the
contrary notwithstanding, in the case of Revolving Letters of Credit (i) unless Company
shall have notified Administrative Agent and such Issuing Bank prior to 10:00 a.m. (New
York City time) on the date such drawing is honored that Company intends to reimburse such
Issuing Bank for the amount of such honored drawing with funds other than the proceeds of
Revolving Loans with respect to any Revolving Letter of Credit, Company shall be deemed to
have given a timely Funding Notice to Administrative Agent requesting Lenders to make
Revolving Loans on the Reimbursement Date in an amount in Dollars equal to the amount of
such honored drawing, and (ii) subject to satisfaction or waiver of the conditions
specified in Section 3.2, Lenders shall, on the Reimbursement Date, make Revolving Loans
in the amount of such honored drawing, the proceeds of which shall be applied directly by
Administrative Agent to reimburse such Revolving Issuing Bank for the amount of such
honored drawing; and provided further, if for any reason proceeds of
Revolving Loans are not received by such Revolving Issuing Bank on the Reimbursement Date
in an amount equal to the amount of such honored drawing, Company shall reimburse such
Revolving Issuing Bank, on demand, in an amount in same day funds equal to the excess of
the amount of such honored drawing over the aggregate amount of such Revolving Loans, if
any, which are so received. Nothing in this Section 2.4(e) shall be deemed to relieve any
Lender from its obligation to make Revolving Loans on the terms and conditions set forth
herein, and Company shall retain any and all rights it may have against any Lender
resulting from the failure of such Lender to make such Revolving Loans under this Section
2.4(e).

               (f) Repayment by Funded Letter of Credit Participants of Amounts Drawn or Paid
Under Funded Letters of Credit. In the event that a Funded LC Issuing
Bank makes any payment under any Funded Letter of Credit and Company shall not have
repaid such amount in full to such Funded LC Issuing Bank pursuant to Section 2.4(e), such
Funded LC Issuing Bank shall notify Administrative Agent and Administrative Agent shall
notify each Funded Letter of Credit Participant of such

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failure, and the Funded LC Deposit
Bank shall apply from the Credit Linked Deposits toward the reimbursement of such payment
each Funded Letter of Credit Participant’s Pro Rata Share of such unreimbursed payment
from the Credit Linked Deposit Account. In the event a Funded LC Issuing Bank applies the
Credit Linked Deposits to an unreimbursed disbursement under a Funded Letter of Credit
pursuant to the preceding sentence, Company shall have the right, within 5 Business Days
of the relevant Reimbursement Date, (provided no Default or Event of Default shall have
occurred and be continuing) to pay over to Administrative Agent in reimbursement thereof
an amount equal to the full amount of such unreimbursed disbursement, and such payment
shall be applied by Administrative Agent in accordance with clause (ii) of the immediately
following sentence. Promptly following receipt by Administrative Agent of any payment by
Company in respect of any disbursement under a Funded Letter of Credit, Administrative
Agent shall distribute such payment (i) to the Funded LC Issuing Bank that issued such
Funded Letters of Credit or, (ii) subject to the immediately preceding sentence to the
extent payments have been made from the Credit Linked Deposits, to the Credit Linked
Deposit Account with respect to such Funded Letter of Credit to be added to the Credit
Linked Deposits held by such Funded LC Issuing Bank. Company acknowledges that each
payment made pursuant to this paragraph in respect of any unreimbursed payment is required
to be made for the benefit of the Funded LC Issuing Bank indicated in the immediately
preceding sentence. Any payment made from the Credit Linked Deposit Account (except to
the extent of repayment by Company within 5 Business Days of the Reimbursement Date as
expressly permitted above) pursuant to this paragraph to reimburse a Funded LC Issuing
Bank for any unreimbursed payment shall be deemed an extension of Term Loans made on such
date by the Funded Letter of Credit Participants ratably in accordance with their Pro Rata
Share of the Total Credit Linked Deposit, and the amount so funded shall permanently
reduce the Total Credit Linked Deposit; any amount so funded pursuant to this paragraph
shall, on and after the funding date thereof, be deemed to be Term Loans for all purposes
hereunder and have the same terms as other Terms Loans hereunder (such deemed Term Loan, a
“New Term Loan”). Any New Term Loans deemed made on the same day shall be designated a
separate series (a “Series”) of New Term Loans for all purposes of this Agreement. In the
event that Company is required to reimburse a Funded LC Issuing Bank for any disbursement
under a Funded Letter of Credit issued by such Funded LC Issuing Bank, for a period of 91
days following such reimbursement payment by Company, the Funded Letter of Credit
Exposures shall be deemed to include (as if such Funded Letter of Credit were still
outstanding) for purposes of determining availability for the issuance of any new Funded
Letter of Credit during such period, the amount of such reimbursement payment until the
end of such 91-day period.

               (g) Lenders’ Purchase of Participations in Revolving Letters of Credit.
Immediately upon the issuance of each Revolving Letter of Credit, each Lender having a
Revolving Commitment (each, a “Revolving Letter of Credit Participant”) shall be
deemed to have purchased, and hereby agrees to irrevocably purchase, from the
applicable Revolving Issuing Bank a participation in such Revolving Letter of Credit and
any drawings honored thereunder in an amount equal to such Lender’s Pro Rata Share (with
respect to the Revolving Commitments) of the maximum amount which is

48

 

or at any time may
become available to be drawn thereunder. In the event that Company shall fail for any
reason to reimburse a Revolving Issuing Bank as provided in Section 2.4(e), such Revolving
Issuing Bank shall promptly notify each Revolving Letter of Credit Participant of the
unreimbursed amount of such honored drawing and of such Revolving Letter of Credit
Participant’s respective participation therein based on such Revolving Letter of Credit
Participant’s Pro Rata Share of the Revolving Commitments. Each Revolving Letter of
Credit Participant shall make available to such Revolving Issuing Bank an amount equal to
its respective participation, in Dollars and in same day funds, at the office of such
Revolving Issuing Bank specified in such notice, not later than 12:00 p.m. (New York City
time) on the first business day (under the laws of the jurisdiction in which such office
of such Revolving Issuing Bank is located) after the date notified by such Revolving
Issuing Bank. In the event that any Revolving Letter of Credit Participant fails to make
available to such Revolving Issuing Bank on such business day the amount of such Revolving
Letter of Credit Participant’s participation in such Revolving Letter of Credit as
provided in this Section 2.4(g), the applicable Revolving Issuing Bank shall be entitled
to recover such amount on demand from such Lender together with interest thereon for three
Business Days at the rate customarily used by such Revolving Issuing Bank for the
correction of errors among banks and thereafter at the Base Rate. Nothing in this Section
2.4(g) shall be deemed to prejudice the right of any Revolving Letter of Credit
Participant to recover from a Revolving Issuing Bank any amounts made available by such
Revolving Letter of Credit Participant to a Revolving Issuing Bank pursuant to this
Section in the event that it is determined that the payment with respect to a Revolving
Letter of Credit in respect of which payment was made by such Revolving Letter of Credit
Participant constituted gross negligence or willful misconduct on the part of such
Revolving Issuing Bank. In the event a Revolving Issuing Bank shall have been reimbursed
by other Revolving Letter of Credit Participants pursuant to this Section 2.4(g) for all
or any portion of any drawing honored by such Revolving Issuing Bank under a Revolving
Letter of Credit, such Revolving Issuing Bank shall distribute to each Revolving Letter of
Credit Participant which has paid all amounts payable by it under this Section 2.4(g) with
respect to such honored drawing such Revolving Letter of Credit Participant’s Pro Rata
Share of all payments subsequently received by such Revolving Issuing Bank from Company in
reimbursement of such honored drawing when such payments are received. Any such
distribution shall be made to a Revolving Letter of Credit Participant at its primary
address set forth below its name on Appendix B or at such other address as such Revolving
Letter of Credit Participant may request.

               (h) Funded Letter of Credit Participant’s Purchase of Participations in Funded
Letters of Credit. On the Effective Date, without any further action on the part of
the Funded LC Issuing Bank or the Lenders, the Funded LC Issuing Bank hereby grants to
each Funded Letter of Credit Participant, and each such Funded Letter of Credit
Participant shall be deemed irrevocably and unconditionally to have purchased and received
from the Funded LC Issuing Bank that has issued any Funded Letter of
Credit, without recourse or warranty, an undivided interest and participation (each,
a “Funded Letter of Credit Participation”) in the reimbursement obligation for each Funded
Letter of Credit that may be issued pursuant to Section 2.4(b) equal to such Funded Letter
of Credit Participant’s Pro Rata Share of the aggregate amount available

49

 

to be drawn under
each such Funded Letter of Credit and the Funded Letter of Credit Participation Interests
in respect thereof together with rights to receive payments under Section 2.4(i)(iv). The
aggregate purchase price for the Funded Letter of Credit Participations of each Funded
Letter of Credit Participant shall equal the amount of the Funded Letter of Credit
Commitment of such Funded Letter of Credit Participant paid to the Administrative Agent on
the Effective Date pursuant to the next sentence, and, unless and until the Funded Letter
of Credit Termination Date has occurred and all Funded Letters of Credit issued by a
Funded LC Issuing Bank have expired without draw, or to the extent of any draws, have been
reimbursed in full, or are cash collateralized by Company pursuant to Section 2.4(i)(iv),
each such Credit Linked Deposit held by a Funded LC Issuing Bank shall be the property of
such Funded LC Issuing Bank as the consideration paid by each such Funded Letter of Credit
Participant as it relates to any Funded Letters of Credit issued or deemed issued by such
Funded LC Issuing Bank. Each Funded Letter of Credit Participant shall pay to
Administrative Agent in full on the Effective Date an amount equal to such Funded Letter
of Credit Participant’s Funded Letter of Credit Commitment, and Administrative Agent shall
immediately transfer and allocate such Credit Linked Deposits to such Funded LC Issuing
Bank. Each Funded Letter of Credit Participant hereby absolutely and unconditionally
agrees that if a Funded LC Issuing Bank makes a disbursement in respect of any Funded
Letter of Credit issued by such Funded LC Issuing Bank which is not reimbursed by Company
on the date due pursuant to Section 2.4(e), or is required to refund any reimbursement
payment in respect of any Funded Letter of Credit issued or deemed issued by such Funded
LC Issuing Bank to Company for any reason, the amount of such disbursement shall be
satisfied, ratably as among the Funded Letter of Credit Participants in accordance with
their Pro Rata Share (with the Administrative Agent having the responsibility to determine
and keep record of the Pro Rata Shares of the Funded Letter of Credit Participants for
this purpose and all other purposes hereunder) of the Total Credit Linked Deposit from the
Credit Linked Deposit paid to the Funded LC Issuing Bank. Without limiting the foregoing,
each Funded Letter of Credit Participant irrevocably authorizes the Administrative Agent
and such Funded LC Issuing Bank to apply amounts of the Credit Linked Deposits as provided
in this paragraph.

               (i) Credit Linked Deposit Account.

                    (i) Subject to the terms and conditions hereof, each Funded Letter of Credit
Participant severally agrees to make, on the Effective Date, a payment to Administrative
Agent in an amount equal to such Funded Letter of Credit Participant’s Funded Letter of
Credit Commitment and Administrative Agent shall use such payments to establish a Credit
Linked Deposit Account at the Funded LC Deposit Bank. The Credit Linked Deposits paid to
the Funded LC Deposit Bank shall be held in the Credit Linked Deposit Account, and no party
other than the Funded LC Deposit Bank shall have a right of withdrawal from the Credit
Linked Deposit Account or any other right, power
or interest in or with respect to the Credit Linked Deposits, except as expressly set
forth in Section 2.4(f), (h), (i) and 2.13(b)(iii). Notwithstanding any provision in this
Agreement to the contrary, the sole funding obligation of each Funded Letter of Credit
Participant in respect of its Funded Letter of Credit Commitment and Funded Letter of

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Credit
Participation shall be satisfied in full upon the payment of its purchase price on the
Effective Date.

                    (ii) Each of Company, Administrative Agent, the Funded LC Deposit Bank and each Funded
Letter of Credit Participant hereby acknowledges and agrees that (x) each Funded Letter of
Credit Participant is making its payment on the Effective Date pursuant to Section 2.4(i)(i)
to be paid into the Credit Linked Deposit Account for application in the manner contemplated
by Sections 2.4(f) and (h) and (y) and that the Funded LC Deposit Bank has agreed to invest,
or cause to be invested, the funds on deposit in the Credit Linked Deposit Account so as to
earn for the account of each Funded Letter of Credit Participant a return on its Credit
Linked Deposit of such funds at a rate per annum equal to (i) the Adjusted Eurodollar Rate
for the applicable Interest Period minus (ii) (1) 0.10% per annum (based on a 360
day year) or (2) such lesser rate as may be agreed upon between the Administrative Agent,
the Funded LC Issuing Bank and Company. Such interest will be paid to the Funded Letter of
Credit Participants by or on behalf of Administrative Agent quarterly in arrears when Funded
Letter of Credit Fees are payable pursuant to Section 2.11(b). The Company agrees it shall
pay a fee to the Administrative Agent, for the account of each Funded Letter of Credit
Participant, quarterly in arrears when Funded Letter of Credit Fees are payable pursuant to
Section 2.11(b), in an amount equal to (x) 0.10% per annum (based on a 360 day year) or (y)
such lesser rate as may be agreed upon between the Administrative Agent, the Funded LC
Issuing Bank and Company pursuant to clause (y)(ii)(2) above of this Section 2.4(i)(ii), in
each case of the Credit Linked Deposit of such Funded Letter of Credit Participant.

                    (iii) Company shall have no right, title or interest in or to the Credit Linked
Deposits and no obligations with respect thereto (except for the reimbursement obligations
in respect of Funded Letters of Credit provided in Sections 2.4(e), (f) and (h)), it being
acknowledged and agreed by the parties hereto that the making of the Credit Linked Deposits
by the Funded Letter of Credit Participants, the payments to the Funded Letter of Credit
Participants contemplated in Section 2.4(i)(ii), the provisions of this Section 2.4(i)(iii)
and the application of the Credit Linked Deposits in the manner contemplated by Sections
2.4(f) and (h) constitute agreements among Administrative Agent, the Funded LC Issuing Bank
and the Funded Letter of Credit Participants with respect to payments of each Funded Letter
of Credit Participant in respect of its Funded Letter of Credit Participation and do not
constitute any loan or extension of credit to Company.

                    (iv) Following the occurrence of any of the events identified in clauses (i), (ii) or
(iii) of the definition of Funded Letter of Credit Termination Date (but solely in the case
of clause (ii), only to the extent at such time Company shall have paid all outstanding
obligations then due and payable under this Agreement), and subject to Company’s cash
collateralization to the extent of a Funded LC Issuing Bank’s outstanding Funded Letters of
Credit, in an amount (but in no event greater than 105% of
the aggregate undrawn face amount) and manner reasonably satisfactory to the Collateral
Agent and the Funded LC Issuing Bank that issued such Funded Letters of Credit (which cash
collateralization is hereby expressly required of Company on any Funded Letter of Credit
Termination Date), such Funded LC Issuing Bank shall repurchase the Funded

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Letter of Credit
Participation Interests from each Funded Letter of Credit Participant in an amount equal to
such Funded Letter of Credit Participant’s Pro Rata Share (whereupon such amount that has
been so paid shall no longer be considered the property of the Funded LC Issuing Bank).

               (j) Obligations Absolute. The obligation of Company to reimburse each
Issuing Bank for drawings honored under the Letters of Credit issued by it and to repay
any Revolving Loans made by Lenders pursuant to Section 2.4(e) and the obligations of
Lenders under Sections 2.4(f), (g) and (h) shall be unconditional and irrevocable and
shall be paid strictly in accordance with the terms hereof under all circumstances
including any of the following circumstances: (i) any lack of validity or enforceability
of any Letter of Credit; (ii) the existence of any claim, set off, defense or other right
which Company or any Lender may have at any time against a beneficiary or any transferee
of any Letter of Credit (or any Persons for whom any such transferee may be acting), such
Issuing Bank, Lender or any other Person or, in the case of a Lender, against Company,
whether in connection herewith, the transactions contemplated herein or any unrelated
transaction (including any underlying transaction between Company or one of its
Subsidiaries and the beneficiary for which any Letter of Credit was procured); (iii) any
draft or other document presented under any Letter of Credit proving to be forged,
fraudulent, invalid or insufficient in any respect or any statement therein being untrue
or inaccurate in any respect; (iv) payment by such Issuing Bank under any Letter of Credit
against presentation of a draft or other document which substantially complies with the
terms of such Letter of Credit; (v) any adverse change in the business, operations,
properties, assets, condition (financial or otherwise) or prospects of Company or any of
its Subsidiaries; (vi) any breach hereof or any other Credit Document by any party
thereto; (vii) any other circumstance or happening whatsoever, whether or not similar to
any of the foregoing; or (viii) the fact that an Event of Default or a Default shall have
occurred and be continuing; provided, in each case, that payment by an Issuing Bank under
the applicable Letter of Credit shall not have constituted gross negligence or willful
misconduct of such Issuing Bank under the circumstances in question.

               (k) Indemnification. Without duplication of any obligation of Company under
Section 10.2 or 10.3, in addition to amounts payable as provided herein, Company hereby
agrees to protect, indemnify, pay and save harmless each Issuing Bank from and against any
and all claims, demands, liabilities, damages, losses, reasonable out-of-pocket costs,
charges and expenses (including reasonable out-of-pocket fees, expenses and disbursements
of counsel), other than Taxes, which such Issuing Bank may incur or be subject to as a
consequence, direct or indirect, of (i) the issuance of any Letter of Credit by such
Issuing Bank, other than as a result of (1) the gross negligence or willful misconduct of
such Issuing Bank or (2) the wrongful dishonor by such Issuing Bank of a proper demand for
payment made under any Letter
of Credit issued by it, or (ii) the failure of such Issuing Bank to honor a drawing
under any such Letter of Credit as a result of any Governmental Act.

               (l) Swap Agreement Support. Notwithstanding anything herein to the contrary,
on the Effective Date, Company shall have requested issuance of, and shall

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maintain,
Funded Letters of Credit in an aggregate amount of not less $150,000,000 as credit support
with respect to the Swap Agreement.

               (m) Existing Letters of Credit. Company, the Agents, each Issuing Bank and
the Lenders acknowledge the issuance of the Existing Letters of Credit and agree that, as
of the Effective Date, such Existing Letters of Credit shall constitute Revolving Letters
of Credit and Funded Letters of Credit, as applicable, pursuant to the terms and
conditions of this Agreement and the other Credit Documents.

     2.5. Pro Rata Shares; Availability of Funds.

               (a) Pro Rata Shares. All Loans and Credit Linked Deposits shall be made, and
all participations purchased, by Lenders simultaneously and proportionately to their
respective Pro Rata Shares, it being understood that no Lender shall be responsible for
any default by any other Lender in such other Lender’s obligation to make a Loan requested
hereunder or purchase a participation required hereby nor shall any Term Loan Commitment,
Funded Letter of Credit Commitment or any Revolving Commitment of any Lender be increased
or decreased as a result of a default by any other Lender in such other Lender’s
obligation to make a Loan or Credit Linked Deposit requested hereunder or purchase a
participation required hereby.

               (b) Availability of Funds. Unless Administrative Agent shall have been
notified by any Lender prior to the applicable Credit Date that such Lender does not
intend to make available to Administrative Agent the amount of such Lender’s Loan
requested on such Credit Date, Administrative Agent may assume that such Lender has made
such amount available to Administrative Agent on such Credit Date and Administrative Agent
may, in its sole discretion, but shall not be obligated to, make available to Company a
corresponding amount on such Credit Date. If such corresponding amount is not in fact
made available to Administrative Agent by such Lender, Administrative Agent shall be
entitled to recover such corresponding amount on demand from such Lender together with
interest thereon, for each day from such Credit Date until the date such amount is paid to
Administrative Agent, at the customary rate set by Administrative Agent for the correction
of errors among banks for three Business Days and thereafter at the Base Rate. If such
Lender does not pay such corresponding amount forthwith upon Administrative Agent’s demand
therefor, Administrative Agent shall promptly notify Company and Company shall immediately
pay such corresponding amount to Administrative Agent together with interest thereon, for
each day from such Credit Date until the date such amount is paid to Administrative Agent,
at the rate payable hereunder for Base Rate Loans for such Class of Loans. Nothing in
this Section 2.5(b) shall be deemed to relieve any Lender from its obligation to fulfill
its Term Loan Commitments and Revolving Commitments hereunder or to
prejudice any rights that Company may have against any Lender as a result of any
default by such Lender hereunder.

     2.6. Use of Proceeds. The proceeds of the Tranche D Term Loans made on the Effective Date
shall be applied by Company to (i) repay in full the Existing Tranche C Term Loans, the Existing
Revolving Loans and the Second Lien Term Loans outstanding on such date

53

 

and (ii) pay a dividend in
the amount of $250,000,000 to its existing shareholders. The proceeds of the Revolving Loans,
Swing Line Loans and Revolving Letters of Credit made on and after the Effective Date shall be
applied by Company for working capital and general corporate purposes of Company and its
Subsidiaries, including Permitted Acquisitions (but not for the explicit purpose of repayment or
prepayment of Loans). The proceeds available under the Funded Letter of Credit Commitments shall
be used solely to provide credit support to Company’s obligations under the Swap Agreement. No
portion of the proceeds of any Credit Extension shall be used in any manner that causes or might
cause such Credit Extension or the application of such proceeds to violate Regulation T, Regulation
U or Regulation X of the Board of Governors of the Federal Reserve System or any other regulation
thereof or to violate the Exchange Act.

     2.7. Evidence of Debt; Register; Lenders’ Books and Records; Notes.

               (a) Lenders’ Evidence of Debt. Each Lender shall maintain on its internal
records an account or accounts evidencing the Obligations of Company to such Lender,
including the amounts of the Loans and the Credit Linked Deposits made by it and each
repayment and prepayment in respect thereof. Any such recordation shall be conclusive and
binding on Company, absent manifest error; provided, that the failure to make any
such recordation, or any error in such recordation, shall not affect any Lender’s
Revolving Commitments or Company’s Obligations in respect of any applicable Loans or
Credit Linked Deposits; and provided further, in the event of any
inconsistency between the Register and any Lender’s records, the recordations in the
Register shall govern.

               (b) Register. Administrative Agent (or its agent or sub-agent appointed by
it) shall maintain at the Principal Office a register for the recordation of the names and
addresses of Lenders and the Revolving Commitments, Loans and the Credit Linked Deposits
of each Lender from time to time (the “Register”). The Register, as in effect at the
close of business on the preceding Business Day, shall be available for inspection by
Company or any Lender at any reasonable time and from time to time upon reasonable prior
notice. Administrative Agent shall record, or shall cause to be recorded, in the Register
the Revolving Commitments, the Loans and the Credit Linked Deposits in accordance with the
provisions of Section 10.6, and each repayment or prepayment in respect of the principal
amount of the Loans or the Credit Linked Deposits, and any such recordation shall be
conclusive and binding on Company and each Lender, absent manifest error;
provided, that the failure to make any such recordation, or any error in such
recordation, shall not affect any Lender’s Revolving Commitments or Company’s Obligations
in respect of any Loan or the Credit Linked Deposits. Company hereby designates Credit
Suisse to serve as Company’s agent
solely for purposes of maintaining the Register as provided in this Section 2.7, and
Company hereby agrees that, to the extent Credit Suisse serves in such capacity, Credit
Suisse and its officers, directors, employees, agents, sub-agents and affiliates shall
constitute “Indemnitees.”

               (c) Notes. If so requested by any Lender by written notice to Company (with
a copy to Administrative Agent) at least two Business Days prior to the Effective

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Date, or
at any time thereafter, Company shall execute and deliver to such Lender (and/or, if
applicable and if so specified in such notice, to any Person who is an assignee of such
Lender pursuant to Section 10.6) on the Effective Date (or, if such notice is delivered
after the Effective Date, promptly after Company’s receipt of such notice) a Note or Notes
to evidence such Lender’s Tranche D Term Loan, Revolving Loan or Swing Line Loan, as the
case may be. Upon the repayment in full of the Existing Tranche C Term Loans any Notes
evidencing such Existing Tranche C Term Loans shall be deemed paid in full. Upon the
repayment in full of the Existing Revolving Loans and the reduction of the Existing
Revolving Loans to zero any Notes evidencing such Existing Revolving Loans shall be deemed
paid in full.

     2.8. Interest on Loans.

               (a) Except as otherwise set forth herein, each Class of Loan shall bear interest on
the unpaid principal amount thereof from the date made through repayment (whether by
acceleration or otherwise) thereof as follows:

          (i) in the case of Revolving Loans:

                    (1) if a Base Rate Loan, at the Base Rate plus the Applicable
Margin; or

                    (2) if a Eurodollar Rate Loan, at the Adjusted Eurodollar Rate
plus the Applicable Margin;

          (ii) in the case of Swing Line Loans, at the Base Rate plus the Applicable Margin; and

          (iii) in the case of Term Loans (including, without limitation, Unpaid Drawings of the
Funded Letters of Credit):

                    (1) if a Base Rate Loan, at the Base Rate plus the Applicable
Margin; or

                    (2) if a Eurodollar Rate Loan, at the Adjusted Eurodollar Rate
plus the Applicable Margin.

               (b) The basis for determining the rate of interest with respect to any Loan (except a
Swing Line Loan which can be made and maintained as Base Rate Loans only), and the
Interest Period with respect to any Eurodollar Rate Loan, shall be
selected by Company and notified to Administrative Agent and Lenders pursuant to the
applicable Funding Notice or Conversion/Continuation Notice, as the case may be;
provided, until the Arrangers notify Company that the primary syndication of the
Loans and Revolving Commitments has been completed, as reasonably determined by the
Arrangers in accordance with the engagement letter with the Company, the Tranche D Term
Loans shall be maintained as either (1) Eurodollar Rate Loans having an Interest Period of
no longer than one month or (2) Base Rate Loans. If on any day a Loan is outstanding with
respect to which a Funding Notice or Conversion/Continuation Notice

55

 

has not been delivered
to Administrative Agent in accordance with the terms hereof specifying the applicable
basis for determining the rate of interest, then for that day such Loan shall be continued
as the same Type of Loan.

               (c) In connection with Eurodollar Rate Loans there shall be no more than five (5)
Interest Periods outstanding at any time. In the event Company fails to specify between a
Base Rate Loan or a Eurodollar Rate Loan in the applicable Funding Notice or
Conversion/Continuation Notice, such Loan (if outstanding as a Eurodollar Rate Loan) will
be automatically converted into a Base Rate Loan on the last day of the then-current
Interest Period for such Loan (or if outstanding as a Base Rate Loan will remain as, or
(if not then outstanding) will be made as, a Base Rate Loan). In the event Company fails
to specify an Interest Period for any Eurodollar Rate Loan in the applicable Funding
Notice or Conversion/Continuation Notice, Company shall be deemed to have selected an
Interest Period of one month. As soon as practicable on each Interest Rate Determination
Date, Administrative Agent shall determine (which determination shall, absent manifest
error, be final, conclusive and binding upon all parties) the interest rate that shall
apply to the Eurodollar Rate Loans for which an interest rate is then being determined for
the applicable Interest Period and shall promptly give notice thereof (in writing or by
telephone confirmed in writing) to Company and each Lender.

               (d) Interest payable pursuant to Section 2.8(a) shall be computed (i) in the case of
Base Rate Loans on the basis of a 365-day or 366-day year, as the case may be, and (ii) in
the case of Eurodollar Rate Loans, on the basis of a 360-day year, in each case for the
actual number of days elapsed in the period during which it accrues. In computing
interest on any Loan, the date of the making of such Loan or the first day of an Interest
Period applicable to such Loan or, with respect to a Term Loan, the last Interest Payment
Date with respect to such Term Loan or, with respect to a Base Rate Loan being converted
from a Eurodollar Rate Loan, the date of conversion of such Eurodollar Rate Loan to such
Base Rate Loan, as the case may be, shall be included, and the date of payment of such
Loan or the expiration date of an Interest Period applicable to such Loan or, with respect
to a Base Rate Loan being converted to a Eurodollar Rate Loan, the date of conversion of
such Base Rate Loan to such Eurodollar Rate Loan, as the case may be, shall be excluded;
provided, if a Loan is repaid on the same day on which it is made, one day’s
interest shall be paid on that Loan.

               (e) Except as otherwise set forth herein, interest on each Loan (i) shall accrue on a
daily basis and shall be payable in arrears on each Interest Payment Date
with respect to interest accrued on and to each such payment date; (ii) shall accrue
on a daily basis and shall be payable in arrears upon any prepayment of that Loan, whether
voluntary or mandatory, to the extent accrued on the amount being prepaid; and (iii) shall
accrue on a daily basis and shall be payable in arrears at maturity of the Loans,
including final maturity of the Loans; provided, however, with respect to any
voluntary prepayment of a Base Rate Loan, accrued interest shall instead be payable on the
applicable Interest Payment Date.

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               (f) Company agrees to pay to each Revolving Issuing Bank, with respect to drawings
honored under any Revolving Letter of Credit issued by such Revolving Issuing Bank,
interest on the amount paid by such Revolving Issuing Bank in respect of each such honored
drawing from the date such drawing is honored to but excluding the date such amount is
reimbursed by or on behalf of Company at a rate equal to (i) for the period from the date
such drawing is honored to but excluding the applicable Reimbursement Date, the rate of
interest otherwise payable hereunder with respect to Revolving Loans that are Base Rate
Loans, and (ii) thereafter, a rate which is 2% per annum in excess of the rate of interest
otherwise payable hereunder with respect to Revolving Loans that are Base Rate Loans.

               (g) Company agrees to pay to such Funded LC Issuing Bank, with respect to drawings
honored under any Funded Letter of Credit issued by such Funded LC Issuing Bank, interest
on the amount paid by such Funded LC Issuing Bank in respect of each such honored drawing
from the date such drawing is honored to but excluding the date such amount is reimbursed
by or on behalf of Company or from Credit Linked Deposits at a rate equal to, for the
period from the date such drawing is honored to but excluding the applicable Reimbursement
Date, the rate of interest otherwise payable hereunder with respect to Term Loans that are
Base Rate Loans.

               (h) Interest payable pursuant to Sections 2.8(f) or (g) shall be computed on the
basis of a 365/366 day year for the actual number of days elapsed in the period during
which it accrues, and shall be payable on demand or, if no demand is made, on the date on
which the related drawing under a Letter of Credit is reimbursed in full. Promptly upon
receipt by an Issuing Bank of any payment of interest pursuant to Section 2.8(f) or (g),
such Issuing Bank shall distribute to each Letter of Credit Participant, out of the
interest received by such Issuing Bank in respect of the period from the date such drawing
is honored to but excluding the date on which such Issuing Bank is reimbursed for the
amount of such drawing (including any such reimbursement out of the proceeds of any
Revolving Loans), the amount that such Letter of Credit Participant would have been
entitled to receive in respect of the letter of credit fee that would have been payable in
respect of such Letter of Credit for such period if no drawing had been honored under such
Letter of Credit. In the event an Issuing Bank shall have been reimbursed by Letter of
Credit Participants for all or any portion of such honored drawing, such Issuing Bank
shall distribute to each Letter of Credit Participant which has paid all amounts payable
by it under Section 2.4(h) with respect to such honored drawing such Letter of Credit
Participant’s Pro Rata Share of any interest received by such Issuing Bank in respect of
that portion of such honored drawing so reimbursed by Letter of Credit Participants for
the period from the date on
which such Issuing Bank was so reimbursed by Letter of Credit Participants to but
excluding the date on which such portion of such honored drawing is reimbursed by Company.

     2.9. Conversion/Continuation.

               (a) Subject to Section 2.18 and so long as no Default or Event of Default shall have
occurred and then be continuing, Company shall have the option:

57

 

          (i) to convert at any time all or any part of any Term Loan or Revolving Loan equal to
$1,000,000 and integral multiples of $1,000,000 in excess of that amount from one Type of
Loan to another Type of Loan; provided, a Eurodollar Rate Loan may only be converted
on the expiration of the Interest Period applicable to such Eurodollar Rate Loan unless
Company shall pay all amounts due under Section 2.18 in connection with any such
conversion; or

          (ii) upon the expiration of any Interest Period applicable to any Eurodollar Rate Loan,
to continue all or any portion of such Loan equal to $1,000,000 and integral multiples of
$1,000,000 in excess of that amount as a Eurodollar Rate Loan.

               (b) Company shall deliver a Conversion/Continuation Notice to Administrative Agent no
later than 1:00 p.m. (New York City time) at least one Business Day in advance of the
proposed conversion date (in the case of a conversion to a Base Rate Loan) and at least
three Business Days in advance of the proposed conversion/continuation date (in the case
of a conversion to, or a continuation of, a Eurodollar Rate Loan). Except as otherwise
provided herein, a Conversion/Continuation Notice for conversion to, or continuation of,
any Eurodollar Rate Loans (or telephonic notice in lieu thereof) shall be irrevocable on
and after the related Interest Rate Determination Date, and Company shall be bound to
effect a conversion or continuation in accordance therewith.

     2.10. Default Interest. Upon the occurrence and during the continuance of an Event of
Default, to the extent permitted by applicable law, any overdue amounts owed hereunder, shall
thereafter bear interest (including post-petition interest in any proceeding under the Bankruptcy
Code or other applicable bankruptcy laws) payable on demand at a rate that is 2% per annum in
excess of the interest rate otherwise payable hereunder with respect to the applicable Loans (or,
in the case of any such fees and other amounts, at a rate which is 2% per annum in excess of the
interest rate otherwise payable hereunder for Base Rate Loans); provided, in the case of
Eurodollar Rate Loans, upon the expiration of the Interest Period in effect at the time any such
increase in interest rate is effective such Eurodollar Rate Loans shall thereupon become Base Rate
Loans and shall thereafter bear interest payable upon demand at a rate which is 2% per annum in
excess of the interest rate otherwise payable hereunder for Base Rate Loans. Payment or acceptance
of the increased rates of interest provided for in this Section 2.10 is not a permitted alternative
to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice
or limit any rights or remedies of Administrative Agent or any Lender.

     2.11. Fees.

               (a) Company agrees to pay to Lenders having Revolving Exposure:

          (i) commitment fees equal to (1) the average of the daily difference between (a) the
Revolving Commitments and (b) the Total Utilization of Revolving Commitments, times (2)
0.50% per annum; and

          (ii) letter of credit fees equal to (1) the Applicable Margin for Revolving Loans that
are Eurodollar Rate Loans, times (2) the average aggregate daily maximum

58

 

amount available to
be drawn under all such Revolving Letters of Credit (regardless of whether any conditions
for drawing could then be met and determined as of the close of business on any date of
determination).

All fees referred to in this Section 2.11(a) shall be paid to Administrative Agent at its Principal
Office and upon receipt, Administrative Agent shall promptly distribute to each Lender its Pro Rata
Share thereof.

               (b) Company agrees to pay to Administrative Agent for the ratable benefit of each
Lender having Funded Letter of Credit Exposure a fee in respect of such Lender’s Pro Rata
Share of the Credit Linked Deposits (the “Funded Letter of Credit Fee”), for the period
from and including the Effective Date to but excluding the date on which final payment is
made to such Lender pursuant to Section 2.4(i)(iv), computed at the per annum rate for
each date equal to (x) the Applicable Margin for Credit Linked Deposits then in effect for
Funded Letters of Credit times (y) the average daily amount of such Credit Linked Deposit.

               (c) Company agrees to pay directly to each Issuing Bank, for its own account, the
following fees:

          (i) a fronting fee equal to 0.25%, per annum, times the average aggregate daily maximum
amount available to be drawn under all Revolving Letters of Credit issued by such Issuing
Bank (determined as of the close of business on any date of determination);

          (ii) a fronting fee equal to 0.125%, per annum, times the average aggregate daily
maximum amount available to be drawn under all Funded Letters of Credit issued by such
Issuing Bank (determined as of the close of business on any date of determination); and

          (iii) such documentary and processing charges for any amendment, transfer or payment of
a Letter of Credit as are in accordance with such Issuing Bank’s standard schedule for such
charges and as in effect at the time of such issuance, amendment, transfer or payment, as
the case may be.

               (d) All fees referred to in Sections 2.11(a), (b) and (d) shall be paid to
Administrative Agent at its Principal Office and upon receipt, Administrative Agent shall
promptly distribute to each Lender its Pro Rata Share thereof.

               (e) All fees referred to in Sections 2.11(a), (b), (c) and (d) shall be calculated on
the basis of a 360 day year and the actual number of days elapsed and shall be payable
quarterly in arrears on the first Business Day of each April, July, October, and January 1
of each year during the Revolving Commitment Period or the Funded Letter of Credit
Commitment Period, as applicable, commencing on the first Business Day of April 2007.

               (f) In addition to any of the foregoing fees, Company agrees to pay to Agents such
other fees in the amounts and at the times separately agreed upon.

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     2.12. Scheduled Payments/Commitment Reductions.

               (a) Scheduled Installments. (i) The principal amounts of the Tranche D Term
Loans shall be repaid in consecutive quarterly installments (each, an “Installment”) on
the four quarterly scheduled Interest Payment Dates applicable to Term Loans (each, an
“Installment Date”), commencing on the first Business Day of April 2007, in a principal
amount equal to (x) the principal amount of Tranche D Term Loans outstanding on such
Installment Date multiplied by (y) the percentage set forth below opposite such
Installment Date:

	 	 	 
	Installment Date	 	Installments
	Each Installment Date prior to April 1, 2013
	 	0.25%
	 
	 	 
	Each Installment Date during the period commencing April 1,
2013 through the Term Loan Maturity Date
	 	23.5%

               (b) Amortization of New Term Loans. In the event any New Term Loans are
deemed made, such New Term Loans shall be repaid on each Installment Date occurring on or
after the date on which such New Term Loans are deemed made pursuant to Section 2.4(f) in
an amount equal to (i) the aggregate principal amount of such New Term Loans, times (ii)
the ratio (expressed as a percentage) of (y) the amount of all other Term Loans being
repaid on such date on which such New Term Loans are deemed made pursuant to Section
2.4(f) to (z) the total aggregate principal amount of all other Term Loans outstanding on
such deemed date of making of such New Term Loans.

