Document:

<PAGE>

                                                                   EXHIBIT 10.71

                        INSURANCE AND INDEMNITY AGREEMENT
                          Dated as of November 26, 2002

                           AMBAC ASSURANCE CORPORATION
                                   as Insurer

               ALLIANCE LAUNDRY EQUIPMENT RECEIVABLES TRUST 2002-A
                                    as Issuer

                 ALLIANCE LAUNDRY EQUIPMENT RECEIVABLES 2002 LLC
                                    as Seller

                          ALLIANCE LAUNDRY SYSTEMS LLC
                                       and

                              THE BANK OF NEW YORK
                              as Indenture Trustee

               ALLIANCE LAUNDRY EQUIPMENT RECEIVABLES TRUST 2002-A
               Equipment Loan Backed and Receivables Backed Notes

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page

ARTICLE I DEFINITIONS........................................................2

   Section 1.1.  Defined Terms...............................................2

   Section 1.2.  Other Definitional Provisions...............................4

ARTICLE II REPRESENTATIONS, WARRANTIES AND COVENANTS.........................4

   Section 2.1.  Representations and Warranties of Alliance..................4

   Section 2.2.  Affirmative Covenants of Alliance...........................5

   Section 2.3.  Negative Covenants of Alliance..............................8

   Section 2.4.  Representations and Warranties of the Insurer...............9

   Section 2.5.  Representations; Warranties and Covenants of the Seller....10

   Section 2.6.  Affirmative Covenants of the Seller........................10

   Section 2.7.  Negative Covenants of the Seller...........................14

   Section 2.8.  Representations and Warranties of the Issuer...............14

   Section 2.9.  Affirmative Covenants of the Issuer........................16

   Section 2.10. Negative Covenants of the Issuer...........................19

ARTICLE III THE AMBAC POLICY; REIMBURSEMENT.................................20

   Section 3.1.  Issuance of the Ambac Policy...............................20

   Section 3.2.  Payment of Fees and Premium................................21

   Section 3.3.  Reimbursement Obligation...................................22

   Section 3.4.  Indemnification............................................22

   Section 3.5.  Payment Procedure..........................................26

   Section 3.6.  Subrogation................................................26

ARTICLE IV FURTHER AGREEMENTS...............................................27

   Section 4.1.  Effective Date; Term of the Insurance Agreement............27

   Section 4.2.  Further Assurances and Corrective Instruments..............27

   Section 4.3.  Obligations Absolute.......................................28

   Section 4.4.  Assignments; Reinsurance; Third-Party Rights...............29

   Section 4.5.  Liability of the Insurer...................................29

   Section 4.6.  Annual Servicing Audit and Certification...................30

   Section 4.7.  Resignation of Insurer.....................................30

   Section 4.8.  Rights and Remedies........................................30

ARTICLE V DEFAULTS AND REMEDIES.............................................31

   Section 5.1.  Defaults...................................................31

   Section 5.2.  Remedies; No Remedy Exclusive..............................32

   Section 5.3.  Waivers....................................................32

                                      -i-

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

                                                                           Page
                                                                           ----
ARTICLE VI MISCELLANEOUS....................................................32

   Section 6.1.  Amendments, Etc............................................32

   Section 6.2.  Notices....................................................33

   Section 6.3.  Severability...............................................34

   Section 6.4.  Governing Law..............................................34

   Section 6.5.  Consent to Jurisdiction....................................34

   Section 6.6.  Consent of the Insurer.....................................35

   Section 6.7.  Counterparts...............................................35

   Section 6.8.  Headings...................................................35

   Section 6.9.  Trial by Jury Waived.......................................35

   Section 6.10. Limited Liability..........................................35

   Section 6.11. Entire Agreement; Facsimile Signatures.....................36

   Section 6.12. Indenture Trustee..........................................36

   Section 6.13. Third-Party Beneficiary....................................36

   Section 6.14. No Proceedings.............................................36

   Section 6.15. Limited Recourse...........................................36

   Section 6.16. No Recourse................................................36

   Section 6.17. Regulatory Change..........................................37

EXHIBIT A   FORM OF AMBAC POLICY..................... .....................A-1

EXHIBIT B-1 AGREED UPON PROCEDURES FOR INDEPENDENT PUBLIC
               ACCOUNTANTS REVIEW OF EQUIPMENT LOANS......................B1-1

EXHIBIT B-2 AGREED UPON PROCEDURES FOR INDEPENDENT PUBLIC
               ACCOUNTANTS REVIEW OF RECEIVABLES..........................B2-1

                                      -ii-

<PAGE>

     INSURANCE AND INDEMNITY AGREEMENT (as it may be amended, modified or
supplemented from time to time, this "Insurance Agreement"), dated as of
November 26, 2002, by and among AMBAC ASSURANCE CORPORATION, as Insurer (the
"Insurer"), ALLIANCE LAUNDRY EQUIPMENT RECEIVABLES TRUST 2002-A, as Issuer (the
"Issuer"), ALLIANCE LAUNDRY EQUIPMENT RECEIVABLES 2002 LLC, as Seller (the
"Seller"), ALLIANCE LAUNDRY SYSTEMS LLC ("Alliance"), and THE BANK OF NEW YORK,
as Indenture Trustee (the "Indenture Trustee").

                             PRELIMINARY STATEMENTS

     A. The Indenture, dated as of November 26, 2002, relating to Alliance
Laundry Equipment Receivables Trust 2002-A Equipment Loan Backed and Receivables
Backed Notes, by and among the Issuer and the Indenture Trustee (as it may be
amended, modified or supplemented from time to time as set forth therein, the
"Indenture" ) provides for, among other things, the issuance of the Notes.

     B. The parties hereto desire that the Insurer issue the Ambac Policy to the
Indenture Trustee for the benefit of the Noteholders and to, among other things,
specify the conditions precedent thereto, the premium in respect thereof and the
indemnity, reimbursement, reporting and other obligations of the parties hereto
other than the Insurer in consideration thereof.

NOW, THEREFORE, in consideration of the premises and the mutual agreements
herein contained, the parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

Section 1.1. Defined Terms.

Unless the context clearly requires otherwise, all capitalized terms used but
not defined herein shall have the respective meanings assigned to them in the
Pooling and Servicing Agreement dated as of November 26, 2002 by and among the
Seller, the Issuer and Alliance, as Originator and Servicer (the "Agreement")
or, if not defined therein, in the Ambac Policy described below. All references
herein to any agreement that constitutes a Basic Document shall refer to such
agreement as of the date hereof without giving effect to any amendment,
supplement or other modification thereto made without the Insurer's consent. For
purposes of this Insurance Agreement, the following terms shall have the
following meanings:

     "Alliance" means Alliance Laundry Systems LLC, a Delaware limited liability
company, in its capacity as Originator, Servicer or otherwise.

     "Ambac" means Ambac Assurance Corporation, a Wisconsin domiciled stock
insurance corporation

     "Ambac Policy" means the Note Guaranty Insurance Policy, AB0613BE, together
with all endorsements thereto, issued by the Insurer to the Indenture Trustee,
for the benefit of the Noteholders, in the form attached as Exhibit A to this
Insurance Agreement.

     "Closing Date" means November 26, 2002.

     "Company Party" has the meaning specified in Section 4.1.

                                       2

<PAGE>

     "Documents" means the Basic Documents and any other information relating to
the Trust Estate, the Issuer, the Seller, or Alliance furnished to the Insurer
by the Issuer, the Seller or Alliance.

     "Event of Default" has the meaning specified in Section 5.1 hereof.

     "Fee Letter" means that certain letter agreement dated as of the date
hereof by and among Alliance, the Issuer and Ambac setting forth certain fees
and other matters referred to herein, as the same may be amended or supplemented
from time to time in accordance therewith and with this Insurance Agreement.

     "Indemnified Party" has the meaning specified in Section 3.4 hereof.

     "Indemnifying Party" has the meaning specified in Section 3.4 hereof.

     "Indenture Trustee" means The Bank of New York, as indenture trustee under
the Indenture, and any successor thereto under the Indenture.

     "Insurance Agreement" has the meaning specified in the initial paragraph
hereof.

     "Insurer" means Ambac and any successor thereto, as issuer of the Ambac
Policy.

     "Investment Company Act" means the Investment Company Act of 1940,
including, unless the context otherwise requires, the rules and regulations
thereunder, as amended from time to time.

     "Issuer" means Alliance Laundry Equipment Receivables Trust 2002-A, a
Delaware statutory trust, or any of its successors or permitted assigns as
provided for in the Indenture.

     "Late Payment Rate" means the lesser of (a) the greater of (i) the per
annum rate of interest publicly announced from time to time by Citibank, N.A. as
its prime or base lending rate (any change in such rate of interest to be
effective on the date such change is announced by Citibank, N.A.), plus 2% per
annum and (ii) the then applicable highest rate of interest on the Notes and (b)
the maximum rate permissible under applicable usury or similar laws limiting
interest rates. The Late Payment Rate shall be computed on the basis of the
actual number of days elapsed over a year of 360 days.

     "Material Adverse Change" means a "Material Adverse Effect" as such term is
defined in the Purchase Agreement.

     "Moody's" means Moody's Investors Service and any successor thereto.

     "Noteholder" means any Holder of Notes, other than a Company Party.

     "Note Purchase Agreement" means the Note Purchase Agreement dated as of
November 26, 2002 among the Issuer, the Indenture Trustee, Alliance, the Seller,
the Note Purchasers (as such term is defined therein) and the other parties
named on the signature pages thereto with respect to the offer and sale of the
Notes, as amended, modified or supplemented from time to time.

     "Notes" means collectively, the Equipment Loan Notes and the Receivables
Notes, issued by the Issuer under the Indenture.

     "Originator" means Alliance Laundry Systems, LLC, a Delaware limited
liability company, as ALS under the Purchase Agreement, and Originator under the
Agreement.

                                       3

<PAGE>

     "Person" means an individual, joint stock company, trust, unincorporated
association, joint venture, corporation, limited liability company, business or
owner trust, partnership or other organization or entity (whether governmental
or private).

     "Premium" means the premium payable in accordance with the Fee Letter.

     "Purchase Agreement" means the Purchase Agreement dated as of November 26,
2002 between ALS and the Seller with respect to the sale of the Equipment Loans
and the Receivables, as amended, modified or supplemented from time to time.

     "Rating Agencies" means Moody's and S&P.

     "Securities Act" means the Securities Act of 1933, including, unless the
context otherwise requires, the rules and regulations promulgated thereunder, as
amended from time to time.

     "Securities Exchange Act" means the Securities Exchange Act of 1934,
including, unless the context otherwise requires, the rules and regulations
promulgated thereunder, as amended from time to time.

     "Seller" means Alliance Laundry Equipment Receivables 2002 LLC, a Delaware
limited liability company.

     "Servicer" means Alliance Laundry Systems LLC, a Delaware limited liability
company, as servicer under the Agreement, and any successor thereto in such
capacity.

     "S&P" means Standard & Poor's Ratings Services, a division of The
McGraw-Hill Companies, Inc., and any successor thereto.

     "Transaction" means the transactions contemplated by the Basic Documents.