Notwithstanding the foregoing, (x) such Installments shall be reduced in connection with any
voluntary or mandatory prepayments of the Term Loans, as the case may be, in accordance with
Sections 2.13, 2.14 and 2.15, as applicable; and (y) the Term Loans, together with all other
amounts owed hereunder with respect thereto, shall, in any event, be paid in full no later than the
Term Loan Maturity Date.

     2.13. Voluntary Prepayments/Commitment Reductions.

               (a) Voluntary Prepayments.

          (i) Any time and from time to time:

                    (1) with respect to Base Rate Loans or Eurodollar Rate Loans,
Company may prepay any such Loans on any Business Day in whole or in
part, in an aggregate minimum amount of $1,000,000 and integral
multiples of $1,000,000 in excess of that amount; and

60

 

                    (2) with respect to Swing Line Loans, Company may prepay any
such Loans on any Business Day in whole or in part in an aggregate
minimum amount of $100,000, and in integral multiples of $100,000 in
excess of that amount.

          (ii) All such prepayments shall be made:

                    (1) upon not less than one Business Day’s prior written or
telephonic notice in the case of Base Rate Loans;

                    (2) upon not less than three Business Days’ prior written or
telephonic notice in the case of Eurodollar Rate Loans; and

                    (3) upon written or telephonic notice on the date of
prepayment, in the case of Swing Line Loans;

in each case given to Administrative Agent or Swing Line Lender, as the case may be, by 12:00 p.m.
(New York City time) on the date required and, if given by telephone, promptly confirmed in writing
to Administrative Agent (and Administrative Agent will promptly notify each Lender) or Swing Line
Lender, as the case may be. Upon the giving of any such notice, the principal amount of the Loans
specified in such notice shall become due and payable on the prepayment date specified therein.
Any such voluntary prepayment shall be applied as specified in Section 2.15(a).

               (b) Voluntary Commitment Reductions.

          (i) Company may, upon not less than three Business Days’ prior written or telephonic
notice confirmed in writing to Administrative Agent (which original written or telephonic
notice Administrative Agent will promptly transmit by telefacsimile or telephone to each
applicable Lender), at any time and from time to time terminate in
whole or permanently reduce in part, without premium or penalty, the Revolving
Commitments in an amount up to the amount by which the Revolving Commitments exceed the
Total Utilization of Revolving Commitments at the time of such proposed termination or
reduction; provided, any such partial reduction of the Revolving Commitments shall
be in an aggregate minimum amount of $1,000,000 and integral multiples of $1,000,000 in
excess of that amount.

          (ii) Company’s notice to Administrative Agent shall designate the date (which shall be
a Business Day) of such termination or reduction and the amount of any partial reduction,
and such termination or reduction of the Revolving Commitments shall be effective on the
date specified in Company’s notice and shall reduce the Revolving Commitment of each Lender
proportionately to its Pro Rata Share thereof.

          (iii) Subject to the requirements of the Swap Agreement, upon at least one Business
Day’s prior written notice (or telephonic notice promptly confirmed in writing) to
Administrative Agent at Administrative Agent’s Principal Office (which

61

 

notice Administrative
Agent shall promptly notify to the Funded LC Issuing Bank and each of the Lenders), Company
shall have the right, without premium or penalty, on any day, permanently to reduce the
Credit Linked Deposits in whole or in part, provided that (i) any partial reduction
pursuant to this Section 2.13(b)(iii) shall be in an aggregate minimum amount of $1,000,000
and integral multiples of $1,000,000 in excess of that amount, and (ii) after giving effect
to such reduction and to any cancellation or cash collateralization (pursuant to Section
2.4(h) or otherwise) of Funded Letters of Credit made on the date thereof in accordance with
this Agreement, the aggregate amount of the Lenders’ Funded Letter of Credit Exposures shall
not exceed the Total Credit Linked Deposit. In the event the Credit Linked Deposits shall
be reduced as provided in the immediately preceding sentence, the Funded LC Issuing Bank
shall repurchase the Funded Letter of Credit Participation Interests in respect of such
reduced Credit Linked Deposits held by the Funded Letter of Credit Participants with the
Credit Linked Deposits held by such Funded LC Issuing Bank (such repurchase price to be
deposited by such Funded LC Issuing Bank with Administrative Agent) and Administrative Agent
shall repay such amount to the Funded Letter of Credit Participants ratably in accordance
with their Pro Rata Shares of the Total Credit Linked Deposit (as determined immediately
prior to such reduction).

     2.14. Mandatory Prepayments/Commitment Reductions.

               (a) Asset Sales. No later than the first Business Day following the date of
receipt by Holdings or any of its Subsidiaries of any Net Asset Sale Proceeds, Company
shall prepay the Loans in an aggregate amount equal to such Net Asset Sale Proceeds;
provided, so long as no Default or Event of Default shall have occurred and be
continuing, Company shall have the option, directly or through one or more of its
Subsidiaries, to invest Net Asset Sale Proceeds within twelve months of receipt thereof
(or within eighteen months of receipt if a binding agreement to reinvest is entered into
within twelve months of receipt) in long-term productive or other capital assets of the
general type used in the business of Company and its Subsidiaries (including for
Permitted Acquisitions); provided further, pending any such
investment all such Net Asset Sale Proceeds shall be applied to temporarily prepay
Revolving Loans to the extent outstanding (without a reduction in Revolving Commitments).

               (b) Insurance/Condemnation Proceeds. No later than the first Business Day
following the date of receipt by Holdings or any of its Subsidiaries, or Administrative
Agent as loss payee, of any Net Insurance/Condemnation Proceeds, Company shall prepay the
Loans in an aggregate amount equal to such Net Insurance/Condemnation Proceeds;
provided, so long as no Default or Event of Default shall have occurred and be
continuing, Company shall have the option, directly or through one or more of its
Subsidiaries to invest such Net Insurance/Condemnation Proceeds within twelve months of
receipt thereof (or within eighteen months of receipt if a binding agreement to reinvest
is entered into within twelve months of receipt) in long term productive or other capital
assets of the general type used in the business of Holdings and its Subsidiaries
(including for Permitted Acquisitions), which investment may include the repair,
restoration or replacement of the applicable assets thereof; provided
further, pending any such investment all such Net Insurance/Condemnation

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Proceeds,
as the case may be, shall be applied to temporarily prepay Revolving Loans to the extent
outstanding (without a reduction in Revolving Commitments).

               (c) Issuance of Debt. No later than the first Business Day following the
receipt by Holdings or any of its Subsidiaries of any Cash proceeds from the incurrence of
any Indebtedness of Holdings or any of its Subsidiaries (other than with respect to any
Indebtedness permitted to be incurred pursuant to Section 6.1), Company shall prepay the
Loans as set forth in Section 2.15(b) in an aggregate amount equal to 100% of such
proceeds, net of underwriting discounts and commissions and other reasonable costs and
expenses associated therewith, including reasonable legal fees and expenses.

               (d) Consolidated Excess Cash Flow. In the event that there shall be
Consolidated Excess Cash Flow for any Fiscal Year (commencing with Fiscal Year 2007),
Company shall, no later than ninety days after the end of such Fiscal Year, prepay the
Loans as set forth in Section 2.15(b) in an aggregate amount equal to 75% of such
Consolidated Excess Cash Flow less 100% of voluntary prepayments made during that
Fiscal Year pursuant to Section 2.13 (excluding repayments of Revolving Loans or Swing
Line Loans except to the extent the Revolving Commitments are permanently reduced in
connection with such repayment); provided, for any Fiscal Year (commencing with
Fiscal Year 2008) Company shall only be required to make the prepayments and/or reductions
otherwise required hereby in an amount equal to (i) 50% of such Consolidated Excess Cash
Flow if the Total Leverage Ratio as at the end of such Fiscal Year is less than 1.50:1.00
and (ii) 25% of such Consolidated Excess Cash Flow if the Total Leverage Ratio as at the
end of such Fiscal Year is less than 1.00:1.00, in each case less 100% of
voluntary prepayments made during that Fiscal Year pursuant to Section 2.13 (excluding
repayments of Revolving Loans or Swing Line Loans except to the extent the Revolving
Commitments are permanently reduced in connection with such repayment).

               (e) Issuance of Equity. No later than the first Business Day following the
receipt by any of Parent, Holdings or any of Subsidiary of Holdings of any Cash proceeds
from any IPO or secondary registered offering of any equity interests of Parent, Holdings
or any of Subsidiary of Holdings, Company shall prepay the Loans as set forth in Section
2.15(b) in an aggregate amount equal to 100% of such cash proceeds received for all such
offerings, net of underwriting discounts and commissions and other reasonable costs and
expenses associated therewith, including reasonable legal fees and expenses, until the
aggregate amount of such proceeds applied to repay the Term Loans pursuant to this Section
2.14(e) is equal to $280,000,000 (less the amount of all other prepayments pursuant to
Sections 2.13 and 2.14 made in connection with a Qualified IPO).

               (f) Revolving Loans and Swing Loans. Company shall from time to time prepay
first, the Swing Line Loans, and second, the Revolving Loans to the extent necessary so
that the Total Utilization of Revolving Commitments shall not at any time exceed the
Revolving Commitments then in effect.

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               (g) Prepayment Certificate. Concurrently with any prepayment of the Loans
and/or reduction of the Revolving Commitments pursuant to Sections 2.14(a) through
2.14(e), Company shall deliver to Administrative Agent a certificate of an Authorized
Officer demonstrating the calculation of the amount of the applicable net proceeds or
Consolidated Excess Cash Flow, as the case may be. In the event that Company shall
subsequently determine that the actual amount received exceeded the amount set forth in
such certificate, Company shall promptly make an additional prepayment of the Loans and
Company shall concurrently therewith deliver to Administrative Agent a certificate of an
Authorized Officer demonstrating the derivation of such excess.

               (h) Effective Date. Notwithstanding the foregoing, upon its receipt of the
proceeds of the Tranche D Term Loans, Company shall apply a portion of such proceeds
sufficient to (i) (A) prepay in full the Existing Tranche C Term Loans, (B) pay all
accrued and unpaid interest and fees, if any, on all Existing Tranche C Term Loans, and
(C) pay all other Obligations then due and owing to the Existing Lenders, in their
capacity as such, under the Existing Credit Agreement and (ii) (A) prepay in full the
Second Lien Term Loans, (B) pay all accrued and unpaid interest and fees, if any, on all
Second Lien Term Loans, and (C) pay all other Obligations then due and owing to the
Lenders (as defined in the Second Lien Credit Agreement), in their capacity as such, under
the Second Lien Credit Agreement.

     2.15. Application of Prepayments/Reductions.

               (a) Application of Voluntary Prepayments by Type of Loans. Any prepayment of
any Loan pursuant to Section 2.13(a) shall be applied as specified by Company in the
applicable notice of prepayment; provided, in the event Company fails to specify
the Loans to which any such prepayment shall be applied, such prepayment shall be applied
as follows:

          first, to repay outstanding Swing Line Loans (without reducing the Revolving
Commitments or Swing Line Sublimit) to the full extent thereof;

          second, to repay outstanding Revolving Loans (without reducing the Revolving
Commitments) to the full extent thereof; and

          third, to prepay the Term Loans on a pro rata basis (in accordance with the respective
outstanding principal amounts thereof).

          Any prepayment of any Term Loans pursuant to Section 2.13(a) shall be further applied
to scheduled Installments of such Term Loans within the twelve months following such
prepayments and thereafter on a pro rata basis to reduce the scheduled remaining
Installments of principal on such Term Loan.

               (b) Application of Mandatory Prepayments by Type of Loans. Any amount
required to be paid pursuant to Sections 2.14(a) through 2.14(e) shall be applied as
follows:

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          first, to prepay Term Loans on a pro rata basis and further applied to scheduled
Installments of such Term Loans within the twelve months following such prepayments and
thereafter on a pro rata basis to the remaining scheduled Installments of principal;

          second, to prepay the Swing Line Loans to the full extent thereof and to permanently
reduce the Revolving Commitments by the amount of such prepayment;

          third, to prepay the Revolving Loans to the full extent thereof;

          fourth, to prepay outstanding reimbursement obligations with respect to Revolving
Letters of Credit and Funded Letters of Credit on a pro rata basis; and

          fifth, to cash collateralize Revolving Letters of Credit and Funded Letters of Credit
on a pro rata basis.

               (c) Application of Prepayments of Loans to Base Rate Loans and Eurodollar Rate
Loans. Considering each Class of Loans being prepaid separately, any prepayment
thereof shall be applied first to Base Rate Loans to the full extent thereof before
application to Eurodollar Rate Loans, in each case in a manner which minimizes the amount
of any payments required to be made by Company pursuant to Section 2.18(c).

     2.16. General Provisions Regarding Payments.

               (a) All payments by Company of principal, interest, fees and other Obligations shall
be made in Dollars in same day funds, without defense, setoff or counterclaim, free of any
restriction or condition, and delivered to Administrative Agent not later than 12:00 p.m.
(New York City time) on the date due at the Principal
Office designated by Administrative Agent for the account of Lenders; for purposes of
computing interest and fees, funds received by Administrative Agent after that time on
such due date shall be deemed to have been paid by Company on the next succeeding Business
Day.

               (b) All payments in respect of the principal amount of any Loan (other than voluntary
prepayments of Revolving Loans) shall be accompanied by payment of accrued interest on the
principal amount being repaid or prepaid without premium or penalty subject to Section
2.18(c).

               (c) Administrative Agent (or its agent or sub-agent appointed by it) shall promptly
distribute to each Lender at such address as such Lender shall indicate in writing, such
Lender’s applicable Pro Rata Share of all payments and prepayments of principal and
interest due hereunder, together with all other amounts due thereto, including, without
limitation, all fees payable with respect thereto, to the extent received by
Administrative Agent.

               (d) Notwithstanding the foregoing provisions hereof, if any Conversion/Continuation
Notice is withdrawn as to any Affected Lender or if any Affected

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Lender makes Base Rate
Loans in lieu of its Pro Rata Share of any Eurodollar Rate Loans, Administrative Agent
shall give effect thereto in apportioning payments received thereafter.

               (e) Subject to the provisos set forth in the definition of “Interest Period” as they
may apply to Revolving Loans, and otherwise provided herein, whenever any payment to be
made hereunder with respect to any Loan shall be stated to be due on a day that is not a
Business Day, such payment shall be made on the next succeeding Business Day and, with
respect to Revolving Loans only, such extension of time shall be included in the
computation of the payment of interest hereunder or of the Revolving Commitment fees
hereunder.

               (f) Company hereby authorizes Administrative Agent to charge Company’s accounts with
Administrative Agent in order to cause timely payment to be made to Administrative Agent
of all principal, interest, fees and expenses due hereunder (subject to sufficient funds
being available in its accounts for that purpose).

               (g) Administrative Agent shall deem any payment by or on behalf of Company hereunder
that is not made in same day funds prior to 12:00 p.m. (New York City time) to be a
non-conforming payment. Any such payment shall not be deemed to have been received by
Administrative Agent until the later of (i) the time such funds become available funds,
and (ii) the applicable next Business Day. Administrative Agent shall give prompt
telephonic notice to Company and each applicable Lender (confirmed in writing) if any
payment is non-conforming. Any non-conforming payment may constitute or become a Default
or Event of Default in accordance with the terms of Section 8.1(a). Interest shall
continue to accrue on any principal as to which a non-conforming payment is made until
such funds become available funds (but in no event less than the period from the date of
such payment to the next succeeding
applicable Business Day) at the rate determined pursuant to Section 2.10 from the
date such amount was due and payable until the date such amount is paid in full.

               (h) If an Event of Default shall have occurred and not otherwise been waived, and
the maturity of the Obligations shall have been accelerated pursuant to Section 8.1, all
payments or proceeds received by Agents hereunder in respect of any of the Obligations,
shall be applied in accordance with the application arrangements described in Section 7.2
of the Pledge and Security Agreement.

     2.17. Ratable Sharing. Lenders hereby agree among themselves that, except as otherwise
provided in the Collateral Documents with respect to amounts realized from the exercise of rights
with respect to Liens on the Collateral, if any of them shall, whether by voluntary payment (other
than a voluntary prepayment of Loans made and applied in accordance with the terms hereof), through
the exercise of any right of set-off or banker’s lien, by counterclaim or cross action or by the
enforcement of any right under the Credit Documents or otherwise, or as adequate protection of a
deposit treated as cash collateral under the Bankruptcy Code, receive payment or reduction of a
proportion of the aggregate amount of principal, interest, amounts payable in respect of Letters of
Credit, fees and other amounts then due and owing to such Lender hereunder or under the other
Credit Documents (collectively, the

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“Aggregate Amounts Due” to such Lender) which is greater than
the proportion received by any other Lender in respect of the Aggregate Amounts Due to such other
Lender, then the Lender receiving such proportionately greater payment shall (a) notify
Administrative Agent and each other Lender of the receipt of such payment and (b) apply a portion
of such payment to purchase participations (which it shall be deemed to have purchased from each
seller of a participation simultaneously upon the receipt by such seller of its portion of such
payment) in the Aggregate Amounts Due to the other Lenders so that all such recoveries of Aggregate
Amounts Due shall be shared by all Lenders in proportion to the Aggregate Amounts Due to them;
provided, if all or part of such proportionately greater payment received by such
purchasing Lender is thereafter recovered from such Lender upon the bankruptcy or reorganization of
Company or otherwise, those purchases shall be rescinded and the purchase prices paid for such
participations shall be returned to such purchasing Lender ratably to the extent of such recovery,
but without interest. Company expressly consents to the foregoing arrangement and agrees that any
holder of a participation so purchased may exercise any and all rights of banker’s lien, set-off or
counterclaim with respect to any and all monies owing by Company to that holder with respect
thereto as fully as if that holder were owed the amount of the participation held by that holder.

     2.18. Making or Maintaining Eurodollar Rate Loans.

          (a) Inability to Determine Applicable Interest Rate. In the event that
Administrative Agent shall have determined (which determination shall be final and
conclusive and binding upon all parties hereto absent manifest error), on any Interest
Rate Determination Date with respect to any Eurodollar Rate Loans, that by reason of
circumstances affecting the London interbank market adequate and reasonable means do not
exist for ascertaining the interest rate applicable to such Loans on the basis provided
for in the definition of Adjusted Eurodollar Rate, Administrative Agent shall
on such date give notice (by telefacsimile or by telephone confirmed in writing) to
Company and each Lender of such determination, whereupon (i) no Loans may be made as, or
converted to, Eurodollar Rate Loans until such time as Administrative Agent notifies
Company and Lenders that the circumstances giving rise to such notice no longer exist, and
(ii) any Funding Notice or Conversion/Continuation Notice given by Company with respect to
the Loans in respect of which such determination was made shall be deemed to be rescinded
by Company.

          (b) Illegality or Impracticability of Eurodollar Rate Loans. In the event
that on any date any Lender shall have reasonably determined (which determination shall be
final and conclusive and binding upon all parties hereto but shall be made only after
consultation with Company and Administrative Agent) that the making, maintaining or
continuation of its Eurodollar Rate Loans (i) has become unlawful as a result of
compliance by such Lender in good faith with any law, treaty, governmental rule,
regulation, guideline or order (or would conflict with any such treaty, governmental rule,
regulation, guideline or order not having the force of law even though the failure to
comply therewith would not be unlawful), or (ii) has become impracticable, as a result of
contingencies occurring after the Effective Date which materially and adversely affect the
London interbank market or the position of such Lender in that market, then, and in any
such event, such Lender shall be an “Affected

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Lender” and it shall on that day give notice
(by telefacsimile or by telephone confirmed in writing) to Company and Administrative
Agent of such determination (which notice Administrative Agent shall promptly transmit to
each other Lender). Thereafter (1) the obligation of the Affected Lender to make Loans
as, or to convert Loans to, Eurodollar Rate Loans shall be suspended until such notice
shall be withdrawn by the Affected Lender, (2) to the extent such determination by the
Affected Lender relates to a Eurodollar Rate Loan then being requested by Company pursuant
to a Funding Notice or a Conversion/Continuation Notice, the Affected Lender shall make
such Loan as (or continue such Loan as or convert such Loan to, as the case may be) a Base
Rate Loan, (3) the Affected Lender’s obligation to maintain its outstanding Eurodollar
Rate Loans (the “Affected Loans”) shall be terminated at the earlier to occur of the
expiration of the Interest Period then in effect with respect to the Affected Loans or
when required by law, and (4) the Affected Loans shall automatically convert into Base
Rate Loans on the date of such termination. Notwithstanding the foregoing, to the extent
a determination by an Affected Lender as described above relates to a Eurodollar Rate Loan
then being requested by Company pursuant to a Funding Notice or a Conversion/Continuation
Notice, Company shall have the option, subject to the provisions of Section 2.18(c), to
rescind such Funding Notice or Conversion/Continuation Notice as to all Lenders by giving
notice (by telefacsimile or by telephone confirmed in writing) to Administrative Agent of
such rescission on the date on which the Affected Lender gives notice of its determination
as described above (which notice of rescission Administrative Agent shall promptly
transmit to each other Lender). Except as provided in the immediately preceding sentence,
nothing in this Section 2.18(b) shall affect the obligation of any Lender other than an
Affected Lender to make or maintain Loans as, or to convert Loans to, Eurodollar Rate
Loans in accordance with the terms hereof.

          (c) Compensation for Breakage or Non-Commencement of Interest Periods.
Company shall compensate each Lender and the Funded LC Issuing Bank, upon written request
by such Lender or such Funded LC Issuing Bank, as applicable (which request shall set
forth the basis for requesting such amounts), for all reasonable losses, expenses and
liabilities (including any interest paid by such Lender to lenders of funds borrowed by it
to make or carry its Eurodollar Rate Loans or make its Credit Linked Deposits and any
loss, expense or liability sustained by such Lender in connection with the liquidation or
re-employment of such funds but excluding loss of anticipated profits) which such Lender
or such Funded LC Issuing Bank may sustain: (i) if for any reason (other than a default by
such Lender) a borrowing of any Eurodollar Rate Loan does not occur on a date specified
therefor in a Funding Notice or a telephonic request for borrowing, or a conversion to or
continuation of any Eurodollar Rate Loan does not occur on a date specified therefor in a
Conversion/Continuation Notice or a telephonic request for conversion or continuation;
(ii) if any prepayment or other principal payment of, or any conversion of, any of its
Eurodollar Rate Loans occurs on a date prior to the last day of an Interest Period
applicable to that Loan; (iii) if any prepayment of any of its Eurodollar Rate Loans is
not made on any date specified in a notice of prepayment given by Company; (iv) if any
Credit Linked Deposit is reduced prior to the last day of the Interest Period applicable
thereto (including as a result of an Event of Default) or any Credit Linked Deposit is not
reduced on the date

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specified in any notice delivered pursuant hereto; or (v) if any
Credit Linked Deposit held by such Funded LC Issuing Bank is reduced in order to reimburse
such Funded LC Issuing Bank pursuant to Sections 2.4(f) or 2.4(h); provided,
Company shall not be obligated to compensate any Lender or Funded LC Issuing Bank for any
such losses, expenses or liabilities attributable to any such circumstance occurring prior
to the date that is 90 days prior to the date on which such Lender or Funded LC Issuing
Bank requested such compensation from Company.

          (d) Booking of Eurodollar Rate Loans. Any Lender may make, carry or transfer
Eurodollar Rate Loans at, to, or for the account of any of its branch offices or the
office of an Affiliate of such Lender.

          (e) Assumptions Concerning Funding of Eurodollar Rate Loans. Calculation of
all amounts payable to a Lender under this Section 2.18, Section 2.19 and Section 2.20
shall be made as though such Lender had actually funded each of its relevant Eurodollar
Rate Loans through the purchase of a Eurodollar deposit bearing interest at the rate
obtained pursuant to clause (i) of the definition of Adjusted Eurodollar Rate in an amount
equal to the amount of such Eurodollar Rate Loan and having a maturity comparable to the
relevant Interest Period and through the transfer of such Eurodollar deposit from an
offshore office of such Lender to a domestic office of such Lender in the United States of
America; provided, however, each Lender may fund each of its Eurodollar
Rate Loans in any manner it sees fit and the foregoing assumptions shall be utilized only
for the purposes of calculating amounts payable under this Section 2.18, Section 2.19 and
Section 2.20.

     2.19. Increased Costs; Capital Adequacy.

          (a) Compensation For Increased Costs. Subject to the provisions of Section
2.20 (which shall be controlling with respect to the matters covered thereby), in the
event that any Lender (which term shall include each Issuing Bank for purposes of this
Section 2.19(a)) shall determine (which determination shall, absent manifest error, be
final and conclusive and binding upon all parties hereto) that any law, treaty or
governmental rule, regulation or order, or any change therein or in the interpretation,
administration or application thereof (including the introduction of any new law, treaty
or governmental rule, regulation or order), or any determination of a court or
governmental authority, in each case that is issued and becomes effective after the
Effective Date, or compliance by such Lender with any guideline, request or directive
issued or made after the Effective Date by any central bank or other governmental or
quasi-governmental authority (whether or not having the force of law): (i) subjects such
Lender (or its applicable lending office) to any additional stamp or documentary tax or
any other excise taxes or similar charges or levies with respect to this Agreement or any
of the other Credit Documents or any of its obligations hereunder or thereunder or any
payments to such Lender (or its applicable lending office) of principal, interest, fees or
any other amount payable hereunder; (ii) imposes, modifies or holds applicable any reserve
(including any marginal, emergency, supplemental, special or other reserve), special
deposit, compulsory loan, FDIC insurance or similar requirement against assets held by, or
deposits or other liabilities in or for the account of, or advances or loans by,

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or other
credit extended by, or any other acquisition of funds by, any office of such Lender (other
than any such reserve or other requirements with respect to Eurodollar Rate Loans or
Credit Linked Deposits that are reflected in the definition of Adjusted Eurodollar Rate);
or (iii) imposes any other condition (other than with respect to a Tax matter) on or
affecting such Lender (or its applicable lending office) or its obligations hereunder or
the London interbank market; and the result of any of the foregoing is to increase the
cost to such Lender of agreeing to make, making or maintaining Loans or Credit Linked
Deposits hereunder or to reduce any amount received or receivable by such Lender (or its
applicable lending office) with respect thereto; then, in any such case, Company shall
promptly pay to such Lender, upon receipt of the statement referred to in the next
sentence, such additional amount or amounts (in the form of an increased rate of, or a
different method of calculating, interest or otherwise as such Lender in its sole
discretion shall determine) as may be necessary to compensate such Lender for any such
increased cost or reduction in amounts received or receivable hereunder. Such Lender
shall deliver to Company (with a copy to Administrative Agent) a written statement,
setting forth in reasonable detail the basis for calculating the additional amounts owed
to such Lender under this Section 2.19(a), which statement shall be conclusive and binding
upon all parties hereto absent manifest error.

          (b) Capital Adequacy Adjustment. In the event that any Lender (which term
shall include each Issuing Bank for purposes of this Section 2.19(b)) shall have
determined that the adoption, effectiveness, phase-in or applicability after the Effective
Date of any law, rule or regulation (or any provision thereof) regarding capital adequacy,
or any change therein or in the interpretation or administration thereof by any
Governmental Authority, central bank or comparable agency charged with the interpretation
or administration thereof, or compliance by any Lender (or its applicable lending office)
with any guideline, request or directive regarding capital adequacy
(whether or not having the force of law) of any such Governmental Authority, central
bank or comparable agency, has or would have the effect of reducing the rate of return on
the capital of such Lender or any corporation controlling such Lender as a consequence of,
or with reference to, such Lender’s Loans or Revolving Commitments, Letters of Credit or
Credit Linked Deposits, or participations therein or other obligations hereunder with
respect to the Loans or the Letters of Credit to a level below that which such Lender or
such controlling corporation could have achieved but for such adoption, effectiveness,
phase-in, applicability, change or compliance (taking into consideration the policies of
such Lender or such controlling corporation with regard to capital adequacy), then from
time to time, within five Business Days after receipt by Company from such Lender of the
statement referred to in the next sentence, Company shall pay to such Lender such
additional amount or amounts as will compensate such Lender or such controlling
corporation on an after-tax basis for such reduction. Such Lender shall deliver to Company
(with a copy to Administrative Agent) a written statement, setting forth in reasonable
detail the basis for calculating the additional amounts owed to Lender under this Section
2.19(b), which statement shall be conclusive and binding upon all parties hereto absent
manifest error.

     2.20. Taxes; Withholding, etc.

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          (a) Payments to Be Free and Clear. All sums payable by any Credit Party
hereunder and under the other Credit Documents shall (except to the extent required by
law) be paid free and clear of, and without any deduction or withholding on account of,
any Tax imposed, levied, collected, withheld or assessed by or within the United States of
America or any political subdivision in or of the United States of America or any other
jurisdiction from or to which a payment is made by or on behalf of any Credit Party or by
any federation or organization of which the United States of America or any such
jurisdiction is a member at the time of payment.

          (b) Withholding of Taxes. If any Credit Party or any other Person is
required by law to make any deduction or withholding on account of any Tax imposed by the
United States of America or any political subdivision thereof (which Tax shall (i) exclude
any tax imposed by a Governmental Authority as a result of a connection or former
connection between such Lender or Administrative Agent (as the case may be) and the
jurisdiction imposing such Tax, including without limitation, any connection arising from
being a citizen, domiciliary or resident of such jurisdiction, being organized in such
jurisdiction, or having a permanent establishment or fixed place of business therein, but
excluding any connection arising solely from the rights and obligations as a Lender, or
the activities of such Lender, pursuant to or in respect of this Agreement or the Credit
Documents, and (ii) include any tax (other than a net income tax) imposed both as a result
of a connection between a Lender or Administrative Agent (as the case may be) and the
jurisdiction imposing such tax and as a result of a connection between the Company and the
jurisdiction imposing such tax) from any sum paid or payable by any Credit Party to
Administrative Agent or any Lender (which term shall include each Issuing Bank for
purposes of this Section 2.20(b)) under any of the Credit Documents: (i) Company shall
notify Administrative Agent of any such
requirement or any change in any such requirement as soon as Company becomes aware of
it; (ii) Company shall pay any such Tax before the date on which penalties attach thereto,
such payment to be made (if the liability to pay is imposed on any Credit Party) for its
own account or (if that liability is imposed on Administrative Agent or such Lender, as
the case may be) on behalf of and in the name of Administrative Agent or such Lender;
(iii) the sum payable by such Credit Party in respect of which the relevant deduction,
withholding or payment is required shall be increased to the extent necessary to ensure
that, after the making of that deduction, withholding or payment, Administrative Agent or
such Lender, as the case may be, receives on the due date a net sum equal to what it would
have received had no such deduction, withholding or payment been required or made after
deduction for all Taxes not indemnified hereunder and for which additional amounts are not
payable hereunder; and (iv) within thirty days after paying any sum from which it is
required by law to make any deduction or withholding, and within thirty days after the due
date of payment of any Tax which it is required by clause (ii) above to pay, Company shall
deliver to Administrative Agent evidence satisfactory to the other affected parties of
such deduction, withholding or payment and of the remittance thereof to the relevant
taxing or other authority; provided, no such additional amount shall be required to be
paid under clause (ii) or (iii) above except to the extent that the deduction, withholding
or payment in respect of which such additional amount is required to be paid results from
a change in any applicable law, treaty or governmental rule, regulation or order, or any
change in the

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interpretation, administration or application thereof, after the Effective
Date (in the case of each Lender listed on the signature pages hereof on the Effective
Date) or after the effective date of the Assignment Agreement pursuant to which such
Lender became a Lender (in the case of each other Lender) relating to such requirement for
a deduction, withholding or payment (or the rate thereof) from that in effect at the
Effective Date or at the date of such Assignment Agreement, as the case may be, in respect
of payments to such Lender, except to the extent that such Lender’s assignor (if any) was
entitled, at the time of assignment, to receive additional amounts from Company with
respect to Taxes pursuant to this Section 2.20.

          (c) Evidence of Exemption From U.S. Withholding Tax. Each Lender (or other
Person beneficially entitled to receive payments under the Credit Documents) that is not a
United States Person (as such term is defined in Section 7701(a)(30) of the Internal
Revenue Code) for U.S. federal income tax purposes (a “Non-US Lender”) shall deliver to
Administrative Agent for transmission to Company, on or prior to the Effective Date (in
the case of each Lender party hereto on the Effective Date) or on or prior to the date of
the Assignment Agreement pursuant to which it becomes a Lender (in the case of each other
Lender), and at such other times as may be necessary in the determination of Company or
Administrative Agent (each in the reasonable exercise of its discretion), (i) two original
copies of Internal Revenue Service Form W-8ECI (or any successor forms) or, if such Lender
or other Person is unable to deliver such forms, two original copies of Internal Revenue
Service Form W-8BEN (or any successor forms), properly completed and duly executed by such
Lender (or, in the case of a pass-through entity, each of its beneficial owners), and such
other documentation required under the Internal Revenue Code or reasonably requested in
writing by Company to establish that such Lender (or, in the case of a pass-through
entity, each of its beneficial
owners) is not subject to (or is subject to a reduced rate of) deduction or
withholding of United States federal income tax with respect to any payments to such
Lender of principal, interest, fees or other amounts payable under any of the Credit
Documents, or (ii) if such Lender is not a “bank” or other Person described in Section
881(c)(3) of the Internal Revenue Code and cannot comply with clause (i) above, a
Certificate re Non-Bank Status together with two original copies of Internal Revenue
Service Form W-8BEN (or any successor form), properly completed and duly executed by such
Lender (or, in the case of a pass-through entity, each of its beneficial owners), and such
other documentation required under the Internal Revenue Code or reasonably requested by
Company to establish that such Lender is not subject to deduction or withholding of United
States federal income tax with respect to any payments to such Lender of interest payable
under any of the Credit Documents. Each Lender making a Loan to Company that is a United
States person (as such term is defined in Section 7701(a)(30) of the Internal Revenue
Code) and is not a person whose name indicates that it is an “exempt recipient” (as such
term is defined in Section 1.6049-4(c)(ii) of the United States Treasury Regulations)
shall deliver to Company on or prior to the Effective Date (in the case of each Lender
party hereto on the Effective Date) or on or prior to the date of the Assignment Agreement
pursuant to which it becomes a Lender (in the case of each other Lender), and at such
other times as may be necessary in the determination of Company (in the reasonable
exercise of its discretion) two original copies of Form W-9 (or successor forms).
Notwithstanding anything to the contrary, each Lender shall not

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be obligated to submit any
form that such Lender is legally not eligible to deliver; provided,
however, that each such Lender shall notify Company in writing of such
ineligibility. Each Lender required to deliver any forms, certificates or other evidence
with respect to United States federal income tax withholding matters pursuant to this
Section 2.20(c) hereby agrees, from time to time after the initial delivery by such Lender
of such forms, certificates or other evidence, whenever a lapse in time or change in
circumstances renders such forms, certificates or other evidence obsolete or inaccurate in
any material respect, that such Lender shall promptly deliver to Administrative Agent for
transmission to Company two new original copies of Internal Revenue Service Form W-9,
W-8BEN or W-8ECI, or a Certificate re Non-Bank Status and two original copies of Internal
Revenue Service Form W-8BEN (or any successor form), as the case may be, properly
completed and duly executed by such Lender (or, in the case of a pass-through entity, each
of its beneficial owners), and such other documentation required under the Internal
Revenue Code or reasonably requested by Company to confirm or establish that such Lender
(or, in the case of a pass-through entity, each of its beneficial owners) is not subject
to (or is subject to a reduced rate of) deduction or withholding of United States federal
income tax with respect to payments to such Lender under the Credit Documents, or notify
Administrative Agent and Company of its inability to deliver any such forms, certificates
or other evidence. Company shall not be required to pay any additional amount with
respect to any Lender under Section 2.20(b)(ii) or (iii) if such Lender is eligible to,
but shall have failed to deliver the forms, certificates or other evidence referred to in
this Section 2.20(c); provided, if such Lender shall have satisfied the requirements of
the first sentence of this Section 2.20(c) on the Effective Date or on the date of the
Assignment Agreement pursuant to which it became a Lender, as applicable, nothing in this
last sentence of
Section 2.20(c) shall relieve Company of its obligation to pay any additional amounts
pursuant this Section 2.20 in the event that, as a result of any change in any applicable
law, treaty or governmental rule, regulation or order, or any change in the
interpretation, administration or application thereof, such Lender is no longer properly
entitled to deliver forms, certificates or other evidence at a subsequent date
establishing the fact that such Lender is not subject to withholding as described herein
to the extent of any withholding or deduction that cannot be avoided by submission of
forms similar to those described in this Section 2.20(c).

          (d) If any Lender determines, in its reasonable discretion, that it has received a
refund of any Taxes as to which it has been indemnified by Company or with respect to
which Company has paid additional amounts pursuant to Section 2.19 or Section 2.20, it
shall promptly pay over such refund to Company (but only to the extent of indemnity
payments made, or additional amounts paid, by Company under Section 2.19 or Section 2.20
with respect to Taxes giving rise to such refund), net of all out-of-pocket expenses such
Lender and without interest (other than any interest paid by the relevant taxing
jurisdiction with respect to such refund); provided, that Company, upon the request of
such Lender, agrees to repay the amount paid over Company (plus any penalties, interest or
other charges imposed by the relevant taxing jurisdiction) to such Lender in the event
such Lender is required to repay such refund to such taxing jurisdiction.