     "Trust Agreement" means, with respect to the Issuer, the Trust Agreement of
the Issuer, as amended from time to time.

Section 1.2. Other Definitional Provisions.

The words "hereof," "herein" and "hereunder" and words of similar import when
used in this Insurance Agreement shall refer to this Insurance Agreement as a
whole and not to any particular provision of this Insurance Agreement, and
Section, subsection, Schedule and Exhibit references are to this Insurance
Agreement unless otherwise specified. The meanings given to terms defined herein
shall be equally applicable to both the singular and plural forms of such terms.
The words "include" and "including" shall be deemed to be followed by the phrase
"without limitation."

                                   ARTICLE II

                    REPRESENTATIONS, WARRANTIES AND COVENANTS

Section 2.1. Representations and Warranties of Alliance.

Alliance hereby makes to and for the benefit of the Insurer each of the
representations and warranties made by Alliance, whether in its capacity as
Originator, Servicer or otherwise, in each of the Basic Documents to which it is
a party, including, but not limited to, Sections 2.11 and 7.01 of the Agreement

                                       4

<PAGE>

and Sections 3.1 of the Purchase Agreement. Such representations and warranties
are incorporated herein by this reference as if fully set forth herein, and may
not be amended except by an amendment complying with the terms of the last
sentence of Section 6.1. In addition, Alliance represents and warrants as of the
Closing Date as follows:

          (a) The offer and sale of the Notes by the Issuer comply in all
material respects with all requirements of law, including all registration
requirements of applicable securities laws.

          (b) The Indenture is not required to be qualified under the Trust
Indenture Act of 1939, as amended. The Issuer is not required to be registered
as an "investment company" under the Investment Company Act. Neither the offer
nor the sale of the Notes by the Issuer will be in violation of the Securities
Act or any other federal or state securities law. Alliance will satisfy any of
the information reporting requirements of the Securities Exchange Act arising
out of the Transaction to which it, the Issuer or the Seller is subject.

          (c) The information or statements contained in the Documents furnished
to the Insurer by Alliance, as amended, supplemented or superseded on or prior
to the date hereof, taken as a whole, do not, if restated at and as of the date
hereof, contain any statement of a material fact or omit to state a material
fact necessary to make such information or statements misleading in any material
respect.

Section 2.2. Affirmative Covenants of Alliance.

Alliance hereby makes, to and for the benefit of the Insurer, all of the
covenants made by Alliance, whether in its capacity as Originator or Servicer,
in the Basic Documents to which it is a party, including, but not limited to,
Section 3.07 of the Agreement. Such covenants are hereby incorporated herein by
this reference as if fully set forth herein, and may not be amended except by an
amendment complying with the terms of the last sentence of Section 6.1. In
addition, Alliance hereby agrees that during the term of this Insurance
Agreement, unless the Insurer shall otherwise expressly consent in writing:

          (a) Compliance with Agreements and Applicable Laws. Alliance shall
comply with the terms and conditions of and perform its obligations under the
Basic Documents to which it is a party and shall comply in all material respects
with any law, rule or regulation applicable to it.

          (b) Existence. Subject to Section 2.3(c) hereof, it shall maintain its
existence as a limited liability company and shall at all times continue to be
duly organized under the laws of the State of Delaware and duly qualified and
duly authorized (as described in Sections 3.1(b) and (c) of the Purchase
Agreement) and shall conduct its business in accordance with the terms of its
certificate of formation and operating agreement and shall maintain all
licenses, permits, charters and registrations which are material to the conduct
of its business.

          (c) (Intentionally Omitted).

          (d) Notice of Material Events. Alliance shall be obligated promptly to
inform the Insurer in writing of the occurrence of any of the following:

               (i) the submission of any claim or the initiation of any legal
     process, litigation or administrative or judicial investigation, or
     disciplinary proceeding by or against Alliance that would likely result in
     a Material Adverse Change with respect to Alliance or the promulgation of
     any proceeding or any proposed or final ruling in connection with any such
     litigation, investigation or proceeding which would reasonably likely to
     result in a Material Adverse Change with respect to Alliance;

                                       5

<PAGE>

               (ii) not less than thirty (30) days after the date thereof, any
     change in the name, location of the principal office, jurisdiction of
     organization or organization identification number (if any) of Alliance;

               (iii) within two (2) Business Days of the occurrence thereof, the
     occurrence of any Event of Default hereunder;

               (iv) within two (2) Business Days of the date of Alliance's
     knowledge thereof or the date on which Alliance should have, through the
     exercise of reasonable care and due diligence, known thereof, the
     occurrence of any Default hereunder; or

               (v) the receipt of written notice that (A) any license, permit,
     charter, registration or approval necessary for the conduct of Alliance's
     business is to be, or may be, suspended or revoked and such suspension or
     revocation would be reasonably likely to result in a Material Adverse
     Change with respect to Alliance or (B) Alliance is to cease and desist any
     practice, procedure or policy employed by Alliance in the conduct of its
     business, and such cessation would be reasonably likely to result in a
     Material Adverse Change with respect to Alliance.

          (e) Access to Records; Discussions with Officers and Accountants. Upon
reasonable prior written notice of the Insurer, at any time and in any event at
least annually, Alliance shall permit the Insurer or its authorized agents:

               (i) to inspect the books and records of Alliance, as they may
     relate to the Transaction, the Trust Estate, the Notes, or the obligations
     of Alliance under the Basic Documents;

               (ii) to discuss the affairs, finances and accounts of Alliance
     with the principal executive officer and the principal financial officer of
     Alliance; and

               (iii) through independent public accountants designated by the
     Insurer, to discuss the affairs, finances and accounts of Alliance with
     Alliance's independent accountants, provided that an officer of Alliance
     shall have the right to be present during such discussions.

     Such inspections and discussions shall be conducted during normal business
hours at Alliance's cost and expense, subject to Section 3.3(b) hereof, and
shall not unreasonably disrupt the business of Alliance.

          (f) Closing Documents. Alliance shall provide or cause to be provided
to the Insurer an executed original copy of each Basic Document and a copy of
each other document executed in connection with the closing of the Transaction
within 30 days of the Closing Date.

          (g) Field Examination by Independent Public Accountants. Upon
reasonable prior written notice by the Insurer at any time, Alliance shall
permit Alliance's independent public accountants or, if such independent public
accountants are not acceptable to the Insurer, independent public accountants
designated by the Insurer, annually to conduct a field examination of Alliance
pursuant to an agreed upon procedures scope attached in the form of Exhibit B
hereto, and in connection therewith shall permit such independent public
accountants, without limitation:

                                       6

<PAGE>

               (i) to inspect the books and records of Alliance as they may
     relate to the Transaction, the Trust Estate, the Notes, or the obligations
     of Alliance under the Basic Documents;

               (ii) to discuss the affairs, finances and accounts of Alliance
     with the principal executive officer and the principal financial officer of
     Alliance; and

               (iii) to discuss the affairs, finances and accounts of Alliance
     with Alliance's independent accountants, provided that an officer of
     Alliance shall have the right to be present during such discussions.

Such inspections and discussions shall be conducted during normal business hours
at Alliance's cost and expense, subject to Section 3.3(b) hereof, and shall not
unreasonably disrupt the business of Alliance.

          (h) Financial Reporting. Alliance shall provide or cause to be
provided to the Insurer the following (which, other than management letters and
certificates, Alliance may deliver by electronic mail or by telecopy):

               (i) Annual and Quarterly Financial Statements. The financial
     statements required pursuant to Section 5.02(c) of the Agreement, as and
     when required pursuant to such section.

               (ii) Compliance Certificate. Together with the financial
     statements required under Section 5.02(c) of the Agreement, a compliance
     certificate signed by Alliance's principal financial officer stating that
     to the best of such Person's knowledge, (i) Alliance is in compliance with
     its obligations hereunder and under the other Basic Documents, and (ii) no
     Event of Default, Servicer Default, or Rapid Amortization Event exists
     hereunder or under the other Basic Documents and no event which but for the
     lapse of time or the giving of notice, or both, would constitute an Event
     of Default, Servicer Default, or Rapid Amortization Event exists hereunder
     or under the other Basic Documents, and if any such event exists, stating
     the nature and status thereof (including all relevant financial and other
     information and amounts used in determining whether such Event of Default,
     Servicer Default, or Rapid Amortization Event exists).

               (iii) (Intentionally Omitted).

               (iv) S.E.C. Filings and Other Information. Promptly after the
     filing thereof, copies of all registration statements and annual, quarterly
     or other regular reports which Alliance or any subsidiary files with the
     Securities and Exchange Commission or the Ontario Securities Commission.

          (i) Credit and Collections Policy. Within 90 days after the end of
each fiscal year of Alliance, Alliance shall deliver to the Insurer a complete
copy of the Credit and Collection Policy then in effect.

          (j) Financial Projections. Projected financial information prepared by
Alliance in the ordinary course of business and delivered by Alliance to any of
its other lenders, including revisions of previously delivered information, in
each case concurrently with delivery thereof to such other lenders.

          (k) Public Debt Ratings. Promptly, but in any event within 15 days
after the date of any upgrade in Alliance's public debt ratings and 2 Business
Days of any downgrade in such ratings, Alliance shall deliver to the Insurer a
written certification of Alliance's public debt ratings after giving effect to
such change.

                                       7

<PAGE>

          (l) Trigger Events. Alliance shall include in the Servicer's
Certificate delivered pursuant to Section 3.10 of the Agreement a certification
signed by Alliance's principal financial officer stating that to the best of
such Person's knowledge, no Servicer Default, Rapid Amortization Event or Event
of Default (hereunder or under the Indenture), or any event with notice or lapse
of time would constitute any of the same, has occurred and is continuing.

          (m) Exemption from Securities Act Registration. Alliance shall take
all actions necessary to exempt the sale of the Notes from registration under
the Securities Act and under any applicable securities laws of any state of the
United States where any Notes may be offered or sold by the Issuer.

          (n) Operation of the Issuer. Alliance agrees that (i) it shall not
take any steps or actions that are inconsitent with the obligations of the
Seller and the Issuer under Sections 2.6(i) and 2.9(i), respectively, (ii) at
all times during the effectiveness of this Insurance Agreement, except as
otherwise permitted by the Agreement, it shall be the sole record and beneficial
owner of all of the outstanding equity interests of the Seller, free and clear
of all liens and other encumbrances, and (iii) the Seller shall be the sole
record and beneficial owner of all of the outstanding equity interests of the
Issuer, free and clear of all liens and other encumbrances.

          (o) Notices and Information Provided Under the Purchase Agreement.
Without limiting any of the foregoing, Alliance shall provide the Insurer with
copies of all notices and information delivered pursuant to Section 5.2(d) and
(e) of the Purchase Agreement on the same date as such items are due to be
delivered under such section of the Purchase Agreement.

          (p) Other Information. Alliance shall provide to the Insurer such
other information (including non-financial information) in respect of the Loans,
the Transaction and the Basic Documents and such other financial or operating
information in respect of Alliance, the Seller, the Issuer or any of their
Affiliates, in each case, which the Insurer may from time to time reasonably
request.

Section 2.3. Negative Covenants of Alliance.

Alliance hereby agrees that during the term of this Insurance Agreement, unless
the Insurer shall otherwise expressly consent in writing:

          (a) Impairment of Rights. Alliance shall not take any action, or fail
to take any action, if such action or failure to take action (x) is reasonably
likely to result in a Material Adverse Change or (y) is reasonably likely to
interfere with the enforcement of any rights of the Insurer under or with
respect to any of the Basic Documents. Alliance shall give the Insurer written
notice of any such action or failure to act promptly prior to the date of
consummation of such action or failure to act. Alliance shall furnish to the
Insurer all information requested by it that is reasonably necessary to
determine compliance with this paragraph.

          (b) Amendments, Etc. Alliance shall not modify, amend or waive, or
consent to any modification or amendment of, any of the terms, provisions or
conditions of the Basic Documents to which it is a party without the prior
written consent of the Insurer thereto, but excluding any amendment to the Basic
Documents required by law, provided that Alliance shall provide the Insurer with
reasonable prior written notice of any such amendment and a copy thereof.

          (c) Limitation on Mergers, Etc. Except as expressly permitted by the
Agreement, Alliance shall not consolidate with or merge with or into any Person
or transfer all or substantially all of its assets to any Person (each, a
"Combination Transaction") or liquidate or dissolve. Without limiting the
foregoing, no Combination Transaction shall be consummated unless Alliance shall
delivered to the Insurer (a) an Officer's Certificate reasonably satisfactory to
it, stating that such consolidation,

                                       8

<PAGE>

conversion, merger, or succession and such agreement of assumption comply with
this Section and the other Basic Documents that all conditions precedent, if
any, provided for in this Agreement and the other Basic Documents relating to
such Combination Transaction have been complied with, and (b) an opinion of
counsel, reasonably satisfactory to it, stating that, in the opinion of such
counsel, (1) the agreement of assumption is the valid and binding obligations of
the parties thereto and effective to accomplish the assumption of liabilities
contemplated therein, (2) either (A) all financing statements and continuation
statements and amendments thereto have been executed and filed that are
necessary fully to preserve and protect the interest of the Issuer, the
Indenture Trustee, the Insurer and the Noteholders in the Loans and the
Receivables and reciting the details of such filings, or (B) no such action
shall be necessary to preserve and protect such interest in either case, such
opinion shall cover the matters covered in the opinion delivered pursuant to
Section 3.6(a) of the Indenture, taking into account changes of law, and (3)
after giving effect to such merger or consolidation, Alliance (or its successor)
would not be substantively consolidated with the Seller or the Issuer in the
event of a bankruptcy of Alliance or its successor.

          (d) Change in Lockbox Processor. Alliance shall not permit a change in
the Lockbox Account or the lockbox processor designated in the Lockbox Agreement
without the prior written consent of the Insurer.

Section 2.4. Representations and Warranties of the Insurer.

The Insurer represents and warrants to the Indenture Trustee (on behalf of the
Noteholders), the Issuer, the Seller and Alliance as follows:

          (a) Organization and Licensing. The Insurer is a stock insurance
corporation duly organized, validly existing and in good standing under the laws
of the State of Wisconsin.

          (b) Corporate Power. The Insurer has the corporate power and authority
to issue the Ambac Policy and execute and deliver this Insurance Agreement and
to perform all of its obligations hereunder and thereunder.

          (c) Authorization; Approvals. All proceedings legally required for the
issuance of the Ambac Policy and the execution, delivery and performance of this
Insurance Agreement have been taken and all licenses, orders, consents or other
authorizations or approvals of the Insurer's Board of Directors or stockholders
or any governmental boards or bodies legally required for the enforceability of
the Ambac Policy have been obtained or are not material to the enforceability of
the Ambac Policy.

          (d) Enforceability. The Ambac Policy, when issued, will constitute,
and this Insurance Agreement constitutes, a legal, valid and binding obligation
of the Insurer, enforceable in accordance with its terms, subject to insolvency,
reorganization, moratorium, receivership and other similar laws affecting
creditors' rights generally and by general principles of equity and subject to
principles of public policy limiting the right to enforce the indemnification
provisions contained therein and herein, insofar as such provisions relate to
indemnification for liabilities arising under federal securities laws.

          (e) No Litigation. There are no actions, suits, proceedings or
investigations pending or, to the best of the Insurer's knowledge, threatened
against it at law or in equity or before or by any court, governmental agency,
board or commission or any arbitrator which, if decided adversely, would
materially and adversely affect its ability to perform its obligations under the
Ambac Policy or this Insurance Agreement.

          (f) No Conflict. The execution by the Insurer of this Insurance
Agreement will not, and the satisfaction of the terms hereof will not, conflict
with or result in a breach of any of the terms,

                                       9

<PAGE>

conditions or provisions of the Certificate of Incorporation or By-Laws of the
Insurer, or any restriction contained in any contract, agreement or instrument
to which the Insurer is a party or by which it is bound or constitute a default
under any of the foregoing which would materially and adversely affect its
ability to perform its obligations under the Ambac Policy or this Insurance
Agreement.

Section 2.5. Representations; Warranties and Covenants of the Seller.

The Seller hereby makes to and for the benefit of the Insurer each of the
representations, warranties and covenants made by the Seller in the Basic
Documents to which it is a party, including, but not limited to, Section 2.11
and 7.01 of the Agreement. Such representations, warranties and covenants are
incorporated herein by this reference as if fully set forth herein, and may not
be amended except by an amendment complying with the terms of the last sentence
of Section 6.1. In addition, the Seller represents and warrants as of the
Closing Date as follows:

          (a) The offer and sale of the Notes by the Issuer complies in all
material respects with all requirements of law, including all registration
requirements of applicable securities laws.

          (b) The Indenture is not required to be qualified under the Trust
Indenture Act of 1939, as amended. The Issuer is not required to be registered
as an "investment company" under the Investment Company Act. Neither the offer
nor the sale of the Notes by the Issuer will be in violation of the Securities
Act or any other federal or state securities law. The Seller will satisfy any of
the information reporting requirements of the Securities Exchange Act arising
out of the Transaction to which it is subject.

          (c) The information or statements contained in the Documents furnished
to the Insurer by Seller, as amended, supplemented or superseded on or prior to
the date hereof, taken as a whole, does not, if restated at and as of the date
hereof, contain any statement of a material fact or omit to state a material
fact necessary to make such information or statements misleading in any material
respect.

          (d) The Seller is solvent and will not be rendered insolvent by the
Transaction and, after giving effect to the Transaction, the Seller will not be
left with an unreasonably small amount of capital with which to engage in its
business, and the Seller does not intend to incur, nor believes that it has
incurred, debts beyond its ability to pay as they mature. The Seller does not
contemplate the commencement of insolvency, liquidation or consolidation
proceedings or the appointment of a receiver, liquidator, conservator, trustee
or similar official with respect to it or any of its assets.

          (e) The principal place of business of the Seller is Ripon, Wisconsin
and its books and records with respect to the Loans are located at Wilmington,
Delaware, Ripon, Wisconsin and Chicago, Illinois.

Section 2.6. Affirmative Covenants of the Seller.

The Seller hereby makes, to and for the benefit of the Insurer, all of the
covenants of the Seller set forth in the Basic Documents to which it is a party.
Such covenants are incorporated herein by this reference, and may not be amended
except by an amendment complying with the terms of the last sentence of Section
6.1. In addition, the Seller hereby agrees that during the term of this
Insurance Agreement, unless the Insurer shall otherwise expressly consent in
writing:

          (a) Compliance with Agreements and Applicable Laws. It shall comply
with the terms and conditions of and perform its obligations under the Basic
Documents to which it is a party and shall comply with all material requirements
of any law, rule or regulation applicable to it.

                                       10

<PAGE>

          (b) Existence. It shall maintain its existence as a limited liability
company and shall at all times continue to be duly organized under the laws of
the State of Delaware and duly qualified and duly authorized (as described in
Sections 3.2(b) and (c) of the Purchase Agreement) and shall conduct its
business in accordance with the terms of its certificate of formation and
operating agreement and shall maintain all licenses, permits, charters and
registrations which are material to the conduct of its business.

          (c) Access to Records; Discussions with Officers and Accountants. Upon
reasonable prior written notice of the Insurer, at any time and any event at
least annually, the Seller shall permit the Insurer or its authorized agents:

               (i) to inspect the books and records of the Seller;

               (ii) to discuss the affairs, finances and accounts of the Seller
     with the principal executive officer and the principal operating officer of
     the Seller; and

               (iii) through independent public accountants designated by the
     Insurer, to discuss the affairs, finances and accounts of the Seller with
     the Seller's independent accountants, provided that an officer of the
     Seller shall have the right to be present during such discussions.

     Such inspections and discussions shall be conducted during normal business
hours at the cost and expense of the Seller, subject to Section 3.3(b) hereof,
and shall not unreasonably disrupt the business of the Seller.

          (d) Notice of Material Events. The Seller shall be obligated promptly
to inform the Insurer in writing of the occurrence of any of the following:

               (i) the submission of any claim or the initiation of any legal
     process, litigation or administrative or judicial investigation, or
     disciplinary proceeding by or against the Seller that would likely result
     in a Material Adverse Change with respect to the Seller or the promulgation
     of any proceeding or any proposed or final ruling in connection with any
     such litigation, investigation or proceeding which would reasonably likely
     to result in a Material Adverse Change with respect to the Seller;

               (ii) not less than thirty (30) days after the date thereof, any
     change in the name, location of the principal office, jurisdiction of
     organization or organization identification number (if any) of the Seller;

               (iii) within two (2) Business Days of the occurrence thereof, the
     occurrence of a Default or an Event of Default hereunder in respect of the
     Seller;

               (iv) the commencement of any proceedings by or against the Seller
     under any applicable reorganization, liquidation, rehabilitation,
     insolvency or other similar law now or hereafter in effect or of any
     proceeding in which a receiver, liquidator, conservator, trustee or similar
     official shall have been, or may be, appointed or requested for such Seller
     or any of its assets; or

               (v) the receipt of written notice that (A) any license, permit,
     charter, registration or approval necessary for the conduct of the Seller's
     business is to be, or may be, suspended or revoked and such suspension or
     revocation would be reasonably likely to result in a Material Adverse
     Change with respect to the Seller or (B) the Seller is to cease and desist
     any practice, procedure or policy employed by the Seller in the conduct of
     its business, and such

                                       11

<PAGE>

     cessation would be reasonably likely to result in a Material Adverse Change
     with respect to the Seller.

          (e) Field Examination by Independent Public Accountants. Upon the
prior written notice of the Insurer at any time, each of the Seller shall permit
the independent public accountants of the Seller or, if such independent public
accountants are not acceptable to the Insurer, independent public accountants
designated by the Insurer, annually to conduct a field examination of the Seller
pursuant to an agreed upon procedures scope attached in the form of Exhibit B
hereto, and in connection therewith shall permit such independent public
accountants without limitation:

               (i) to inspect the books and records of the Seller; and

               (ii) to discuss the affairs, finances and accounts of the Seller
     with the Seller's independent accountants, provided that an officer of the
     Seller shall have the right to be present during such discussions.