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     2.21. Obligation to Mitigate. Each Lender (which term shall include each Issuing Bank for
purposes of this Section 2.21) agrees that, as promptly as practicable after the officer of such
Lender responsible for administering its Loans or Letters of Credit, as the case may be, becomes
aware of the occurrence of an event or the existence of a condition that would cause such Lender to
become an Affected Lender or that would entitle such Lender to receive payments under Section 2.18,
2.19 or 2.20, it will, to the extent not inconsistent with the internal policies of such Lender and
any applicable legal or regulatory restrictions, use reasonable efforts to (a) make, issue, fund or
maintain its Credit Extensions, including any Affected Loans, through another office of such
Lender, or (b) take such other measures as such Lender may deem reasonable, if as a result thereof
the circumstances which would cause such Lender to be an Affected Lender would cease to exist or
the additional amounts which would otherwise be required to be paid to such Lender pursuant to
Section 2.18, 2.19 or 2.20 would be materially reduced and if, as determined by such Lender in its
reasonable discretion, the making, issuing, funding or maintaining of such Revolving Commitments,
Loans or Letters of Credit through such other office or in accordance with such other measures, as
the case may be, would not otherwise adversely affect such Revolving Commitments, Loans or Letters
of Credit or the interests of such Lender; provided, such Lender will not be obligated to
utilize such other office pursuant to this Section 2.21 unless Company agrees to pay all
incremental expenses incurred by such Lender as a result of utilizing such other office as
described in clause (i) above. A certificate as to the amount of any such expenses payable by
Company pursuant to this Section 2.21 (setting forth in reasonable detail the basis for requesting
such amount) submitted by such Lender to Company (with a copy to Administrative Agent) shall be
conclusive absent manifest error.

     2.22. Defaulting Lenders. Anything contained herein to the contrary notwithstanding, in the event that any Lender,
other than at the direction or request of any regulatory agency or authority, defaults (a
“Defaulting Lender”) in its obligation to fund (a “Funding Default”) any Revolving Loan or its
portion of any unreimbursed payment under Section 2.3(b)(iv) or 2.4(e) or to fund its Credit Linked
Deposit (in each case, a “Defaulted Loan”), then (a) during any Default Period with respect to such
Defaulting Lender, such Defaulting Lender shall be deemed not to be a “Lender” for purposes of
voting on any matters (including the granting of any consents or waivers) with respect to any of
the Credit Documents; (b) to the extent permitted by applicable law, until such time as the Default
Excess with respect to such Defaulting Lender shall have been reduced to zero, (i) any voluntary
prepayment of the Revolving Loans shall, if Company so directs at the time of making such voluntary
prepayment, be applied to the Revolving Loans of other Lenders as if such Defaulting Lender had no
Revolving Loans outstanding and the Revolving Exposure of such Defaulting Lender were zero, and
(ii) any mandatory prepayment of the Revolving Loans shall, if Company so directs at the time of
making such mandatory prepayment, be applied to the Revolving Loans of other Lenders (but not to
the Revolving Loans of such Defaulting Lender) as if such Defaulting Lender had funded all
Defaulted Loans of such Defaulting Lender, it being understood and agreed that Company shall be
entitled to retain any portion of any mandatory prepayment of the Revolving Loans that is not paid
to such Defaulting Lender solely as a result of the operation of the provisions of this clause (b);
(c)(i) such Defaulting Lender’s Revolving Commitment and outstanding Revolving Loans and such
Defaulting Lender’s Pro Rata Share of the Revolving Letter of Credit Usage shall be excluded for
purposes of calculating the Revolving Commitment fee payable to Lenders in respect of any day
during any Default Period with respect to such Defaulting Lender, and such

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Defaulting Lender shall
not be entitled to receive any Revolving Commitment fee pursuant to Section 2.11 with respect to
such Defaulting Lender’s Revolving Commitment in respect of any Default Period with respect to such
Defaulting Lender and (ii) such
Defaulting Lender shall not be entitled to receive any Funded
Letter of Credit Fees pursuant to Section 2.11 with respect to such Lenders’ Credit Linked Deposit
in respect of any Default Period with respect to such Defaulting Lender; and (d) the Total
Utilization of Revolving Commitments as at any date of determination shall be calculated as if such
Defaulting Lender had funded all Defaulted Loans of such Defaulting Lender. No Revolving
Commitment or Credit Linked Deposit of any Lender shall be increased or otherwise affected, and,
except as otherwise expressly provided in this Section 2.22, performance by Company of its
obligations hereunder and the other Credit Documents shall not be excused or otherwise modified as
a result of any Funding Default or the operation of this Section 2.22. The rights and remedies
against a Defaulting Lender under this Section 2.22 are in addition to other rights and remedies
which Company may have against such Defaulting Lender with respect to any Funding Default and which
Administrative Agent or any Lender may have against such Defaulting Lender with respect to any
Funding Default.

     2.23. Removal or Replacement of a Lender. Anything contained herein to the contrary
notwithstanding, in the event that: (a) (i) any Lender (an “Increased-Cost Lender”) shall give
notice to Company that such Lender is an Affected Lender or that such Lender is entitled to receive
payments under Section 2.18, 2.19 or 2.20, (ii) the circumstances which have caused such Lender to
be an Affected Lender or which entitle such Lender to receive such payments shall remain in effect,
and (iii) such Lender shall fail to withdraw such notice within five Business Days after Company’s
request for such withdrawal; or (b) (i) any Lender shall become a Defaulting Lender, (ii) the
Default Period for
such Defaulting Lender shall remain in effect, and (iii) such Defaulting Lender shall fail to
cure the default as a result of which it has become a Defaulting Lender within five Business Days
after Company’s request that it cure such default; or (c) in connection with any proposed
amendment, modification, termination, waiver or consent with respect to any of the provisions
hereof as contemplated by Section 10.5(b), the consent of Requisite Lenders shall have been
obtained but the consent of one or more of such other Lenders (each a “Non-Consenting Lender”)
whose consent is required shall not have been obtained; then, with respect to each such
Increased-Cost Lender, Defaulting Lender or Non-Consenting Lender (the “Terminated Lender”),
Company may, by giving written notice to Administrative Agent and any Terminated Lender of its
election to do so, elect to cause such Terminated Lender (and such Terminated Lender hereby
irrevocably agrees) to assign its outstanding Loans and its Tranche D Term Loan Commitments,
Revolving Commitments and Credit Linked Deposits, if any, in full to one or more Eligible Assignees
(each a “Replacement Lender”) in accordance with the provisions of Section 10.6 and Terminated
Lender shall pay any fees payable thereunder in connection with such assignment; provided,
(1) on the date of such assignment, the Replacement Lender shall pay to the Terminated Lender an
amount equal to the sum of (A) an amount equal to the principal of, and all accrued interest on,
all outstanding Loans and Credit Linked Deposits of the Terminated Lender, (B) an amount equal to
all unreimbursed drawings that have been funded by such Terminated Lender, together with all then
unpaid interest with respect thereto at such time and (C) an amount equal to all accrued, but
theretofore unpaid fees owing to such Terminated Lender pursuant to Section 2.11; (2) on the date
of such assignment, Company shall pay any amounts payable to such Terminated Lender pursuant to
Section 2.18(c), 2.19 or 2.20 or otherwise as if it were a prepayment; and (3) in the event such
Terminated Lender is a Non-Consenting Lender, each Replacement Lender shall

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consent, at the time of
such assignment, to each matter in respect of which such Terminated Lender was a Non-Consenting
Lender; provided, Company may not make such election with respect to any Terminated Lender
that is also an Issuing Bank unless, prior to the effectiveness of such election, Company shall
have caused each outstanding Letter of Credit issued thereby to be cancelled or cash
collateralized. Upon the prepayment of all amounts owing to any Terminated Lender and the
termination of such Terminated Lender’s Tranche D Term Loan Commitments, Revolving Commitments and
Credit Linked Deposits, if any, such Terminated Lender shall no longer constitute a “Lender” for
purposes hereof; provided, any rights of such Terminated Lender to indemnification
hereunder shall survive as to such Terminated Lender.

SECTION 3. CONDITIONS PRECEDENT

     3.1. Effective Date. The obligation of any Lender to make a Credit Extension on the Effective
Date is subject to the satisfaction, or waiver in accordance with Section 10.5, of the following
conditions on or before the Effective Date; provided, however, that if the
conditions set forth in clauses (i), (j) (other than with respect to the filing of UCC financing
statements and delivery of required stock certificates) and (m) of this Section 3.1, are not
satisfied or waived on such date after Company has used commercially reasonable best efforts to do
so, such conditions (assuming all other conditions set forth in this Section 3.1 have been
satisfied or waived on such date) automatically be converted into covenants to accomplish the
satisfaction of the applicable
matters described in such conditions as soon as is reasonably practicable but in any event
within 60 days after the Effective Date:

          (a) Credit Documents. Administrative Agent shall have received sufficient
copies of each Credit Document executed and delivered by each applicable Credit Party for
each Lender.

          (b) Organizational Documents; Incumbency. Administrative Agent shall have
received (i) a copy of each Organizational Document executed and delivered by each Credit
Party, as applicable, and, to the extent applicable, certified as of a recent date by the
appropriate governmental official, each dated the Effective Date or a recent date prior
thereto; (ii) signature and incumbency certificates of the officers of such Person
executing the Credit Documents to which it is a party; (iii) resolutions of the Board of
Directors or similar governing body of each Credit Party approving and authorizing the
execution, delivery and performance of this Agreement and the other Credit Documents and
the Related Agreements to which it is a party or by which it or its assets may be bound as
of the Effective Date, certified as of the Effective Date by its secretary or an assistant
secretary as being in full force and effect without modification or amendment; (iv) a good
standing certificate from the applicable Governmental Authority of each Credit Party’s
jurisdiction of incorporation, organization or formation and in each jurisdiction in which
it is qualified as a foreign corporation or other entity to do business, each dated a
recent date prior to the Effective; and (v) such other constitutive or organizational
documents as Administrative Agent may reasonably request.

          (c) [Reserved].

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          (d) Credit Linked Deposit. On the Effective Date, each Funded Letter of
Credit Participant shall have made a payment to Administrative Agent in an amount equal to
such Funded Letter of Credit Participant’s Funded Letter of Credit Commitment and
Administrative Agent shall establish a Credit Linked Deposit Account at the Funded LC
Issuing Bank.

          (e) [Reserved].

          (f) Existing Indebtedness. On the Effective Date, Holdings and its
Subsidiaries shall have (i) repaid in full all Existing Tranche C Term Loans and the
Second Lien Term Loans with the proceeds of the Tranche D Term Loans, (ii) terminated any
commitments to lend or make other extensions of credit under the Existing Credit
Agreement, and (iii) terminate the funded letter of credit facility under the Existing
Credit Agreement.

          (g) Transaction Costs. On or prior to the Effective Date, the Company shall
have paid all fees, costs and expenses owing to the Administrative Agent and its counsel
invoiced to Company on or before the Effective Date and reimbursable by the Company under
the terms of the Existing Credit Agreement.

          (h) [Reserved].

          (i) Real Estate Assets. In order to continue in favor of the Collateral
Agent for the benefit of Secured Parties, a valid and, subject to any filing and/or
recording referred to herein, perfected First Priority security interest in certain Real
Estate Assets, Collateral Agent shall have received from Company and each applicable
Guarantor:

          (i) Collateral Agent shall have received a fully executed and notarized mortgage
modification, in proper form for recording in all appropriate places in all applicable
jurisdictions, in respect of each Real Estate Asset listed in Schedule 3.1(i) (each, a
“Closing Date Mortgaged Property”);

          (ii) an opinion of counsel (which counsel shall be reasonably satisfactory to
Collateral Agent) in each state in which a Closing Date Mortgaged Property is located with
respect to the enforceability of the form(s) of Mortgages to be recorded in such state and
such other matters as Collateral Agent may reasonably request, in each case in form and
substance reasonably satisfactory to Collateral Agent;

          (iii) in the case of each Leasehold Property that is a Closing Date Mortgaged Property,
(1) a Landlord Consent and Estoppel to the extent Landlord’s consent is required under the
lease creating such Leasehold Property and (2) evidence that such Leasehold Property is a
Recorded Leasehold Interest;

          (iv) (a) ALTA mortgagee title insurance policies (or such other policies available in
such state and reasonably satisfactory to Collateral Agent) or signed unconditional
commitments or pro forma policies therefor issued by one or more title companies reasonably
satisfactory to Collateral Agent with respect to each Closing Date

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Mortgaged Property (each,
a “Title Policy”), in amounts not less than the fair market value of each Closing Date
Mortgaged Property, together with a title report issued by a title company with respect
thereto, dated not more than thirty days prior to the Closing Date and copies of all
recorded documents listed as exceptions to title or otherwise referred to therein, each in
form and substance reasonably satisfactory to Collateral Agent and (B) evidence satisfactory
to Collateral Agent that such Credit Party has paid to the title company or to the
appropriate governmental authorities all expenses and premiums of the title company and all
other sums required in connection with the issuance of each Title Policy and all recording
and stamp taxes (including mortgage recording and intangible taxes) payable in connection
with recording the Mortgages for each Closing Date Mortgaged Property in the appropriate
real estate records;

          (v) evidence of flood insurance with respect to each Flood Hazard Property that is
located in a community that participates in the National Flood Insurance Program, in each
case in compliance with any applicable regulations of the Board of Governors of the Federal
Reserve System, in form and substance reasonably satisfactory to Collateral Agent; and

          (vi) surveys reasonably satisfactory to Collateral Agent of all Closing Date Mortgaged
Properties which are not Leasehold Properties, certified to Collateral Agent with a form of
certification reasonably satisfactory to Collateral Agent and dated
not more than thirty days prior to the Closing Date or such other date reasonably
satisfactory to Collateral Agent.

          (j) Personal Property Collateral. In order to continue in favor of
Collateral Agent, for the benefit of Secured Parties, a valid, perfected First Priority
security interest in the personal property Collateral, Collateral Agent shall have
received:

          (i) evidence reasonably satisfactory to Collateral Agent of the compliance by each
Credit Party of their obligations under the Pledge and Security Agreement and the other
Collateral Documents (including, without limitation, their obligations to deliver UCC
financing statements, originals of securities, instruments and chattel paper and any
agreements governing deposit and/or securities accounts as provided therein);

          (ii) a completed Collateral Questionnaire dated the Effective Date and executed by an
Authorized Officer of each Credit Party, together with all attachments contemplated thereby,
including (A) the results of a recent search, by a Person satisfactory to Collateral Agent,
of all effective UCC financing statements (or equivalent filings) made with respect to any
personal or mixed property the creation of security interests in which is governed by the
UCC of any Credit Party in the jurisdictions specified in the Collateral Questionnaire,
together with copies of all such filings disclosed by such search, and (B) UCC termination
statements (or similar documents) duly executed by all applicable Persons for filing in all
applicable jurisdictions as may be necessary to terminate any effective UCC financing
statements (or equivalent filings)

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disclosed in such search (other than any such financing
statements in respect of Permitted Liens); and

          (iii) evidence that each Credit Party shall have taken or caused to be taken any other
action, executed and delivered or caused to be executed and delivered any other agreement,
document and instrument (including without limitation, any intercompany notes evidencing
Indebtedness permitted to be incurred pursuant to Section 6.1(b)) and made or caused to be
made any other filing and recording (other than as set forth herein) reasonably required by
Collateral Agent.

          (k) [Reserved].

          (l) Financial Statements; Projections. Lenders shall have received from
Company (i) the Historical Financial Statements and (ii) the Projections.

          (m) Evidence of Insurance. Collateral Agent shall have received a
certificate from Company’s insurance broker or other evidence reasonably satisfactory to
it that all insurance required to be maintained pursuant to Section 5.5 is in full force
and effect, together with endorsements naming the Collateral Agent, for the benefit of
Lenders, as additional insured and loss payee thereunder to the extent required under
Section 5.5.

          (n) Opinions of Counsel to Credit Parties. Lenders and their respective
counsel shall have received originally executed copies of the favorable written opinions
of Fried, Frank, Harris, Shriver & Jacobson LLP counsel for Credit Parties dated as of the
Effective Date and otherwise in form and substance reasonably satisfactory to the
Arrangers (and each Credit Party hereby instructs such counsel to deliver such opinions to
Agents and Lenders).

          (o) Fees. Company shall have paid to the Arrangers, the fees payable on the
Effective Date referred to in Section 2.11(f).

          (p) Solvency Certificate. On the Effective Date, the Arrangers shall have
received a Solvency Certificate from the chief financial officer of Company dated the
Effective Date, with appropriate attachments and demonstrating that Holdings and their
respective Subsidiaries on a consolidated basis are and will be Solvent.

          (q) Effective Date Certificate. Company shall have delivered to the
Arrangers an originally executed Effective Date Certificate, together with all attachments
thereto.

          (r) Completion of Proceedings. All partnership, corporate and other
proceedings by the Credit Parties taken or to be taken in connection with the transactions
contemplated hereby and all documents incidental thereto not previously found acceptable
by the Arrangers and its counsel shall be reasonably satisfactory in form and substance to
the Arrangers and such counsel, and the Arrangers and such counsel shall have received all
such counterpart originals or certified copies of such documents as the Arrangers may
reasonably request.

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Each Lender, by having delivered its signature page to this Agreement and having funded a Loan or
funding a Credit Linked Deposit on the Effective Date, acknowledged receipt of, and consented to
and approved, each Credit Document and each other document required to be approved by any Agent,
Requisite Lenders or Lenders, as applicable on the Effective Date.

     3.2. Conditions to Each Credit Extension.

          (a) Conditions Precedent. The obligation of each Lender to make any Loan or
fund its Credit Linked Deposit, or any Issuing Bank to issue any Letter of Credit, on any
Credit Date, including the Effective Date, are subject to the satisfaction, or waiver in
accordance with Section 10.5, of the following conditions precedent:

          (i) Administrative Agent shall have received a fully executed and delivered Funding
Notice or Issuance Notice, as the case may be;

          (ii) after making the Credit Extensions requested on such Credit Date, the Total
Utilization of Revolving Commitments shall not exceed the Revolving Commitments then in
effect;

          (iii) as of such Credit Date, the representations and warranties contained herein and
in the other Credit Documents shall be true and correct in all material respects on and as
of that Credit Date to the same extent as though made on and as of that date, except to the
extent such representations and warranties specifically relate to an earlier date, in which
case such representations and warranties shall have been true and correct in all material
respects on and as of such earlier date;

          (iv) as of such Credit Date, no event shall have occurred and be continuing or would
result from the consummation of the applicable Credit Extension that would constitute an
Event of Default or a Default; and

          (v) on or before the date of issuance of any Letter of Credit, Administrative Agent
shall have received all other information required by the applicable Issuance Notice, and
such other documents or information as the Issuing Banks may reasonably require in
connection with the issuance of such Letter of Credit.

Any Agent or Requisite Lenders shall be entitled, but not obligated to, request and receive, prior
to the making of any Credit Extension, additional information reasonably satisfactory to the
requesting party confirming the satisfaction of any of the foregoing if, in the good faith judgment
of such Agent or Requisite Lender such request is warranted under the circumstances.

          (b) Notices. Any Notice shall be executed by an Authorized Officer in a
writing delivered to Administrative Agent. In lieu of delivering a Notice, Company may
give Administrative Agent telephonic notice by the required time of any proposed
borrowing, conversion/continuation or issuance of a Letter of Credit, as the case may be;
provided each such notice shall be promptly confirmed in writing by delivery of
the applicable Notice to Administrative Agent on or before the applicable date of
borrowing, continuation/conversion or issuance. Neither Administrative Agent nor any
Lender shall incur any liability to Company in acting upon any telephonic notice

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referred
to above that Administrative Agent believes in good faith to have been given by a duly
authorized officer or other person authorized on behalf of Company or for otherwise acting
in good faith.

SECTION 4. REPRESENTATIONS AND WARRANTIES

     In order to induce Lenders and Issuing Banks to enter into this Agreement and to make each
Credit Extension to be made thereby, each of Holdings and Company represents and warrants to each
Lender and each Issuing Bank on the Effective Date and each Credit Date, the following statements
are true and correct (unless relating to a specific date, in which case such statements are true
and correct as of such specific date):

     4.1. Organization; Requisite Power and Authority; Qualification. Each of Holdings and its
Subsidiaries (a) is duly organized, validly existing and in good standing under the laws of its
jurisdiction of organization as identified in Schedule 4.1, (b) has all requisite power and
authority to own and operate its properties, to carry on its business as now conducted and as
proposed to be conducted, to enter into the Credit Documents to which it is a party and to carry
out the transactions contemplated thereby, and (c) is qualified to do business
and in good standing in every jurisdiction where its assets are located and wherever necessary
to carry out its business and operations, except in jurisdictions where the failure to be so
qualified or in good standing has not had, and could not reasonably be expected to have, a Material
Adverse Effect.

     4.2. Capital Stock and Ownership. The Capital Stock of each of Holdings and its Subsidiaries
has been duly authorized and validly issued and is fully paid and non-assessable. Except as set
forth on Schedule 4.2, as of the Effective Date, there is no existing option, warrant, call, right,
commitment or other agreement to which Holdings or any of its Subsidiaries is a party requiring,
and there is no membership interest or other Capital Stock of Holdings or any of its Subsidiaries
outstanding which upon conversion or exchange would require, the issuance by Holdings or any of its
Subsidiaries of any additional membership interests or other Capital Stock of Holdings or any of
its Subsidiaries or other Securities convertible into, exchangeable for or evidencing the right to
subscribe for or purchase, a membership interest or other Capital Stock of Holdings or any of its
Subsidiaries. Schedule 4.2 correctly sets forth the ownership interest of Holdings and each of its
Subsidiaries in their respective Subsidiaries as of the Effective Date.

     4.3. Due Authorization. The execution, delivery and performance of the Credit Documents have
been duly authorized by all necessary action on the part of each Credit Party that is a party
thereto.

     4.4. No Conflict. The execution, delivery and performance by Credit Parties of the Credit
Documents to which they are parties and the consummation of the transactions contemplated by the
Credit Documents do not and will not (a) violate any provision of any law or any governmental rule
or regulation applicable to Holdings or any of their respective Subsidiaries, any of the
Organizational Documents of Holdings or any of its Subsidiaries, or any order, judgment or decree
of any court or other agency of government binding on Holdings or any of its Subsidiaries except to
the extent such violation could not be reasonably expected to have a Material Adverse Effect; (b)
conflict with, result in a breach of or constitute (with due

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notice or lapse of time or both) a
default under any Contractual Obligation of Holdings or any of its Subsidiaries except to the
extent such conflict, breach or default could not reasonably be expected to have a Material Adverse
Effect; (c) result in or require the creation or imposition of any Lien upon any of the properties
or assets of Holdings or any of their respective Subsidiaries (other than any Liens created under
any of the Credit Documents in favor of Collateral Agent, on behalf of Secured Parties) secured by
property with a value in excess of $1,000,000; or (d) require any approval of stockholders, members
or partners or any approval or consent of any Person under any Contractual Obligation of Holdings
or any of their respective Subsidiaries, except for such approvals or consents which will be
obtained on or before the Effective Date and disclosed in writing to Lenders and except for any
such approvals or consents the failure of which to obtain could not reasonably be expected to have
a Material Adverse Effect.

     4.5. Governmental Consents. The execution, delivery and performance by Credit Parties of the
Credit Documents to which they are parties and the consummation of the transactions contemplated by
the Credit Documents do not and will not require any registration with, consent or approval of, or
notice to,
or other action to, with or by, any Governmental Authority that has not been made or obtained,
except for consents, filings and recordings with respect to the Collateral to be obtained, made, or
otherwise delivered to Collateral Agent for filing and/or recordation, as of the Effective Date and
any such registration, consent, approval, notice or action, the absence of which could not
reasonably be expected to have a Material Adverse Effect.

     4.6. Binding Obligation. Each Credit Document has been duly executed and delivered by each
Credit Party that is a party thereto and is the legally valid and binding obligation of such Credit
Party, enforceable against such Credit Party in accordance with its respective terms, except as may
be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or
limiting creditors’ rights generally or by equitable principles relating to enforceability.

     4.7. Historical Financial Statements. The Historical Financial Statements were prepared in
conformity with GAAP (except as may otherwise be expressly noted therein) and fairly present, in
all material respects, the financial position, on a consolidated basis, of the Persons described in
such financial statements as at the respective dates thereof and the results of operations and cash
flows, on a consolidated basis, of the entities described therein for each of the periods then
ended, subject, in the case of any such unaudited financial statements, to changes resulting from
audit and normal year-end adjustments. As of the Effective Date, neither Holdings nor any of its
Subsidiaries has any contingent liability or liability for taxes, long-term lease or unusual
forward or long-term commitment that is not reflected in the Historical Financial Statements or the
notes thereto and which in any such case is material in relation to the business, operations,
properties, assets or condition (financial or otherwise) of Holdings and any of its Subsidiaries
taken as a whole.

     4.8. Projections. On and as of the Effective Date, the Projections of Holdings and its
Subsidiaries for the period Fiscal Year 2007 through and including Fiscal Year 2012 (the
“Projections”) are based on good faith estimates and assumptions made by the management of
Holdings; provided, the Projections are not to be viewed as facts and that actual results
during the period or periods covered by the Projections may differ from such Projections and that
the

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differences may be material; provided further, as of the Effective Date,
management of Holdings believed that the Projections were reasonable and attainable.

     4.9. No Material Adverse Change. Since December 31, 2005, no event, circumstance or change
has occurred that has caused or evidences, either in any case or in the aggregate, a Material
Adverse Effect.

     4.10. No Restricted Junior Payments. Following the Effective Date, and after giving effect to
the transactions to occur thereon, neither Holdings nor any of its Subsidiaries has directly or
indirectly declared, ordered, paid or made, or set apart any sum or property for, any Restricted
Junior Payment or agreed to do so except as permitted pursuant to Section 6.5.

     4.11. Adverse Proceedings, etc.
Except as disclosed on Schedule 4.11, there are no Adverse Proceedings, individually or in the
aggregate, that could reasonably be expected to have a Material Adverse Effect. Neither Holdings
nor any of its Subsidiaries (a) is in violation of any applicable laws that, individually or in the
aggregate, could reasonably be expected to have a Material Adverse Effect, or (b) is subject to or
in default with respect to any final judgments, writs, injunctions, decrees, rules or regulations
of any court or any federal, state, municipal or other governmental department, commission, board,
bureau, agency or instrumentality, domestic or foreign, that, individually or in the aggregate,
could reasonably be expected to have a Material Adverse Effect.

     4.12. Payment of Taxes. Except as otherwise permitted under Section 5.3, all material tax
returns and reports of Holdings and its Subsidiaries required to be filed by any of them have been
timely filed, and all taxes shown on such tax returns to be due and payable and all assessments,
fees and other governmental charges upon Holdings and its Subsidiaries and upon their respective
properties, assets, income, businesses and franchises which are due and payable have been paid when
due and payable except for taxes which are not yet delinquent or that are being actively contested
by Holdings or such Subsidiary in good faith and by appropriate proceedings; provided, that
neither Holdings nor Company shall be in breach of this Section 4.12 so long as such reserves or
other appropriate provisions, if any, as shall be required in conformity with GAAP shall have been
made or provided therefor. Holdings knows of no proposed tax assessment against Holdings or its
Subsidiaries that would, if made, have a Material Adverse Effect.

     4.13. Properties.

          (a) Title. Each of Holdings and their respective Subsidiaries has (i) good,
sufficient, legal and insurable title to (in the case of fee interests in real property),
(ii) valid leasehold interests in (in the case of leasehold interests in real or personal
property), and (iii) good title to (in the case of all other personal property), all of
their respective material properties and assets reflected in their respective Historical
Financial Statements referred to in Section 4.5 and in the most recent financial
statements delivered pursuant to Section 5.1, in each case except for assets disposed of
since the date of such financial statements in the ordinary course of business or as
otherwise permitted under Section 6.9 and subject to Permitted Liens. Except as permitted
by this Agreement, all such properties and assets are free and clear of Liens.

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          (b)
Real Estate. (i) As of the Effective Date, Schedule 4.13 contains a
true, accurate and complete list of (x) all Real Estate Assets (including, without limitation,
all easements benefiting any Real Estate Asset or necessary for the operation thereof), and
(y) all leases, subleases or assignments of leases (together with all amendments,
modifications, supplements, renewals or extensions of any thereof) affecting each Real Estate
Asset of any Credit Party, regardless of whether such Credit Party is the landlord or tenant
(whether directly or as an assignee or successor in interest) under such lease, sublease or
assignment. Each material agreement listed in clause (y) of the immediately preceding
sentence is in full force and effect other than agreements that, individually or in the
aggregate are not
material to Holdings and its Subsidiaries, taken as a whole, and Holdings does not have
knowledge of any material default that has occurred and is continuing thereunder, and each
such agreement constitutes the legally valid and binding obligation of each applicable Credit
Party, enforceable against such Credit Party in accordance with its terms, except as
enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar
laws relating to or limiting creditors’ rights generally or by equitable principles; and

          (ii) All pipelines, pipeline easements, utility lines, utility easements and other
easements, servitudes and rights-of-way burdening or benefiting the Real Estate Assets will
not, as of the Effective Date, materially interfere with or prevent any operations conducted
at the Real Estate Assets by Holdings or the Subsidiaries in the manner operated on the date
of this Agreement, except for any Permitted Liens. Except for Permitted Liens, with respect
to any pipeline, utility, access or other easements, servitudes, and licenses located on or
directly serving the Real Estate Assets and owned or used by Holdings or the Subsidiaries in
connection with its operations at the Real Estate Assets, to Holdings’ knowledge, such
agreements are in full force and effect other than agreements that, individually or in the
aggregate are not material to Holdings and its Subsidiaries, taken as a whole and no
defaults exist thereunder and no events or conditions exist which, with or without notice or
lapse of time or both, would constitute a default thereunder or result in a termination,
except for such failures, defaults, terminations and other matters that, individually or in
the aggregate, could not reasonably be expected to have a Material Adverse Effect.

     4.14. Environmental Matters. Except as set forth in Schedule 4.14.

          (a) Holdings and each of its Subsidiaries is in compliance with all applicable
Environmental Laws, except for such noncompliance that could not reasonably be expected,
individually or in the aggregate, to result in a Material Adverse Effect and, to Holdings
and its Subsidiaries’ Knowledge, continued compliance with applicable Environmental Laws,
including any reasonably foreseeable future requirements pursuant thereto, by Holdings and
each of its Subsidiaries could not reasonably be expected to result in a Material Adverse
Effect;

          (b) Holdings and each of its Subsidiaries has obtained, and are in compliance with,
all Governmental Authorizations (including, without limitation, the Consent Decree and the
RCRA Administrative Orders) as are presently required under applicable Environmental Laws
for the operations of their respective businesses and

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Facilities in the same or
substantially the same manner as currently conducted or proposed to be conducted on or
after the closing, except for such noncompliance that could not reasonably be expected ,
individually or in the aggregate, to result in a Material Adverse Effect. There are no
pending, or to Holdings’ of its Subsidiaries’ Knowledge, threatened actions or proceedings
seeking to amend, modify, or terminate any such Governmental Authorizations (including,
without limitation, the Consent Decree) or otherwise seeking to enforce the terms and
conditions of any such Governmental Authorization except for such actions or proceedings
that could not
reasonably be expected, individually or in the aggregate, to result in a Material
Adverse Effect;

          (c) Other than the Consent Decree and the RCRA Administrative Orders, neither
Holdings nor any of its Subsidiaries nor any of their respective Facilities, or operations
or, to Holdings’ or its Subsidiaries’ Knowledge, any of their previously owned or operated
real property are subject either to (a) any pending or, to Holdings’ or its Subsidiaries’
Knowledge, threatened Environmental Claim or (b) any outstanding written order, consent
decree or settlement agreement with any Person relating to any Environmental Law, any
Environmental Claim, or any Hazardous Materials Activity except for such Environmental
Claims, order, consent decree or settlement that could not reasonably be expected,
individually or in the aggregate, to result in a Material Adverse Effect;

          (d) Neither Holdings nor any of its Subsidiaries has received any letter or request
for information under Section 104(e) of the Comprehensive Environmental Response,
Compensation, and Liability Act (42 U.S.C. § 9601, et seq.) or any comparable state law
with regard to any matter that could reasonably be expected, individually or in the
aggregate, to result in a Material Adverse Effect;

          (e) To Holdings and its Subsidiaries’ Knowledge, there are and have been no
conditions, occurrences, or Hazardous Materials Activities that could reasonably be
expected to form the basis of an Environmental Claim against Holdings or any of its
Subsidiaries, to materially impair the value or marketability of the Facilities for
industrial usage, or could require Remedial Action at any Facility or by Holdings or any
of its Subsidiaries at any other location except for such matters that could not
reasonably be expected, individually or in the aggregate, to result in a Material Adverse
Effect;

          (f) Except as addressed under the Consent Decree or the RCRA Administrative Orders,
as of the Effective Date neither Holdings nor any of its Subsidiaries has been issued or
been required to obtain a permit for the treatment, storage or disposal of hazardous waste
for any of its Facilities pursuant to the federal Resource Conservation and Recovery Act,
42 U.S.C. § 6901, et. seq. (“RCRA”), or any equivalent State law, nor are any such
Facilities regulated as “interim status” facilities required to undergo corrective action
pursuant to RCRA or any state equivalent, except, in each case, for such matters that
could not reasonably be expected, individually or in the aggregate, to result in a
Material Adverse Effect; and

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          (g) As of the Effective Date, (i) Holdings and its Subsidiaries have provided to the
Administrative Agent or given the Administrative Agent access to all copies of existing
third-party environmental reports commissioned by the Company and/or submitted by the
Company to Governmental Authorities pertaining to actual or potential Environmental Claims
or material liabilities under Environmental Laws; and (ii) Holdings or its Subsidiaries
have disclosed to the Administrative Agent all material relevant information pertaining to
actual or potential material Environmental Claims or material liabilities under
Environmental Laws.

     4.15. No Defaults. Neither Holdings nor any of its Subsidiaries is in default in the
performance, observance or fulfillment of any of the obligations, covenants or conditions contained
in any of its material Contractual Obligations, and no condition exists which, with the giving of
notice or the lapse of time or both, could constitute such a default, except where the
consequences, direct or indirect, of such default or defaults, if any, could not reasonably be
expected to have a Material Adverse Effect.

     4.16. Material Contracts. Schedule 4.16 contains a true, correct and complete list of all the
Material Contracts in effect on the Effective Date, and except as described thereon, all such
Material Contracts are in full force and effect and no defaults currently exist thereunder other
than defaults, the consequence of which, would not result in a Material Adverse Effect.

     4.17. Governmental Regulation. Neither Holdings nor any of its Subsidiaries is subject to
regulation under the Public Utility Holding Company Act of 2005, the Federal Power Act or the
Investment Company Act of 1940 or under any other federal or state statute or regulation which may
limit its ability to incur Indebtedness or which may otherwise render all or any portion of the
Obligations unenforceable. Neither Holdings nor any of its Subsidiaries is a “registered
investment company” or a company “controlled” by a “registered investment company” or a “principal
underwriter” of a “registered investment company” as such terms are defined in the Investment
Company Act of 1940.

     4.18. Margin Stock. Neither Holdings nor any of its Subsidiaries is engaged principally, or
as one of its important activities, in the business of extending credit for the purpose of
purchasing or carrying any Margin Stock. No part of the proceeds of the Loans or the Credit Linked
Deposits made to such Credit Party will be used to purchase or carry any such Margin Stock or to
extend credit to others for the purpose of purchasing or carrying any such Margin Stock or for any
purpose that violates, or is inconsistent with, the provisions of Regulation T, U or X of said
Board of Governors.

     4.19. Employee Matters. Neither Holdings nor any of its Subsidiaries is engaged in any unfair
labor practice that could reasonably be expected to have a Material Adverse Effect. There is (a)
no unfair labor practice complaint pending against Holdings or any of its Subsidiaries, or to the
best knowledge of Holdings and Company, threatened against any of them before the National Labor
Relations Board and no grievance or arbitration proceeding arising out of or under any collective
bargaining agreement that is so pending against Holdings or any of its Subsidiaries or to the best
knowledge of Holdings and Company, threatened against any of them, (b) no strike or work stoppage
in existence or threatened involving Holdings or any of its Subsidiaries that could reasonably be
expected to have a Material Adverse Effect, and (c) to the

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best knowledge of Holdings and Company,
no union representation question existing with respect to the employees of Holdings or any of its
Subsidiaries and, to the best knowledge of Holdings and Company, no union organization activity
that is taking place, except (with respect to any matter specified in clause (a), (b) or (c) above,
either individually or in the aggregate) such as is not reasonably likely to have a Material
Adverse Effect.