     Such inspections and discussions shall be conducted during normal business
hours at the cost and expense of such Seller, subject to Section 3.3(b) hereof,
and shall not unreasonably disrupt the business of the Seller.

          (f) Exemption from Securities Act Registration. The Seller shall take
all actions necessary to exempt the sale of the Notes from registration under
the Securities Act and under any applicable securities laws of any state of the
United States where Notes may be offered or sold by the Issuer.

          (g) Financial Reporting. To the extent the Seller shall otherwise be
preparing the same for purposes other than the preparation of the consolidated
financial statements of ALH and its subsidiaries, the Seller shall provide or
cause to be provided to the Insurer, as soon as practicable and in any event
within 90 days after the end of each fiscal year of the Seller annual balance
sheets of the Seller as at the end of such fiscal year and the notes thereto,
and the related statements of income and cash flows and the respective notes
thereto for such fiscal year certified by the principal financial officer of the
Seller.

          (h) Other Information. The Seller shall provide to the Insurer such
other information (including non-financial information) in respect of the Loans,
the Transaction and the Basic Documents and such other financial or operating
information in respect of the Seller, in each case, which the Insurer may from
time to time reasonably request.

          (i) Operation of the Seller. The Seller shall:

                    (1) be a limited purpose, Delaware limited liability company
          whose primary activities are restricted pursuant to its certificate of
          formation and operating agreement;

                    (2) not engage in any action that would cause the separate
          legal identity of the Seller not to be respected, including, without
          limitation, (a) holding itself out as being liable for the debts of
          any other party or (b) acting other than through its duly authorized
          agents;

                    (3) not be involved in the day-to-day management of
          Alliance;

                                       12

<PAGE>

                    (4) not incur, assume or guarantee any indebtedness except
          for such indebtedness as may be incurred by the Seller in connection
          with the issuance of the Notes or as otherwise permitted by the
          Insurer;

                    (5) act solely in its own name in the conduct of its
          business, including business correspondence and other communications,
          and shall conduct its business so as not to mislead others as to the
          identity of the entity with which they are concerned;

                    (6) maintain separate company records and books of account,
          deposit accounts (and funds therein) or other assets and shall not
          commingle its deposit accounts (and funds therein) with the deposit
          accounts (and funds therein) of any entity;

                    (7) not engage in any business or activity other than in
          connection with or relating to its certificate of formation and
          operating agreement;

                    (8) not form, or cause to be formed, any subsidiaries (other
          than the Issuer);

                    (9) comply with all restrictions and covenants in, and shall
          not fail to comply with the limited liability company formalities
          established in, its certificate of formation and operating agreement;

                    (10) manage its day-to-day business without the involvement
          of Alliance except pursuant to its obligations as Servicer;

                    (11) maintain a separate office from that of Alliance, which
          may be located on Alliance's premises;

                    (12) not act as an agent of Alliance;

                    (13) maintain at all times two independent managers as
          required by its articles of organization and operating agreement;

                    (14) ensure that, to the extent that it shares the same
          officers or other employees as any of its Affiliates, the salaries of
          and the expenses related to providing benefits to such officers and
          other employees shall be fairly allocated among such entities, and
          each such entity shall bear its fair share of the salary and benefit
          costs associated with all such common officers and employees;

                    (15) ensure that, to the extent that it jointly contracts
          with any of its stockholders or Affiliates to do business with vendors
          or service providers or to share overhead expenses, the costs incurred
          in doing so shall be allocated fairly among such entities, and each
          such entity shall bear its fair share of such costs. To the extent
          that the Seller contracts or does business with vendors or service
          providers when the goods and services provided are partially for the
          benefit of any other Person, the costs incurred in so doing shall be
          fairly allocated to or among such entities for whose benefit the goods
          and services are provided, and each such entity shall bear its fair
          share of such costs. All material transactions between the Seller and
          its Affiliates shall only be on an arm's-length basis;

                                       13

<PAGE>

                    (16) require that all full-time employees of the Seller
          identify themselves as such and not as employees of Alliance
          (including, without limitation, by means of providing appropriate
          employees with business or identification cards identifying such
          employees as the Seller's employees); and

                    (17) compensate all employees, consultants and agents
          directly, from the Seller's bank accounts, for services provided to
          the Seller by such employees, consultants and agents, and, to the
          extent any employee, consultant or agent of the Seller is also an
          employee, consultant or agent of Alliance, allocate the compensation
          of such employee, consultant or agent between the Seller and Alliance
          on a basis which reflects the services rendered to the Seller and
          Alliance.

Section 2.7. Negative Covenants of the Seller.

The Seller hereby agrees that during the term of this Insurance Agreement,
unless the Insurer shall otherwise expressly consent in writing:

          (a) Impairment of Rights. The Seller shall not take any action, or
fail to take any action, if such action or failure to take action (x) is
reasonably likely to result in a Material Adverse Change or (y) is reasonably
likely to interfere with the enforcement of any rights of the Insurer under or
with respect to any of the Basic Documents. The Seller shall give the Insurer
written notice of any such action or failure to act promptly prior to the date
of consummation of such action or failure to act. The Seller shall furnish to
the Insurer all information requested by it that is reasonably necessary to
determine compliance with this paragraph.

          (b) Amendments, Etc. The Seller shall not modify, amend or waive, or
consent to any modification, amendment or waiver of, any of the terms,
provisions or conditions of the Basic Documents to which it is a party or its
organizational documents, including, without limitation, its certificate of
formation and operating agreement, without the prior written consent of the
Insurer thereto, but excluding any amendment to the Basic Documents required by
law, provided that the Seller shall provide the Insurer with prior written
notice of any such amendment and a copy thereof.

          (c) Limitation on Mergers, Etc. The Seller shall not consolidate with
or merge with or into any Person or transfer all or substantially all of its
assets to any Person or liquidate or dissolve except as expressly permitted in
the Agreement.

          (d) Operating Expenses. The Seller shall not permit Alliance to pay
any of the Seller's operating expenses except pursuant to allocation
arrangements that comply with the requirements of Section 2.6(i)(17) above.

          (e) Certain Other Limitations. The Seller shall not permit the Seller
to be named as an insured on an insurance policy held by another Company Party
or covering the property of any other Company Party, except to the extent the
Seller shall bear the expenses thereof, or enter into an agreement with the
holder of such policy whereby in the event of a loss in connection with such
property not owned by the Seller, proceeds are paid to the Seller.

Section 2.8. Representations and Warranties of the Issuer.

The Issuer hereby makes, to and for the benefit of the Insurer, each of the
representations and warranties made by the Issuer in the Basic Documents to
which it is a party. Such representations and warranties are incorporated herein
by this reference as if fully set forth herein, and may not be amended except by
an

                                       14

<PAGE>

amendment complying with the terms of Section 6.1. In addition, the Issuer
represents and warrants as of the Closing Date as follows:

          (a) Due Organization and Qualification. The Issuer is a Delaware
business trust, duly organized, validly existing and in good standing under the
laws of Delaware. The Issuer is duly qualified to do business, is in good
standing and has obtained all necessary licenses, permits, charters,
registrations and approvals (together, "approvals") necessary for the conduct of
its business as currently conducted and as described in the Offering Document
and the performance of its obligations under the Basic Documents in each
jurisdiction in which the failure to be so qualified or to obtain such approvals
would render any Basic Document unenforceable in any respect or would have a
material adverse effect upon the Transaction.

          (b) Power and Authority. The Issuer has all necessary Delaware
business trust power and authority to conduct its business as currently
conducted and as described in the Offering Document, to execute, deliver and
perform its obligations under the Basic Documents and to consummate the
Transaction.

          (c) Due Authorization. The execution, delivery and performance of the
Basic Documents by the Issuer has been duly authorized by all necessary Delaware
business trust action and do not require any additional approvals or consents,
or other action by or any notice to or filing with any Person, including any
governmental entity, which have not previously been obtained.

          (d) Noncontravention. The execution and delivery by the Issuer of the
Basic Documents to which it is a party, the consummation of the Transaction and
the satisfaction of the terms and conditions of the Basic Documents do not and
will not:

               (i) conflict with or result in any breach or violation of any
     provision of the certificate of trust or Trust Agreement of the Issuer or
     any law, rule, regulation, order, writ, judgment, injunction, decree,
     determination or award currently in effect having applicability to either
     the Issuer or any of its properties, including regulations issued by any
     administrative agency or other governmental authority having supervisory
     powers over the Issuer;

               (ii) constitute a default by the Issuer under, result in the
     acceleration of any obligation under, or breach any material provision of
     any loan agreement, mortgage, indenture or other agreement or instrument to
     which the Issuer either is a party or by which any of its properties are or
     may be bound or affected; or

               (iii) result in or require the creation of any lien upon or in
     respect of any assets of the Issuer, except as otherwise expressly
     contemplated by the Basic Documents.

          (e) Legal Proceedings. There is no action, proceeding or investigation
by or before any court, governmental or administrative agency or arbitrator
against or affecting the Issuer, any properties or rights of the Issuer or the
Trust Estate pending or, to the Issuer's knowledge, threatened, which, in any
case, if decided adversely to the Issuer, is reasonably likely to result in a
Material Adverse Change with respect to the Issuer.

          (f) Valid and Binding Obligations. The Basic Documents constitute the
legal, valid and binding obligations of the Issuer, enforceable against the
Issuer in accordance with their respective terms, except as such enforceability
may be limited by insolvency, reorganization, moratorium or other similar laws
affecting creditors' rights generally and general equitable principles. The
Notes, when executed, authenticated and delivered in accordance with the
Indenture, will be validly issued and outstanding and entitled to the benefits
of the Indenture.

                                       15

<PAGE>

          (g) Compliance with Law, Etc. No practice, procedure or policy
employed, or proposed to be employed, by the Issuer in the conduct of its
business violates any law, regulation, judgment, agreement, order or decree
applicable to the Issuer, that, if enforced, is reasonably likely to result in a
Material Adverse Change with respect to the Issuer.

          (h) Accuracy of Information. The information or statements contained
in the Documents furnished to the Insurer by the Issuer, as amended,
supplemented or superseded on or prior to the date hereof, taken as a whole,
does not, if restated at and as of the date hereof, contain any statement of a
material fact or omit to state a material fact necessary to make such
information or statements misleading in any material respect.

          (i) Compliance with Securities Laws. The offer and sale of the Notes
by the Issuer complies in all material respects with all requirements of law,
including all registration requirements of applicable securities laws. Neither
the offer nor the sale of the Notes by the Issuer has been or will be in
violation of the Securities Act or any other federal or state securities laws.
The Indenture is not required to be qualified under the Trust Indenture Act of
1939, as amended. The Issuer is not required to be registered as an "investment
company" under the Investment Company Act.

          (j) Solvency; Fraudulent Conveyance. The Issuer is solvent and will
not be rendered insolvent by the Transaction and, after giving effect to the
Transaction, the Issuer will not be left with an unreasonably small amount of
capital with which to engage in its business, and the Issuer does not intend to
incur, nor believes that it has incurred, debts beyond its ability to pay as
they mature. The Issuer does not contemplate the commencement of insolvency,
liquidation or consolidation proceedings or the appointment of a receiver,
liquidator, conservator, trustee or similar official with respect to it or any
of its assets. The Issuer is not pledging the Trust Estate under the Indenture
with any intent to hinder, delay or defraud its creditors.

          (k) Principal Place of Business. The principal place of business of
the Issuer is Wilmington, Delaware and its books and records with respect to the
Loans are located at Wilmington, Delaware, Ripon, Wisconsin and Chicago,
Illinois.

Section 2.9. Affirmative Covenants of the Issuer.

The Issuer hereby makes, to and for the benefit of the Insurer, all of the
covenants of the Issuer set forth in the Basic Documents to which it is a party,
including, but not limited to, Article III of the Indenture. Such covenants are
incorporated herein by this reference, and may not be amended except by an
amendment complying with the terms of Section 6.1. In addition, the Issuer
hereby agrees that during the term of this Insurance Agreement, unless the
Insurer shall otherwise expressly consent in writing:

          (a) Compliance with Agreements and Applicable Laws. It shall comply
with the terms and conditions of and perform its obligations under the Basic
Documents to which it is a party and shall comply with all material requirements
of any law, rule or regulation applicable to it.

          (b) Existence. It shall maintain its existence as a business trust and
shall at all times continue to be duly organized under the laws of the State of
Delaware and duly qualified and duly authorized (as described in subsections
2.8(a), (b) and (c) hereof) and shall conduct its business in accordance with
the terms of its certificate of trust and Trust Agreement and shall conduct its
business in accordance with the terms of its trust agreement and shall maintain
all licenses, permits, charters and registrations which are material to the
conduct of its business.

                                       16

<PAGE>

          (c) Access to Records; Discussions with Officers and Accountants. Upon
reasonable prior written notice of the Insurer, at any time and any event at
least annually, the Issuer shall permit the Insurer or its authorized agents:

               (i) to inspect the books and records of the Issuer;

               (ii) to discuss the affairs, finances and accounts of the Issuer
     with the principal executive officer and the principal financial officer of
     the Issuer; and

               (iii) through independent public accountants designated by the
     Insurer, to discuss the affairs, finances and accounts of the Issuer with
     the Issuer's independent accountants, provided that an officer of the
     Issuer and an officer of Alliance shall have the right to be present during
     such discussions.

Such inspections and discussions shall be conducted during normal business hours
at the cost and expense of the Issuer, subject to Section 3.3(b) hereof, and
shall not unreasonably disrupt the business of the Issuer.

          (d) Notice of Material Events. The Issuer shall be obligated promptly
to inform the Insurer in writing of the occurrence of any of the following:

               (i) the submission of any claim or the initiation of any legal
     process, litigation or administrative or judicial investigation, or
     disciplinary proceeding by or against the Issuer that would likely result
     in a Material Adverse Change with respect to the Issuer or the promulgation
     of any proceeding or any proposed or final ruling in connection with any
     such litigation, investigation or proceeding which would reasonably likely
     to result in a Material Adverse Change with respect to the Issuer;

               (ii) not less than thirty (30) days after the date thereof, any
     change in the name, location of the principal office, jurisdiction of
     organization or organization identification number (if any) of the Issuer;

               (iii) the occurrence of an Event of Default hereunder in respect
     of the Issuer;

               (iv) upon the Issuer's knowledge thereof or the date on which the
     Issuer should have, through the exercise of reasonable care and due
     diligence, known thereof, the occurrence of any Default hereunder in
     respect of the Issuer;

               (v) the commencement of any proceedings by or against the Issuer
     under any applicable reorganization, liquidation, rehabilitation,
     insolvency or other similar law now or hereafter in effect or of any
     proceeding in which a receiver, liquidator, conservator, trustee or similar
     official shall have been, or may be, appointed or requested for such Issuer
     or any of its assets; or

               (vi) the receipt of written notice that (A) any license, permit,
     charter, registration or approval necessary for the conduct of the Issuer's
     business is to be, or may be, suspended or revoked and such suspension or
     revocation would be reasonably likely to result in a Material Adverse
     Change with respect to such Issuer or (B) the Issuer is to cease and desist
     any practice, procedure or policy employed by the Issuer in the conduct of
     its business, and such cessation would be reasonably likely to result in a
     Material Adverse Change with respect to such Issuer.

                                       17

<PAGE>

          (e) Field Examination by Independent Public Accountants. Upon
reasonable prior written notice of the Insurer at any time, each of the Issuer
shall permit the independent public accountants of the Issuer or, if such
independent public accountants are not acceptable to the Insurer, independent
public accountants designated by the Insurer, annually to conduct a field
examination of the Issuer pursuant to an agreed upon procedures scope attached
in the form of Exhibit B hereto, and in connection therewith shall permit such
independent public accountants without limitation:

               (i) to inspect the books and records of the Issuer; and

               (ii) to discuss the affairs, finances and accounts of the Issuer
     with the Issuer's independent accountants, provided that an officer of the
     Issuer shall have the right to be present during such discussions.

Such inspections and discussions shall be conducted during normal business hours
at the cost and expense of such Issuer, subject to Section 3.3(b) hereof, and
shall not unreasonably disrupt the business of the Issuer.

          (f) Exemption from Securities Act Registration. The Issuer shall take
all actions necessary to exempt the sale of the Notes from registration under
the Securities Act and under any applicable securities laws of any state of the
United States where Notes may be offered or sold by the Issuer.

          (g) Financial Reporting. To the extent the Issuer shall otherwise be
preparing the same for purposes other than the preparation of the consolidated
financial statements of ALH and its subsidiaries, the Issuer shall provide or
cause to be provided to the Insurer, as soon as practicable and in any event
within 90 days after the end of each fiscal year of the Issuer annual balance
sheets of the Issuer as at the end of such fiscal year and the notes thereto,
and the related statements of income and cash flows and the respective notes
thereto for such fiscal year certified by the principal financial officer of the
Issuer.

          (h) Other Information. The Issuer shall provide to the Insurer such
other information (including non-financial information) in respect of the Loans,
the Transaction and the Basic Documents and such other financial or operating
information in respect of the Issuer, in each case, which the Insurer may from
time to time reasonably request.

          (i) Operation of the Issuer. The Issuer shall:

                    (1) be a Delaware business trust whose primary activities
          are restricted pursuant to its Trust Agreement:

                    (2) not be involved in the day-to-day management of
          Alliance;

                    (3) not incur, assume or guarantee any indebtedness except
          for such indebtedness as may be incurred by the Issuer in connection
          with the issuance of the Notes or as otherwise permitted by the
          Insurer;

                    (4) not commingle its deposit accounts (and funds therein)
          or other assets with the deposit accounts (and funds therein) or other
          assets of any entity other than the Seller;

                    (5) manage its day-to-day business without the involvement
          of Alliance except pursuant to its obligations as Servicer;

                                       18

<PAGE>

                    (6) maintain a separate office from that of Alliance;

                    (7) not act as an agent of Alliance;

                    (8) not form, or cause to be formed, any subsidiaries;

                    (9) act solely in its own name or in the name of the Seller
          in the conduct of its business, including business correspondence and
          other communications, and shall conduct its business so as not to
          mislead others as to the identity of the entity with which they are
          concerned;

                    (10) ensure that, to the extent that it shares the same
          officers or other employees as any of its Affiliates (other than the
          Seller), the salaries of and the expenses related to providing
          benefits to such officers and other employees shall be fairly
          allocated among such entities, and each such entity shall bear its
          fair share of the salary and benefit costs associated with all such
          common officers and employees;

                    (11) ensure that, to the extent that it jointly contracts
          with any of its stockholders or Affiliates (other than the Seller) to
          do business with vendors or service providers or to share overhead
          expenses, the costs incurred in doing so shall be allocated fairly
          among such entities, and each such entity shall bear its fair share of
          such costs. To the extent that the Issuer contracts or does business
          with vendors or service providers when the goods and services provided
          are partially for the benefit of any other Person (other than the
          Seller), the costs incurred in so doing shall be fairly allocated to
          or among such entities for whose benefit the goods and services are
          provided, and each such entity shall bear its fair share of such
          costs. All material transactions between the Seller and its Affiliates
          (other than the Seller) shall only be on an arm's-length basis;

                    (12) require that all full-time employees of the Issuer
          identify themselves as such and not as employees of Alliance
          (including, without limitation, by means of providing appropriate
          employees with business or identification cards identifying such
          employees as the Issuer's employees); and

                    (13) compensate all employees, consultants and agents
          directly, from the Issuer's bank accounts, for services provided to
          the Issuer by such employees, consultants and agents, and, to the
          extent any employee, consultant or agent of the Issuer is also an
          employee, consultant or agent of Alliance, allocate the compensation
          of such employee, consultant or agent between the Issuer and Alliance
          on a basis which reflects the services rendered to the Issuer and
          Alliance.

Section 2.10. Negative Covenants of the Issuer.

The Issuer hereby agrees that during the term of this Insurance Agreement,
unless the Insurer shall otherwise expressly consent in writing:

          (a) Impairment of Rights. The Issuer shall not take any action, or
fail to take any action, if such action or failure to take action (x) is
reasonably likely to result in a Material Adverse Change or (y) is reasonably
likely to interfere with the enforcement of any rights of the Insurer under or
with respect to any of the Basic Documents. The Issuer shall give the Insurer
written notice of any such action or failure to act promptly prior to the date
of consummation of such action or failure to act. The Issuer shall furnish to
the Insurer all information requested by it that is reasonably necessary to
determine compliance with this paragraph.

                                       19

<PAGE>

          (b) Amendments, Etc. The Issuer shall not modify, amend or waive, or
consent to any modification, amendment or waiver of, any of the terms,
provisions or conditions of the Basic Documents to which it is a party, or any
of its organization documents, including, without limitation, its trust
agreement and certificate of trust and Trust Agreement, without the prior
written consent of the Insurer thereto, but excluding any amendment to the Basic
Documents required by law, provided that the Issuer shall provide the Insurer
with prior written notice of any such amendment and a copy thereof.

          (c) Limitation on Mergers, Etc. The Issuer shall not consolidate with
or merge with or into any Person or transfer all or substantially all of its
assets to any Person or liquidate or dissolve.

          (d) Operating Expenses. The Issuer shall not permit Alliance to pay
any of the Issuer's operating expenses except pursuant to allocation
arrangements that comply with the requirements of Section 2.9(i)(13) above.

          (e) Certain Other Limitations. The Issuer shall not permit the Issuer
to be named as an insured on an insurance policy held by another Company Party
or covering the property of any other Company Party, except to the extent the
Issuer shall bear the expenses thereof, or enter into an agreement with the
holder of such policy whereby in the event of a loss in connection with such
property not owned by the Issuer, proceeds are paid to the Issuer.

                                   ARTICLE III

                         THE AMBAC POLICY; REIMBURSEMENT

Section 3.1. Issuance of the Ambac Policy.

The Insurer agrees to issue the Ambac Policy on the Closing Date subject to
satisfaction of the conditions precedent set forth below:

          (a) Payment of Initial Premium and Expenses. The applicable parties
shall have been paid their related fees and expenses payable in accordance with
Section 3.2.