     4.20. Employee Benefit Plans. Except as, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect, (i) Holdings, each of its Subsidiaries
and each of their respective ERISA Affiliates are in compliance with all applicable provisions and
requirements of ERISA and the Internal Revenue Code and the regulations and published
interpretations thereunder with respect to each Employee Benefit Plan, and have performed all their
obligations under each Employee Benefit Plan, (ii) each Employee Benefit Plan which is intended to
qualify under Section 401(a) of the Internal Revenue Code has received a favorable determination
letter from the Internal Revenue Service indicating that such Employee Benefit Plan is so qualified
and nothing has occurred subsequent to the issuance of such determination letter which would cause
such Employee Benefit Plan to lose its qualified status, (iii) no liability to the PBGC (other than
required premium payments), the Internal Revenue Service (with respect to any Employee Benefit
Plan), any Employee Benefit Plan or any trust established under Title IV of ERISA has been or is
expected to be incurred by Holdings, any of its Subsidiaries or any of their ERISA Affiliates, (iv)
no ERISA Event has occurred or is reasonably expected to occur, and (v) except to the extent
required under Section 4980B of the Internal Revenue Code or similar state laws, no Employee
Benefit Plan provides health or welfare benefits (through the purchase of insurance or otherwise)
for any retired or former employee of Holdings, any of its Subsidiaries or any of their respective
ERISA Affiliates. The present value of the aggregate benefit liabilities under each Pension Plan
sponsored, maintained or contributed to by Holdings, any of its Subsidiaries or any of their ERISA
Affiliates, (determined as of the end of the most recent plan year on the basis of the actuarial
assumptions specified for funding purposes in the most recent actuarial valuation for such Pension
Plan), did not exceed the aggregate current value of the assets of such Pension Plan by more than
$5,000,000. As of the most recent valuation date for each Multiemployer Plan for which the
actuarial report is available, the potential liability of Holdings, its Subsidiaries and their
respective ERISA Affiliates for a complete withdrawal from such Multiemployer Plan (within the
meaning of Section 4203 of ERISA), when aggregated with such potential liability for a complete
withdrawal from all Multiemployer Plans, based on information available pursuant to Section 4221(e)
of ERISA is not more than an amount which, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect. Holdings, each of its Subsidiaries and each of their
ERISA Affiliates have complied in all material respects with the requirements of Section 515 of
ERISA with respect to each Multiemployer Plan and are not in material “default” (as defined in
Section 4219(c)(5) of ERISA) with respect to payments to a Multiemployer Plan.

     4.21. Certain Fees. No broker’s or finder’s fee or commission will be payable with respect
hereto or any of the transactions contemplated hereby.

     4.22. Solvency. The Credit Parties on a consolidated basis are and, upon the incurrence of
any Obligation by the Credit Parties on any date on which this representation and warranty is made,
will be, Solvent.

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     4.23. Related Agreements.

          (a) Delivery. Holdings and Company have delivered to the Arrangers complete
and correct copies of (i) each Related Agreement and of all exhibits and schedules thereto
as of the Closing Date and (ii) copies of any material amendment, restatement, supplement
or other modification to or waiver of each Related Agreement entered into after the
Closing Date.

          (b) Representations and Warranties. Except to the extent otherwise expressly
set forth herein or in the schedules hereto, and subject to the qualifications set forth
therein, each of the representations and warranties given by any Credit Party in any
Related Agreement is true and correct in all material respects as of the Effective Date
(or as of any earlier date to which such representation and warranty specifically
relates).

          (c) Governmental Approvals. All Governmental Authorizations and all other
authorizations, approvals and consents of any other Person required by the Related
Agreements or to consummate the Acquisition and the other transactions contemplated by the
Related Agreements have been obtained and are in full force and effect other than such
authorizations, approvals and consents, the requirement of which to obtain is waived as a
condition to such Related Agreement.

     4.24. Compliance with Statutes, etc. Each of Holdings and its Subsidiaries is in compliance
with all applicable statutes, regulations and orders of, and all applicable restrictions imposed
by, all Governmental Authorities, in respect of the conduct of its business and the ownership of
its property, except such non-compliance that, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

     4.25. Disclosure. None of the factual information and data (taken as a whole) heretofore or
contemporaneously furnished by or on behalf of Holdings or any of its Subsidiaries for use in
connection with the transactions contemplated hereby contained any untrue statement of a material
fact or omitted to state a material fact (known to Holdings or Company, in the case of any document
not furnished by either of them) necessary in order to make the statements contained herein or
therein (taken as a whole) not misleading in light of the circumstances in which the same were
made. Any projections and pro forma financial information contained in such materials are based
upon good faith estimates and assumptions believed by Holdings or Company to be reasonable at the
time made, it being recognized by Lenders that such projections as to future events are not to be
viewed as facts and that actual results during the period or periods covered by any such
projections may differ materially from the projected results. There are no facts known (or which
should upon the reasonable exercise of diligence be known) to Holdings or Company (other than
matters of a general economic nature) that, individually or in the aggregate, could reasonably be
expected to result in a Material Adverse Effect and that have not been disclosed herein or in such
other documents, certificates and statements furnished to Lenders for use in connection with the
transactions contemplated hereby.

     4.26. Patriot Act. To the extent applicable, each Credit Party is in compliance, in all material respects,
with the (i) Trading with the Enemy Act, as amended, and each of the foreign

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assets control
regulations of the Untied States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended)
and any other enabling legislation or executive order relating thereto, and (ii) Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism
(USA Patriot Act of 2001) (the “Act”). No part of the proceeds of the Loans or Credit Linked
Deposits will be used, directly or indirectly, for any payments to any governmental official or
employee, political party, official of a political party, candidate for political office, or anyone
else acting in an official capacity, in order to obtain, retain or direct business or obtain any
improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as
amended.

     4.27. First Buyer. As of the Effective Date, the only states in which any Credit Party is the
first person who takes, receives or purchases oil or gas from an interest owner at the time the oil
or gas is severed from the applicable real estate are Oklahoma, Nebraska, Missouri and
Kansas.

SECTION 5. AFFIRMATIVE COVENANTS

     Each Credit Party covenants and agrees that so long as any Commitment is in effect and until
payment in full of all Obligations and cancellation or expiration of all Letters of Credit, each
Credit Party shall perform, and shall cause each of its Subsidiaries to perform, all covenants in
this Section 5.

     5.1. Financial Statements and Other Reports. Company will deliver to the Arrangers and the
Administrative Agent, and the Administrative Agent will distribute to the Arrangers and Lenders:

          (a) Monthly Reports. As soon as available, and in any event within (i)
forty-five (45) days after the end of the first month ending after the Effective Date and
(ii) thirty (30) days after the end of each month ending after the Effective Date
thereafter, the consolidated balance sheet of Company and its Subsidiaries as at the end
of such month and the related consolidated statements of income, stockholders’ equity and
cash flows of Company and its Subsidiaries for such month and for the period from the
beginning of the then current Fiscal Year to the end of such month, setting forth in each
case in comparative form the corresponding figures for the corresponding periods of the
previous Fiscal Year and the corresponding figures from the Financial Plan for the current
Fiscal Year, to the extent prepared on a monthly basis, all in reasonable detail, together
with a Financial Officer Certification and a Narrative Report with respect thereto;

          (b) Quarterly Financial Statements. As soon as available, and in any event
within forty-five (45) days after the end of each of the first three Fiscal Quarters of
each Fiscal Year, the consolidated and consolidating balance sheets of Company and its
Subsidiaries as at the end of such Fiscal Quarter and the related consolidated (and with
respect to statements of income, consolidating) statements of income,
stockholders’ equity and cash flows of Company and its Subsidiaries for such Fiscal
Quarter and for the period from the beginning of the then current Fiscal Year to the end

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of such Fiscal Quarter, setting forth in each case in comparative form the corresponding
figures for the corresponding periods of the previous Fiscal Year and the corresponding
figures from the Financial Plan for the current Fiscal Year, all in reasonable detail,
together with a Financial Officer Certification and a Narrative Report with respect
thereto;

          (c) Annual Financial Statements. As soon as available, and in any event
within ninety (90) days after the end of each Fiscal Year, (i) the consolidated and
consolidating balance sheets of Company and its Subsidiaries as at the end of such Fiscal
Year and the related consolidated (and with respect to statements of income,
consolidating) statements of income, stockholders’ equity and cash flows of Company and
its Subsidiaries for such Fiscal Year, setting forth in each case in comparative form the
corresponding figures for the previous Fiscal Year and the corresponding figures from the
Financial Plan for the Fiscal Year covered by such financial statements, in reasonable
detail, together with a Financial Officer Certification and a Narrative Report with
respect thereto; and (ii) with respect to such consolidated financial statements a report
thereon of KPMG LLP or one of the other “Big Four” independent certified public
accountants of recognized national standing selected by Company, and reasonably
satisfactory to Administrative Agent (which report shall be unqualified as to going
concern and scope of audit, and shall state that such consolidated financial statements
fairly present, in all material respects, the consolidated financial position of Company
and its Subsidiaries as at the dates indicated and the results of their operations and
their cash flows for the periods indicated in conformity with GAAP applied on a basis
consistent with prior years (except as otherwise disclosed in such financial statements)
and that the examination by such accountants in connection with such consolidated
financial statements has been made in accordance with generally accepted auditing
standards) together with a written statement by such independent certified public
accountants stating (1) that their audit examination has included a review of the terms of
Section 6.8 of this Agreement and the related definitions, (2) whether, in connection
therewith, any condition or event that constitutes a Default or an Event of Default with
respect to any financial matters under Section 6.8, has come to their attention and, if
such a condition or event has come to their attention, specifying the nature and period of
existence thereof, and (3) that nothing has come to their attention that causes them to
believe that the information contained in any Compliance Certificate is not correct or
that the matters set forth in such Compliance Certificate are not stated in accordance
with the terms hereof;

          (d) Compliance Certificate. Together with each delivery of financial
statements of Company and its Subsidiaries pursuant to Sections 5.1(b) and 5.1(c), a duly
executed and completed Compliance Certificate;

          (e) Statements of Reconciliation after Change in Accounting Principles. At
the request of the Administrative Agent, if, as a result of any change in accounting
principles and policies from those used in the preparation of the Historical Financial
Statements, the consolidated financial statements of Company and its Subsidiaries
delivered pursuant to Section 5.1(b) or 5.1(c) will differ in any material respect
from the consolidated financial statements that would have been
delivered pursuant to such

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subdivisions had no such change in accounting principles and policies been made, then,
together with the first delivery of such financial statements after such change, one or
more statements of reconciliation for all such prior financial statements in form and
substance satisfactory to Administrative Agent;

          (f) Notice of Default. Promptly upon any officer of any of Holdings or
Company obtaining knowledge (i) of any condition or event that constitutes a Default or an
Event of Default or that notice has been given to any of Holdings or Company with respect
thereto; (ii) that any Person has given any notice to any of Holdings or any of their
respective Subsidiaries or taken any other action with respect to any event or condition
set forth in Section 8.1(b); or (iii) of the occurrence of any event or change that has
caused or evidences, either in any case or in the aggregate, a Material Adverse Effect, a
certificate of its Authorized Officers specifying the nature and period of existence of
such condition, event or change, or specifying the notice given and action taken by any
such Person and the nature of such claimed Event of Default, Default, default, event or
condition, and what action Company has taken, is taking and proposes to take with respect
thereto;

          (g) Notice of Litigation. Promptly upon any officer of any of Holdings or
Company obtaining knowledge of (i) the institution of, or non-frivolous threat of, any
Adverse Proceeding not previously disclosed in writing by Company to Lenders, or (ii) any
material development in any Adverse Proceeding that, in the case of either (i) or (ii) if
adversely determined, could be reasonably expected to have a Material Adverse Effect, or
seeks to enjoin or otherwise prevent the consummation of, or to recover any damages or
obtain relief as a result of, the transactions contemplated hereby, written notice thereof
together with such other information as may be reasonably available to any of Holdings or
Company to enable Lenders and their counsel to evaluate such matters;

          (h) ERISA. (i) Promptly upon becoming aware of the occurrence of or
forthcoming occurrence of any ERISA Event, a written notice specifying the nature thereof,
what action Company, any of its Subsidiaries or any of their respective ERISA Affiliates
has taken, is taking or proposes to take with respect thereto and, when known, any action
taken or threatened by the Internal Revenue Service, the Department of Labor or the PBGC
with respect thereto; and (ii) with reasonable promptness, copies of (1) each Schedule B
(Actuarial Information) to the annual report (Form 5500 Series) filed by Company, any of
its Subsidiaries or any of their respective ERISA Affiliates with the Internal Revenue
Service with respect to each Pension Plan; (2) all notices received by Company, any of its
Subsidiaries or any of their respective ERISA Affiliates from a Multiemployer Plan sponsor
concerning an ERISA Event; and (3) copies of such other material documents or material
governmental reports or material filings relating to any Employee Benefit Plan as
Administrative Agent shall reasonably request;

          (i) Financial Plan. As soon as practicable and in any event no later than
thirty (30) days after the end of each Fiscal Year, a consolidated plan and financial
forecast for each Fiscal Year (or portion thereof) through the next five years following

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the Fiscal Year just ended, but not beyond the final maturity date of the Loans (a
“Financial Plan”), including (i) a forecasted consolidated balance sheet and forecasted
consolidated statements of income and cash flows of Company and its Subsidiaries for such
Fiscal Year, together with pro forma Compliance Certificates for such Fiscal Year and an
explanation of the assumptions on which such forecasts are based, (ii) forecasted
consolidated statements of income and cash flows of Company and its Subsidiaries for each
month of such Fiscal Year the beginning, (iii) forecasts demonstrating projected
compliance with the requirements of Section 6.8 through the final maturity date of the
Loans and (iv) forecasts demonstrating adequate liquidity through the final maturity date
of the Loans without giving effect to any additional debt or equity offerings not
reflected in the Projections, together, in each case, with an explanation of the
assumptions on which such forecasts are based all in form and substance reasonably
satisfactory to Agents;

          (j) Insurance Report. As soon as practicable and in any event by the last
day of each Fiscal Year, a report in form and substance reasonably satisfactory to
Administrative Agent outlining all material insurance coverage maintained as of the date
of such report by Company and its Subsidiaries and all material insurance coverage planned
to be maintained by Company and its Subsidiaries in the immediately succeeding Fiscal
Year;

          (k) Notice of Change in Board of Directors. With reasonable promptness,
written notice of any change in the board of directors (or similar governing body) of any
of Holdings or Company;

          (l) Notice Regarding Material Contracts. Promptly, and in any event within
ten Business Days (i) after any Material Contract of Company or any of its Subsidiaries is
terminated or amended in a manner that is materially adverse to Company or such
Subsidiary, as the case may be, or (ii) any new Material Contract is entered into, a
written statement describing such event, with copies of such material amendments or new
contracts, delivered to Administrative Agent (to the extent such delivery is permitted by
the terms of any such Material Contract, provided, no such prohibition on delivery shall
be effective if it were bargained for by Company or its applicable Subsidiary with the
intent of avoiding compliance with this Section 5.1(l)), and an explanation of any actions
being taken with respect thereto;

          (m) Environmental Reports and Audits. As soon as practicable following
receipt thereof, copies of all environmental audits and reports required to be provided
pursuant to Section 5.9;

          (n) Information Regarding Collateral. (a) Company will furnish to Collateral
Agent prompt written notice of any change (i) in any Credit Party’s corporate name, (ii)
in any Credit Party’s identity or corporate structure or (iii) in any Credit Party’s
Federal Taxpayer Identification Number. Company agrees not to effect or
permit any change referred to in the preceding sentence unless all filings have been
made under the Uniform Commercial Code or otherwise that are required in order for
Collateral Agent to continue at all times following such change to have a valid, legal

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and
perfected security interest in all the Collateral and for the Collateral at all times
following such change to have a valid, legal and perfected security interest as
contemplated in the Collateral Documents. Company also agrees promptly to notify
Collateral Agent if any material portion of the Collateral is damaged or destroyed;

          (o) Annual Collateral Verification. Each year, at the time of delivery of
annual financial statements with respect to the preceding Fiscal Year pursuant to Section
5.1(c), Company shall deliver to Collateral Agent an Officer’s Certificate (i) either
confirming that there has been no material change in such information since the date of
the Collateral Questionnaire delivered on the Effective Date or the date of the most
recent certificate delivered pursuant to this Section and/or identifying such material
changes and (ii) certifying that all Uniform Commercial Code financing statements
(including fixtures filings, as applicable) or other appropriate filings, recordings or
registrations, have been filed of record in each governmental, municipal or other
appropriate office in each jurisdiction identified pursuant to clause (i) above to the
extent necessary to protect and perfect the security interests under the Collateral
Documents for a period of not less than 18 months after the date of such certificate
(except as noted therein with respect to any continuation statements to be filed within
such period);

          (p) [Reserved].

          (q) Other Information. Promptly upon their becoming available, (i) copies of
(A) all financial statements, reports, notices and proxy statements sent or made available
generally by Company to its security holders acting in such capacity, (B) all regular and
periodic reports and all registration statements and prospectuses, if any, filed by
Company or any of its Subsidiaries with any securities exchange or with the Securities and
Exchange Commission or any governmental or private regulatory authority, (C) all press
releases and other statements made available generally by Company or any of its
Subsidiaries to the public concerning material developments in the business of Company or
any of its Subsidiaries, (ii) such other information and data with respect to Company or
any of its Subsidiaries as from time to time may be reasonably requested by Administrative
Agent or any Lender on its own or on behalf of any Lender, and (iii) any notices of any
claims for indemnification under the Acquisition Agreement; and

          (r) Certification of Public Information. Concurrently with the delivery of
any document or notice required to be delivered pursuant to this Section 5.1, the Company
shall indicate in writing whether such document or notice contains Nonpublic Information.
Any document or notice required to be delivered pursuant to this Section 5.1 shall be
deemed to contain Nonpublic Information unless the Company specifies otherwise. The
Company and each Lender acknowledges that certain of the Lenders may be “public-side”
Lenders (Lenders that do not with to receive material non-public information with respect
to Holdings, the Company, their Subsidiaries or their
securities) and, if documents or notices required to be delivered pursuant to this
Section 5.1 or otherwise are being distributed through IntraLinks/IntraAgency or another
relevant website (the “Platform”), an document or notice which contains Nonpublic

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Information (or is deemed to contain Nonpublic Information) shall not be posted on that
portion of the Platform designated for such public side lenders.

Documents required to be delivered pursuant to Sections 5.1(a), 5.1(b), 5.1(c), 5.1(e) or 5.1(i)
may be delivered electronically, and if so delivered, shall be deemed to have been delivered on the
date (i) on which Company posts such documents or provides a link thereto on Company’s website on
the Internet at the website address listed on Appendix B; or (ii) on which such documents are
posted on Company’s behalf on IntraLinks/IntraAgency or another relevant website, if any, to which
each Lender and the Administrative Agent have access (whether a commercial, third-party website or
whether sponsored by the Administrative Agent); provided, however, that: (x)
Company shall deliver paper copies of such documents to the Administrative Agent or any Lender that
requests Company to deliver such paper copies until a written request to cease delivering paper
copies is given by the Administrative Agent or such Lender and (y) Company shall notify (which may
be by facsimile or electronic mail) the Administrative Agent and each Lender of the posting of any
such documents and provide to the Administrative Agent by electronic mail electronic versions
(i.e., soft copies) of such documents. Notwithstanding anything contained herein, in every
instance Company shall be required to provide paper copies of the Compliance Certificates to the
Administrative Agent and each of the Lenders. Except for such Compliance Certificates, the
Administrative Agent shall have no obligation to request the delivery or to maintain copies of the
documents referred to above, and in any event shall have no responsibility to monitor compliance by
Company with any such request for delivery and each Lender shall be solely responsible for
requesting delivery to it or maintaining its copies of such documents.

     5.2. Existence. Except as otherwise permitted under Section 6.9, each Credit Party will, and
will cause each of its Subsidiaries to, at all times preserve and keep in full force and effect its
existence and all rights and franchises, licenses and permits material to its business;
provided, no Credit Party or any of its Subsidiaries shall be required to preserve any such
existence, right or franchise, licenses and permits if such Person’s board of directors (or similar
governing body) shall determine that the preservation thereof is no longer desirable in the conduct
of the business of such Person, and that the loss thereof could not reasonably be expected to have
a Material Adverse Effect.

     5.3. Payment of Taxes and Claims. Each Credit Party will, and will cause each of its
Subsidiaries to, pay all federal and other material Taxes imposed upon it or any of its properties
or assets or in respect of any of its income, businesses or franchises before any penalty or fine
accrues thereon, and all claims (including claims for labor, services, materials and supplies) for
sums that have become due and payable and that by law have or may become a Lien upon any of its
properties or assets, prior to the time when any penalty or fine shall be incurred with respect
thereto; provided, no such Tax or claim need be paid if it is being contested in good faith
by appropriate proceedings promptly instituted and diligently conducted, or not yet the subject of
any proceeding, so long as (a) adequate reserve or other appropriate provision, as shall be
required in conformity with
GAAP shall have been made therefor, and (b) in the case of a Tax or claim which has or may
become a Lien against any of the Collateral, such contest proceedings, if instituted, would
conclusively operate to stay the sale of any portion of the Collateral to satisfy such Tax or
claim. No Credit Party will, nor will it permit any of its Subsidiaries to, file or

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consent to the filing of any consolidated income tax return with any Person (other than
Holdings or any of their respective Subsidiaries).

     5.4. Maintenance of Properties. Each Credit Party will, and will cause each of its
Subsidiaries to, maintain or cause to be maintained in good repair, working order and condition,
ordinary wear and tear excepted, all material properties used or useful in the business of Company
and its Subsidiaries and from time to time will make or cause to be made all appropriate repairs,
renewals and replacements thereof.

     5.5. Insurance. Company will maintain or cause to be maintained, with financially
sound and reputable insurers, such commercial general liability insurance, third party property
damage insurance, business interruption insurance and all risk property insurance with respect to
liabilities, losses or damage in respect of the assets, properties and businesses of Holdings and
their respective Subsidiaries which is customarily carried or maintained under similar
circumstances by Persons of established reputation engaged in similar businesses of the size of
Holdings and its Subsidiaries, in each case in such amounts (giving effect to self-insurance), with
such deductibles, covering such risks and otherwise on such terms and conditions as shall be
customary for such Persons; provided, however, that the consent of the Collateral
Agent acting in accordance with Section 2.3 of the Intercreditor Agreement shall be required to
change any of the following minimum insurance requirements: (i) maintenance of all risk property
insurance, covering physical loss or damage to the Facilities and business interruption of at least
(1) $1,250,000,000 until at least July 1, 2007, and (2) annually thereafter, the lesser of (I)
$1,250,000,000 and (II) the sum of (x) $300,000,000 plus (y) the aggregate principal amount
of outstanding Term Loans plus (z) the result of (1) aggregate amount of exposure
calculated at April 30th of each Fiscal Year as the potential exposure of the Company
under the Swap Agreement, such calculation formulated on a consistent basis from year to year and
reasonably acceptable to the Company minus (2) $150,000,000; provided,
however, that if, after using commercially reasonable efforts, Company determines that the
total amount of such all risk property insurance that would otherwise be required to be procured
based on the foregoing formula cannot be obtained on commercially reasonable terms at the time of
renewal of such all risk property insurance, Company, after providing to the Collateral Agent a
certification of such determination by not later than the 30th day preceding the
expiration of the then current all risk property insurance, shall be deemed to be in compliance
with this Section 5.5 to the extent that Company maintains all risk property insurance in an amount
that is the maximum of that which may be obtained on commercially reasonable terms; (ii) property
deductibles shall not exceed $2,500,000 for physical damage or a forty-five (45) day deductible for
business interruption; provided that the property deductibles may be increased to an amount
not exceed $3,750,000 for physical damage and the business interruption deductible may be increased
to a period of not longer than sixty (60) days with the consent of the Collateral Agent acting in
accordance with Section 2.3 of the Intercreditor Agreement; (iii) maintenance of business
interruption coverage of at least twenty-four (24) months from the time of loss; (iv) maintenance
of environmental liability insurance of at least $50,000,000; (v) maintenance of commercial general
liability and excess liability insurance of at least $50,000,000; and (vi) all such insurance under
this Section 5.5 shall be maintained at insurers with financial ratings of no less than A- by S&P
or A- by A.M. Best; provided that the Company shall replace any insurer with downgraded
financial ratings from A- by S&P or A- by A.M. Best within 120 days of such downgrade. Without
limiting the generality of the foregoing, Company will maintain or cause to be maintained

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(a) flood insurance with respect to each Flood Hazard Property that is located in a community
that participates in the National Flood Insurance Program, in each case in compliance with any
applicable regulations of the Board of Governors of the Federal Reserve System, and (b) replacement
cost value for the all risk property insurance on the Collateral under such policies of insurance,
with such insurance companies, in such amounts, with such deductibles, and covering such risks
carried or maintained under similar circumstances by Persons of established reputation engaged in
similar businesses. Each such policy of commercial general liability and all risk property
insurance shall (i) name Collateral Agent, on behalf of Lenders as an additional insured thereunder
as its interests may appear and (ii) in the case of commercial general liability insurance,
property damage insurance and all risk property insurance policy, contains additional insured and
loss payable clauses or endorsements reasonably satisfactory in form and substance to Collateral
Agent, that names Collateral Agent, on behalf of Lenders as the loss payee thereunder and provides
for at least thirty days’ prior written notice to Collateral Agent of any modification or
cancellation of such policy.

     5.6. Books and Records; Inspections. Each Credit Party will, and will cause each of
its Subsidiaries to, permit any authorized representatives designated by any Lender to visit and
inspect any of the properties of any Credit Party and any of its respective Subsidiaries, to
inspect, copy and take extracts from its and their financial and accounting records, and to discuss
its and their affairs, finances and accounts with its and their officers and independent public
accountants, all upon reasonable notice and at such reasonable times during normal business hours,
if an Event of Default has occurred and is continuing, as often as may reasonably be requested but
in any other case, no more than twice per year.

     5.7. Lenders Meetings. Each of Holdings and Company will, upon the written request
of Administrative Agent or Requisite Lenders, participate in a meeting of Administrative Agent and
Lenders once during each Fiscal Year to be held at Company’s corporate offices (or at such other
location as may be agreed to by Company and Administrative Agent) at such time as may be agreed to
by Company and Administrative Agent.

     5.8. Compliance with Laws. Each Credit Party will comply, and shall cause each of
its Subsidiaries and all other Persons, if any, on or occupying any Facilities to comply, with the
requirements of all applicable laws, rules, regulations and orders of any Governmental Authority
(including all Environmental Laws), noncompliance with which could reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect.

     5.9. Environmental.

               (a) Compliance, Hazardous Materials Activities, Etc. Each Credit
Party shall take, and shall cause each of its Subsidiaries promptly to take, any
reasonable actions necessary to: (i) cure any violation of applicable Environmental Laws
by such Credit Party or its Subsidiaries that could reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect; (ii) make an appropriate
response to any Environmental Claim against such Credit Party or any of its Subsidiaries
and discharge any obligations it may have to any Person thereunder where failure to do so
could reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect; (iii) implement any and all Remedial
Actions that are legally

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required by any Governmental Authority (following final resolution of Holdings’ or
its Subsidiaries’ challenges or appeals, if any, of the relevant Governmental Authority’s
order or decision) or that are otherwise necessary to comply with Environmental
Laws and or that are otherwise necessary to maintain the value and marketability of the
Real Estate for industrial usage, except where failure to perform any such Remedial Action
would not reasonably be expected to result in a liability of or require an expenditure by
Holdings or its Subsidiaries in excess of $2,000,000; (iv) materially comply with the
terms and conditions of the Consent Decree and the RCRA Administrative Orders, except for
such noncompliance that would not reasonably be expected to result in liability of or
require an expenditure by Holdings or its Subsidiaries in excess of $2,000,000; (v)
achieve and maintain material compliance with the Clean Air Act Tier II Clean Fuels
requirements in the manner and by the dates specified in the letter from U.S.
Environmental Protection Agency (“USEPA”), Office of Transportation and Air Quality, dated
February 3, 2004, and the attachment thereto entitled “Compliance Plan for Motor Vehicle
Diesel Fuel Sulfur and Gasoline Sulfur Hardship Waiver” or any amendments thereto except
for such noncompliance that would not reasonably be expected to result in liability of or
require an expenditure by Holdings or its Subsidiaries in excess of $2,000,000; and (vi)
promptly complete all investigations and corrective actions necessary to address the items
of noncompliance at the Coffeyville Nitrogen Plant identified in Fertilizers’
self-disclosure submission to USEPA and the Kansas Department of Health and Environment
(“KDHE”), dated September 20, 2004, except where failure to perform such investigations or
corrective actions would not reasonably be expected to result in a liability of or require
an expenditure by Holdings or its Subsidiaries in excess of $2,000,000.

               (b) Environmental Disclosure.

          (i) Notice. Promptly upon the occurrence thereof, Holdings shall
deliver to Administrative Agent and Lenders written notice describing in reasonable detail
(1) any Release that could reasonably be expected to require a Remedial Action or give rise
to Environmental Claims resulting in Holdings or its Subsidiaries incurring liability or
expenses in excess of $2,500,000, (2) any Remedial Action taken by Holdings, its
Subsidiaries or any other Person in response to any Hazardous Materials Activity the
existence of which has a reasonable likelihood of resulting in one or more Environmental
Claims resulting in liability of Holdings or its Subsidiaries in excess of $2,500,000, (3)
any Environmental Claim (including any request for information by a Governmental Authority)
that could reasonably be expected to result in liability of Holdings or its Subsidiaries in
excess of $2,500,000, (4) Holdings’ or its Subsidiaries’ discovery of any occurrence or
condition at any Facility, or on any real property adjoining or in the vicinity of any
Facility, that could reasonably be expected to cause such Facility or any part thereof to be
subject to any material restrictions on the ownership, occupancy, transferability or use
thereof under any Environmental Laws, the removal of which restriction would reasonably be
expected to result in a liability of or require an expenditure by Holdings or its
Subsidiaries in excess of $2,500,000, (5) any proposed acquisition of stock, assets, or
property by Holdings or any of its Subsidiaries that could reasonably be expected to expose
Holdings or any of its Subsidiaries to, or result in, Environmental Claims that could
reasonably be expected to have, individually or in the

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aggregate, a Material Adverse Effect,
and (6) any proposed action to be taken by
Holdings or any of its Subsidiaries to modify current operations in a manner that could
reasonably be expected to subject Holdings or any of its Subsidiaries to any additional
obligations or requirements under Environmental Laws that could reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect. Holdings shall be deemed
to have provided the notice required by this Section 5.9(b)(i) with regard to each matter
expressly identified in the reports listed on Schedule 3.1(k);

          (ii) Semi-Annual Report. Commencing on September 30, 2005 Holdings
shall submit to the Administrative Agents a semi-annual written report on the status of (A)
any non-compliance with Environmental Law, (B) any pending or threatened Environmental
Claim, (C) any Remedial Action, and (D) if reasonably requested by the Administrative Agent,
other matters related to Holdings or its Subsidiaries compliance with Environmental Law, in
each case of (A) through (D) above, that that, in each case, could reasonably be expected to
give rise to liability of or expenditures by Holdings or its Subsidiaries of $3,000,000 or
more. Such report shall specify in reasonable detail (1) the status of the matter including
any significant developments since the date of the prior report, (2) any technical reports
or material correspondence prepared or received relating to the matter, (3) the proposed
plan for resolution or completion of the matter, and (4) the anticipated cost to achieve
such resolution or completion of the matter. Subject to Section 5.9(d) below, at the
reasonable written request of the Administrative Agent, Holdings shall provide the
Administrative Agent with copies of all material documents related to such matters that are
in its or its Subsidiaries’ possession or control; and

          (iii) Subject to 5.9(d) below, Holdings shall also deliver to Administrative
Agent and Lenders with reasonable promptness, such other documents and information as from
time to time may be reasonably requested by Administrative Agent in relation to any matters
addressed by this Section 5.9.

               (c) Right of Access and Inspection.

          (i) With respect to any matter disclosed pursuant to subsection (b) above, or
if an Event of Default has occurred and is continuing, or if Administrative Agent reasonably
believes either that Holdings or any of its Subsidiaries has breached any representation,
warranty or covenant in this Agreement pertaining to environmental matters in any material
respect, the Administrative Agent and its representatives shall have the right, but not the
obligation, at any reasonable time and after reasonable notice, to enter into and observe
the condition and operations of the Facilities as they relate to matters pertaining to
Environmental Law (“Environmental Conditions”). Such access shall include, at the
reasonable request of the Administrative Agent, an opportunity to review relevant documents
and interview employees or representatives of Holdings or its Subsidiaries to the extent
necessary to obtain information related to the Environmental Conditions at issue. Holdings
shall reimburse the Administrative Agent for any reasonable costs incurred in conducting any
such observations, including any reasonable consultants’ or lawyers fees relating thereto.
At the reasonable request of the Administrative Agent, Holdings shall prepare a Phase I
Report and conduct such tests and investigations as directed by the Administrative Agent for
Environmental Conditions that

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could reasonably be expected to give rise to liability of or
expenditures by Holdings or its Subsidiaries in excess of $3,000,000;
provided, however, that any such tests or investigations shall not include the taking of
samples of air, soil, surface water,
groundwater, effluent, and building materials, in, on or under the Facilities unless,
based upon the Phase I Report, the Administrative Agent reasonably concludes that such
sampling is commercially reasonable and necessary to evaluate any Environmental Conditions
(x) with respect to any proposed sub-surface soil or ground water sampling, that could
reasonably be expected to give rise to liability or expenditures by Holdings or its
Subsidiaries in excess of $10,000,000 or (y) with respect to any other samplings, that could
be reasonably be expected to give rise to liability or expenditures by Holdings or its
Subsidiaries in excess of $7,000,000. Any such tests and investigations shall be conducted
by a qualified environmental consulting firm reasonably acceptable to the Administrative
Agent. If an Event of Default has occurred and is continuing, or if Holdings does not
prepare a Phase I Report or conduct the requested tests and investigations in a reasonably
timely manner, the Administrative Agent may, upon prior notice to Holdings, retain an
environmental consultant, at Holdings’ expense, to prepare a Phase I Report and conduct such
tests and investigations. Holdings and its Subsidiaries shall provide Administrative Agent
and its consultants with access to the Facilities during normal business hours in order to
complete any necessary inspections or sampling. The Administrative Agent will make
commercially reasonable efforts to conduct any such investigations so as to avoid
interfering with the operation of the Facility.

          (ii) Notwithstanding the Administrative Agent’s rights under subsection
(c)(i) above, the Administrative Agent (and its representatives) shall also have the right,
at its own cost and expense and upon reasonable prior notice to Holdings, to enter into and
observe the Environmental Condition of the Facilities during normal business hours. Such
inspections and observations may include such reviews as are necessary for the preparation
of a Phase I Report, but may not, without Holdings’ prior written consent, include the
taking of samples of air, soil, surface water, groundwater, effluent, and building
materials. The Administrative Agent may not exercise its rights under this subsection
(c)(ii) more frequently than once per year at each Facility. The Administrative Agent’s
decision to conduct an inspection pursuant to this subsection (c)(ii), shall not, in any
way, limit the Administrative Agent’s rights to enter the Facilities, conduct inspections or
obtain information under any provision in this Agreement or otherwise.

          (iii) The exercise of the Administrative Agent’s rights under subsections
(c)(i) or (c)(ii) shall not constitute a waiver of any default by Holdings or any Subsidiary
and shall not impose any liability on the Administrative Agent or any of the Lenders. In
no event will any site visit, observation, test or investigation by the Administrative Agent
be deemed a representation that Hazardous Materials are or are not present in, on or under
any of the Facilities, or that there has been or will be compliance with any Environmental
Law, and the Administrative Agent shall not be deemed to have made any representation or
warranty to any party regarding the truth, accuracy or completeness of any report or
findings with regard thereto. Without express written authorization, which shall not be
unreasonably withheld, neither Holdings nor any other party shall be entitled to rely on any
site visit observation, test or investigation by the Administrative Agent. The
Administrative Agent and the Lenders owe no duty of care to protect Holdings or

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any other
party against, or to inform Holdings or any other party of, any Hazardous Materials or any
other adverse Environmental Condition affecting any of the Facilities. The Administrative
Agent may in its reasonable discretion disclose to Holdings or, if so required by law, to
any third party, any report or findings made as a result of, or in connection with, any site
visit, observation, testing or investigation by the Administrative
Agent. If the Administrative Agent reasonably believes that it is legally required to
disclose any such report or finding to any third party, then the Administrative Agent shall
use its reasonable efforts to give Holdings prior notice of such disclosure and afford
Holdings the opportunity to object or defend against such disclosure at its own and sole
cost; provided, that the failure of the Administrative Agent to give any such notice or
afford Holdings the opportunity to object or defend against such disclosure shall not result
in any liability to the Administrative Agent. Holdings acknowledges that it or its
Subsidiaries may be obligated to notify relevant Governmental Authorities regarding the
results of any site visit, observation, testing or investigation by the Administrative Agent
and that such reporting requirements are site and fact-specific, and are to be evaluated by
Holdings without advice or assistance from the Administrative Agent. Nothing contained in
this Section 5.9(c)(iii) shall be construed as releasing the Administrative Agent or the
Lenders from any liability to the extent incurred as a result of their gross negligence or
willful misconduct.

          (iv) If counsel to Holdings or any of its Subsidiaries reasonably determines
(1) that provision to Administrative Agent of a document otherwise required to be provided
pursuant to this Section 5.9 (or any other provision of this Agreement or any other Credit
Document relating to environmental matters) would jeopardize an applicable attorney-client
or work product privilege pertaining to such document, then Holdings or its Subsidiary shall
not be obligated to deliver such document to Administrative Agent but shall provide
Administrative Agent with a notice identifying the author and recipient of such document and
generally describing the contents of the document. Upon request of Administrative Agent,
Holdings and its Subsidiaries shall take all reasonable steps necessary to provide
Administrative Agent with the factual information contained in any such privileged document.

     5.10. Subsidiaries. In the event that any Person becomes a Domestic Subsidiary of
Company, Company shall (a) as soon as is practicable cause such Domestic Subsidiary (other than (i)
non-wholly owned Domestic Subsidiaries owning total assets with an aggregate fair market value not
to exceed $2,500,000 in the aggregate for all such non-wholly owned Domestic Subsidiaries or (ii)
Domestic Subsidiaries owning total assets with an aggregate fair market value of less than
$100,000, and not to exceed $1,000,000 in the aggregate for all such Domestic Subsidiaries, or
generating total revenue for any twelve (12) month period of less than $100,000, and not to exceed
$1,000,000 in the aggregate for all such Domestic Subsidiaries, to become a Guarantor hereunder and
a Grantor under the Pledge and Security Agreement by executing and delivering to Administrative
Agent and Collateral Agent a Counterpart Agreement, and (b) take all such actions and execute and
deliver, or cause to be executed and delivered, all such documents, instruments, agreements, and
certificates as are similar to those described in Sections 3.1(b), 3.1(i) (in the event such
Domestic Subsidiary owns any Material Real Estate Assets), 3.1(j) and 3.1(n). In the event that
any Person becomes a Foreign Subsidiary of Company, and the ownership interests of such Foreign
Subsidiary are owned by Company or by any Domestic

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Subsidiary thereof, Company shall, or shall
cause such Domestic Subsidiary to, deliver, all such documents, instruments, agreements, and
certificates as are similar to those described in Sections 3.1(b), and Company shall take, or shall
cause such Domestic Subsidiary to take, all of the actions referred to in Section 3.1(j)(i)
necessary to grant and to perfect a First Priority Lien in favor of Collateral Agent, for the
benefit of Secured Parties, under the Pledge and Security Agreement in 65% of such ownership
interests. With respect to each such Subsidiary, Company
shall promptly send to Administrative Agent written notice setting forth with respect to such
Person (i) the date on which such Person became a Subsidiary of Company, and (ii) all of the data
required to be set forth in Schedules 4.1 and 4.2 with respect to all Subsidiaries of Company;
provided, such written notice shall be deemed to supplement Schedule 4.1 and 4.2 for all purposes
hereof. Notwithstanding the foregoing, Company shall not be obligated to perfect a security
interest pursuant to this Section 5.11 in those assets of such Domestic Subsidiary as to which the
Collateral Agent shall determine in its reasonable discretion and in consultation with Company that
the costs of obtaining a security interest with respect thereto are excessive in relation to the
value of the security afforded thereby.

     5.11. Additional Material Real Estate Assets. In the event that any Credit Party
acquires a Material Real Estate Asset or a Real Estate Asset owned or leased on the Effective Date
becomes a Material Real Estate Asset and such interest has not otherwise been made subject to the
Lien of the Collateral Documents in favor of Collateral Agent, for the benefit of Secured Parties,
then such Credit Party, contemporaneously with acquiring such Material Real Estate Asset, shall
take all such actions and execute and deliver, or cause to be executed and delivered, all such
mortgages, documents, title policies, surveys, instruments, agreements, opinions and certificates
similar to those described in Sections 3.1(i), 3.1(j) and 3.1(k) with respect to each such Material
Real Estate Asset that Collateral Agent shall reasonably request to create in favor of Collateral
Agent, for the benefit of Secured Parties, a valid and, subject to any filing and/or recording
referred to herein, perfected First Priority security interest in such Material Real Estate Assets.
In addition to the foregoing, Company shall, at the request of Requisite Lenders, deliver, from
time to time, to Administrative Agent such appraisals as are required by law or regulation of Real
Estate Assets with respect to which Collateral Agent has been granted a Lien. Notwithstanding the
foregoing, Company shall not be obligated to grant security interest pursuant to this Section for
Material Real Estate Assets which are leasehold properties without limiting the generality of the
foregoing, if such Material Real Estate Asset is a Leasehold Property, with respect to which
Company was not able to obtain a Landlord Consent and Estoppel, despite the use of its commercially
reasonable efforts.

     5.12. Interest Rate Protection. The Company shall maintain, or cause to be
maintained, the Interest Rate Agreements in place as of the Effective Date for the remainder of the
stated term thereof, or if shorter, until the Term Loan Maturity Date.

     5.13. Swap Agreement. Company shall cause the Swap Agreement to remain in place for
a period of no less than four years after the Effective Date on terms and conditions as set forth
in the Swap Agreement and otherwise reasonably satisfactory to the Arrangers and shall not sell
assign or otherwise encumber any rights to receive payments under the Swap Agreement (other than
pursuant to the Credit Documents) or enter into any agreement that has the practical effective of
effectuating the foregoing; provided that at any time after March 31, 2008 if the Company
(a) consummates a Qualified IPO, (b) obtains a Total Leverage Ratio less than or equal

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to 1.25:1.00
and (c) has corporate family rating of B2 (with a stable outlook) or better by Moody’s and a
corporate or issuer credit rating of B (with a stable outlook) or better by S&P, Company shall be
permitted to (x) reduce the Swap Agreement to not less than 35,000 barrels a day for the remainder
of Fiscal Year 2008 and (y) terminate the Swap Agreement for any Fiscal Year (commencing with
Fiscal Year 2009).

     5.14. Further Assurances. At any time or from time to time upon the request of
Administrative Agent, each Credit Party will, at its expense, promptly execute, acknowledge and
deliver such further documents and do such other acts and things as Administrative Agent or
Collateral Agent may reasonably request in order to effect fully the purposes of the Credit
Documents. In furtherance and not in limitation of the foregoing, each Credit Party shall take
such actions as Administrative Agent or Collateral Agent may reasonably request from time to time
to ensure that the Obligations are guarantied by the Guarantors and are secured by substantially
all of the assets of Company, and its Subsidiaries and all of the outstanding Capital Stock of
Company and its Subsidiaries (subject to limitations contained in the Credit Documents with respect
to Foreign Subsidiaries).

     5.15. Miscellaneous Business Covenants. Unless otherwise consented to by Agents or
Requisite Lenders: Company will and will cause each of its Subsidiaries to: (i) maintain entity
records and books of account separate from those of any other entity which is an Affiliate of such
entity; (ii) not commingle its funds or assets with those of any other entity which is an Affiliate
of such entity; and (iii) provide that its board of directors or other analogous governing body
will hold all appropriate meetings to authorize and approve such entity’s actions, which meetings
will be separate from those of other entities.

     5.16. [Reserved].

     5.17. Refinery Revenue Bonds.

          (a) Notwithstanding anything in this Agreement or any of the other Loan
Documents to the contrary, Holdings or any of its Subsidiaries may, for the purpose of
obtaining tax credits or other tax abatement from the State of Kansas and Montgomery
County, Kansas, pursuant to Kansas Statutes Annotated (“K.S.A.”) Sections 79-201, et seq.
(the “Property Tax Exemption Statute”), (i) lease the site of the Coffeyville Refinery
constituting a portion of the Mortgaged Properties and described in the Boundary Survey
(the “Coffeyville Refinery Site”) to Montgomery County, Kansas or any Affiliate of
Montgomery County, Kansas (the “County”), (ii) sell the Coffeyville Refinery to the County
and (iii) lease the Coffeyville Refinery Site and the Coffeyville Refinery from the
County, all in connection with the issuance of revenue bonds (the “Refinery Revenue
Bonds”) issued by the County pursuant to the Kansas Economic Development Revenue Bond Act,
as amended and codified in K.S.A. 12-1740 et seq. (the “Revenue Bond Act”). Holdings or
any of its Subsidiaries may enter into such agreements and take such actions, in each case
approved by the Administrative Agent (such approval not to be unreasonably withheld) as
Holdings or Company may consider to be necessary or desirable to consummate the issuance
of the Refinery Revenue Bonds and the related transactions, including (without limitation)
the execution and delivery of any payment-in-lieu-of-taxes or similar agreement between

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any Credit Party and the County relating to the payment of property taxes on the
Coffeyville Refinery, the Coffeyville Refinery Site, or both.

          (b) The principal amount of the Refinery Revenue Bonds shall be that amount
determined by Holdings or Company, and approved by the Administrative Agent (such approval
not to be unreasonably withheld), as being necessary to achieve the maximum amount of tax
credits or other tax abatement for the Coffeyville Refinery Site and the Coffeyville
Refinery pursuant to the Property Tax Exemption Statute. The initial amount of the
Refinery Revenue Bonds issued and outstanding may be reduced and cancelled, from time to
time, at the request of the Administrative Agent, to the minimal amount required to remain
outstanding and achieve the tax benefits provided therefor.

          (c) The Refinery Revenue Bonds shall be purchased by Holdings or any of its
Subsidiaries and shall be pledged to the Lenders pursuant to the Collateral Documents.

          (d) Except to the extent provided in this Section 5.17, the issuance of the
Refinery Revenue Bonds and the execution and delivery of all agreements described or
referred to in this Section 5.17 in connection therewith shall not require any additional
approval of the Lenders and shall be deemed to comply with all provisions of this
Agreement, including (without limitation) the provisions of Section 6.

          (e)
The obligation of Holdings or any of its Subsidiaries to make payments
to the County with respect to the Refinery Revenue Bonds, whether such payments consist of
lease payments, loan payments or any other form of payment, the corresponding right of the
County to receive such payments and all other security provided by Holdings or any of its
Subsidiaries with respect to the Refinery Revenue Bonds shall in all respects be junior
and subordinate to the Mortgages and the rights of the Lenders to receive payment
hereunder. Holdings or any of its Subsidiaries, as applicable, shall enter into, and shall
cause the County to enter into, such agreements as the Administrative Agent shall
reasonably require to reflect such subordination. Holdings and any of its Subsidiaries
shall enter into any modifications of Mortgages, additional Mortgages (whether leasehold
or otherwise) and other documentation (including assignments of payment in lieu of tax
agreements and other assignments) all as reasonably required by Administrative Agent in
connection with the transactions contemplated by this Section 5.17.

SECTION 6. NEGATIVE COVENANTS

     Each Credit Party covenants and agrees that, so long as any Commitment is in effect and until
payment in full of all Obligations and cancellation or expiration of all Letters of Credit, such
Credit Party shall perform, and shall cause each of its Subsidiaries to perform, all covenants in
this Section 6.

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     6.1. Indebtedness. No Credit Party shall, nor shall it permit any of its Subsidiaries to, directly or
indirectly, create, incur, assume or guaranty, or otherwise become or remain directly or indirectly
liable with respect to any Indebtedness, except:

          (a) the Obligations;

          (b) (A) Indebtedness of (v) any Holdings or any Subsidiary to Company or to
any other Guarantor Subsidiary, or (w) of Company to any Guarantor Subsidiary, or (x) any
Holdings to any other Holdings, or (y) to the extent the Company would have been permitted
to make a Restricted Junior Payment under Section 6.5(e), and in lieu of making such
Restricted Junior Payment, Indebtedness of the Company to Holdings, or (z) of Company or
any Subsidiary to any non-Guarantor Subsidiary; provided that the aggregate amount
of such Indebtedness of Company or any Guarantor Subsidiary to any non-Guarantor
Subsidiary shall not exceed, when taken together with Investments made pursuant to Section
6.7(b)(ii), $2,500,000 at any one time; provided, (i) all such Indebtedness shall
be evidenced by promissory notes and all such notes shall be subject to a First Priority
Lien pursuant to the Pledge and Security Agreement, (ii) all such Indebtedness shall be
unsecured and subordinated in right of payment to the payment in full of the Obligations
pursuant to the terms of the applicable promissory notes or an intercompany subordination
agreement that in any such case, is reasonably satisfactory to Administrative Agent, and
(iii) any payment by any such Guarantor Subsidiary under any guaranty of the Obligations
shall result in a pro tanto reduction of the amount of any Indebtedness owed by such
Subsidiary to Company or to any of its Subsidiaries for whose benefit such payment is
made, (B) Indebtedness of any Credit Party to Minority Investments which, together with
all obligations (including, without limitation, Investments, contingent liabilities and
capital calls) arising from Investments pursuant to Section 6.7(p) in Minority
Investments, do not at any one time exceed $5,000,000 in the aggregate and (C)
Indebtedness of any non-Guarantor Subsidiary to any other non-Guarantor Subsidiary;

          (c) [Reserved];

          (d) Indebtedness incurred by Company or any of its Subsidiaries arising
from agreements providing for indemnification, adjustment of purchase price or similar
obligations, or from guaranties or letters of credit, surety bonds or performance bonds
securing the performance of Company or any such Subsidiary pursuant to such agreements, in
connection with Permitted Acquisitions or permitted dispositions of any business, assets
or Subsidiary of Company or any of its Subsidiaries;

          (e) Indebtedness which may be deemed to exist pursuant to any guaranties,
indemnities, performance, surety, statutory, appeal or similar obligations including the
types of obligations referred to in clause (d) incurred in the ordinary course of
business;

          (f)
Indebtedness in respect of netting services, overdraft protections and
otherwise in connection with deposit accounts;

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          (g) guaranties in the ordinary course of business of the obligations of
suppliers, customers, franchisees and licensees of Company and its Subsidiaries;

          (h) (A) guaranties by Company of Indebtedness of a Guarantor Subsidiary or
guaranties by a Subsidiary of Company of Indebtedness of Company or a Guarantor Subsidiary
with respect, in each case, to Indebtedness otherwise permitted to be incurred pursuant to
this Section 6.1, (B) guaranties by non-Guarantor Subsidiaries of Indebtedness of other
non-Guarantor Subsidiaries and (C) guaranties by Company or a Guarantor Subsidiary of
Indebtedness of non-Guarantor Subsidiaries that, had such guaranties been Indebtedness
incurred pursuant to Section 6.1(b)(A)(z) would have been permitted by such section;

          (i) Indebtedness described in Schedule 6.1, but not any extensions,
renewals or replacements of such Indebtedness except (i) renewals and extensions expressly
provided for in the agreements evidencing any such Indebtedness as the same are in effect
on the date of this Agreement and (ii) refinancings and extensions of any such
Indebtedness if the terms and conditions thereof are not materially less favorable to the
obligor thereon or to the Lenders than the Indebtedness being refinanced or extended, and
the average life to maturity thereof is greater than or equal to that of the Indebtedness
being refinanced or extended; provided, such Indebtedness permitted under the
immediately preceding clause (i) or (ii) above shall not (A) include Indebtedness of an
obligor that was not an obligor with respect to the Indebtedness being extended, renewed
or refinanced, (B) exceed in a principal amount the Indebtedness being renewed, extended
or refinanced or (C) be incurred, created or assumed if any Default or Event of Default
has occurred and is continuing or would result therefrom;

          (j) Indebtedness incurred under the Swap Agreement as of the Effective
Date;

          (k) additional Indebtedness incurred under the Swap Agreement after the
Effective Date;

          (l) additional Indebtedness under (i) Commodity Agreements permitted
pursuant to Section 6.20, (ii) any other Hedge Agreements and (iii) any Interest Rate
Agreements or Currency Agreements entered into with any financial institution other than a
Lender Counterparty in the ordinary course of Holdings’ or any of its Subsidiaries’
businesses;

          (m) (i) Indebtedness arising under Capital Leases entered into in
connection with Permitted Sale Leasebacks, (ii) Indebtedness arising under Capital Leases,
other than Capital Leases in effect on the Effective Date (and listed on Schedule 6.1) and
Capital Leases entered into pursuant to subclause (i) above; provided that the
aggregate amount of Indebtedness incurred pursuant to this subclause (ii), when taken
together with Indebtedness incurred pursuant to Section 6.1(n) below, shall not exceed
$25,000,000 at any time outstanding, and (iii) any refinancing, refunding, renewal or
extension of any Indebtedness specified in subclauses (i) and (ii) above;

105

 

provided
that the principal amount thereof is not increased above the principal amount thereof
outstanding immediately prior to such refinancing, refunding, renewal or extension;

          (n) purchase money Indebtedness in an aggregate amount, when taken together
with Indebtedness incurred pursuant to Section 6.1(m) above, not to exceed at any time
$20,000,000; provided, any such Indebtedness (i) shall be secured only to the
asset acquired in connection with the incurrence of such Indebtedness, and (ii) shall
constitute not less than 85% of the aggregate consideration paid with respect to such
asset; and refinancings and extensions of any such Indebtedness if the terms and
conditions thereof are not materially less favorable to the obligor thereon or to the
Lenders than the Indebtedness being refinanced or extended, and the average life to
maturity thereof is greater than or equal to that of the Indebtedness being refinanced or
extended;

          (o) (i) Indebtedness of a Person or Indebtedness attaching to assets of a
Person that, in either case, becomes a Subsidiary or Indebtedness attaching to assets that
are acquired by Company or any of its Subsidiaries, in each case after the Effective Date
as the result of a Permitted Acquisition, provided that (x) such Indebtedness existed at
the time such Person became a Subsidiary or at the time such assets were acquired and, in
each case, was not created in anticipation thereof, (y) such Indebtedness is not
guaranteed in any respect by Holdings or any Subsidiary (other than by any such person
that so becomes a Subsidiary) and (z) the aggregate amount of such Indebtedness does not
exceed $10,000,000 at any one time outstanding, (ii) Indebtedness of Company incurred in
connection with a Permitted Acquisition (either in the form of seller notes, earn-out
obligations, deferred purchase price or otherwise) in an aggregate amount not to exceed
$10,000,000 at any one time outstanding, and (iii) any refinancing, refunding, renewal or
extension of any Indebtedness specified in subclauses (i) and (ii) above, provided that
(x) the principal amount of any such Indebtedness is not increased above the principal
amount thereof outstanding immediately prior to such refinancing, refunding, renewal or
extension and (y) the direct and contingent obligors with respect to such Indebtedness are
not changed;

          (p) Indebtedness of Holdings, provided that (i) either (x) the net proceeds
thereof are used within five Business Days of incurrence thereof to repay the Obligations
hereunder or (y) to consummate a Permitted Acquisition, (ii) no portion of the principal
of such Indebtedness shall have a maturity date earlier than six months after the final
maturity of the Loans hereunder, (iii) at the time of the incurrence of such Indebtedness
and after giving effect thereto, no Default or Event of Default shall exist or be
continuing and (iv) the documentation governing such Indebtedness contains customary
market terms (including customary subordination terms or as otherwise reasonably agreed to
by the Administrative Agent);

          (q) Indebtedness incurred in accordance with Section 5.17;

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          (r) Indebtedness incurred in connection with the financing in the ordinary
course of insurance premiums in an aggregate amount not to exceed $10,000,000 at any time;

          (s) Indebtedness of Holdings or Company in an amount not to exceed
$225,000,000 the proceeds of which are used solely to finance capital enhancement projects
provided that (i) such Indebtedness is incurred after June 30, 2008, (ii)
Company has consummated a Qualified IPO, (iii) at the time of the incurrence of such
Indebtedness and after giving effect thereto (x) no Default or Event of Default shall
exist or be continuing and (y) Company is in pro forma compliance with the covenants set
forth in Section 6.8, (iv) no part of the principal part of such Indebtedness shall have a
maturity date earlier than six months after the final maturity of the Loans hereunder and
is such Indebtedness is not subject to mandatory repurchase, redemption or amortization
(other than pursuant to customary asset sale or change of control provisions requiring
redemption or repurchase only if and to the extent permitted by this Agreement) prior to
the date that is six months after the final maturity of the Loans hereunder, and (v) the
documentation governing such Indebtedness contains covenants, events of default and
remedies which are no more restrictive to the Credit Parties than those contained in this
Agreement and provided further that Company shall have obtained a Ratings
Confirmation (after giving effect to the Incurrence of such Indebtedness); and

          (t) other Indebtedness of Company and its Subsidiaries in an aggregate
amount not to exceed at any time $50,000,000; provided that, such Indebtedness
shall be unsecured except to the extent permitted by Section 6.2(u).

To the extent that the creation, incurrence or assumption of any Indebtedness could be attributable
to more than one subsection of this Section 6.1, Company may allocate (or reallocate) such
Indebtedness to any one or more of such subsections and in no event shall the same portion of
Indebtedness be deemed to utilize or be attributable to more than one item.

     6.2. Liens. No Credit Party shall, nor shall it permit any of its Subsidiaries to,
directly or indirectly, create, incur, assume or permit to exist any Lien on or with respect to any
property or asset of any kind (including any document or instrument in respect of goods or accounts
receivable) of Company or any of its Subsidiaries, whether now owned or hereafter acquired, or any
income or profits therefrom, or file or permit the filing of, or permit to remain in effect, any
financing statement or other similar notice of any Lien with respect to any such property, asset,
income or profits under the UCC of any State or under any similar recording or notice statute,
except:

          (a) Liens in favor of Collateral Agent for the benefit of Secured Parties
granted pursuant to any Credit Document;

          (b) Liens for Taxes if obligations with respect to such Taxes are not yet
due or are being contested in good faith by appropriate proceedings promptly instituted
and diligently conducted;

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          (c) statutory Liens of landlords, banks (and rights of set-off), of
carriers, warehousemen, mechanics, repairmen, workmen and materialmen, and other Liens
imposed by law (other than any such Lien imposed pursuant to Section 401 (a)(29) or 412(n)
of the Internal Revenue Code or by ERISA), in each case incurred in the ordinary course of
business (i) for amounts not yet overdue or (ii) for amounts that are overdue and that (in
the case of any such amounts overdue for a period in excess of fifteen days) are being
contested in good faith by appropriate proceedings, so long as such reserves or other
appropriate provisions, if any, as shall be required by GAAP shall have been made for any
such contested amounts;

          (d) Liens incurred in the ordinary course of business in connection with
workers’ compensation, unemployment insurance and other types of social security and other
similar statutory obligations, or to secure the performance of tenders, statutory
obligations, surety and appeal bonds, bids, leases, government contracts, trade contracts,
supply agreements, performance and return-of-money bonds and other similar obligations
(exclusive of obligations for the payment of borrowed money or other Indebtedness), so
long as no foreclosure, sale or similar proceedings have been commenced with respect to
any portion of the Collateral on account thereof;

          (e) easements, rights-of-way, restrictions, encroachments, and other minor
defects or irregularities in title, in each case which do not and will not interfere in
any material respect with the ordinary conduct of the business of Company or any of its
Subsidiaries;

          (f) any interest or title of a lessor or sublessor under any lease
(including Permitted Sale Leasebacks) permitted hereunder;

          (g) Liens solely on any cash earnest money deposits made by Company or any
of its Subsidiaries in connection with any letter of intent or purchase agreement
permitted hereunder;

          (h) purported Liens evidenced by the filing of precautionary UCC financing
statements relating solely to operating leases of personal property entered into in the
ordinary course of business;

          (i) Liens in favor of customs and revenue authorities arising as a matter
of law to secure payment of customs duties in connection with the importation of goods;

          (j) any zoning or similar law or right reserved to or vested in any
governmental office or agency to control or regulate the use of any real property in each
case which do not and will not interfere in any material respect with the ordinary conduct
of the business of Company or any of its Subsidiaries;

          (k) licenses of patents, trademarks and other intellectual property rights
granted by Company or any of its Subsidiaries in the ordinary course of business and not
interfering in any respect with the ordinary conduct of the business of Company or such
Subsidiary;

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          (l) Liens described in Schedule 6.2 and any renewals or replacements of
such Liens in connection with refinancing of Indebtedness secured thereby or on a Title
Policy (as defined in the Existing Credit Agreement) delivered pursuant to Section
3.1(i)(iv) of the Existing Credit Agreement;

          (m) Liens securing Indebtedness permitted pursuant to 6.1(m) through (q);
provided, any such Lien shall encumber (x) in the case of Section 6.1(m), (n), and (p),
only the asset acquired with the proceeds of such Indebtedness and (y) in the case of
Section 6.1(o), only the assets originally securing such Indebtedness;

          (n) [Reserved];

          (o) to the extent not secured by Funded Letters of Credit, Liens securing
Indebtedness under the Swap Agreement permitted under Sections 6.1(j) or (k); provided
such Liens are subject to the Intercreditor Agreement;

          (p) unperfected Liens which arise by operation of law in favor of Persons
providing crude oil or gas products to Company or its Subsidiaries;

          (q) judgment Liens not otherwise constituting or arising out of an Event of
Default pursuant to Section 8.1(h);

          (r) customary Liens and other customary restrictions contained in any
agreement applicable to Minority Investments;

          (s) Liens in favor of hedging counterparties on cash deposits in margin
accounts established in the ordinary course of business in an aggregate amount not to
exceed $10,000,000;

          (t) Liens securing Indebtedness permitted under Section 6.1(s) provided
that such Liens are subordinated pursuant to an intercreditor agreement with customary
lien subordination and other terms reasonably acceptable to the Arrangers; and

          (u) other Liens securing Indebtedness permitted pursuant to Section 6.1(s)
or 6.1(t) in an aggregate amount not to exceed $25,000,000 at any time outstanding less
the aggregate amount of Specified Secured Hedge Indebtedness.

     6.3. Equitable Lien. If any Credit Party or any of its Subsidiaries shall create or
assume any Lien upon any of its properties or assets, whether now owned or hereafter acquired,
other than Permitted Liens, it shall make or cause to be made effective provisions whereby the
Obligations will be secured by such Lien equally and ratably with any and all other Indebtedness
secured thereby as long as any such Indebtedness shall be so secured; provided,
notwithstanding the foregoing, this covenant shall not be construed as a consent by Requisite
Lenders to the creation or assumption of any such Lien not otherwise permitted hereby.

     6.4. No Further Negative Pledges. Except with respect to (a) specific property
encumbered to secure payment of particular Indebtedness or to be sold
pursuant to an executed agreement with respect to a permitted Asset Sale, (b) restrictions by reason of customary

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provisions restricting assignments, subletting or other transfers contained in leases, licenses and
similar agreements entered into in the ordinary course of business (provided that such restrictions
are limited to the property or assets secured by such Liens or the property or assets subject to
such leases, licenses or similar agreements, as the case may be), (c) restrictions pursuant to the
Credit Documents, Hedge Agreements or the Swap Agreement Documents, (d) Indebtedness permitted to
be secured pursuant to clauses (m), (n), (o) and (t) of Section 6.1 but only to the extent of the
assets permitted to secure such Indebtedness and (e) any other Permitted Lien but only to the
extent to the assets to which such Permitted Lien attaches, no Credit Party nor any of its
Subsidiaries shall enter into any agreement prohibiting the creation or assumption of any Lien upon
any of its properties or assets, whether now owned or hereafter acquired.

     6.5. Restricted Junior Payments. No Credit Party shall, nor shall it permit any of
its Subsidiaries through any manner or means or through any other Person to, directly or
indirectly, declare, order, pay, make or set apart, or agree to declare, order, pay, make or set
apart, any sum for any Restricted Junior Payment except that:

               (a) Company or any Holdings may make Restricted Junior Payments to Holdings
(and, to the extent applicable, Holdings may make Restricted Junior Payments):

          (i) to the extent necessary to permit Holdings or any direct or indirect
parent Company of Holdings to pay legal, accounting and reporting expenses in the ordinary
course of business;

          (ii) (A) at any time prior to the consummation of an IPO, to the extent
necessary to permit Holdings or any direct or indirect parent company of Holdings to pay
general administrative costs and expenses and to pay reasonable directors fees and expenses,
in an aggregate amount not to exceed $2,500,000 in any Fiscal Year, and (B) at any time
after the consummation of an IPO, to the extent necessary to permit Parent to pay reasonable
and customary general administrative costs and expenses and to pay reasonable and customary
directors fees and expenses in the ordinary course of business and directly related to
Parent’s ownership of Company;

          (iii) to the extent necessary to permit any of Holdings to discharge the tax
liabilities (including franchise taxes) of any of Holdings and their respective
Subsidiaries, in each case, so long as Holdings apply the amount of any such Restricted
Junior Payment for such purpose;

          (iv) so long as no Default or Event of Default shall have occurred or be
continuing, to repurchase stock of any Holdings or AcquisitionCo held by then present or
former officers or employees of Holdings, Company or any of their respective Subsidiaries
upon such person’s death, disability, retirement or termination of employment in an
aggregate amount not to exceed $2,500,000 plus the proceeds of any keyman life insurance and
purchases of Capital Stock of Holdings (or any parent of Holdings if the proceeds thereof
are contributed as equity to Holdings) by management in the aggregate in any Fiscal Year;

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          (v) so long as no Default or Event of Default under Sections 8.1 (a), (f) or
(g) shall have occurred or be continuing, to the extent necessary to permit Holdings to pay
(1) management fees to the Sponsors in an amount not to exceed (A) $3,000,000 per Fiscal
Year or (B) in connection with the consummation of an IPO a one-time management fee of
$10,000,000, in each case pursuant to the Management Agreement, (2) customary investment
banking fees paid to the Sponsors and their Affiliates for services rendered to Holdings and
its Subsidiaries in connection with divestitures, acquisitions, financings and other
transactions, (3) reasonable one-time financial advisory fees for transactions involving
Holdings and its Subsidiaries in an amount not to exceed, with respect to both clauses (2)
and (3), $750,000 in the aggregate per Fiscal Year, (4) in connection with the consummation
of an IPO, such fees as are provided pursuant to the Management Agreement as in effect on
the date hereof and (5) any indemnity obligations
owed to the Sponsors pursuant to the Management Agreement; provided that (x)
any of the foregoing fees and obligations that remain unpaid because of the occurrence or
the continuance of a Default under Sections 8.1 (a), (f) or (g) or an Event of Default shall
continue to accrue and (y) such accrued and unpaid fees shall be permitted to be paid (in
addition to any amounts permitted by the foregoing clauses (1) through (5)), at any time as
no Default under Sections 8.1 (a), (f) or (g) and no Event of Default shall exist,

          (vi) to the extent necessary to permit Holdings to pay reasonable
out-of-pocket expenses incurred by Sponsors in the ordinary course in connection with their
management obligations;

          (vii) so long as no Default or Event of Default shall exist or be continuing,
(A) at any time prior to an IPO, if (A) the Term Loan Repayment Amount is at least
$300,000,000 and there are no outstanding New Term Loans, (B) the Company has a corporate
family rating of B2 (with a stable outlook) or better by Moody’s and a corporate or issuer
credit rating of B (with a stable outlook) or better by S&P, and (C) the Company shall be in
pro forma compliance with the financial covenants in Section 6.8, Holdings may declare and
pay dividends on its Capital Stock to Parent from the Available Amount but not to exceed
$25,000,000 per Fiscal Year;

          (viii) so long as no Default or Event of Default shall exist or be
continuing, at any time after a Qualified IPO, if (A) the Company has a corporate family
rating of B2 (with a stable outlook) or better by Moody’s and a corporate or issuer credit
rating of B (with a stable outlook) or better by S&P and (B) the Company shall be in pro
forma compliance with the financial covenants in Section 6.8, Holdings may declare and pay
dividends on its Capital Stock to Parent from the Available Amount but not to exceed
$35,000,000 per Fiscal Year; and

          (ix) to the extent necessary to permit Holdings to pay on the Effective Date
a dividend to its existing shareholders in an amount not to exceed $250,000,000.

               (b) any Holdings may make Restricted Junior Payments to any other Holdings;

111

 

     (c) so long as no Default or Event of Default has occurred or would result
therefrom, the Company may make payments in connection with any modification, reduction or
termination of the Swap Agreement, provided that such payments shall only be made
with proceeds from (i) the Available Amount and (ii) up to $50,000,000 of Qualified
Subordinated Indebtedness;

     (d) any Subsidiary of the Company may pay dividends or make other
distributions with respect to any class of its issued and outstanding Capital Stock or
intercompany Indebtedness permitted by Section 6.1(b);
provided, any dividends and
other distributions by a Subsidiary of the Company that is not wholly-owned are paid in
Cash on a pro rata basis among the holders of each applicable class of Capital Stock; and

     (e) the Company may make Restricted Junior Payments to any Holdings to the
extent necessary to permit such Holdings to pay interest (and not principal) on
intercompany loans held by such Holdings and permitted by Section
6.1(b)(A)(y); provided, that the full amount of such Restricted Junior
Payment is used by such Holdings upon receipt thereof to pay such interest and that the
recipient of such interest payment makes a concurrent equity contribution to the Company
in an amount equivalent to the amount of such Restricted Junior Payment and such
contribution is used to repay any intercompany Indebtedness incurred pursuant to Section
6.1(b)(A)(y).

     6.6. Restrictions on Subsidiary Distributions. Except as provided herein, no Credit
Party shall, nor shall it permit any of its Subsidiaries to, create or otherwise cause or suffer to
exist or become effective any consensual encumbrance or restriction of any kind on the ability of
any Subsidiary of Company to (a) pay dividends or make any other distributions on any of such
Subsidiary’s Capital Stock owned by Company or any other Subsidiary of Company, (b) repay or prepay
any Indebtedness owed by such Subsidiary to Company or any other Subsidiary of Company, (c) make
loans or advances to Company or any other Subsidiary of Company, or (d) transfer any of its
property or assets to Company or any other Subsidiary of Company other than restrictions (i) in
agreements evidencing Indebtedness permitted by Section 6.1(k) that impose restrictions on the
property so acquired and (ii) by reason of customary provisions restricting assignments, subletting
or other transfers contained in leases, licenses, joint venture agreements and similar agreements
entered into in the ordinary course of business, (iii) that are or were created by virtue of any
transfer of, agreement to transfer or option or right with respect to any property, assets or
Capital Stock not otherwise prohibited under this Agreement, (iv) customary restrictions or
conditions imposed by (x) law or (y) any of the Credit Documents or the Swap Agreement Documents,
(v) any Permitted Lien or any document or instrument governing any Permitted Lien; provided that
any such restriction contained therein relates only to the asset or assets subject to such
Permitted Lien; (vi) any instrument governing Indebtedness permitted pursuant to Section 6.1(o) or
Capital Stock of a Person acquired by Company or any of its Subsidiaries, which encumbrance or
restriction was in existence at the time of such acquisition (but not created in contemplation
thereof or to provide all or any portion of the funds or credit support utilized to consummate such
acquisition) and is not applicable to any Person, or the properties or assets of any Person, other
than the Person or the properties or assets of the Person so acquired (including, but not limited
to, such Person’s direct and indirect Subsidiaries),

112

 

provided that any such encumbrance or
restriction contained therein relates only to such Indebtedness or Capital Stock so acquired and
that any such encumbrances or restrictions, individually or in the aggregate, shall not materially
affect any Credit Party’s ability to pay Obligations; (vii) agreements related to Permitted Sale
Leasebacks; provided that any such restriction contained therein relates only to such
Permitted Sale Leaseback or that any such restrictions, individually or in the aggregate, shall not
be more restrictive than those contained in this Agreement and shall not materially affect any
Credit Party’s ability to pay Obligations; (viii) customary restrictions in Material Contracts
entered into in the ordinary course of business, provided that any such restrictions
contained therein relate only to such agreements and that any such restrictions, individually or in
the aggregate, shall not materially affect any Credit Party’s ability to pay Obligations; (ix)
customary restrictions on net worth imposed by customers or suppliers under contracts entered into
in the ordinary course of business; and (x) an agreement governing Indebtedness incurred to
refinance the Indebtedness issued, assumed or incurred pursuant to an agreement referred to in
clauses (i), (iv), and (v) above and any amendments, restatements, modifications, renewals,
supplements, refundings, replacements or refinancings of the contracts, instruments or obligations
referred to in clauses (i) through (x) above; provided, however, that the
provisions relating to such encumbrance or restriction contained in any such Indebtedness,
amendments, restatements, modifications,
renewals, supplements, refundings, replacements or refinancings are no less favorable to
Company in any material respect as determined by the board of directors of Company in its
reasonable and good faith judgment than the provisions relating to such encumbrance or restriction
contained in agreements prior to such amendment, restatement, modification, renewal, supplement,
refunding, replacement or refinancing.

     6.7. Investments. No Credit Party shall, nor shall it permit any of its
Subsidiaries to, directly or indirectly, make or own any Investment in any Person, including
without limitation any Minority Investments, except:

          (a) Investments in Cash and Cash Equivalents;

          (b) equity Investments owned as of the Effective Date in any Subsidiary and
Investments made after the Effective Date in (i) any wholly-owned Guarantor Subsidiaries
of Company, (ii) any non-Guarantor Subsidiaries in an amount not to exceed, when taken
together with Indebtedness issued pursuant to Section 6.1(b)(z), $2,500,000 in the
aggregate, (iii) any non-Guarantor Subsidiaries by another non-wholly owned Subsidiary;

          (c) Investments (i) in any Securities received in satisfaction or partial
satisfaction thereof from financially troubled account debtors and (ii) deposits,
prepayments and other credits to suppliers made in the ordinary course of business
consistent with the past practices of Company and its Subsidiaries;

          (d) intercompany loans to the extent permitted under Section 6.1(b);

          (e) Consolidated Capital Expenditures permitted by Section 6.8(e);

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          (f) (i) loans and advances to employees of Company and its Subsidiaries
made in the ordinary course of business (and any notes related thereto) in an aggregate
principal amount not to exceed $2,000,000 in the aggregate and (ii) stock repurchases
permitted by Section 6.5;

          (g) Investments made in connection with and/or acquired as the result of
Permitted Acquisitions permitted pursuant to Section 6.9 (including earn-outs and other
contingent obligations);

          (h) Investments described in Schedule 6.7;

          (i) Investments in any Interest Rate Agreement, Currency Agreement, the
Swap Agreement or other Commodity Agreements;

          (j) Investments constituting non-cash proceeds of sales, transfers and
other dispositions of assets to the extent permitted by Section 6.9;

          (k) Investments represented by guarantees that are not otherwise prohibited
under this Agreement;

          (l) Investments in prepaid expenses, negotiable instruments held for
collection, and lease, utility, worker’s compensation, performance and other similar
deposits provided to third parties in the ordinary course of business;

          (m) Any customary indemnity, purchase price adjustment, earn-out or similar
obligation in each case benefiting Company or any of is Subsidiaries created as a result
of any acquisition or disposition of the assets of Company or the assets or Capital Stock
of a Person that is a Subsidiary or becomes a Subsidiary as a result of such transaction
to the extent such transaction is otherwise permitted hereunder;

          (n) Investments consisting of purchases and acquisitions of inventory,
supplies, material or equipment or the licensing or contribution of intellectual property
pursuant to joint marketing arrangements with other Persons and progress payments made in
respect of capital expenditures, in each case in the ordinary course of business;

          (o) Investments in Minority Investments which, together with all
obligations (including, without limitation, Indebtedness, contingent liabilities and
capital calls) arising from such investment, do not at any one time exceed $20,000,000 in
the aggregate;

          (p) additional Investments which, as valued at the fair market value of
such Investment at the time each such Investment is made, do not at any one time exceed,
when taken together with any Investments made pursuant to Section 6.7(o) above, the sum of
(i) $15,000,000 in the aggregate plus (ii) the Available Amount at such time; and

          (q) Investments related to the storage units that are adjacent to Cushing
or similar projects in the development of infrastructure to store crude oil or deliver

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crude oil in the refinery in an amount not to exceed $30,000,000 in the aggregate at
any one time; provided that, Investments made pursuant to this clause (q) shall
reduce amounts set forth in Section 6.8(c)(i) (so long as such Section remains applicable)
with respect to the Fiscal Year in which such Investment is made.