          (b) Documents. The conditions to consummation of the transactions set
forth in Section 4.1 and 4.2 of the Purchase Agreement shall have been
satisfied.

          (c) Credit and Collection Policy. The Insurer shall have received a
complete copy of the Credit and Collection Policy then in effect certified by
the principal financial officer of Alliance;

          (d) Representations and Warranties; Certificate. The representations
and warranties of Alliance, the Seller and the Issuer set forth or incorporated
by reference in this Insurance Agreement shall be true and correct on and as of
the Closing Date as if made on the Closing Date, and the Insurer shall have
received a certificate of appropriate officers of Alliance, the Seller and the
Issuer to that effect;

          (e) No Litigation, Etc. No suit, action or other proceeding,
investigation or injunction, or final judgment relating thereto, shall be
pending or, to such party's knowledge, threatened before any court, governmental
or administrative agency or arbitrator in which it is sought to restrain or
prohibit or to obtain damages or other relief in connection with any of the
Basic Documents or the consummation of the Transaction;

          (f) Legality. No statute, rule, regulation or order shall have been
enacted, entered or deemed applicable by any government or governmental or
administrative agency or court that would make the Transaction illegal or
otherwise prevent the consummation thereof;

                                       20

<PAGE>

          (g) No Event of Default. No Event of Default or Rapid Amortization
Event shall have occurred;

          (h) Satisfaction of Conditions of the Note Purchase Agreement. All
conditions in the Note Purchase Agreement relating to the Note Purchasers'
obligation to purchase the Notes shall have been fulfilled to the satisfaction
of the Insurer, with such satisfaction deemed to have occurred upon issuance of
the Ambac Policy. The Insurer shall have received copies of each of the
documents, and shall be entitled to rely on each of the documents, required to
be delivered to any Note Purchasers pursuant to the Note Purchase Agreement,
including, without limitation, the items described in Section 3.1(e) of the Note
Purchase Agreement (other than the opinion of counsel to the Insurer);

          (i) Issuance of Ratings. The Insurer shall have received confirmation
that the Notes would be rated BBB by S&P and an Baa2 by Moody's without taking
into account the Ambac Policy and shall have received copies of any opinions of
counsel delivered to the Rating Agencies, such opinions being in form and
substance satisfactory to and addressed to the Insurer;

          (j) Approvals, Etc. The Insurer shall have received true and correct
copies of all approvals, licenses and consents, if any, required in connection
with the Transaction;

          (k) Credit Agreement. The Insurer shall have received a copy of the
Credit Agreement (including all amendments, supplements or other modifications
thereto as of the Closing Date) certified by a Responsible Officer of Alliance.

          (l) Additional Items. The Insurer shall have received such other
documents, instruments, approvals or opinions in form and substance reasonably
satisfactory to the Insurer as shall be reasonably requested by the Insurer,
including evidence reasonably satisfactory to the Insurer that the conditions
precedent, if any, in the Basic Documents have been satisfied; and

          (m) Satisfactory Documentation. The Insurer and its counsel shall have
determined that all documents, the Notes and opinions to be delivered in
connection with the Notes conform to the terms of the Indenture and this
Insurance Agreement.

Section 3.2. Payment of Fees and Premium.

          (a) Legal and Accounting Fees. Seller shall pay or cause to be paid on
the Closing Date all reasonable, out-of-pocket (i.e., excluding internal legal
or accounting expenses) and documented legal fees, auditors' fees and
disbursements incurred by the Insurer in connection with the issuance of the
Ambac Policy and the other Basic Documents through the Closing Date. Additional
fees of the Insurer's counsel or auditors payable in connection with the Basic
Documents incurred after the Closing Date shall be paid by Alliance as provided
in Section 3.3 below.

          (b) Rating Agency Fees. Seller shall promptly pay the initial fees of
the Rating Agencies with respect to the Notes and the transactions contemplated
hereby following receipt of a statement with respect thereto. Alliance shall pay
or cause to be paid any subsequent fees of the Rating Agencies with respect to,
and directly allocable to, the Notes to the extent that such fees and expenses
result from actions of the Rating Agencies that are requested by Alliance. The
Insurer shall not be responsible for any fees or expenses of the Rating
Agencies. The fees for any other rating agency shall be paid by the party
requesting such other agency's rating.

          (c) Premium. In consideration of the issuance by the Insurer of the
Ambac Policy, the Issuer shall pay or cause to be paid the Premiums to the
Insurer as set forth in the Fee Letter in

                                       21

<PAGE>

accordance with and from the funds specified by Section 8.2 of the Indenture,
commencing on the day the Ambac Policy is issued, until the Ambac Policy has
terminated in accordance with its terms. The Premium paid under the Indenture
shall be nonrefundable without regard to whether any Notice (as defined in the
Ambac Policy) is delivered to the Insurer requiring the Insurer to make any
payment under the Ambac Policy or any other circumstances relating to the Notes
or provision being made for payment of the Notes prior to maturity.

Section 3.3. Reimbursement Obligation.

          (a) The Issuer agrees absolutely and unconditionally to reimburse the
Insurer for any amounts paid by the Insurer under the Ambac Policy, plus the
amount of any other due and payable and unpaid Reimbursement Amounts (as defined
in the Ambac Policy) which reimbursement shall be due and payable on the date
that any such amount is paid thereunder only from amounts available for such
payment under the Indenture, in an amount equal to the amounts so paid and all
amounts previously paid that remain unreimbursed, together (without duplication)
with interest on any and all amounts remaining unreimbursed (to the extent
permitted by law, if in respect of any unreimbursed amounts representing
interest) from the date such amounts became due until paid in full (after as
well as before judgment), at a rate of interest equal to the Late Payment Rate.

          (b) Alliance agrees to pay to the Insurer, promptly, but in no event
later than 30 days after receipt of an invoice, as follows: any and all
documented out-of-pocket (e.g., excluding internal legal or accounting
expenses), charges, fees, costs and expenses that the Insurer may reasonably pay
or incur, including reasonable attorneys' and accountants' fees and expenses, in
connection with (i) the enforcement, defense or preservation of any rights in
respect of any of the Basic Documents, including defending, monitoring or
participating in any litigation or proceeding (including any insolvency
proceeding in respect of any Transaction participant or any affiliate thereof)
relating to any of the Basic Documents, any party to any of the Basic Documents
(in its capacity as such a party) or the Transaction, including without
limitation the costs and fees of inspections by the Insurer or audits or field
examinations by accountants, or (ii) any amendment, waiver or other similar
action with respect to, or related to, any Basic Document, whether or not
executed or completed. Notwithstanding anything in this Agreement to the
contrary, provided that no Event of Default, Rapid Amortization Event or
Servicer Default has occurred and is continuing, the reimbursable costs and
expenses of the Insurer pursuant to Section 2.2(e), 2.2(h), 2.6(c), 2.6(e),
2.9(c) and 2.9(e) shall not exceed $25,000 in any period of twelve consecutive
months.

          (c) Each of Alliance, the Seller and the Issuer agrees to pay to the
party to whom such amounts are owed on demand interest at the Late Payment Rate
on any and all amounts described in Sections 3.3(b) and 3.4 after the date such
amounts become due and payable until payment thereof in full.

Section 3.4. Indemnification.

          (a) In addition to any and all of the Insurer's rights of
reimbursement, indemnification or subrogation, and to any other rights of the
Insurer pursuant hereto or under law or in equity, Alliance agrees to pay, and
to protect, indemnify and save harmless, the Insurer and its officers,
directors, shareholders, employees, agents and each Person, if any, who controls
the Insurer within the meaning of either Section 15 of the Securities Act or
Section 20 of the Securities Exchange Act from and against, any and all claims,
losses, liabilities (including penalties), actions, suits, judgments, demands,
damages, costs or expenses (including reasonable fees and expenses of attorneys,
consultants and auditors and reasonable costs of investigations) of any nature
arising out of or relating to the transactions contemplated by the Basic
Documents by reason of:

                                       22

<PAGE>

               (i) any statement, omission or action in connection with the
     offering, issuance, sale or delivery of any of the Notes;

               (ii) the negligence, bad faith, willful misconduct, misfeasance,
     malfeasance or theft committed by any director, officer, employee or agent
     of Alliance in connection with the Transaction;

               (iii) the violation by Alliance of any domestic or foreign law,
     rule or regulation, or any judgment, order or decree applicable to them;

               (iv) the breach by Alliance of any representation, warranty or
     covenant under any of the Basic Documents;

               (v) claims of third parties (other than parties to the Basic
     Documents unless arising at a time when a Rapid Amortization Event exists)
     arising from the commingling of Collections by the Issuer, the Seller or
     the Servicer at any time with its other funds or the funds of any other
     Person;

               (vi) claims of third parties (other than parties to the Basic
     Documents unless arising at a time when a Rapid Amortization Event exists)
     relating to products liability, lender liability or any third party claim
     arising from the transactions contemplated by any of the Basic Documents,
     except (A) to the extent that any such claim, damage, loss liability, cost
     or expense shall be caused by the bad faith, willful misconduct or gross
     negligence of the Insurer in performing its obligations under this
     Insurance Agreement, (B) for recourse for the payment of principal of or
     interest on, or other amounts due in respect of, the Equipment Loan Notes
     as a result of nonpayment by Obligors for credit reasons on the accounts of
     the related Equipment Loans, (C) for recourse for the payment of principal
     of or interest on, or other amounts due in respect of, the Receivables
     Notes as a result of nonpayment by Obligors for credit reasons on the
     accounts of the related Receivables or (D) to the extent the same
     constitute consequential, special or punitive damages;

               (vii) any increase in the cost to the Insurer of issuing or
     maintaining the Ambac Policy or of entering into or performing its
     obligations under this Insurance Agreement (including the reduction of any
     premium, fee or other sum received or receivable hereunder) after the date
     hereof due to either (x) the introduction of or any change in or to the
     interpretation of any law or regulation by any state insurance regulator or
     other governmental authority that promulgated or administers compliance
     with such law or regulation (other than laws and regulations with respect
     to taxes imposed on the overall net income of the Insurer by the United
     States of America) or (y) the compliance with any guideline or request from
     any state insurance regulator or other governmental authority, rating
     agency or similar agency (whether or not having the force of law), and
     taking into account the Insurer's obligations under the other Documents and
     otherwise in connection with Alliance's asset-supported financing business.
     (A certificate setting forth in reasonable detail the amount of such
     increased cost submitted to Alliance by the Insurer shall be conclusive and
     binding for all purposes, absent manifest error.); or

               (viii) any determination by the Insurer that compliance with any
     law or regulation or any guideline or request or any written interpretation
     from any state insurance regulator or other governmental authority, rating
     agency or similar agency (whether or not having the force of law) which is
     introduced, implemented or received by the Insurer after the date hereof,
     affects or would affect capital adequacy or the amount of capital required
     or expected to be maintained by the Insurer or any corporation controlling
     the Insurer and that the amount of

                                       23

<PAGE>

     such capital is increased by or based upon the obligations of the Insurer
     under either the Ambac Policy, this Insurance Agreement or any of the other
     Documents, and other obligations of this type, or has or would have the
     effect of reducing the rate of return on capital. (A certificate setting
     forth in reasonable detail such amounts submitted to Alliance by the
     Insurer shall be conclusive and binding for all purposes, absent manifest
     error.)