Notwithstanding the foregoing, in no event shall any Credit Party make any Investment which results
in or facilitates in any manner any Restricted Junior Payment not otherwise permitted under the
terms of Section 6.5.

To the extent that the making of any Investment could be deemed a use of more than one subsection
of this Section 6.7, Company may select the subsection to which such Investment will be deemed a
use and in no event shall the same portion of an Investment be deemed a use of more than one
subsection.

     6.8. Financial Covenants.

          (a) Interest Coverage Ratio. Company shall not permit the Interest Coverage
Ratio as of the last day of any Fiscal Quarter, beginning with the Fiscal Quarter ending
March 31, 2007, to be less than the correlative ratio indicated:

	 	 	 
	 	 	Interest
	Fiscal Quarter	 	Coverage Ratio
	March 31, 2007
	 	2.25:1.00
	June 30, 2007
	 	2.50:1.00
	September 30, 2007
	 	2.75:1.00
	December 31, 2007
	 	2.75:1.00
	March 31, 2008
	 	3.25:1.00
	June 30, 2008
	 	3.25:1.00
	September 30, 2008
	 	3.25:1.00
	December 31, 2008
	 	3.25:1.00
	March 31, 2009 and thereafter
	 	3.75:1.00

          (b) Total Leverage Ratio. Company shall not permit the Total Leverage Ratio
as of the last day of any Fiscal Quarter, beginning with the Fiscal Quarter ending March
31, 2007, to exceed the correlative ratio indicated:

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	Fiscal	 	Leverage
	Quarter	 	Ratio
	March 31, 2007
	 	4.75:1.00
	June 30, 2007
	 	4.50:1.00
	September 30, 2007
	 	4.25:1.00
	December 31, 2007
	 	4.00:1.00
	March 31, 2008
	 	3.25:1.00
	June 30, 2008
	 	3.00:1.00
	September 30, 2008
	 	2.75:1.00
	December 31, 2008
	 	2.50:1.00
	March 31, 2009
	 	2.25:1.00
	June 30, 2009
	 	2.25:1.00
	September 30, 2009
	 	2.25:1.00
	December 31, 2009
	 	2.25:1.00
	March 31, 2010 and thereafter
	 	2.00:1.00

          (c) Maximum Consolidated Capital Expenditures.

(i) Company shall not, and shall not permit its Subsidiaries to, make or incur
Consolidated Capital Expenditures, in any Fiscal Year indicated below, in an
aggregate amount for Company and its Subsidiaries in excess of the sum of (1) the
corresponding amount set forth below opposite such Fiscal Year; provided,
such amount for any Fiscal Year shall be increased by an amount equal to 100% of the
excess, if any, of such amount for the previous Fiscal Year (without giving effect
to any adjustments made in accordance with this proviso (provided that actual
Consolidated Capital Expenditures in any Fiscal Year shall be first applied against
any carryover from the prior Fiscal Year) and excluding any use of the Available
Amount pursuant to subclause (2) below) over the actual amount of Consolidated
Capital Expenditures for such previous Fiscal Year:

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	 	 	Consolidated
	 	 	Capital
	Fiscal Year	 	Expenditures
	2007
	 	$225,000,000

	 
	 	plus the 2006
	 
	 	Carryover
	2008
	 	$100,000,000
	2009
	 	$80,000,000
	2010
	 	$80,000,000
	2011 and Thereafter
	 	$50,000,000

and (2) the Available Amount as of the last day of such Fiscal Year (provided that
no portion of the Available Amount can be used for Consolidated Capital Expenditures
until the entire amount available for Consolidated Capital Expenditure pursuant to
clause (i)(1) of this section with respect to such Fiscal Year has been so
expended).

(ii) Notwithstanding the foregoing, Company and its Subsidiaries shall not be
subject to the provisions of this Section 6.8(c) for any Fiscal Year (commencing
with Fiscal Year 2009) if the Company has (i) consummated a Qualified IPO and (ii)
obtained a Total Leverage Ratio of less than or equal to 1.25:1.00 for any Fiscal
Quarter (commencing with the Fiscal Quarter ended December 31, 2008).

          (d) Certain Calculations. With respect to any period during which a
Permitted Acquisition or an Asset Sale has occurred (each, a “Subject Transaction”), for
purposes of determining compliance with the financial covenants set forth in this Section
6.8 and for determining pro forma compliance therewith (but not for purposes of
determining the Applicable Margin), Consolidated Adjusted EBITDA shall be calculated with
respect to such period on a pro forma basis (including pro forma adjustments arising out
of events which are directly attributable to a specific transaction, projected by Holdings
in good faith as a result of reasonably identifiable and factually supportable net cost
savings or additional costs, as the case may be, realizable during the twelve month period
after such transaction by combining, in the case of a Permitted Acquisition, the
operations of the acquired entity or business with the operations of Holdings and its
Subsidiaries; provided that (i) so long as such net cost savings or additional net costs
will be realizable at any time, during such period, it may be assumed, for purposes of
projecting such pro forma increase or decrease to Consolidated Adjusted EBITDA, that such
net cost savings or additional net cost will be realizable during the entire such period
and (ii) any such pro forma increase or decrease to Consolidated Adjusted EBITDA shall be
without duplication for net cost savings or additional net costs actually realized during
such period and already included in Consolidated EBITDA, all of which pro forma
adjustments shall be certified by the

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chief financial officer of Parent) using the historical audited financial statements
of any business so acquired or to be acquired or sold or to be sold and the consolidated
financial statements of Company and its Subsidiaries which shall be reformulated as if
such Subject Transaction, and any Indebtedness incurred or repaid in connection therewith,
had been consummated or incurred or repaid at the beginning of such period (and assuming
that such Indebtedness bears interest during any portion of the applicable measurement
period prior to the relevant acquisition at the weighted average of the interest rates
applicable to outstanding Loans incurred during such period).

          (e) Right to Cure. Notwithstanding anything to the contrary contained in
this Section 6.8, in the event that any Credit Party would otherwise be in default of any
financial covenant set forth in this Section 6.8, until the 10th day subsequent to
delivery of the related Compliance Certificate, Holdings shall have the right, but in any
event no more than (i) two times in any twelve-month period and (ii) four times from the
Effective Date to the date of determination, to issue Permitted Cure Securities for cash
or otherwise receive cash contributions to the capital of Holdings (which proceeds and
contributions will be contributed to the common equity capital of Company), in either case
in an aggregate amount equal to the lesser of (a) the amount necessary to cure the
relevant failure to comply with all the applicable financial covenants and (b)
$25,000,000, (collectively, the “Cure Right”), and upon the receipt by Holdings of such
cash (the “Cure Amount”) pursuant to the exercise of such Cure Right such financial
covenants shall be recalculated giving effect to the following pro forma adjustments:

          (i) Consolidated Adjusted EBITDA shall be increased, in accordance with the definition
thereof, solely for the purpose of measuring the financial covenants and not for any other
purpose under this Agreement, by an amount equal to the Cure Amount;

          (ii) if, after giving effect to the foregoing recalculations, the Credit Parties shall
then be in compliance with the requirements of all financial covenants set forth in this
Section 6.8, the Credit Parties shall be deemed to have satisfied the requirements thereof
as of the relevant date of determination with the same effect as though there had been no
failure to comply therewith at such date, and the applicable breach or default thereof which
had occurred shall be deemed cured for all purposes of the Agreement; and

          (iii) to the extent that the Cure Amount proceeds are used to repay Indebtedness, such
Indebtedness shall not be deemed to have been repaid for purposes of calculating the Total
Leverage Ratio for the period with respect to which such Compliance Certificate applies.

     6.9. Fundamental Changes; Disposition of Assets; Acquisitions. No Credit Party shall, nor
shall it permit any of its Subsidiaries to, effect any transaction of merger or consolidation, or
liquidate, wind-up or dissolve itself (or suffer any liquidation or dissolution), or convey, sell,
lease or sub-lease (as lessor or sublessor), exchange, transfer or otherwise dispose of, in one
transaction or a series of transactions, all or any part of its business, assets or property

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of any kind whatsoever, whether real, personal or mixed and whether tangible or intangible,
whether now owned or hereafter acquired, or acquire by purchase or otherwise (other than purchases
or other acquisitions of inventory, materials and equipment and Capital Expenditures in the
ordinary course of business), including without limitation any forward sale of production other
than pursuant to Commodity Agreements not prohibited by Section 6.20 the business, property or
fixed assets of, or stock or other evidence of beneficial ownership of, any Person or any division
or line of business or other business unit of any Person, except:

          (a) (i) any Subsidiary of Holdings may be merged with or into Company or any
Guarantor Subsidiary, or be liquidated, wound up or dissolved, or all or any part of its
business, property or assets may be conveyed, sold, leased, transferred or otherwise
disposed of, in one transaction or a series of transactions, to Company or any Guarantor
Subsidiary; provided, in the case of such a merger, Company or such Guarantor
Subsidiary, as applicable shall be the continuing or surviving Person, (ii) any
non-Guarantor Subsidiary may be merged with or into any other non-Guarantor Subsidiary and
(iii) any Holdings may be merged with or into any other Holdings, or be liquidated, wound
up or dissolved, or all or any part of its business, property or assets may be conveyed,
sold, leased, transferred or otherwise disposed of, in one transaction or a series of
transactions, to any other Holdings, so long as 100% of the Capital Stock of Company
continues to be pledged to the Collateral Agent pursuant to the Pledge and Security
Agreement;

          (b) any Holdings may be merged with or into any other Holdings or be liquidated,
wound up or dissolved or all or any part of its business, property or assets may be
conveyed, sold, leased, transferred or otherwise disposed of, in one transaction or a
series of transactions, to any other Holdings or any successor entity; provided
that 100% of equity interests of Company are continued to be owned beneficially and of
record by at least one Holdings;

          (c) sales or other dispositions of assets that do not constitute Asset Sales;

          (d) the sale of the Crude Gathering System so long as (i) Holdings and its
Subsidiaries receive consideration at the time of such sale equal to at least $7,500,000,
(ii) the net proceeds from such sale (after payment of any sale taxes and expenses) are
applied to prepay the Loans, in accordance with Section 2.14(a) and (iii) no less than 65%
thereof shall be paid in cash; provided that such Asset Sale would not have a
materially adverse impact on the continued ability of Holdings and its Subsidiaries
continued ability to gather crude oil as gathered through the Crude Gathering System
immediately prior to such asset sale;

          (e) Asset Sales, the proceeds of which (valued at the principal amount thereof in the
case of non-Cash proceeds consisting of notes or other debt Securities and valued at fair
market value in the case of other non-Cash proceeds) are less than $35,000,000 in the
aggregate per Fiscal Year; provided (1) the consideration received for such assets
shall be in an amount at least equal to the fair market value thereof (determined in good
faith by the board of directors of Company (or similar governing

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body)), (2) no less than 75% thereof shall be paid in Cash (it being understood that
assumption or extinguishment of Indebtedness shall constitute Cash for purposes of this
clause), and (3) the Net Asset Sale Proceeds thereof shall be applied as required by
Section 2.14(a);

          (f) Permitted Sale Leasebacks, the proceeds of which are applied as required by
Section 2.14(a), not to exceed $20,000,000 in the aggregate from the Effective Date to the
date of determination;

          (g) disposals of non-strategic assets acquired in connection with Permitted
Acquisitions are applied as required by Section 2.14(a);

          (h) Permitted Acquisitions, the aggregate consideration for which does not exceed the
sum of (i) $50,000,000 in any Fiscal Year provided that up to 100% of such amount if not
so expended in the Fiscal Year for which it is permitted may be carried over for Permitted
Acquisitions in the following Fiscal Year; provided that in no event shall the
aggregate consideration for Permitted Acquisitions pursuant to this clause (i) exceed
$100,000,000 during the term of this Agreement plus (ii) the Available Amount at
the date of determination;

          (i) (i) Assets Sales to any non-Guarantor Subsidiary in amount not to exceed
$2,500,000 in the aggregate from the Effective Date to the date of determination;
provided that the Net Asset Sale Proceeds thereof shall be applied as required by
Section 2.14(a) and (ii) Assets Sales from any non-Guarantor Subsidiary to any other
non-Guarantor Subsidiary;

          (j) Investments made in accordance with Section 6.7; and

          (k) easements or modifications of easements granted in the ordinary course of
business which do not and will not interfere in any material respect with the ordinary
conduct of the business of Company or any of its Subsidiaries the fair market value of
which do not to exceed $2,500,000 in the aggregate from the Effective Date;
provided that any Net Asset Sale Proceeds realized therefrom (to the extent such
grant constitutes an Asset Sale) shall be applied as required by Section 2.14(a).

     6.10. Disposal of Subsidiary Interests. Except for (i) any sale of all of its interests in
the Capital Stock of any of its Subsidiaries in compliance with the provisions of Section 6.9 and
(ii) any pledge of the Capital Stock of Company or its Subsidiaries to secure the Obligations
hereunder or the Obligations under any Hedge Agreement, and except as provided in the other Hedge
Agreements (to the extent permitted by Section 6.20), no Credit Party shall, nor shall it permit
any of its Subsidiaries to, (a) directly or indirectly sell, assign, pledge or otherwise encumber
or dispose of any Capital Stock of any of its Subsidiaries, except to qualify directors if required
by applicable law; or (b) permit any of its Subsidiaries directly or indirectly to sell, assign,
pledge or otherwise encumber or dispose of any Capital Stock of any of its Subsidiaries, except to
another Credit Party (subject to the restrictions on such disposition otherwise imposed hereunder),
or to qualify directors if required by applicable law.

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     6.11. Sales and Lease-Backs. No Credit Party shall, nor shall it permit any of its
Subsidiaries to, directly or indirectly, become or remain liable as lessee or as a guarantor or
other surety with respect to any lease of any property (whether real, personal or mixed), whether
now owned or hereafter acquired, which such Credit Party (a) has sold or transferred or is to sell
or to transfer to any other Person (other than Holdings or any of its Subsidiaries), or (b) intends
to use for substantially the same purpose as any other property which has been or is to be sold or
transferred by such Credit Party to any Person (other than Holdings or any of its Subsidiaries) in
connection with such lease; provided that any Credit Party may enter into a Permitted Sale
Leaseback permitted pursuant to Section 6.9(f).

     6.12. Transactions with Shareholders and Affiliates. No Credit Party shall, nor shall it
permit any of its Subsidiaries to, directly or indirectly, enter into or permit to exist any
transaction (including the purchase, sale, lease or exchange of any property or the rendering of
any service) with any Affiliate of any of Holdings, on terms that are less favorable such Holdings
or that Subsidiary, as the case may be, than those that might be obtained at the time from a Person
who is not such an Affiliate; provided, the foregoing restriction shall not apply to (a)
any transaction between any Holdings and any Guarantor Subsidiary; (b) reasonable and customary
fees and compensation paid to and any indemnity of members of the board of directors (or similar
governing body) of any of Holdings and their respective Subsidiaries; (c) compensation employee
benefit, stock option and indemnification arrangements for officers and other employees of any of
Holdings and their respective Subsidiaries entered into in the ordinary course of business; (d)
transactions occurring on the Effective Date and those transactions described in Schedule 6.12; (e)
Restricted Junior Payments permitted by Section 6.5 and Investments permitted by Section 6.7; (f)
the grant of stock options, restricted stock, stock appreciation rights, phantom stock awards or
similar rights to employees and directors as approved by the board of directors; and (g)
transactions pursuant to any customary registration rights and shareholder agreements with the
shareholders of any Holdings or any direct or indirect parent entity of any Holdings.

     6.13. Conduct of Business. From and after the Effective Date, no Credit Party shall, nor
shall it permit any of its Subsidiaries to, engage in any business other than (i) the businesses
engaged in by such Credit Party on the Effective Date and similar or related businesses and the
activities incidental thereto and (ii) such other lines of business as may be consented to by
Requisite Lenders.

     6.14. Permitted Activities of Holdings. Each of Holdings shall not (a) incur, directly or
indirectly, any Indebtedness or any other obligation or liability whatsoever other than the
Indebtedness and obligations under the Swap Agreement, other Commodity Agreements to the extent
permitted by Section 6.20 and other Indebtedness permitted under Sections 6.1(b) and (p); (b)
create or suffer to exist any Lien upon any property or assets now owned or hereafter acquired by
it other than the Liens created under the Collateral Documents to which it is a party or permitted
pursuant to Section 6.2; (c) engage in any business or activity or own any assets other than (i)
holding collectively 100% of the Capital Stock of Company; (ii) performing its obligations and
activities incidental thereto under the Credit Documents, and to the extent not inconsistent
therewith, the Related Agreements; and (iii) making Restricted Junior Payments and Investments to
the extent permitted by this Agreement; (d) consolidate with or merge with or into, or convey,
transfer or lease all or substantially all its assets to, any Person other than

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another Holdings or Company; (e) sell or otherwise dispose of any Capital Stock of any of its
Subsidiaries except as permitted by Section 6.10; (f) create or acquire any Subsidiary or make or
own any Investment in any Person other than Company; or (g) fail to hold itself out to the public
as a legal entity separate and distinct from all other Persons.

     6.15. Amendments or Waivers of Certain Related Agreements. Except as otherwise permitted by
Section 5.13, no Credit Party shall agree, nor shall it permit any of its Subsidiaries to agree, to
any material amendment, restatement, supplement or other modification to, or waiver of, any of its
material rights under any Related Agreement after the Effective Date without in each case obtaining
the prior written consent of Requisite Lenders to such amendment, restatement, supplement or other
modification or waiver (which consent shall not be unreasonably withheld).

     6.16. [Reserved].

     6.17. Fiscal Year. No Credit Party shall, nor shall it permit any of its Subsidiaries to
change its Fiscal Year-end from December 31.

     6.18. [Reserved].

     6.19. [Reserved].

     6.20. Maximum Amount of Hedged Production. Company shall not at any time enter into Commodity
Agreements if, after giving effect thereto, the exposure under all such Commodity Agreements will
exceed 75% of Actual Production or for a term of longer than six years from the Effective Date;
provided that Company may enter into Commodity Agreements (i) with respect to refined
hydrocarbon products owned by Company and held by Company, at the time of entering into such
Commodity Agreements, in inventory, (ii) for the purpose of basis hedging and (iii) to hedge the
production of nitrogen fertilizer in Company’s fertilizer business.

SECTION 7. GUARANTY

     7.1. Guaranty of the Obligations. Subject to the provisions of Section 7.2, Guarantors
jointly and severally hereby irrevocably and unconditionally guaranty to Administrative Agent for
the ratable benefit of the Beneficiaries the due and punctual payment in full of all Obligations
when the same shall become due, whether at stated maturity, by required prepayment, declaration,
acceleration, demand or otherwise (including amounts that would become due but for the operation of
the automatic stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. § 362(a)) (collectively,
the “Guaranteed Obligations”).

     7.2. Contribution by Guarantors. All Guarantors desire to allocate among themselves
(collectively, the “Contributing Guarantors”), in a fair and equitable manner, their obligations
arising under this Guaranty. Accordingly, in the event any payment or distribution is made on any
date by a Guarantor (a “Funding Guarantor”) under this Guaranty such that its Aggregate Payments
exceeds its Fair Share as of such date, such Funding Guarantor shall be entitled to a contribution
from each of the other Contributing Guarantors in an amount sufficient to cause each Contributing
Guarantor’s Aggregate Payments to equal its Fair Share as of such date.

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“Fair Share” means, with respect to a Contributing Guarantor as of any date of determination,
an amount equal to (a) the ratio of (i) the Fair Share Contribution Amount with respect to such
Contributing Guarantor to (ii) the aggregate of the Fair Share Contribution Amounts with respect to
all Contributing Guarantors multiplied by (b) the aggregate amount paid or distributed on or before
such date by all Funding Guarantors under this Guaranty in respect of the obligations Guaranteed.
“Fair Share Contribution Amount” means, with respect to a Contributing Guarantor as of any date of
determination, the maximum aggregate amount of the obligations of such Contributing Guarantor under
this Guaranty that would not render its obligations hereunder or thereunder subject to avoidance as
a fraudulent transfer or conveyance under Section 548 of Title 11 of the United States Code or any
comparable applicable provisions of state law; provided, solely for purposes of calculating
the “Fair Share Contribution Amount” with respect to any Contributing Guarantor for purposes of
this Section 7.2, any assets or liabilities of such Contributing Guarantor arising by virtue of any
rights to subrogation, reimbursement or indemnification or any rights to or obligations of
contribution hereunder shall not be considered as assets or liabilities of such Contributing
Guarantor. “Aggregate Payments” means, with respect to a Contributing Guarantor as of any date of
determination, an amount equal to (1) the aggregate amount of all payments and distributions made
on or before such date by such Contributing Guarantor in respect of this Guaranty (including,
without limitation, in respect of this Section 7.2), minus (2) the aggregate amount of all payments
received on or before such date by such Contributing Guarantor from the other Contributing
Guarantors as contributions under this Section 7.2. The amounts payable as contributions hereunder
shall be determined as of the date on which the related payment or distribution is made by the
applicable Funding Guarantor. The allocation among Contributing Guarantors of their obligations as
set forth in this Section 7.2 shall not be construed in any way to limit the liability of any
Contributing Guarantor hereunder. Each Guarantor is a third party beneficiary to the contribution
agreement set forth in this Section 7.2.

     7.3. Payment by Guarantors. Subject to Section 7.2, Guarantors hereby jointly and severally
agree, in furtherance of the foregoing and not in limitation of any other right which any
Beneficiary may have at law or in equity against any Guarantor by virtue hereof, that upon the
failure of Company to pay any of the Guaranteed Obligations when and as the same shall become due,
whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise
(including amounts that would become due but for the operation of the automatic stay under Section
362(a) of the Bankruptcy Code, 11 U.S.C. §362(a)), Guarantors will upon demand pay, or cause to be
paid, in Cash, to Administrative Agent for the ratable benefit of Beneficiaries, an amount equal to
the sum of the unpaid principal amount of all Guaranteed Obligations then due as aforesaid, accrued
and unpaid interest on such Guaranteed Obligations (including interest which, but for Company’s
becoming the subject of a case under the Bankruptcy Code, would have accrued on such Guaranteed
Obligations, whether or not a claim is allowed against Company for such interest in the related
bankruptcy case) and all other Guaranteed Obligations then owed to Beneficiaries as aforesaid.

     7.4. Liability of Guarantors Absolute. Each Guarantor agrees that its obligations hereunder
are irrevocable, absolute, independent and unconditional and shall not be affected by any
circumstance which constitutes a legal or equitable discharge of a guarantor or surety other than
payment in full of the Guaranteed Obligations. In furtherance of the foregoing and without
limiting the generality thereof, each Guarantor agrees as follows:

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          (a) this Guaranty is a guaranty of payment when due and not of collectability. This
Guaranty is a primary obligation of each Guarantor and not merely a contract of surety;

          (b) Administrative Agent may enforce this Guaranty upon the occurrence of an Event of
Default notwithstanding the existence of any dispute between Company and any Beneficiary
with respect to the existence of such Event of Default;

          (c) the obligations of each Guarantor hereunder are independent of the obligations of
Company and the obligations of any other guarantor (including any other Guarantor) of the
obligations of Company, and a separate action or actions may be brought and prosecuted
against such Guarantor whether or not any action is brought against Company or any of such
other guarantors and whether or not Company is joined in any such action or actions;

          (d) payment by any Guarantor of a portion, but not all, of the Guaranteed Obligations
shall in no way limit, affect, modify or abridge any Guarantor’s liability for any portion
of the Guaranteed Obligations which has not been paid. Without limiting the generality of
the foregoing, if Administrative Agent is awarded a judgment in any suit brought to
enforce any Guarantor’s covenant to pay a portion of the Guaranteed Obligations, such
judgment shall not be deemed to release such Guarantor from its covenant to pay the
portion of the Guaranteed Obligations that is not the subject of such suit, and such
judgment shall not, except to the extent satisfied by such Guarantor, limit, affect,
modify or abridge any other Guarantor’s liability hereunder in respect of the Guaranteed
Obligations;

          (e) any Beneficiary, upon such terms as it deems appropriate, without notice or
demand and without affecting the validity or enforceability hereof or giving rise to any
reduction, limitation, impairment, discharge or termination of any Guarantor’s liability
hereunder, from time to time may (i) renew, extend, accelerate, increase the rate of
interest on, or otherwise change the time, place, manner or terms of payment of the
Guaranteed Obligations; (ii) settle, compromise, release or discharge, or accept or refuse
any offer of performance with respect to, or substitutions for, the Guaranteed Obligations
or any agreement relating thereto and/or subordinate the payment of the same to the
payment of any other obligations; (iii) request and accept other guaranties of the
Guaranteed Obligations and take and hold security for the payment hereof or the Guaranteed
Obligations; (iv) release, surrender, exchange, substitute, compromise, settle, rescind,
waive, alter, subordinate or modify, with or without consideration, any security for
payment of the Guaranteed Obligations, any other guaranties of the Guaranteed Obligations,
or any other obligation of any Person (including any other Guarantor) with respect to the
Guaranteed Obligations; (v) enforce and apply any security now or hereafter held by or for
the benefit of such Beneficiary in respect hereof or the Guaranteed Obligations and direct
the order or manner of sale thereof, or exercise any other right or remedy that such
Beneficiary may have against any such security, in each case as such Beneficiary in its
discretion may determine consistent herewith or the applicable Hedge Agreement and any
applicable security agreement, including foreclosure on any such security pursuant to one
or more judicial

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or nonjudicial sales, whether or not every aspect of any such sale is commercially
reasonable, and even though such action operates to impair or extinguish any right of
reimbursement or subrogation or other right or remedy of any Guarantor against Company or
any security for the Guaranteed Obligations; and (vi) exercise any other rights available
to it under the Credit Documents or the Hedge Agreements; and

          (f) this Guaranty and the obligations of Guarantors hereunder shall be valid and
enforceable and shall not be subject to any reduction, limitation, impairment, discharge
or termination for any reason (other than payment in full of the Guaranteed Obligations),
including the occurrence of any of the following, whether or not any Guarantor shall have
had notice or knowledge of any of them: (i) any failure or omission to assert or enforce
or agreement or election not to assert or enforce, or the stay or enjoining, by order of
court, by operation of law or otherwise, of the exercise or enforcement of, any claim or
demand or any right, power or remedy (whether arising under the Credit Documents or the
Hedge Agreements, at law, in equity or otherwise) with respect to the Guaranteed
Obligations or any agreement relating thereto, or with respect to any other guaranty of or
security for the payment of the Guaranteed Obligations; (ii) any rescission, waiver,
amendment or modification of, or any consent to departure from, any of the terms or
provisions (including provisions relating to events of default) hereof, any of the other
Credit Documents, any of the Hedge Agreements or any agreement or instrument executed
pursuant thereto, or of any other guaranty or security for the Guaranteed Obligations, in
each case whether or not in accordance with the terms hereof or such Credit Document, such
Hedge Agreement or any agreement relating to such other guaranty or security; (iii) the
Guaranteed Obligations, or any agreement relating thereto, at any time being found to be
illegal, invalid or unenforceable in any respect; (iv) the application of payments
received from any source (other than payments received pursuant to the other Credit
Documents or any of the Hedge Agreements or from the proceeds of any security for the
Guaranteed Obligations, except to the extent such security also serves as collateral for
indebtedness other than the Guaranteed Obligations) to the payment of indebtedness other
than the Guaranteed Obligations, even though any Beneficiary might have elected to apply
such payment to any part or all of the Guaranteed Obligations; (v) any Beneficiary’s
consent to the change, reorganization or termination of the corporate structure or
existence of Holdings or any of its Subsidiaries and to any corresponding restructuring of
the Guaranteed Obligations; (vi) any failure to perfect or continue perfection of a
security interest in any collateral which secures any of the Guaranteed Obligations; (vii)
any defenses, set-offs or counterclaims which Company may allege or assert against any
Beneficiary in respect of the Guaranteed Obligations, including failure of consideration,
breach of warranty, payment, statute of frauds, statute of limitations, accord and
satisfaction and usury; (viii) any other act or thing or omission, or delay to do any
other act or thing, which may or might in any manner or to any extent vary the risk of any
Guarantor as an obligor in respect of the Guaranteed Obligations; and (ix) any law,
regulation, decree or order of any jurisdiction adversely effecting the Guaranteed
Obligations.

     7.5. Waivers by Guarantors. Each Guarantor hereby waives, for the benefit of Beneficiaries:
(a) any right to require any Beneficiary, as a condition of payment or performance

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by such Guarantor, to (i) proceed against Company, any other guarantor (including any other
Guarantor) of the Guaranteed Obligations or any other Person, (ii) proceed against or exhaust any
security held from Company, any such other guarantor or any other Person, (iii) proceed against or
have resort to any balance of any Deposit Account or credit on the books of any Beneficiary in
favor of Company or any other Person, or (iv) pursue any other remedy in the power of any
Beneficiary whatsoever; (b) any defense arising by reason of the incapacity, lack of authority or
any disability or other defense of Company or any other Guarantor including any defense based on or
arising out of the lack of validity or the unenforceability of the Guaranteed Obligations or any
agreement or instrument relating thereto or by reason of the cessation of the liability of Company
or any other Guarantor from any cause other than payment in full of the Guaranteed Obligations; (c)
any defense based upon any statute or rule of law which provides that the obligation of a surety
must be neither larger in amount nor in other respects more burdensome than that of the principal;
(d) any defense based upon any Beneficiary’s errors or omissions in the administration of the
Guaranteed Obligations, except behavior which amounts to willful misconduct, gross negligence or
bad faith; (e) (i) any principles or provisions of law, statutory or otherwise, which are or might
be in conflict with the terms hereof and any legal or equitable discharge of such Guarantor’s
obligations hereunder, (ii) the benefit of any statute of limitations affecting such Guarantor’s
liability hereunder or the enforcement hereof, (iii) any rights to set-offs, recoupments and
counterclaims, and (iv) promptness, diligence and any requirement that any Beneficiary protect,
secure, perfect or insure any security interest or lien or any property subject thereto; (f)
notices, demands, presentments, protests, notices of protest, notices of dishonor and notices of
any action or inaction, including acceptance hereof, notices of default hereunder, the Hedge
Agreements or any agreement or instrument related thereto, notices of any renewal, extension or
modification of the Guaranteed Obligations or any agreement related thereto, notices of any
extension of credit to Company and notices of any of the matters referred to in Section 7.4 and any
right to consent to any thereof; and (g) any defenses or benefits that may be derived from or
afforded by law which limit the liability of or exonerate guarantors or sureties, or which may
conflict with the terms hereof.

     7.6. Guarantors’ Rights of Subrogation, Contribution, etc. Until the Guaranteed Obligations
shall have been indefeasibly paid in full and the Revolving Commitments shall have terminated and
all Letters of Credit shall have expired or been cancelled, each Guarantor hereby waives any claim,
right or remedy, direct or indirect, that such Guarantor now has or may hereafter have against
Company or any other Guarantor or any of its assets in connection with this Guaranty or the
performance by such Guarantor of its obligations hereunder, in each case whether such claim, right
or remedy arises in equity, under contract, by statute, under common law or otherwise and including
without limitation (a) any right of subrogation, reimbursement or indemnification that such
Guarantor now has or may hereafter have against Company with respect to the Guaranteed Obligations,
(b) any right to enforce, or to participate in, any claim, right or remedy that any Beneficiary now
has or may hereafter have against Company, and (c) any benefit of, and any right to participate in,
any collateral or security now or hereafter held by any Beneficiary. In addition, until the
Guaranteed Obligations shall have been indefeasibly paid in full and the Revolving Commitments
shall have terminated and all Letters of Credit shall have expired or been cancelled, each
Guarantor shall withhold exercise of any right of contribution such Guarantor may have against any
other guarantor (including any other Guarantor) of the Guaranteed Obligations, including, without
limitation, any such right of contribution as contemplated by Section 7.2. Each Guarantor further
agrees that, to the extent

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the waiver or agreement to withhold the exercise of its rights of subrogation, reimbursement,
indemnification and contribution as set forth herein is found by a court of competent jurisdiction
to be void or voidable for any reason, any rights of subrogation, reimbursement or indemnification
such Guarantor may have against Company or against any collateral or security, and any rights of
contribution such Guarantor may have against any such other guarantor, shall be junior and
subordinate to any rights any Beneficiary may have against Company, to all right, title and
interest any Beneficiary may have in any such collateral or security, and to any right any
Beneficiary may have against such other guarantor. If any amount shall be paid to any Guarantor on
account of any such subrogation, reimbursement, indemnification or contribution rights at any time
when all Guaranteed Obligations shall not have been finally and indefeasibly paid in full, such
amount shall be held in trust for Administrative Agent on behalf of Beneficiaries and shall
forthwith be paid over to Administrative Agent for the benefit of Beneficiaries to be credited and
applied against the Guaranteed Obligations, whether matured or unmatured, in accordance with the
terms hereof.

     7.7. Subordination of Other Obligations. Any Indebtedness of Company or any Guarantor now or
hereafter held by any Guarantor (the “Obligee Guarantor”) is hereby subordinated in right of
payment to the Guaranteed Obligations, and any such indebtedness collected or received by the
Obligee Guarantor after an Event of Default has occurred and is continuing shall be held in trust
for Administrative Agent on behalf of Beneficiaries and shall forthwith be paid over to
Administrative Agent for the benefit of Beneficiaries to be credited and applied against the
Guaranteed Obligations but without affecting, impairing or limiting in any manner the liability of
the Obligee Guarantor under any other provision hereof.

     7.8. Continuing Guaranty. This Guaranty is a continuing guaranty and shall remain in effect
until all of the Guaranteed Obligations shall have been paid in full and the Revolving Commitments
shall have terminated and all Letters of Credit shall have expired or been cancelled. Each
Guarantor hereby irrevocably waives any right to revoke this Guaranty as to future transactions
giving rise to any Guaranteed Obligations.

     7.9. Authority of Guarantors or Company. It is not necessary for any Beneficiary to inquire
into the capacity or powers of any Guarantor or Company or the officers, directors or any agents
acting or purporting to act on behalf of any of them. Guarantors hereby authorize the Company to
enter into the Intercreditor Agreement and agree to be bounds by the provisions thereof to the same
extent as the Company.

     7.10. Financial Condition of Company. Any Credit Extension may be made to Company or
continued from time to time, and any Hedge Agreements may be entered into from time to time, in
each case without notice to or authorization from any Guarantor regardless of the financial or
other condition of Company at the time of any such grant or continuation or at the time such Hedge
Agreement is entered into, as the case may be. No Beneficiary shall have any obligation to
disclose or discuss with any Guarantor its assessment, or any Guarantor’s assessment, of the
financial condition of Company. Each Guarantor has adequate means to obtain information from
Company on a continuing basis concerning the financial condition of Company and its ability to
perform its obligations under the Credit Documents and the Hedge Agreements, and each Guarantor
assumes the responsibility for being and keeping informed of the financial condition of Company and
of all circumstances bearing upon the risk of

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nonpayment of the Guaranteed Obligations. Each Guarantor hereby waives and relinquishes any
duty on the part of any Beneficiary to disclose any matter, fact or thing relating to the business,
operations or conditions of Company now known or hereafter known by any Beneficiary.

     7.11. Bankruptcy, etc. (a) Without limiting any Guarantor’s ability to file a voluntary
bankruptcy petition in respect of itself, so long as any Guaranteed Obligations remain outstanding,
no Guarantor shall, without the prior written consent of Administrative Agent acting pursuant to
the instructions of Requisite Lenders, commence or join with any other Person in commencing any
bankruptcy, reorganization or insolvency case or proceeding of or against Company or any other
Guarantor. The obligations of Guarantors hereunder shall not be reduced, limited, impaired,
discharged, deferred, suspended or terminated by any case or proceeding, voluntary or involuntary,
involving the bankruptcy, insolvency, receivership, reorganization, liquidation or arrangement of
Company or any other Guarantor or by any defense which Company or any other Guarantor may have by
reason of the order, decree or decision of any court or administrative body resulting from any such
proceeding.

          (b) Each Guarantor acknowledges and agrees that any interest on any portion of the
Guaranteed Obligations which accrues after the commencement of any case or proceeding
referred to in clause (a) above (or, if interest on any portion of the Guaranteed
Obligations ceases to accrue by operation of law by reason of the commencement of such
case or proceeding, such interest as would have accrued on such portion of the Guaranteed
Obligations if such case or proceeding had not been commenced) shall be included in the
Guaranteed Obligations because it is the intention of Guarantors and Beneficiaries that
the Guaranteed Obligations which are guaranteed by Guarantors pursuant hereto should be
determined without regard to any rule of law or order which may relieve Company of any
portion of such Guaranteed Obligations. Guarantors will permit any trustee in bankruptcy,
receiver, debtor in possession, assignee for the benefit of creditors or similar person to
pay Administrative Agent, or allow the claim of Administrative Agent in respect of, any
such interest accruing after the date on which such case or proceeding is commenced.

          (c) In the event that all or any portion of the Guaranteed Obligations are paid by
Company, the obligations of Guarantors hereunder shall continue and remain in full force
and effect or be reinstated, as the case may be, in the event that all or any part of such
payment(s) are rescinded or recovered directly or indirectly from any Beneficiary as a
preference, fraudulent transfer or otherwise, and any such payments which are so rescinded
or recovered shall constitute Guaranteed Obligations for all purposes hereunder.

     7.12. Discharge of Guaranty Upon Sale of Guarantor. If all of the Capital Stock of any
Guarantor or any of its successors in interest hereunder shall be sold or otherwise disposed of
(including by merger or consolidation) in accordance with the terms and conditions hereof, the
Guaranty of such Guarantor or such successor in interest, as the case may be, hereunder shall
automatically be discharged and released without any further action by any Beneficiary or any other
Person effective as of the time of such Asset Sale.

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SECTION 8. EVENTS OF DEFAULT

     8.1. Events of Default. If any one or more of the following conditions or events shall occur:

          (a) Failure to Make Payments When Due. Failure by Company to pay (i) when
due any installment of principal of any Loan, whether at stated maturity, by acceleration,
by notice of voluntary prepayment, by mandatory prepayment or otherwise; (ii) when due any
amount payable to an Issuing Bank in reimbursement of any drawing under a Letter of
Credit; or (iii) any interest on any Loan or any fee or any other amount due hereunder
within five days after the date due; or

          (b) Default in Other Agreements. (i) Failure of any Credit Party or any of
their respective Subsidiaries to pay when due any principal of or interest on or any other
amount payable in respect of one or more items of Indebtedness (other than Indebtedness
referred to in Section 8.1(a)) in an aggregate principal amount of $20,000,000 or more, in
each case beyond the grace period, if any, provided therefor; (ii) breach or default by
any Credit Party with respect to any other material term of (1) one or more items of
Indebtedness in the individual or aggregate principal amounts referred to in clause (i)
above or (2) any loan agreement, mortgage, indenture or other agreement relating to such
item(s) of Indebtedness, in each case beyond the grace period, if any, provided therefor,
if the effect of such breach or default is to cause, or to permit the holder or holders of
that Indebtedness (or a trustee on behalf of such holder or holders), to cause, that
Indebtedness to become or be declared due and payable (or redeemable) prior to its stated
maturity or the stated maturity of any underlying obligation, as the case may be; or (iii)
breach or default by Company under the Swap Agreement, if the effect of such breach or
default is to permit the holder or holders of that Indebtedness to terminate the Swap
Agreement and all or substantially all of the outstanding transactions thereunder; or

          (c) Breach of Certain Covenants. Failure of any Credit Party to perform or
comply with any term or condition contained in Section 2.6, Section 5.2, Section 5.13,
5.16(c) or Section 6; or

          (d) Breach of Representations, etc. Any representation, warranty,
certification or other statement made or deemed made by any Credit Party in any Credit
Document or in any statement or certificate at any time given by any Credit Party or any
of its Subsidiaries in writing pursuant hereto or thereto or in connection herewith or
therewith shall be false in any material respect as of the date made or deemed made; or

          (e) Other Defaults Under Credit Documents. Any Credit Party shall default in
the performance of or compliance with any term contained herein or any of the other Credit
Documents, other than any such term referred to in any other Section of this Section 8.1,
and such default shall not have been remedied or waived within thirty days after the
earlier of (i) an officer of such Credit Party becoming aware of such default or (ii)
receipt by Company of notice from Administrative Agent or any Lender of such default; or

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          (f) Involuntary Bankruptcy; Appointment of Receiver, etc. (i) A court of
competent jurisdiction shall enter a decree or order for relief in respect of Holdings or
any of its Significant Subsidiaries in an involuntary case under the Bankruptcy Code or
under any other applicable bankruptcy, insolvency or similar law now or hereafter in
effect, which decree or order is not stayed; or any other similar relief shall be granted
under any applicable federal or state law; or (ii) an involuntary case shall be commenced
against Holdings or any of its Significant Subsidiaries under the Bankruptcy Code or under
any other applicable bankruptcy, insolvency or similar law now or hereafter in effect; or
a decree or order of a court having jurisdiction in the premises for the appointment of a
receiver, liquidator, sequestrator, trustee, custodian or other officer having similar
powers over Holdings or any of its Significant Subsidiaries, or over all or a substantial
part of its property, shall have been entered; or there shall have occurred the
involuntary appointment of an interim receiver, trustee or other custodian of Holdings or
any of its Significant Subsidiaries for all or a substantial part of its property; or a
warrant of attachment, execution or similar process shall have been issued against any
substantial part of the property of Holdings or any of its Significant Subsidiaries, and
any such event described in this clause (ii) shall continue for sixty days without having
been dismissed, bonded or discharged; or

          (g) Voluntary Bankruptcy; Appointment of Receiver, etc. (i) Holdings or any
of its Significant Subsidiaries shall have an order for relief entered with respect to it
or shall commence a voluntary case under the Bankruptcy Code or under any other applicable
bankruptcy, insolvency or similar law now or hereafter in effect, or shall consent to the
entry of an order for relief in an involuntary case, or to the conversion of an
involuntary case to a voluntary case, under any such law, or shall consent to the
appointment of or taking possession by a receiver, trustee or other custodian for all or a
substantial part of its property; or Holdings or any of its Significant Subsidiaries shall
make any assignment for the benefit of creditors; or (ii) Holdings or any of its
Significant Subsidiaries shall be unable, or shall fail generally, or shall admit in
writing its inability, to pay its debts as such debts become due; or the board of
directors (or similar governing body) of Holdings or any of its Significant Subsidiaries
(or any committee thereof) shall adopt any resolution or otherwise authorize any action to
approve any of the actions referred to herein or in Section 8.1(f); or

          (h) Judgments and Attachments. Any money judgment, writ or warrant of
attachment or similar process involving at any time an amount in excess of $20,000,000 in
the aggregate (to the extent not adequately covered by insurance as to which a solvent and
unaffiliated insurance company has acknowledged coverage) shall be entered or filed
against Holdings or any of its Subsidiaries or any of their respective assets and shall
remain undischarged, unvacated, unbonded or unstayed for a period of sixty days (or in any
event later than five days prior to the date of any proposed sale thereunder); or

          (i) Dissolution. Any order, judgment or decree shall be entered against any
Holdings or any Significant Subsidiary decreeing the dissolution or split up of such
Credit Party and such order shall remain undischarged or unstayed for a period in excess
of sixty days; or

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          (j) Employee Benefit Plans. (i) There shall occur one or more ERISA Events
which individually or in the aggregate results in or might reasonably be expected to
result in liability of Holdings, any of its Subsidiaries or any of their respective ERISA
Affiliates in excess of $20,000,000 during the term hereof; or (ii) there exists any fact
or circumstance that reasonably could be expected to result in the imposition of a Lien or
security interest under Section 412(n) of the Internal Revenue Code or under ERISA on
property or assets with a fair market value in excess of $20,000,000;

          (k) Change of Control. A Change of Control shall occur; or

          (l) Guaranties, Collateral Documents and other Credit Documents. At any time
after the execution and delivery thereof, (i) the Guaranty for any reason, other than the
satisfaction in full of all Obligations, shall cease to be in full force and effect (other
than in accordance with its terms) or shall be declared to be null and void or any
Guarantor shall repudiate in writing its obligations thereunder, (ii) this Agreement or
any Collateral Document ceases to be in full force and effect (other than by reason of a
release of Collateral in accordance with the terms hereof or thereof or the satisfaction
in full of the Obligations in accordance with the terms hereof) or shall be declared null
and void, or Collateral Agent shall not have or shall cease to have a valid and perfected
Lien in any material portion of Collateral purported to be covered by the Collateral
Documents with the priority required by the relevant Collateral Document, in each case for
any reason other than the failure of Collateral Agent or any Secured Party to take any
action within its control, or (iii) any Credit Party shall contest the validity or
enforceability of any Credit Document in writing or deny in writing that it has any
further liability, including with respect to future advances by Lenders, under any Credit
Document to which it is a party;

THEN, (1) upon the occurrence of any Event of Default described in Section 8.1(f) or 8.1(g) with
respect to the Company, automatically, and (2) upon the occurrence of any other Event of Default,
at the request of (or with the consent of) Requisite Lenders, upon notice to Company by
Administrative Agent, (A) the Revolving Commitments, if any, of each Lender having such Revolving
Commitments and the obligation of an Issuing Bank to issue any Revolving Letter of Credit or Funded
Letter of Credit shall immediately terminate; (B) each of the following shall immediately become
due and payable, in each case without presentment, demand, protest or other requirements of any
kind, all of which are hereby expressly waived by each Credit Party: (I) the unpaid principal
amount of and accrued interest on the Loans, (II) an amount equal to the maximum amount that may at
any time be drawn under all Letters of Credit then outstanding (regardless of whether any
beneficiary under any such Letter of Credit shall have presented, or shall be entitled at such time
to present, the drafts or other documents or certificates required to draw under such Letters of
Credit), and (III) all other Obligations; provided, the foregoing shall not affect in any
way the obligations of Lenders under Section 2.3(b)(iv) or Section 2.4(e); (C) Administrative Agent
may cause Collateral Agent to enforce any and all Liens and security interests created pursuant to
Collateral Documents; and (D) Administrative Agent shall direct Company to pay (and Company hereby
agrees upon receipt of such notice, or upon the occurrence of any Event of Default specified in
Section 8.1(f) and (g) to pay) to Administrative Agent such additional amounts of cash, to be held
as security for Company’s reimbursement

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Obligations in respect of Revolving Letters of Credit then outstanding, equal to the Revolving
Letter of Credit Usage at such time.

SECTION 9. AGENTS

     Appointment of Agents. Deutsche Bank is hereby appointed Syndication Agent hereunder on the
Effective Date and at all times thereafter, and each Lender hereby authorizes Syndication Agent to
act as its agent in accordance with the terms hereof and the other Credit Documents. ABN is hereby
appointed Documentation Agent hereunder on the Effective Date and at all times thereafter, and each
Lender hereby authorizes Documentation Agent to act as its agent in accordance with the terms
hereof and the other Credit Documents. Credit Suisse is hereby appointed Administrative Agent
hereunder and under the other Credit Documents and each Lender hereby authorizes Administrative
Agent to act as its agent in accordance with the terms hereof and the other Credit Documents.
Credit Suisse is hereby appointed Collateral Agent hereunder and under the other Credit Documents
and each Lender hereby authorizes the Collateral Agent to acts as its agent in accordance with the
terms hereof and the other Credit Documents. Each Agent hereby agrees to act upon the express
conditions contained herein and the other Credit Documents, as applicable. The provisions of this
Section 9 are solely for the benefit of Agents and Lenders and no Credit Party shall have any
rights as a third party beneficiary of any of the provisions thereof. In performing its functions
and duties hereunder, each Agent shall act solely as an agent of Lenders and does not assume and
shall not be deemed to have assumed any obligation towards or relationship of agency or trust with
or for Holdings or any of its Subsidiaries. Syndication Agent, without consent of or notice to any
party hereto, may assign any and all of its rights or obligations hereunder to any of its
Affiliates. As of the Effective Date, neither Deutsche Bank, in its capacity as Syndication Agent,
nor ABN, in its capacity as Documentation Agent, shall have any obligations but shall be entitled
to all benefits of this Section 9.

     9.1. Powers and Duties. Each Lender irrevocably authorizes each Agent to take such action on
such Lender’s behalf and to exercise such powers, rights and remedies hereunder and under the other
Credit Documents as are specifically delegated or granted to such Agent by the terms hereof and
thereof, together with such powers, rights and remedies as are reasonably incidental thereto. Each
Agent shall have only those duties and responsibilities that are expressly specified herein and the
other Credit Documents. Each Agent may exercise such powers, rights and remedies and perform such
duties by or through its agents or employees. No Agent shall have, by reason hereof or any of the
other Credit Documents, a fiduciary relationship in respect of any Lender; and nothing herein or
any of the other Credit Documents, expressed or implied, is intended to or shall be so construed as
to impose upon any Agent any obligations in respect hereof or any of the other Credit Documents
except as expressly set forth herein or therein. Administrative Agent hereby agrees that it shall
(i) furnish to each Arranger, upon such Arranger’s request, a copy of the Register, (ii) cooperate
with each Arranger in granting access to any Lenders who such Arranger identifies to the Platform
and (iii) maintain each Arranger’s access to the Information Site.

     9.2. General Immunity.

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          (a) No Responsibility for Certain Matters. No Agent shall be responsible to
any Lender for the execution, effectiveness, genuineness, validity, enforceability,
collectability or sufficiency hereof or any other Credit Document or for any
representations, warranties, recitals or statements made herein or therein or made in any
written or oral statements or in any financial or other statements, instruments, reports
or certificates or any other documents furnished or made by any Agent to Lenders or by or
on behalf of any Credit Party, and Lender or any person providing the Settlement Service
to any Agent or any Lender in connection with the Credit Documents and the transactions
contemplated thereby or for the financial condition or business affairs of any Credit
Party or any other Person liable for the payment of any Obligations, nor shall any Agent
be required to ascertain or inquire as to the performance or observance of any of the
terms, conditions, provisions, covenants or agreements contained in any of the Credit
Documents or as to the use of the proceeds of the Loans or any knowledge as to the
existence or possible existence of any Event of Default or Default or to make any
disclosures with respect to the foregoing. Anything contained herein to the contrary
notwithstanding, Administrative Agent shall not have any liability arising from
confirmations of the amount of outstanding Loans or the Revolving Letter of Credit Usage
or the component amounts thereof, the performance or observance of any of the covenants,
agreements or other terms or conditions set forth herein or therein or the occurrence of
any Default or any Event of Default.

          (b) Exculpatory Provisions. No Agent nor any of its officers, partners,
directors, employees or agents shall be liable to Lenders for any action taken or omitted
by any Agent under or in connection with any of the Credit Documents except to the extent
caused by such Agent’s gross negligence or willful misconduct. Each Agent shall be
entitled to refrain from any act or the taking of any action (including the failure to
take an action) in connection herewith or any of the other Credit Documents or from the
exercise of any power, discretion or authority vested in it hereunder or thereunder unless
and until such Agent shall have received instructions in respect thereof from Requisite
Lenders (or such other Lenders as may be required to give such instructions under Section
10.5) or, in the case of Collateral Agent, in accordance with the Pledge and Security
Agreement, Intercreditor Agreement or other applicable Collateral Document, and, upon
receipt of such instructions from Requisite Lenders (or such other Lenders, as the case
may be), or in accordance with the Pledge and Security Agreement, Intercreditor Agreement
or other applicable Collateral Document, as the case may be, such Agent shall be entitled
to act or (where so instructed) refrain from acting, or to exercise such power, discretion
or authority, in accordance with such instructions. Without prejudice to the generality
of the foregoing, (i) each Agent shall be entitled to rely, and shall be fully protected
in relying, upon any communication, instrument or document believed by it to be genuine
and correct and to have been signed or sent by the proper Person or Persons, including any
Settlement Confirmation or other communication issues by any Settlement Service, and shall
be entitled to rely and shall be protected in relying on opinions and judgments of
attorneys (who may be attorneys for Holdings and its Subsidiaries), accountants, experts
and other professional advisors selected by it; and (ii) no Lender shall have any right of
action whatsoever against any Agent as a result of such Agent acting or (where so
instructed) refraining from acting hereunder or any of the other Credit Documents in
accordance with the

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instructions of Requisite Lenders (or such other Lenders as may be required to give
such instructions under Section 10.5) or, in the case of the Collateral Agent, in
accordance with the Pledge and Security Agreement, Intercreditor Agreement or other
applicable Collateral Document.

          (c) Delegation of Duties. Administrative Agent and Collateral Agent may
perform any and all of their respective duties and exercise their respective rights and
powers under this Agreement or under any other Credit Document by or through any one or
more sub-agents appointed by Administrative Agent or Collateral Agent, as applicable.
Administrative Agent and Collateral Agent, as applicable, and any such sub-agent may
perform any and all of its duties and exercise its rights and powers by or through their
respective Affiliates. The exculpatory, indemnification and other provisions of this
Section 9.3 and of Section 9.6 shall apply to any of the Affiliates of Administrative
Agent and Collateral Agent and shall apply to their respective activities in connection
with the syndication of the credit facilities provided for herein as well as activities as
Administrative Agent or Collateral Agent, as applicable. All of the rights, benefits, and
privileges (including the exculpatory and indemnification provisions) of this Section 9.3
and of Section 9.6 shall apply to any such sub-agent and to the Affiliates of any such
sub-agent, and shall apply to their respective activities as sub-agent as if such
sub-agent and Affiliates were named herein. Notwithstanding anything herein to the
contrary, with respect to each sub-agent appointed by the Administrative Agent or
Collateral Agent, as applicable, (i) such sub-agent shall be a third party beneficiary
under this Agreement with respect to all such rights, benefits and privileges (including
exculpatory rights and rights to indemnification) and shall have all of the rights and
benefits of a third party beneficiary, including an independent right of action to enforce
such rights, benefits and privileges (including exculpatory rights and rights to
indemnification) directly, without the consent or joinder of any other Person, against any
or all of the Credit Parties and the Lenders, (ii) such rights, benefits and privileges
(including exculpatory rights and rights to indemnification) shall not be modified or
amended without the consent of such sub-agent, and (iii) such sub-agent shall only have
obligations to Administrative Agent or Collateral Agent, as applicable, and not to any
Credit Party, Lender or any other Person and no Credit Party, Lender or any other Person
shall have any rights, directly or indirectly, as a third party beneficiary or otherwise,
against such sub-agent.

     9.3. Agents Entitled to Act as Lender. The agency hereby created shall in no way impair or
affect any of the rights and powers of, or impose any duties or obligations upon, any Agent in its
individual capacity as a Lender hereunder. With respect to its participation in the Loans and the
Letters of Credit, each Agent shall have the same rights and powers hereunder as any other Lender
and may exercise the same as if it were not performing the duties and functions delegated to it
hereunder, and the term “Lender” shall, unless the context clearly otherwise indicates, include
each Agent in its individual capacity. Any Agent and its Affiliates may accept deposits from, lend
money to, own securities of, and generally engage in any kind of banking, trust, financial advisory
or other business with Holdings or any of its Affiliates as if it were not performing the duties
specified herein, and may accept fees and other consideration from Company for services in
connection herewith and otherwise without having to account for the same to Lenders.

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     9.4. Lenders’ Representations, Warranties and Acknowledgment.

          (a) Each Lender represents and warrants that it has made its own independent
investigation of the financial condition and affairs of Holdings and its Subsidiaries in
connection with Credit Extensions hereunder and that it has made and shall continue to
make its own appraisal of the creditworthiness of Holdings and its Subsidiaries. No Agent
shall have any duty or responsibility, either initially or on a continuing basis, to make
any such investigation or any such appraisal on behalf of Lenders or to provide any Lender
with any credit or other information with respect thereto, whether coming into its
possession before the making of the Loans or at any time or times thereafter, and no Agent
shall have any responsibility with respect to the accuracy of or the completeness of any
information provided to Lenders.

          (b) Each Lender, by delivering its signature page to this Agreement and funding its
Tranche D Term Loan, Credit Linked Deposit and/or Revolving Loans on the Effective Date,
shall be deemed to have acknowledged receipt of, and consented to and approved, each
Credit Document and each other document required to be approved by any Agent, Requisite
Lenders or Lenders, as applicable on the Effective Date.

     9.5. Right to Indemnity. Each Lender, in proportion to its Pro Rata Share, severally agrees
to indemnify each Agent, to the extent that such Agent shall not have been reimbursed by any Credit
Party, for and against any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses (including counsel fees and disbursements) or disbursements of
any kind or nature whatsoever which may be imposed on, incurred by or asserted against such Agent
in exercising its powers, rights and remedies or performing its duties hereunder or under the other
Credit Documents or otherwise in its capacity as such Agent in any way relating to or arising out
of this Agreement or the other Credit Documents; provided, no Lender shall be liable for
any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements resulting from such Agent’s gross negligence or willful
misconduct. If any indemnity furnished to any Agent for any purpose shall, in the opinion of such
Agent, be insufficient or become impaired, such Agent may call for additional indemnity and cease,
or not commence, to do the acts indemnified against until such additional indemnity is furnished;
provided, in no event shall this sentence require any Lender to indemnify any Agent against
any liability, obligation, loss, damage, penalty, action, judgment, suit, cost, expense or
disbursement in excess of such Lender’s Pro Rata Share thereof; and provided
further, this sentence shall not be deemed to require any Lender to indemnify any Agent
against any liability, obligation, loss, damage, penalty, action, judgment, suit, cost, expense or
disbursement described in the proviso in the immediately preceding sentence.

     9.6. Successor Administrative Agent and Swing Line Lender Administrative Agent may resign at
any time by giving thirty days’ prior written notice thereof to Lenders and Company, and
Administrative Agent may be removed at any time with or without cause by an instrument or
concurrent instruments in writing delivered to Company and Administrative Agent and signed by
Requisite Lenders. Upon any such notice of resignation or any such removal, Requisite Lenders
shall have the right, upon five Business Days’ notice to Company, to appoint a successor
Administrative Agent with the consent of Company, not to be unreasonably withheld. Upon the
acceptance of any appointment as Administrative Agent hereunder by a successor

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Administrative Agent, that successor Administrative Agent shall thereupon succeed to and
become vested with all the rights, powers, privileges and duties of the retiring or removed
Administrative Agent and the retiring or removed Administrative Agent shall, to the extent such
Administrative Agent is also acting as the Collateral Agent promptly (i) transfer to such successor
Administrative Agent all sums, Securities and other items of Collateral held under the Collateral
Documents, together with all records and other documents necessary or appropriate in connection
with the performance of the duties of the successor Administrative Agent under the Credit
Documents, and (ii) execute and deliver to such successor Administrative Agent such amendments to
financing statements, and take such other actions, as may be necessary or appropriate in connection
with the assignment to such successor Administrative Agent of the security interests created under
the Collateral Documents, whereupon such retiring or removed Administrative Agent shall be
discharged from its duties and obligations hereunder. After any retiring or removed Administrative
Agent’s resignation or removal hereunder as Administrative Agent, the provisions of this Section 9
shall inure to its benefit as to any actions taken or omitted to be taken by it while it was
Administrative Agent hereunder. Any resignation or removal of Credit Suisse or its successor as
Administrative Agent pursuant to this Section shall also constitute the resignation or removal of
Credit Suisse or its successor as Swing Line Lender, and any successor Administrative Agent
appointed pursuant to this Section shall, upon its acceptance of such appointment, become the
successor Swing Line Lender for all purposes hereunder. In such event (a) Company shall prepay any
outstanding Swing Line Loans made by the retiring or removed Administrative Agent in its capacity
as Swing Line Lender, (b) upon such prepayment, the retiring or removed Administrative Agent and
Swing Line Lender shall surrender any Swing Line Note held by it to Company for cancellation, and
(c) Company shall issue, if so requested by successor Administrative Agent and Swing Line Loan
Lender, a new Swing Line Note to the successor Administrative Agent and Swing Line Lender, in the
principal amount of the Swing Line Loan Sublimit then in effect and with other appropriate
insertions.

     9.7. Collateral Documents and Guaranty.

          (a) Agents under Collateral Documents and Guaranty. Each Lender hereby
further authorizes Administrative Agent or Collateral Agent, as applicable, on behalf of
and for the benefit of Lenders, to (i) be the agent for and representative of Lenders with
respect to the Guaranty, the Collateral and the Collateral Documents and (ii) enter into
the Intercreditor Agreement, and each lender agrees to be bound by the terms of the
Intercreditor Agreement. Subject to Section 10.5, without further written consent or
authorization from Lenders, Administrative Agent or Collateral Agent, as applicable may
execute any documents or instruments necessary to (i) release any Lien encumbering any
item of Collateral that is the subject of a sale or other disposition of assets permitted
hereby (upon any such permitted disposition, the assets disposed of pursuant thereto shall
automatically be released from the Liens granted pursuant to any Collateral Document) or
to which Requisite Lenders (or such other Lenders as may be required to give such consent
under Section 10.5) have otherwise consented or (ii) release any Guarantor from the
Guaranty pursuant to Section 7.12 or with respect to which Requisite Lenders (or such
other Lenders as may be required to give such consent under Section 10.5) have otherwise
consented.

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          (b) Right to Realize on Collateral and Enforce Guaranty. Anything contained
in any of the Credit Documents to the contrary notwithstanding, Company, Administrative
Agent, Collateral Agent and each Lender hereby agree that (i) no Lender shall have any
right individually to realize upon any of the Collateral or to enforce the Guaranty, it
being understood and agreed that all powers, rights and remedies hereunder may be
exercised solely by Administrative Agent, on behalf of Lenders in accordance with the
terms hereof and all powers, rights and remedies under the Collateral Documents may be
exercised solely by Collateral Agent, and (ii) in the event of a foreclosure by Collateral
Agent on any of the Collateral pursuant to a public or private sale, Collateral Agent or
any Lender may be the purchaser of any or all of such Collateral at any such sale and
Collateral Agent, as agent for and representative of Secured Parties (but not any Lender
or Lenders in its or their respective individual capacities unless Requisite Lenders shall
otherwise agree in writing) shall be entitled, for the purpose of bidding and making
settlement or payment of the purchase price for all or any portion of the Collateral sold
at any such public sale, to use and apply any of the Obligations as a credit on account of
the purchase price for any collateral payable by Collateral Agent at such sale.

SECTION 10. MISCELLANEOUS

     10.1. Notices. Unless otherwise specifically provided herein, any notice or other
communication herein required or permitted to be given to a Credit Party, Arrangers, Syndication
Agent, Documentation Agent, Collateral Agent, Administrative Agent, Swing Line Lender, or an
Issuing Bank shall be sent to such Person’s address as set forth on Appendix B or in the other
relevant Credit Document, and in the case of any Lender, the address as indicated on Appendix B or
otherwise indicated to Administrative Agent in writing. Each notice hereunder shall be in writing
and may be personally served, telexed or sent by telefacsimile or United States mail or courier
service and shall be deemed to have been given when delivered in person or by courier service and
signed for against receipt thereof, upon receipt of telefacsimile or telex, or three Business Days
after depositing it in the United States mail with postage prepaid and properly addressed;
provided, no notice to any Agent shall be effective until received by such Agent;
provided further, any such notice or other communication shall at the request of
the Administrative Agent be provided to any sub-agent appointed pursuant to Section 9.3(c) hereto
as designated by the Administrative Agent from time to time.

     10.2. Expenses. Upon funding of the Tranche D Term Loans, Company agrees to pay promptly (a)
all the actual and reasonable out-of-pocket costs and expenses of preparation of the Credit
Documents and any consents, amendments, waivers or other modifications thereto; (b) all the
reasonable out-of-pocket costs of furnishing all opinions by counsel for Company and the other
Credit Parties; (c) the reasonable out-of-pocket fees, expenses and disbursements of one special
counsel to Agents, one local counsel in each relevant jurisdiction and one counsel to the
Administrative Agent in connection with the negotiation, preparation, execution and administration
of the Credit Documents and any consents, amendments, waivers or other modifications thereto and
any other documents or matters requested by Company; (d) all the actual costs and reasonable
expenses of creating and perfecting Liens in favor of Collateral Agent, for the benefit of Lenders
pursuant hereto, including filing and recording fees, expenses

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and taxes, stamp or documentary taxes, search fees, title insurance premiums and reasonable
fees, expenses and disbursements of counsel to each Agent and of counsel providing any opinions
that any Agent or Requisite Lenders may request in respect of the Collateral or the Liens created
pursuant to the Collateral Documents; (e) all the actual costs and reasonable fees, expenses and
disbursements of any auditors, accountants, consultants or appraisers; (f) all the actual
out-of-pocket costs and reasonable expenses (including the reasonable out-of-pocket fees, expenses
and disbursements of any appraisers, consultants, advisors and agents employed or retained by
Collateral Agent and its counsel) in connection with the custody or preservation of any of the
Collateral; (g) all other actual and reasonable out-of-pocket costs and expenses incurred by each
Agent in connection with the syndication of the Loans and Commitments and the negotiation,
preparation and execution of the Credit Documents and any consents, amendments, waivers or other
modifications thereto and the transactions contemplated thereby; and (h) after the occurrence of a
Default or an Event of Default, all costs and expenses, including reasonable attorneys’ fees and
costs of settlement, incurred by any Agent and Lenders in enforcing any Obligations of or in
collecting any payments due from any Credit Party hereunder or under the other Credit Documents by
reason of such Default or Event of Default (including in connection with the sale of, collection
from, or other realization upon any of the Collateral or the enforcement of the Guaranty) or in
connection with any refinancing or restructuring of the credit arrangements provided hereunder in
the nature of a “work-out” or pursuant to any insolvency or bankruptcy cases or proceedings.

     10.3. Indemnity.

          (a) In addition to the payment of expenses pursuant to Section 10.2, whether or not
the transactions contemplated hereby shall be consummated, each Credit Party agrees to
defend (subject to Indemnitees’ selection of counsel), indemnify, pay and hold harmless,
each Agent, Lender, Issuing Bank and the officers, partners, directors, trustees,
employees, agents, sub-agents and Affiliates of each Agent, each Lender and each Issuing
Bank (each, an “Indemnitee”), from and against any and all Indemnified Liabilities;
provided, no Credit Party shall have any obligation to any Indemnitee hereunder
with respect to any Indemnified Liabilities to the extent such Indemnified Liabilities
arise from the gross negligence or willful misconduct of that Indemnitee. To the extent
that the undertakings to defend, indemnify, pay and hold harmless set forth in this
Section 10.3 may be unenforceable in whole or in part because they are violative of any
law or public policy, the applicable Credit Party shall contribute the maximum portion
that it is permitted to pay and satisfy under applicable law to the payment and
satisfaction of all Indemnified Liabilities incurred by Indemnitees or any of them.

          (b) To the extent permitted by applicable law, no Credit Party shall assert, and each
Credit Party hereby waives, any claim against Lenders, Agents, Issuing Banks and their
respective Affiliates, directors, employees, attorneys, agents or sub-agents, on any
theory of liability, for special, indirect, consequential or punitive damages (as opposed
to direct or actual damages) (whether or not the claim therefor is based on contract, tort
or duty imposed by any applicable legal requirement) arising out of, in connection with,
arising out of, as a result of, or in any way related to, this Agreement or any Credit
Document or any agreement or instrument contemplated

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hereby or thereby or referred to herein or therein, the transactions contemplated
hereby or thereby, any Loan or the use of the proceeds thereof or any act or omission or
event occurring in connection therewith, and Holdings and Company hereby waives, releases
and agrees not to sue upon any such claim or any such damages, whether or not accrued and
whether or not known or suspected to exist in its favor.

     10.4. Set-Off. In addition to any rights now or hereafter granted under applicable law and
not by way of limitation of any such rights, upon the occurrence of any Event of Default each
Lender is hereby authorized by each Credit Party at any time or from time to time, without notice
to any Credit Party or to any other Person (other than Administrative Agent), any such notice being
hereby expressly waived, to set off and to appropriate and to apply any and all deposits (general
or special, including Indebtedness evidenced by certificates of deposit, whether matured or
unmatured, but not including trust accounts) and any other Indebtedness at any time held or owing
by such Lender to or for the credit or the account of any Credit Party against and on account of
the obligations and liabilities of any Credit Party to such Lender hereunder, the Letters of Credit
and participations therein and under the other Credit Documents, including all claims of any nature
or description arising out of or connected hereto, the Letters of Credit and participations therein
or with any other Credit Document, irrespective of whether or not (a) such Lender shall have made
any demand hereunder or (b) the principal of or the interest on the Loans or any amounts in respect
of the Letters of Credit or any other amounts due hereunder shall have become due and payable
pursuant to Section 2 and although such obligations and liabilities, or any of them, may be
contingent or unmatured.

     10.5. Amendments and Waivers.

          (a) Requisite Lenders’ Consent. Subject to Section 10.5(b) and 10.5(c), no
amendment, modification, termination or waiver of any provision of the Credit Documents,
or consent to any departure by any Credit Party therefrom, shall in any event be effective
without the written concurrence of the Requisite Lenders.

          (b) Affected Lenders’ Consent. Without the written consent of each Lender
(other than a Defaulting Lender) that would be affected thereby, no amendment,
modification, termination, or consent shall be effective if the effect thereof would:

          (i) extend the scheduled final maturity of any Loan or Note;

          (ii) extend the date on which the Funded Letter of Credit Participation Interest must
be repurchased in full from such Lender or any Lender’s Pro Rata Share of the Credit Linked
Deposits is required to be paid to such Lender in full (it being acknowledged that any such
repurchase or payment is subject to the express provisions of Section 2.4);

          (iii) extend the stated expiration date of any Revolving Letter of Credit beyond the
Revolving Commitment Termination Date;

          (iv) extend the stated expiration date of any Funded Letter of Credit beyond the Funded
Letter of Credit Termination Date;

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          (v) reduce the rate of interest on any Loan (other than any waiver of any increase in
the interest rate applicable to any Loan pursuant to Section 2.10) or any fee payable
hereunder; provided that any changes to calculations of the Total Leverage Ratio used to
determine the Applicable Margin shall only require consent of Requisite Lenders or Requisite
Class Lenders as the case may be;

          (vi) extend the time for payment of any such interest or fees;

          (vii) reduce the principal amount of any Loan or any reimbursement obligation in
respect of any Letter of Credit;

          (viii) [Reserved];

          (ix) amend, modify, terminate or waive any provision of this Section 10.5(b) or Section
10.5(c);

          (x) amend the definition of “Requisite Lenders” or “Pro Rata Share”; provided,
with the consent of Requisite Lenders, additional extensions of credit pursuant hereto may
be included in the determination of “Requisite Lenders” or “Pro Rata Share” on substantially
the same basis as the Tranche D Term Loan Commitments, the Tranche D Term Loans, the
Revolving Commitments, the Revolving Loans, the Funded Letter of Credit Commitments, and the
Funded Letters of Credit are included on the Effective Date; or

          (xi) release all or substantially all of the Collateral or all or substantially all of
the Guarantors from the Guaranty except as expressly provided in the Credit Documents.

          (c) Other Consents. No amendment, modification, termination or waiver of any
provision of the Credit Documents, or consent to any departure by any Credit Party
therefrom, shall:

          (i) increase any Commitment of any Lender over the amount thereof then in effect
without the consent of such Lender; provided, no amendment, modification or waiver
of any condition precedent, covenant, Default or Event of Default shall constitute an
increase in any Commitment of any Lender;

          (ii) amend, modify, terminate or waive any provision hereof relating to the Swing Line
Sublimit or the Swing Line Loans without the consent of Swing Line Lender;

          (iii) amend the definition of “Requisite Class Lenders” without the consent of
Requisite Class Lenders of each Class; provided, with the consent of the Requisite
Lenders, additional extensions of credit pursuant hereto may be included in the
determination of such “Requisite Class Lenders” on substantially the same basis as the
Tranche D Term Loan Commitments, the Tranche D Term Loans, the Revolving Commitments, the
Revolving Loans, the Funded Letter of Credit Commitments, and the Funded Letters of Credit
are included on the Effective Date;

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          (iv) alter the required application of any repayments or prepayments as between Classes
pursuant to Section 2.15 without the consent of Requisite Class Lenders of each Class which
is being allocated a lesser repayment or prepayment as a result thereof; provided,
Requisite Lenders may waive, in whole or in part, any prepayment so long as the application,
as between Classes, of any portion of such prepayment which is still required to be made is
not altered;

          (v) without the consent of Lenders holding more than 80% of Tranche D Term Loan
Exposure, waive, reduce or postpone any scheduled repayment (but not prepayment);

          (vi) amend, modify, terminate or waive any obligation of Lenders or Company (as the
same applies to its obligation to the Funded LC Issuing Bank) or the Funded LC Issuing Bank
as provided in Section 2.4 directly relating to Funded Letters of Credit and the Credit
Linked Deposits (and definitions used in Section 2.4 that relate specifically to Funded
Letters of Credit and Credit Linked Deposits) without the written consent of Administrative
Agent and such Funded LC Issuing Bank; or

          (vii) amend, modify, terminate or waive any provision of Section 9 as the same applies
to any Agent, or any other provision hereof as the same applies to the rights or obligations
of any Agent, in each case without the consent of such Agent.

          (d) Execution of Amendments, etc. Administrative Agent may, but shall have
no obligation to, with the concurrence of any Lender, execute amendments, modifications,
waivers or consents on behalf of such Lender. Any waiver or consent 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 Credit Party in any case shall entitle any Credit Party to any
other or further notice or demand in similar or other circumstances. Any amendment,
modification, termination, waiver or consent effected in accordance with this Section 10.5
shall be binding upon each Lender at the time outstanding, each future Lender and, if
signed by a Credit Party, on such Credit Party.

          (e) Extension of Revolving Commitment Termination Date. Notwithstanding
anything herein to the contrary, Company may by written notice to the Arrangers elect to
request, prior to the Revolving Commitment Termination Date, an extension to the existing
Revolving Commitment Termination Date; provided such extension shall in any event not be
later than the Tranche D Term Loan Maturity Date. Such notice shall specify the identity
of each Lender or other Person that is an Eligible Assignee to whom Company proposes any
portion of such extended Revolving Commitments be allocated and the amounts of such
allocations; provided that any Lender approached to provide all or a portion of
the extended Revolving Commitments may elect or decline, in its sole discretion, to
provide such extended Revolving Commitment. The terms and provisions of the extended
Revolving Loans shall be identical to the Revolving Loans. On the Revolving Commitment
Termination Date, subject to the satisfaction of the foregoing terms and conditions, (a)
each of the Revolving Lenders shall assign to each of the new Revolving Lenders, and each
of the new Revolving Lenders shall purchase from each of the Revolving Lenders, at the

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principal amount thereof (together with accrued interest), such interests in the
Revolving Loans outstanding on such date as shall be necessary in order that, after giving
effect to all such assignments and purchases, such Revolving Loans will be held by
existing Revolving Lenders and new Revolving Lenders ratably in accordance with their
Revolving Commitments after giving effect to the addition of such extended Revolving
Commitments to the Revolving Commitments, (b) each new Revolving Commitment shall be
deemed for all purposes a Revolving Commitment and each Loan made thereunder shall be
deemed, for all purposes, a Revolving Loan and (c) each new Revolving Lender shall become
a Lender with respect to the new Revolving Commitment and all matters relating thereto.