          (b) In addition to any and all of the Insurer's rights of
reimbursement, indemnification, subrogation and to any other rights of the
Insurer pursuant hereto or under law or in equity, the Servicer agrees to pay,
and to protect, indemnify and save harmless, the Insurer and its officers,
directors, shareholders, employees, agents and each Person, if any, who controls
the Insurer within the meaning of either Section 15 of the Securities Act or
Section 20 of the Securities Exchange Act from and against, any and all claims,
losses, liabilities (including penalties), actions, suits, judgments, demands,
damages, costs or expenses (including reasonable fees and expenses of attorneys,
consultants and auditors and reasonable costs of investigations) of any nature
arising out of or relating to the transactions contemplated by the Basic
Documents by reason of:

               (i) the negligence, bad faith, willful misconduct, misfeasance,
     malfeasance or theft committed by any director, officer, employee or agent
     of the Servicer in connection with the Transaction;

               (ii) the violation by the Servicer of any domestic or foreign
     law, rule or regulation, or any judgment, order or decree applicable to it;

               (iii) the breach by the Servicer of any representation, warranty
     or covenant (other than 3.07(i) of the Agreement) under any of the Basic
     Documents; or

               (iv) the occurrence, in respect of the Servicer, under any of the
     Basic Documents of any Servicer Default or any event which, with the giving
     of notice or the lapse of time or both, would constitute any Servicer
     Default (it being understood that this clause (iv) is not intended to cover
     losses resulting from the occurrence of a Servicer Default under Section
     9.01(p) of the Agreement).

          (c) In addition to any and all of the Insurer's rights of
reimbursement, indemnification or subrogation, and to any other rights of the
Insurer pursuant hereto or under law or in equity, each of the Seller and the
Issuer, jointly and severally, agree to pay, and to protect, indemnify and save
harmless, the Insurer and its officers, directors, shareholders, employees,
agents and each Person, if any, who controls the Insurer within the meaning of
either Section 15 of the Securities Act or Section 20 of the Securities Exchange
Act from and against, any and all claims, losses, liabilities (including
penalties), actions, suits, judgments, demands, damages, costs or expenses
(including reasonable fees and expenses of attorneys, consultants and auditors
and reasonable costs of investigations) of any nature arising out of or relating
to the transactions contemplated by the Basic Documents, including, without
limitation, by reason of:

               (i) any statement, omission or action in connection with the
     offering, issuance, sale or delivery of any of the Notes;

               (ii) the negligence, bad faith, willful misconduct, misfeasance,
     malfeasance or theft committed by any director, officer, employee or agent
     of the Seller or the Issuer in connection with the Transaction;

               (iii) the violation by the Seller or the Issuer of any domestic
     or foreign law, rule or regulation, or any judgment, order or decree
     applicable to them;

                                       24

<PAGE>

               (iv) the breach by the Seller or the Issuer of any
     representation, warranty or covenant under any of the Basic Documents;

               (v) any increase in the cost to the Insurer of issuing or
     maintaining the Ambac Policy or of entering into or performing its
     obligations under this Insurance Agreement (including the reduction of any
     premium, fee or other sum received or receivable hereunder) after the date
     hereof due to either (x) the introduction of or any change in or to the
     interpretation of any law or regulation by any state insurance regulator or
     other the governmental authority that promulgated or administers compliance
     with such law or regulation (other than laws and regulations with respect
     to taxes imposed on the overall net income of the Insurer by the United
     States of America) or (y) the compliance with any guideline or request from
     any state insurance regulator or other governmental authority, rating
     agency or similar agency (whether or not having the force of law), and
     taking into account the Insurer's obligations under the other Documents and
     otherwise in connection with Alliance's asset-supported financing business.
     (A certificate setting forth in reasonable detail the amount of such
     increased cost submitted to Alliance by the Insurer shall be conclusive and
     binding for all purposes, absent manifest error.); or

               (vi) any determination by the Insurer that compliance with any
     law or regulation or any guideline or request or any written interpretation
     from any state insurance regulator or other governmental authority, rating
     agency or similar agency (whether or not having the force of law) which is
     introduced, implemented or received by the Insurer after the date hereof,
     affects or would affect capital adequacy or the amount of capital required
     or expected to be maintained by the Insurer or any corporation controlling
     the Insurer and that the amount of such capital is increased by or based
     upon the obligations of the Insurer under either the Ambac Policy, this
     Insurance Agreement or any of the other Documents, and other obligations of
     this type, or has or would have the effect of reducing the rate of return
     on capital. (A certificate setting forth in reasonable detail such amounts
     submitted to Alliance by the Insurer shall be conclusive and binding for
     all purposes, absent manifest error.)

          (d) If any action or proceeding (including any governmental
investigation) shall be brought or asserted against any Person (each, an
"Indemnified Party") in respect of which the indemnity provided in Section
3.4(a), (b), (c) or (d) may be sought from another Person (the "Indemnifying
Party") each such Indemnified Party shall promptly notify the Indemnifying Party
in writing, and the Indemnifying Party shall assume the defense thereof,
including the employment of counsel satisfactory to the Indemnified Party and
the payment of all expenses and reasonable legal fees; provided that failure to
notify the Indemnifying Party shall not relieve it from any liability it may
have to such Indemnified Party except to the extent that it shall be actually
prejudiced thereby. The Indemnified Party shall have the right to employ
separate counsel in any such action and to participate in the defense thereof at
the expense of the Indemnified Party and may assume the defense of any such
action or claim in reasonable cooperation with, and with the reasonable
cooperation of, the Indemnifying Party; provided, however, that the fees and
expenses of separate counsel to the Indemnified Party in any such proceeding
shall be at the expense of the Indemnifying Party if (i) the Indemnifying Party
has agreed to pay such fees and expenses, (ii) the Indemnifying Party shall have
failed to assume the defense of such action or proceeding or employ counsel
reasonably satisfactory to the Indemnified Party in any such action or
proceeding within a reasonable time after the commencement of such action or
(iii) the named parties to any such action or proceeding (including any
impleaded parties) include both the Indemnified Party and the Indemnifying
Party, and the Indemnified Party shall have been advised by counsel that there
may be one or more legal defenses available to it which are different from or
additional to those available to the Indemnifying Party (in which case, if the
Indemnified Party notifies the Indemnifying Party in writing that it elects to
employ separate counsel at the expense of the Indemnifying Party, the
Indemnifying Party shall not have the right to assume the defense of such action
or proceeding on behalf of such Indemnified Party, it being

                                       25

<PAGE>

understood, however, that the Indemnifying Party shall not, in connection with
any one such action or proceeding or separate but substantially similar or
related actions or proceedings in the same jurisdiction arising out of the same
general allegations or circumstances, be liable for the reasonable fees and
expenses of more than one separate firm of attorneys at any time for the
Indemnified Parties, which firm shall be designated in writing by the
Indemnified Party). Unless it shall be in default of its obligations hereunder,
the Indemnifying Party shall not be liable for any settlement of any such action
or proceeding effected without its written consent to the extent that any such
settlement shall be prejudicial to the Indemnifying Party, which consent shall
not be unreasonably withheld or delayed, but, if settled with its written
consent, or if there is a final judgment for the plaintiff in any such action or
proceeding with respect to which the Indemnifying Party shall have received
notice in accordance with this subsection (e), the Indemnifying Party agrees to
indemnify and hold the Indemnified Parties harmless from and against any loss or
liability by reason of such settlement or judgment.

          (e) To provide for just and equitable contribution if the
indemnification provided by the Indemnifying Party is determined to be
unavailable or insufficient to hold harmless any Indemnified Party (other than
due to application of this Section), each Indemnifying Party shall contribute to
the losses incurred by the Indemnified Party on the basis of the relative fault
of the Indemnifying Party, on the one hand, and the Indemnified Party, on the
other hand. The relative fault of each Indemnifying Party, on the one hand, and
each Indemnified Party, on the other, shall be determined by reference to, among
other things, whether the breach or alleged breach is within the control of, the
Indemnifying Party or the Indemnified Party, and the parties relative intent,
knowledge, access to information and opportunity to correct or prevent such
breach. No Person guilty of fraudulent misrepresentation (within the meaning of
Section (11)f of the Securities Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation.

          (f) Notwithstanding the foregoing indemnification obligations, nothing
in this Section 3.4 shall be intended by the parties to constitute a guaranty by
the Servicer (i) of repayment of the Loans or (ii) of the Issuer's obligation to
increase or replenish the Available Drawing Amount after the Closing Date.

Section 3.5. Payment Procedure.

In the event of any payment by the Insurer for which reimbursement is sought
under Section 3.3, the Issuer, Alliance and the Seller agree to accept the
voucher or other evidence of payment as prima facie evidence of the propriety
thereof and the liability, if any, described in Section 3.3 therefor to the
Insurer. All payments to be made to the Insurer under this Insurance Agreement
shall be made to the Insurer in lawful currency of the United States of America
in immediately available funds at the notice address for the Insurer as
specified in the Indenture by no later than 3:00 P.M. (New York time) or as the
Insurer shall otherwise direct by written notice to the other parties hereto on
the date when due. In the event that the date of any payment to the Insurer or
the expiration of any time period hereunder occurs on a day that is not a
Business Day, then such payment or expiration of time period shall be made or
occur on the next succeeding Business Day with the same force and effect as if
such payment was made or time period expired on the scheduled date of payment or
expiration date.

Section 3.6. Subrogation.

The parties hereto acknowledge that, to the extent of any payment made by the
Insurer pursuant to the Policy, the Insurer shall be fully subrogated to the
extent of such payment and any interest due thereon, to the rights of the
Noteholders to any moneys paid or payable in respect of the Notes under the
Basic Documents or otherwise subject to applicable law. The parties hereto agree
to such subrogation and further agree to execute such instruments and to take
such actions as, in the sole and reasonable judgment

                                       26

<PAGE>

of the Insurer, are necessary to evidence such subrogation and to perfect the
rights of the Insurer to receive any such moneys paid or payable in respect of
the Notes under the Basic Documents or otherwise.

                                   ARTICLE IV

                               FURTHER AGREEMENTS

Section 4.1. Effective Date; Term of the Insurance Agreement.

This Insurance Agreement shall take effect on the Closing Date and shall remain
in effect until the later of (a) such time as the Insurer is no longer subject
to a claim under the Ambac Policy and the Ambac Policy shall have been
surrendered to the Insurer for cancellation and (b) such time as all amounts
payable to the Insurer by the Issuer, the Seller or Alliance (each, together
with any affiliates thereof, a "Company Party" and collectively, the "Company
Parties") hereunder or under the Basic Documents and the Notes shall have been
irrevocably paid and redeemed in full and such Notes shall have been cancelled;
provided, however, that the provisions of Sections 3.2, 3.3 and 3.4 hereof shall
survive any termination of this Insurance Agreement.

Section 4.2. Further Assurances and Corrective Instruments.