     10.6. Successors and Assigns; Participations.

          (a) Generally. This Agreement shall be binding upon the parties hereto and
their respective successors and assigns and shall inure to the benefit of the parties
hereto and the successors and assigns of Lenders. No Credit Party’s rights or obligations
hereunder nor any interest therein may be assigned or delegated by any Credit Party
without the prior written consent of all Lenders. Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties hereto,
their respective successors and assigns permitted hereby and, to the extent expressly
contemplated hereby, Affiliates of each of the Agents and Lenders) any legal or equitable
right, remedy or claim under or by reason of this Agreement.

          (b) Register. Company, Administrative Agent and Lenders shall deem and treat
the Persons listed as Lenders in the Register as the holders and owners of the
corresponding Commitments, Loans and Funded Letter of Credit Participations listed therein
for all purposes hereof, and no assignment or transfer of any such Commitment or Loan
shall be effective, in each case, unless and until recorded in the Register following
receipt of (x) a written or electronic confirmation of an assignment issued by a
Settlement Service pursuant to Section 10.6(d) (a “Settlement Confirmation”) or (y) an
Assignment Agreement effecting the assignment or transfer thereof, in each case, as
provided in Section 10.6(d). Each assignment shall be recorded in the Register promptly
and a copy of such Assignment Agreement or Settlement Confirmation shall be maintained, as
applicable. The date of such recordation of a transfer shall be referred to herein as the
“Assignment Effective Date.” Any request, authority or consent of any Person who, at the
time of making such request or giving such authority or consent, is listed in the Register
as a Lender shall be conclusive and binding on any subsequent holder, assignee or
transferee of the corresponding Commitments or Loans.

          (c) Right to Assign. Each Lender shall have the right at any time to sell,
assign or transfer all or a portion of its rights and obligations under this Agreement,
including, without limitation, all or a portion of its Commitment, Funded Letter of Credit
Participations or Loans owing to it or other Obligations (provided,
however, that each such assignment shall be of a uniform, and not varying,
percentage of all rights and obligations under and in respect of any Funded Letter of
Credit Participations, Loan and any related Commitments):

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          (i) to any Person meeting the criteria of clause (i) of the definition of the term of
“Eligible Assignee” upon the giving of notice to Company and Administrative Agent; and

          (ii) to any Person meeting the criteria of clause (ii) of the definition of the term of
“Eligible Assignee” and, in the case of assignments of Revolving Loans or Revolving
Commitments to any such Person (except in the case of assignments to GSCP), consented to by
each of Company and Administrative Agent, the Revolving Issuing Bank, and Swing Line Lender
(such consent not to be (x) unreasonably withheld or delayed or, (y) in the case of Company,
required at any time an Event of Default shall have occurred and then be continuing);
provided, further each such assignment pursuant to this Section 10.6(c)(ii) shall be
in an aggregate amount of not less than (A) $2,500,000 (or such lesser amount as may be
agreed to by Company and Administrative Agent or as shall constitute the aggregate amount of
the Revolving Commitments and Revolving Loans of the assigning Lender) with respect to the
assignment of the Revolving Commitments and Revolving Loans and (B) $1,000,000 (or such
lesser amount as may be agreed to by Company and Administrative Agent or as shall constitute
the aggregate amount of the Funded Letter of Credit Commitments and Funded Letter of Credit
Participations of the assigning Lender) with respect to the assignment of the Funded Letter
of Credit Commitments and Funded Letter of Credit Participations, and (C) $1,000,000 (or
such lesser amount as may be agreed to by Company and Administrative Agent or as shall
constitute the aggregate amount of Term Loans of the assigning Lender) with respect to the
assignment of Term Loans. Notwithstanding the forgoing, assignments made to affiliates and
other Lenders of the same Class will not be subject to the above described consent or
minimum assignment amount requirements.

          (d) Mechanics. The parties to each assignment shall execute and deliver to
the Administrative Agent an Assignment Agreement via an electronic settlement system
acceptable to the Administrative Agent (or, if previously agreed with the Agent,
manually), and shall pay to the Administrative Agent a processing and recordation fee of
$3,500 (which fee may be waived or reduced in the sole discretion of the Administrative
Agent); provided that such fee shall not apply to the Arrangers. Assignments made
pursuant to the foregoing provision shall be effective as of the Assignment Effective
Date. In connection with all assignments there shall be delivered to Administrative Agent
and Company such forms, certificates or other evidence, if any, with respect to United
States federal income tax withholding matters as the assignee under such Assignment
Agreement may be required to deliver pursuant to Section 2.20(c). Without the consent of
Company (which consent shall not be unreasonably withheld), the Funded LC Issuing Bank and
Administrative Agent, no Credit Linked Deposit shall be released in connection with any
assignment by a Funded Letter of Credit Participant, but the Funded Letter of Credit
Participation Interests shall instead be purchased by the relevant assignee and the Credit
Linked Deposits continue to be held by the Funded LC Issuing Bank for application (to the
extent not already applied) in accordance with Sections 2.4(f) and (h).

          (e) Representations and Warranties of Assignee. Each Lender, upon execution
and delivery hereof or upon succeeding to an interest in the Commitments

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and Loans, as the case may be, represents and warrants as of the Effective Date or as
of the Assignment Effective Date that (i) it is an Eligible Assignee; (ii) it has
experience and expertise in the making of or investing in commitments or loans such as the
applicable Commitments, Funded Letter of Credit Participations or Loans, as the case may
be; and (iii) it will make or invest in, as the case may be, its Commitments, Funded
Letter of Credit Participations or Loans for its own account in the ordinary course of its
business and without a view to distribution of such Commitments, Funded Letter of Credit
Participations or Loans within the meaning of the Securities Act or the Exchange Act or
other federal securities laws (it being understood that, subject to the provisions of this
Section 10.6, the disposition of such Revolving Commitments or Loans or any interests
therein shall at all times remain within its exclusive control).

          (f) Effect of Assignment. Subject to the terms and conditions of this
Section 10.6, as of the “Assignment Effective Date” (i) the assignee thereunder shall have
the rights and obligations of a “Lender” hereunder to the extent of its interest in the
Loans and Commitments as reflected in the Register and shall thereafter be a party hereto
and a “Lender” for all purposes hereof; (ii) the assigning Lender thereunder shall, to the
extent that rights and obligations hereunder have been assigned to the assignee,
relinquish its rights (other than any rights which survive the termination hereof under
Section 10.8) and be released from its obligations hereunder (and, in the case of an
assignment covering all or the remaining portion of an assigning Lender’s rights and
obligations hereunder, such Lender shall cease to be a party hereto on the Assignment
Effective Date; provided, anything contained in any of the Credit Documents to the
contrary notwithstanding, (y) an Issuing Bank shall continue to have all rights and
obligations thereof with respect to such Letters of Credit until the cancellation or
expiration of such Letters of Credit and the reimbursement of any amounts drawn thereunder
and (z) such assigning Lender shall continue to be entitled to the benefit of all
indemnities hereunder as specified herein with respect to matters arising out of the prior
involvement of such assigning Lender as a Lender hereunder); (iii) the Commitments shall
be modified to reflect the Commitment of such assignee and any Commitment of such
assigning Lender, if any; and (iv) if any such assignment occurs after the issuance of any
Note hereunder, the assigning Lender shall, upon the effectiveness of such assignment or
as promptly thereafter as practicable, surrender its applicable Notes to Administrative
Agent for cancellation, and thereupon Company shall issue and deliver new Notes, if so
requested by the assignee and/or assigning Lender, to such assignee and/or to such
assigning Lender, with appropriate insertions, to reflect the new Revolving Commitments
and/or outstanding Loans of the assignee and/or the assigning Lender.

          (g) Participations. Each Lender shall have the right at any time to sell one
or more participations to any Person (other than Holdings, any of its Subsidiaries or any
of its Affiliates) in all or any part of its Commitments, Funded Letter of Credit
Participations, Loans or in any other Obligation. The holder of any such participation,
other than an Affiliate of the Lender granting such participation, shall not be entitled
to require such Lender to take or omit to take any action hereunder except with respect to
any amendment, modification or waiver that would (i) extend the final scheduled maturity
of any Loan, Note or Letter of Credit (unless such Letter of Credit is not

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extended beyond the Revolving Commitment Termination Date or the Funded Letter of
Credit Termination Date, as applicable) in which such participant is participating, or
reduce the rate or extend the time of payment of interest or fees thereon (except in
connection with a waiver of applicability of any post-default increase in interest rates)
or reduce the principal amount thereof, or increase the amount of the participant’s
participation over the amount thereof then in effect (it being understood that a waiver of
any Default or Event of Default or of a mandatory reduction in the Commitment shall not
constitute a change in the terms of such participation, and that an increase in any
Commitment, Funded Letter of Credit Participations or Loan shall be permitted without the
consent of any participant if the participant’s participation is not increased as a result
thereof), (ii) consent to the assignment or transfer by any Credit Party of any of its
rights and obligations under this Agreement or (iii) release all or substantially all of
the Collateral under the Collateral Documents (except as expressly provided in the Credit
Documents) supporting the Loans and Funded Letter of Credit Participations hereunder in
which such participant is participating. Company agrees that each participant shall be
entitled to the benefits of Sections 2.18(c), 2.19 and 2.20 to the same extent as if it
were a Lender and had acquired its interest by assignment pursuant to paragraph (c) of
this Section; provided, (i) a participant shall not be entitled to receive any
greater payment under Sections 2.18(c), 2.19 or 2.20 than the applicable Lender would have
been entitled to receive with respect to the participation sold to such participant,
unless the sale of the participation to such participant is made with Company’s prior
written consent and (ii) subject to clause (i) above, a participant that would be a Non-US
Lender (or that would otherwise be required to deliver a form referred to in Section
2.20(c) to avoid deduction or withholding of United States federal income tax with respect
to payments made by a Credit Party under any of the Credit Documents) if it were a Lender
shall not be entitled to the benefits of Section 2.20 unless Company is notified of the
participation sold to such participant and such participant agrees, for the benefit of
Company, to be subject to Section 2.20 as though it were a Lender; provided
further that, except as specifically set forth in clauses (i) and (ii) of this
sentence, nothing herein shall require any notice to the Company or any other Person in
connection with the sale of any participation. To the extent permitted by law, each
participant also shall be entitled to the benefits of Section 10.4 as though it were a
Lender, provided such Participant agrees to be subject to Section 2.17 as though
it were a Lender.

          (h) Certain Other Assignments and Participations. In addition to any other
assignment or participation permitted pursuant to this Section 10.6, any Lender may assign
and/or pledge all or any portion of its Loans, Funded Letter of Credit Participations, the
other Obligations owed by or to such Lender, and its Notes (excluding in all instances the
Credit Linked Deposits, which shall be held as the property of the Funded LC Issuing Bank
as provided for in Section 2.4), if any, to secure obligations of such Lender including,
without limitation, any Federal Reserve Bank as collateral security pursuant to Regulation
A of the Board of Governors of the Federal Reserve System and any operating circular
issued by such Federal Reserve Bank; provided, that no Lender, as between Company
and such Lender, shall be relieved of any of its obligations hereunder as a result of any
such assignment and pledge, and provided further, that in no event shall
the applicable Federal Reserve

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Bank, pledgee or trustee be considered to be a “Lender” or be entitled to require the
assigning Lender to take or omit to take any action hereunder.

     10.7. Independence of Covenants. All covenants hereunder shall be given independent effect so
that if a particular action or condition is not permitted by any of such covenants, the fact that
it would be permitted by an exception to, or would otherwise be within the limitations of, another
covenant shall not avoid the occurrence of a Default or an Event of Default if such action is taken
or condition exists.

     10.8. Survival of Representations, Warranties and Agreements. All representations, warranties
and agreements made herein shall survive the execution and delivery hereof and the making of any
Credit Extension. Notwithstanding anything herein or implied by law to the contrary, the
agreements of each Credit Party set forth in Sections 2.18(c), 2.19, 2.20, 10.2, 10.3 and 10.4 and
the agreements of Lenders set forth in Sections 2.17, 9.3(b) and 9.6 shall survive the payment of
the Loans, the cancellation or expiration of the Letters of Credit and the reimbursement of any
amounts drawn thereunder, funding of the Credit Linked Deposits and the termination hereof.

     10.9. No Waiver; Remedies Cumulative. No failure or delay on the part of any Agent or any
Lender in the exercise of any power, right or privilege hereunder or under any other Credit
Document shall impair such power, right or privilege or be construed to be a waiver of any default
or acquiescence therein, nor shall any single or partial exercise of any such power, right or
privilege preclude other or further exercise thereof or of any other power, right or privilege.
The rights, powers and remedies given to each Agent and each Lender hereby are cumulative and shall
be in addition to and independent of all rights, powers and remedies existing by virtue of any
statute or rule of law or in any of the other Credit Documents or any of the Hedge Agreements. Any
forbearance or failure to exercise, and any delay in exercising, any right, power or remedy
hereunder shall not impair any such right, power or remedy or be construed to be a waiver thereof,
nor shall it preclude the further exercise of any such right, power or remedy.

     10.10. Marshalling; Payments Set Aside. Neither any Agent nor any Lender shall be under any
obligation to marshal any assets in favor of any Credit Party or any other Person or against or in
payment of any or all of the Obligations. To the extent that any Credit Party makes a payment or
payments to Administrative Agent or Lenders (or to Administrative Agent, on behalf of Lenders), or
any Agent or Lenders enforce any security interests or exercise their rights of setoff, and such
payment or payments or the proceeds of such enforcement or setoff or any part thereof are
subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to
be repaid to a trustee, receiver or any other party under any bankruptcy law, any other state or
federal law, common law or any equitable cause, then, to the extent of such recovery, the
obligation or part thereof originally intended to be satisfied, and all Liens, rights and remedies
therefor or related thereto, shall be revived and continued in full force and effect as if such
payment or payments had not been made or such enforcement or setoff had not occurred.

     10.11. Severability. In case any provision in or obligation hereunder or under any other
Credit Document shall be invalid, illegal or unenforceable in any jurisdiction, the validity,

146

 

legality and enforceability of the remaining provisions or obligations, or of such provision
or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

     10.12. Obligations Several; Independent Nature of Lenders’ Rights. The obligations of Lenders
hereunder are several and no Lender shall be responsible for the obligations or Commitment of any
other Lender hereunder. Nothing contained herein or in any other Credit Document, and no action
taken by Lenders pursuant hereto or thereto, shall be deemed to constitute Lenders as a
partnership, an association, a joint venture or any other kind of entity. The amounts payable at
any time hereunder to each Lender shall be a separate and independent debt, and each Lender shall
be entitled to protect and enforce its rights arising out hereof and it shall not be necessary for
any other Lender to be joined as an additional party in any proceeding for such purpose.

     10.13. Headings. Section headings herein are included herein for convenience of reference
only and shall not constitute a part hereof for any other purpose or be given any substantive
effect.

     10.14. APPLICABLE LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER
SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF THAT WOULD REQUIRE APPLICATION OF
LAWS OF ANOTHER STATE.

     10.15. CONSENT TO JURISDICTION. ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY PARTY HERETO
ARISING OUT OF OR RELATING HERETO OR ANY OTHER CREDIT DOCUMENT, OR ANY OF THE OBLIGATIONS, MAY BE
BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE, COUNTY AND CITY OF
NEW YORK. BY EXECUTING AND DELIVERING THIS AGREEMENT OR ANY ASSIGNMENT AGREEMENT, EACH PARTY
HERETO, FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY (a) ACCEPTS GENERALLY AND
UNCONDITIONALLY THE NONEXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS; (b) WAIVES ANY DEFENSE OF
FORUM NON CONVENIENS; (c) AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH
COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE APPLICABLE
PARTY AT ITS ADDRESS PROVIDED IN ACCORDANCE WITH SECTION 10.1; (d) AGREES THAT SERVICE AS PROVIDED
IN CLAUSE (c) ABOVE IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER THE APPLICABLE PARTY IN ANY
SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY
RESPECT; AND (e) AGREES AGENTS AND LENDERS RETAIN THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST ANY CREDIT PARTY IN THE COURTS OF ANY OTHER
JURISDICTION.

147

 

     10.16. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE
RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING HEREUNDER OR UNDER ANY
OF THE OTHER CREDIT DOCUMENTS OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS
LOAN TRANSACTION OR THE LENDER/COMPANY RELATIONSHIP THAT IS BEING ESTABLISHED. THE SCOPE OF THIS
WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT
AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING CONTRACT CLAIMS, TORT CLAIMS,
BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO
ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT
EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH WILL CONTINUE
TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS. EACH PARTY HERETO FURTHER WARRANTS AND
REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND
VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS
IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A
MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION 10.16 AND EXECUTED BY EACH OF THE
PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR
MODIFICATIONS HERETO OR ANY OF THE OTHER CREDIT DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS
RELATING TO THE LOANS MADE HEREUNDER. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A
WRITTEN CONSENT TO A TRIAL BY THE COURT.

     10.17. Confidentiality. Each Agent (which term shall for the purposes of this Section 10.17
include the Arrangers), and each Lender (which term shall for the purposes of this Section 10.17
include each Issuing Bank) shall hold all non-public information regarding Company and its
Subsidiaries and their businesses identified as such by Company and obtained by such Lender
pursuant to the requirements hereof in accordance with such Lender’s customary procedures for
handling confidential information of such nature, it being understood and agreed by Company that,
in any event, each Agent and each Lender may make (i) disclosures of such information to Affiliates
of such Lender or Agent and to their respective agents and advisors (and to other Persons
authorized by a Lender or Agent to organize, present or disseminate such information in connection
with disclosures otherwise made in accordance with this Section 10.17) in each case, who agree to
be bound by this Section 10.17, (ii) disclosures of such information reasonably required by any
bona fide or potential assignee, transferee or participant in connection with the contemplated
assignment, transfer or participation of any Loans or any participations therein or by any direct
or indirect contractual counterparties (or the professional advisors thereto) to any swap or
derivative transaction relating to the Company and its obligations (provided, such assignees,
transferees, participants, counterparties and advisors are advised of and agree to be bound by
either the provisions of this Section 10.17 or other provisions at least as restrictive as this
Section 10.17), (iii) disclosure to any rating agency when required by it, provided that,
prior

148

 

to any disclosure, such rating agency shall undertake in writing to preserve the confidentiality of
any confidential information relating to the Credit Parties received by it from any of the Agents
or any Lender, and (iv) disclosures required or requested by any governmental agency or
representative thereof or by the NAIC or pursuant to legal or judicial process; provided,
unless specifically prohibited by applicable law or court order, each Lender and each Agent shall
make reasonable efforts to notify Company of any request by any governmental agency or
representative thereof (other than any such request in connection with any examination of the
financial condition or other routine examination of such Lender by such governmental agency) for
disclosure of any such non-public information prior to disclosure of such information. In
addition, each Agent and each Lender may disclose the existence of this Agreement and the
information about this Agreement to market data collectors, similar services providers to the
lending industry, and service providers to the Agents and the Lenders in connection with the
administration and management of this Agreement and the other Credit Documents.

     10.18. Usury Savings Clause. Notwithstanding any other provision herein, the aggregate
interest rate charged with respect to any of the Obligations, including all charges or fees in
connection therewith deemed in the nature of interest under applicable law shall not exceed the
Highest Lawful Rate. If the rate of interest (determined without regard to the preceding sentence)
under this Agreement at any time exceeds the Highest Lawful Rate, the outstanding amount of the
Loans made hereunder shall bear interest at the Highest Lawful Rate until the total amount of
interest due hereunder equals the amount of interest which would have been due hereunder if the
stated rates of interest set forth in this Agreement had at all times been in effect. In addition,
if when the Loans made hereunder are repaid in full the total interest due hereunder (taking into
account the increase provided for above) is less than the total amount of interest which would have
been due hereunder if the stated rates of interest set forth in this Agreement had at all times
been in effect, then to the extent permitted by law, Company shall pay to Administrative Agent an
amount equal to the difference between the amount of interest paid and the amount of interest which
would have been paid if the Highest Lawful Rate had at all times been in effect. Notwithstanding
the foregoing, it is the intention of Lenders and Company to conform strictly to any applicable
usury laws. Accordingly, if any Lender contracts for, charges, or receives any consideration which
constitutes interest in excess of the Highest Lawful Rate, then any such excess shall be cancelled
automatically and, if previously paid, shall at such Lender’s option be applied to the outstanding
amount of the Loans made hereunder or be refunded to Company.

     10.19. Counterparts. This Agreement may be executed in any number of counterparts, each of
which when so executed and delivered shall be deemed an original, but all such counterparts
together shall constitute but one and the same instrument.

     10.20. Effectiveness. This Agreement shall become effective upon the execution of a
counterpart hereof by each of the parties hereto and receipt by Company and Administrative Agent of
written or telephonic notification of such execution and authorization of delivery thereof.

     10.21. Patriot Act. Each Lender and Administrative Agent (for itself and not on behalf of any
Lender) hereby notifies Company that pursuant to the requirements of the Act, it is required to
obtain, verify and record information that identifies Company, which information

149

 

includes the name and address of Company and other information that will allow such Lender or
Administrative Agent, as applicable, to identify Company in accordance with the Act.

     10.22. Electronic Execution of Assignments. The words “execution,” “signed,” “signature,” and
words of like import in any Assignment Agreement shall be deemed to include electronic signatures
or the keeping of records in electronic form, each of which shall be of the same legal effect,
validity or enforceability as a manually executed signature or the use of a paper-based
recordkeeping system, as the case may be, to the extent and as provided for in any applicable law,
including the Federal Electronic Signatures in Global and National Commerce Act, the New York State
Electronic Signatures and Records Act, or any other similar state laws based on the Uniform
Electronic Transactions Act.

     10.23. Amendment and Restatement. It is the intention of each of the parties hereto that the
Existing Credit Agreement be amended and restated so as to preserve the perfection and priority of
all security interests securing indebtedness and obligations under the Existing Credit Agreement
and that all Indebtedness and Obligations of Company and its Subsidiaries hereunder and thereunder
shall be secured by the Collateral Documents and that this Agreement does not constitute a novation
of the obligations and liabilities existing under the Existing Credit Agreement. The parties
hereto further acknowledge and agree that this Agreement constitutes an amendment of the Existing
Credit Agreement made under and in accordance with the terms of Section 10.5 of the Existing Credit
Agreement. In addition, unless specifically amended hereby, each of the Credit Documents, the
Exhibits and Schedules to the Existing Credit Agreement shall continue in full force and effect and
that, from and after the Effective Date, all references to the “Credit Agreement” contained therein
shall be deemed to refer to this Agreement.

     10.24.
Reaffirmation and Grant of Security Interests.

          (a) Each Credit Party has (i) guarantied the Obligations and (ii) created Liens in
favor of Lenders on certain Collateral to secure its obligations hereunder, under Article
Seven hereof and the Pledge and Security Agreement, respectively. Each Credit Party
hereby acknowledges that it has reviewed the terms and provisions of this Agreement and
consents to the amendment and restatement of the Existing Credit Agreement effected
pursuant to this Agreement. Each Credit Party hereby (i) confirms that each Credit
Document to which it is a party or is otherwise bound and all Collateral encumbered
thereby will continue to guarantee or secure, as the case may be, to the fullest extent
possible in accordance with the Credit Documents, the payment and performance of the
Obligations, as the case may be, including without limitation the payment and performance
of all such Obligations which are joint and several obligations of each grantor now or
hereafter existing, and (ii) grants to the Administrative Agent for the benefit of the
Lenders a continuing lien on and security interest in and to such Credit Party’s right,
title and interest in, to and under all Collateral as collateral security for the prompt
payment and performance in full when due of the Obligations (whether at stated maturity,
by acceleration or otherwise).

          (b) Each Credit Party acknowledges and agrees that any of the Credit Documents to
which it is a party or otherwise bound shall continue in full force and effect and that
all of its obligations thereunder shall be valid and enforceable and shall

150

 

not be impaired or limited by the execution or effectiveness of the amendment and
restatement of the Existing Credit Agreement. Each Credit Party represents and warrants
that all representations and warranties contained in the Credit Documents to which it is a
party or otherwise bound are true, correct and complete in all material respects on and as
of the Effective Date to the same extent as though made on and as of that date, except to
the extent such representations and warranties specifically relate to an earlier date, in
which case they were true, correct and complete in all material respects on and as of such
earlier date.

[Remainder of page intentionally left blank]

151

 

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

	 	 	 	 	 
	 	COFFEYVILLE RESOURCES, LLC

 	 
	 	By:  	/s/
James T. Rens	 
	 	 	Name:  	James T. Rens	 
	 	 	Title:  	Chief Financial Officer	 
	 
	 	COFFEYVILLE PIPELINE, INC.

 	 
	 	By:  	/s/
James T. Rens	 
	 	 	Name:  	James T. Rens	 
	 	 	Title:  	Chief Financial Officer	 
	 
	 	COFFEYVILLE REFINING & MARKETING, INC.

 	 
	 	By:  	/s/
James T. Rens	 
	 	 	Name:  	James T. Rens	 
	 	 	Title:  	Chief Financial Officer	 
	 
	 	COFFEYVILLE NITROGEN FERTILIZERS, INC.

 	 
	 	By:  	/s/
James T. Rens	 
	 	 	Name:  	James T. Rens	 
	 	 	Title:  	Chief Financial Officer	 

S-1

 

	 	 	 	 	 

	 	 	 	 	 
	 	COFFEYVILLE CRUDE TRANSPORTATION, INC.

 	 
	 	By:  	/s/
James T. Rens	 
	 	 	Name:  	James T. Rens	 
	 	 	Title:  	Chief Financial Officer	 
	 
	 	COFFEYVILLE TERMINAL, INC.

 	 
	 	By:  	/s/
James T. Rens	 
	 	 	Name:  	James T. Rens	 
	 	 	Title:  	Chief Financial Officer	 
	 
	 	CL JV HOLDINGS, LLC

 	 
	 	By:  	/s/
James T. Rens	 
	 	 	Name:  	James T. Rens	 
	 	 	Title:  	Chief Financial Officer	 
	 
	 	COFFEYVILLE RESOURCES PIPELINE, LLC

 	 
	 	By:  	/s/
James T. Rens	 
	 	 	Name:  	James T. Rens	 
	 	 	Title:  	Chief Financial Officer	 
	 
	 	COFFEYVILLE RESOURCES REFINING & 
MARKETING, LLC

 	 
	 	By:  	/s/
James T. Rens	 
	 	 	Name:  	James T. Rens	 
	 	 	Title:  	Chief Financial Officer	 

S-2

 

	 	 	 	 	 

	 	 	 	 	 
	 	COFFEYVILLE RESOURCES NITROGEN 
 FERTILIZERS, LLC

 	 
	 	By:  	/s/
James T. Rens	 
	 	 	Name:  	James T. Rens	 
	 	 	Title:  	Chief Financial Officer	 

S-3

 

	 	 	 	 	 

	 	 	 	 	 
	 	COFFEYVILLE RESOURCES CRUDE 
TRANSPORTATION, LLC

 	 
	 	By:  	/s/
James T. Rens	 
	 	 	Name:  	James T. Rens	 
	 	 	Title:  	Chief Financial Officer	 
	 
	 	COFFEYVILLE RESOURCES TERMINAL, LLC

 	 
	 	By:  	/s/
James T. Rens	 
	 	 	Name:  	James T. Rens	 
	 	 	Title:  	Chief Financial Officer	 

S-4

 

	 	 	 	 	 

	 	 	 	 	 
	 	GOLDMAN SACHS CREDIT PARTNERS L.P., 

as Joint Lead Arranger, Joint Bookrunner and a 

Lender

 	 
	 	By:  	/s/
Bruce H. Mendelsohn	 
	 	 	Authorized Signatory 	 
	 	 	 	 

S-5

 

	 	 	 	 	 

	 	 	 	 	 
	 	CREDIT SUISSE Securities (USA) LLC, 

as Joint Lead Arranger and Joint Bookrunner 

 	 
	 	By:  	/s/
Clarke Adams	 
	 	 	Name:  	Clarke Adams	 
	 	 	Title:  	Director	 
	 

S-6

 

	 	 	 	 	 

	 	 	 	 	 
	 	CREDIT SUISSE, CAYMAN ISLANDS BRANCH, 

as Administrative Agent, Collateral Agent, Swing 

Line Lender, Funded LC Issuing Bank and 

Revolving Issuing Bank and a Lender

 	 
	 	By:  	/s/
Thomas R. Cantello	 
	 	 	Name:  	Thomas R. Cantello	 
	 	 	Title:  	Vice President 	 
	 
	 	By:  	/s/
Denise Alvarez	 
	 	 	Name:  	Denise Alvarez	 
	 	 	Title:  	Associate 	 

S-7

 

	 	 	 	 	 

	 	 	 	 	 
	 	DEUTSCHE BANK TRUST COMPANY AMERICAS, 

as Syndication Agent and a Lender

 	 
	 	By:  	/s/
Albert Fischetti	 
	 	 	Name:  	Albert Fischetti	 
	 	 	Title:  	Director 	 
	 
	 	By:  	/s/
Illegible	 
	 	 	Name:  	 	 
	 	 	Title:  	Managing Director 	 

S-8

 

	 	 	 	 	 

	 	 	 	 	 
	 	CITICORP NORTH AMERICA, INC., 

as Lender

 	 
	 	By:  	/s/
Michael M. Schadt	 
	 	 	Name:  	Michael M. Schadt 	 
	 	 	Title:  	Director 	 

S-9

 

	 	 	 	 	 

	 	 	 	 	 
	 	N M ROTHSCHILD & SONS LIMITED, 

as Lender

 	 
	 	By:  	/s/
N.A. Wood	 
	 	 	Name:  	Nicholas Wood 	 
	 	 	Title:  	Director 	 

S-10

 

	 	 	 	 	 

	 	 	 	 	 
	 	ALLIED IRISH BANKS, PLC, 

as Lender

 	 
	 	By:  	/s/
Mark Connelly 	 
	 	 	Name:  	Mark Connelly 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	By:  	/s/
Robert Moyle 	 
	 	 	Name:  	Robert Moyle 	 
	 	 	Title:  	Senior Vice President 	 

S-11

 

	 	 	 	 	 

	 	 	 	 	 
	 	ERSTE BANK DER OESTERREICHISCHEN

SPARKASSEN AG, 

as Lender

 	 
	 	By:  	/s/
Bryan J. Lynch 	 
	 	 	Name:  	Bryan J. Lynch 	 
	 	 	Title:  	Managing Director 	 
	 
	 	By:  	/s/
Patrick W. Kunkel 	 
	 	 	Name:  	Patrick W. Kunkel 	 
	 	 	Title:  	Executive Director 	 

S-12

 

	 	 	 	 	 

	 	 	 	 	 
	 	AMEGY BANK NATIONAL ASSOCIATION, 

as Lender

 	 
	 	By:  	/s/
Chris Petersen 	 
	 	 	Name:  	Chris Petersen 	 
	 	 	Title:  	Banking Officer, Energy Lending 	 

S-13

 

	 	 	 	 	 

	 	 	 	 	 
	 	JACKSON PURCHASE AGA, 

as Lender

 	 
	 	By:  	/s/
Stan Brunston 	 
	 	 	Name:  	Stan Brunston 	 
	 	 	Title:  	Sr. V.P. Credit 	 

S-14

 

	 	 	 	 	 

	 	 	 	 	 
	 	ABN AMRO BANK N.V., 

as Lender

 	 
	 	By:  	/s/
Liz Lary 	 
	 	 	Name:  	Liz Lary 	 
	 	 	Title:  	Vice President 	 
	 
	 	By:  	/s/
M. Aamir Khan 	 
	 	 	Name:  	M. Aamir Khan	 
	 	 	Title:  	Assistant Vice President 	 

S-15

 

	 	 	 	 	 

	 	 	 	 	 
	 	ABN AMRO BANK N.V., 

as Documentation Agent

 	 
	 	By:  	/s/
John Reed 	 
	 	 	Name:  	John Reed 	 
	 	 	Title:  	Director 	 
	 
	 	By:  	/s/ M. Aamir Khan 	 
	 	 	Name:  	M. Aamir Khan	 
	 	 	Title:  	Assistant Vice President 	 

S-16

 

APPENDIX A-1

TO CREDIT AND GUARANTY AGREEMENT

Tranche D Term Loan Commitments

	 	 	 	 	 	 	 	 	 
	 	 	Tranche D Term Loan	 	 	Pro	 
	Lender	 	Commitment	 	 	Rata Share	 
	Goldman Sachs Credit Partners L.P.
	 	$	775,000,000	 	 	 	100	%
	 
	 	 	 	 	 	 
	Total
	 	$	775,000,000	 	 	 	100	%
	 
	 	 	 	 	 	 

APPENDIX A-1-1

 

APPENDIX A-2

TO CREDIT AND GUARANTY AGREEMENT

Funded Letter of Credit Commitments

	 	 	 	 	 	 	 	 	 
	 	 	Funded Letter of Credit	 	 	 	 
	Lender	 	Commitment	 	 	Pro Rata Share	 
	Goldman Sachs Credit Partners L.P.
	 	$	150,000,000	 	 	 	100	%
	 
	 	 	 	 	 	 
	Total
	 	$	150,000,000	 	 	 	100	%
	 
	 	 	 	 	 	 

APPENDIX A-2-1

 

APPENDIX A-3

TO CREDIT AND GUARANTY AGREEMENT

Revolving Commitments

	 	 	 	 	 	 	 	 	 
	Lender	 	Revolving Commitments	 	 	Pro Rata Share	 
	Goldman Sachs Credit Partners L.P.
	 	$	28,583,333.34	 	 	 	19.06	%
	Credit Suisse
	 	$	28,583,333.33	 	 	 	19.06	%
	Deutsche Bank Securities Inc.
	 	$	28,583,333.33	 	 	 	19.06	%
	Citicorp North America, Inc.
	 	$	20,000,000	 	 	 	13.33	%
	N.M. Rothschild & Sons Limited
	 	$	10,000,000	 	 	 	6.67	%
	Allied Irish Banks, plc
	 	$	6,000,000	 	 	 	4.00	%
	Erste Bank der Oesterreichischen
Sparkassen AG
	 	$	5,000,000	 	 	 	3.33	%
	Amegy Bank National Association
	 	$	5,000,000	 	 	 	3.33	%
	Jackson Purchase
	 	$	3,250,000	 	 	 	2.17	%
	ABN Amro Bank N.V.
	 	$	15,000,000	 	 	 	10.00	%
	 
	 	 	 	 	 	 
	Total
	 	$	150,000,000	 	 	 	100	%
	 
	 	 	 	 	 	 

APPENDIX A-3-1

 

APPENDIX B

TO CREDIT AND GUARANTY AGREEMENT

Notice Addresses

COFFEYVILLE RESOURCES, LLC

and each other Credit Party

Coffeyville Resources, LLC

10 East Cambridge Circle, Suite #250

Kansas City, Kansas 66103

Attention: James T. Rens

Telecopier: (913) 981-0000

in each case, with a copy to:

Goldman Sachs Capital Partners

85 Broad Street, 10th Floor

New York, NY 10004

Attention: Ken Pontarelli

Telecopier: (212) 357-5505

and

Kelso & Company

320 Park Ave., 24th Floor

New York, New York 10022

Attn: James Connors — Managing Director & General Counsel

Telecopier: (212) 223-2379

APPENDIX B-1

 

GOLDMAN SACHS CREDIT PARTNERS L.P.,

as Joint Lead Arranger, Joint Bookrunner and a Lender

Goldman Sachs Credit Partners L.P.

85 Broad Street

New York, New York 10004

Attention: Lawrence Writer

Telecopier: (212) 902-3000

with a copies to:

Goldman Sachs Credit Partners L.P.

85 Broad Street

New York, New York 10004

Attention: SBD Operations

Telecopier: (212) 428-1622

E-mail: gsd.link@gs.com

APPENDIX B-2

 

CREDIT SUISSE SECURITIES (USA) LLC,

as Joint Lead Arranger and Joint Bookrunner

Credit Suisse Securities (USA) LLC

11 Madison Ave

New York NY 10010

with a copy to:

Attention: Brian Caldwell

Telecopier: (212) 325-8321

APPENDIX B-3

 

CREDIT SUISSE, CAYMAN ISLANDS BRANCH,

as Administrative Agent, Collateral Agent, Swing Line Lender, Funded LC Issuing Bank and Revolving
Issuing Bank and a Lender

Agency Group

Credit Suisse

One Madison Ave

New York, NY 10010

with a copy to:

Attention: Jon Cutler

Telecopier: (212) 538-9884

APPENDIX B-4

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,

as Syndication Agent and a Lender

Deutsch Bank Trust Company Americas

700 Louisiana Street

Houston, TX 77002

Attention: David Sisler

Telecopier: 832-239-4693

                   832-239-4627

APPENDIX B-5

 

ABN AMRO BANK N.V.,

as Documentation Agent and a Lender

ABN Amro Bank N.V.

[                    ]

[                    ]

Attention: Nick Wood

Telecopier:

APPENDIX B-6

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