          (a) Except at such times as an Insurer Default shall exist or shall
have occurred, neither Alliance, the Seller, the Issuer nor the Indenture
Trustee shall grant any waiver of rights under any of the Basic Documents to
which any of them is a party without the prior written consent of the Insurer
and any such waiver without prior written consent of the Insurer shall be null
and void and of no force or effect.

          (b) Each of the parties hereto agrees that it will, from time to time,
execute, acknowledge and deliver, or cause to be executed, acknowledged and
delivered, such supplements hereto and such further instruments as the Insurer
may reasonably request and as may be required in the Insurer's reasonable
judgment to effectuate the intent and purpose of this Insurance Agreement and
the other Basic Documents. Without limiting the foregoing, each of the Company
Parties which is a party to any of the Basic Documents hereby authorizes the
Indenture Trustee and the Controlling Party (in the case of the Indenture
Trustee, subject to the provisions of the Indenture), at the expense of the
Issuer, to execute and file financing statements covering the assets covered by
any Assignment or owned by the Issuer in such jurisdictions as may be required
to confirm title thereto and perfect and maintain the lien thereon, including,
without limitation, filings required to maintain perfection pursuant to Article
9 of the Uniform Commercial Code, provided, however, that prior to a Default or
Event of Default, any filings intended solely to perfect a lien on Exempt
Collateral shall be at the expense of the party effecting such filing. In
addition, each of the parties hereto agrees to cooperate with the Rating
Agencies in connection with any review of the Transaction conducted during
normal business hours and in a manner that does not unreasonably disrupt the
business of Alliance, the Seller or the Issuer, that may be undertaken by the
Rating Agencies after the date hereof upon prior written notice.

          (c) The Seller shall not cause or permit the Issuer to issue any notes
or other evidences of indebtedness, or to otherwise incur any indebtedness,
other than the indebtedness represented by the Notes.

          (d) Alliance, as Servicer, and the Indenture Trustee shall provide the
Insurer with copies of all notices required to be delivered pursuant to the
Lockbox Agreement.

                                       27

<PAGE>

Section 4.3. Obligations Absolute.

          (a) The obligations of Company Parties hereunder shall be absolute and
unconditional and shall be paid or performed strictly in accordance with this
Insurance Agreement and the other Basic Documents under all circumstances
irrespective of:

               (i) any lack of validity or enforceability of, or any amendment
     or other modifications of, or waiver with respect to, any of the Basic
     Documents or the Notes;

               (ii) any exchange or release of any other obligations hereunder;

               (iii) the existence of any claim, setoff, defense, reduction,
     abatement or other right that a Company Party which is a party to any of
     the Basic Documents may have at any time against the Insurer or any other
     Person;

               (iv) any document presented in connection with the Ambac Policy
     proving to be forged, fraudulent, invalid or insufficient in any respect or
     any statement therein being untrue or inaccurate in any respect;

               (v) any payment by the Insurer under the Ambac Policy against
     presentation of a certificate or other document that does not strictly
     comply with the terms of the Ambac Policy;

               (vi) any failure of the Company Parties to receive the proceeds
     from the sale of the Notes; and

               (vii) any other circumstances, other than payment in full, that
     might otherwise constitute a defense available to, or discharge of, such
     party in respect of any Basic Document.

          (b) The Company Parties and any and all others who are now or may
become liable for all or any part of the obligations of the Company Parties
under this Insurance Agreement agree to be bound by this Insurance Agreement and
(i) to the extent permitted by law, waive and renounce any and all redemption
and exemption rights and the benefit of all valuation and appraisement
privileges against the indebtedness and obligations evidenced by any Basic
Document or by any extension or renewal thereof; (ii) waive presentment and
demand for payment, notices of nonpayment and of dishonor, protest of dishonor
and notice of protest; (iii) waive all notices in connection with the delivery
and acceptance hereof and all other notices in connection with the performance,
default or enforcement of any payment hereunder, except as required by the Basic
Documents; (iv) waive all rights of abatement, diminution, postponement or
deduction, all defenses, other than payment, and all rights of setoff or
recoupment arising out of any breach under any of the Basic Documents, by any
party thereto or any beneficiary thereof, or out of any obligation at any time
owing to any of the Company Parties; (v) agree that their liabilities hereunder
shall be unconditional and without regard to any setoff, counterclaim or the
liability of any other Persons for the payment hereof; (vi) agree that any
consent, waiver or forbearance hereunder with respect to an event shall operate
only for such event and not for any subsequent event; (vii) consent to any and
all extensions of time that may be granted by the Insurer with respect to any
payment hereunder or other provisions hereof and to the release of any security
at any time given for any payment hereunder, or any part thereof, with or
without substitution, and to the release of any Person or entity liable for any
such payment; and (viii) consent to the addition of any and all other makers,
endorsers, guarantors and other obligors for any payment hereunder, and to the
acceptance of any and all other security for any payment hereunder, and agree
that the addition of any such obligors or security shall not affect the
liability of the parties hereto for any payment hereunder.

                                       28

<PAGE>

          (c) Nothing herein shall be construed as prohibiting any party hereto
from pursuing any rights or remedies it may have against any Person in a
separate legal proceeding.

Section 4.4. Assignments; Reinsurance; Third-Party Rights.

          (a) This Insurance Agreement shall be a continuing obligation of the
parties hereto and shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and permitted assigns. None of the
Company Parties may assign its rights under this Insurance Agreement, or
delegate any of its duties hereunder, without the prior written consent of the
Insurer. Any assignments made in violation of this Insurance Agreement shall be
null and void.

          (b) The Insurer shall have the right to give participations in its
rights under this Insurance Agreement and to enter into contracts of reinsurance
with respect to the Ambac Policy upon such terms and conditions as the Insurer
may in its discretion determine; provided, however, that no such participation
or reinsurance agreement or arrangement shall relieve the Insurer of any of its
obligations hereunder or under the Ambac Policy, and provided further that any
reinsurer or participant will not have any rights against the Company Parties,
the Noteholders or the Indenture Trustee and that the Company Parties, the
Noteholders and the Indenture Trustee shall have no obligation to have any
communication or relationship with any reinsurer or participant in order to
enforce the obligations of the Insurer hereunder and under the Ambac Policy.

          (c) In addition, the Insurer shall be entitled to assign or pledge to
any bank, other lender or reinsurer providing liquidity or credit with respect
to Transaction or the obligations of the Insurer in connection therewith, any
rights of the Insurer under the Basic Documents or with respect to any real or
personal property or other interests pledged to the Insurer or in which the
Insurer has a security interest, in connection with the Transaction, subject in
each case to the liens granted pursuant to the Basic Documents, provided, that
no such bank or other lender shall thereby obtain any direct right against
Company Parties, the Noteholders or the Indenture Trustee, and further provided,
that no such assignment or pledge shall give any assignee the right to exercise
any discretionary authority that the Basic Documents provide shall be
exercisable by the Insurer or relieve the Insurer of any of its obligations
hereunder or under the Ambac Policy.

          (d) Except as provided herein with respect to participants and
reinsurers, nothing in this Insurance Agreement shall confer any right, remedy
or claim, express or implied, upon any Person not a party hereto, including,
particularly, any Noteholders, other than the rights of the Insurer against the
Company Parties and all the terms, covenants, conditions, promises and
agreements contained herein shall be for the sole and exclusive benefit of the
parties hereto and their successors and permitted assigns. Neither the Indenture
Trustee nor any Noteholders shall have any right to payment from any Premiums
paid or payable hereunder or under the Indenture or from any amounts paid by the
Issuer, the Seller or Alliance pursuant to Sections 3.3 or 3.4 hereof.

Section 4.5. Liability of the Insurer.

Neither the Insurer nor any of its officers, directors or employees shall be
liable or responsible for: (a) the use that may be made of the Ambac Policy by
the Indenture Trustee or for any acts or omissions of the Indenture Trustee in
connection therewith; or (b) the validity, sufficiency, accuracy or genuineness
of documents delivered to the Insurer in connection with any claim under the
Ambac Policy, or of any signatures thereon, even if such documents or signatures
should in fact prove to be in any or all respects invalid, insufficient,
fraudulent or forged (unless the Insurer shall have actual knowledge thereof).
In furtherance and not in limitation of the foregoing, the Insurer may accept
documents that appear on their face to be in order, without responsibility for
further investigation.

                                       29

<PAGE>

Section 4.6. Annual Servicing Audit and Certification.

If an Event of Default, Servicer Default or Rapid Amortization Event shall have
occurred and be continuing, the annual servicing audit required pursuant to
Section 5.02 of the Agreement shall be performed by independent public
accountants acceptable to the Insurer at the cost of Alliance without regard to
the limitations set forth herein on expenses of any audit. The Insurer confirms
that each of the independent public accountants (other than
PricewaterhouseCoopers) is an acceptable independent public accountant until the
Insurer otherwise notifies Alliance in writing.

Section 4.7. Resignation of Insurer.

The Insurer agrees to resign as Control Party upon thirty (30) days' prior
written notice from the Indenture Trustee (acting at the direction of the Note
Purchasers (other than the Seller) representing 66-2/3% of the aggregate
principal balance of the Notes) if the financial strength rating of the Insurer
falls below AAA by S&P and Aaa by Moody's, provided that, as a condition to any
such resignation, (a) the Ambac Policy shall be returned and canceled, (b) the
Insurer shall be released from all of its obligations in connection with the
Transaction pursuant to a general release in form and substance satisfactory to
it and (c) all amounts owed to the Insurer under this Insurance Agreement and
any other Basic Document shall be paid in full.

Section 4.8. Rights and Remedies.

Each party to this Insurance Agreement has acknowledged and agreed to, and
hereby confirms its acknowledgement and agreement to, the pledge, and collateral
sale and assignment by the Seller to the Issuer, and by the Issuer to the
Indenture Trustee, of all of its right, title and interest in, to and under the
Trust Estate, and the Documents and all of the Issuer's rights, remedies, powers
and privileges and all claims of the Seller against Alliance, and of the Issuer
against the Seller or Alliance, under or with respect to the Documents (whether
arising pursuant to the terms thereof or otherwise available at law or in
equity), including without limitation (whether or not any of a Default, an Event
of Default, a Servicer Default or a Rapid Amortization Event, or any event with
notice or lapse of time would constitute any of the same, has occurred and is
continuing) (i) the right of the Seller and/or the Issuer at any time to enforce
the Documents against Alliance or the Seller and the obligations of the Servicer
and the Seller thereunder and (ii) the right at any time to give or withhold any
and all consents, requests, notices, directions, approvals, demands, extensions
or waivers under or with respect to any Document or the obligations in respect
of Alliance or the Seller thereunder, all of which rights, remedies, powers,
privileges and claims may, notwithstanding any provision to the contrary by any
of the Documents, be exercised and/or enforced by the Indenture Trustee in lieu
of and in the place and stead of the Seller and the Issuer to the same extent as
the Seller or the Issuer would otherwise do, and neither the Seller nor the
Issuer may exercise any of the foregoing rights without the prior written
consent of the Insurer. Each party hereto further acknowledges and agrees that,
unless an Insurer Default has occurred and is continuing, the Indenture Trustee
will take or refrain from taking any action, and exercise or refrain from
exercising any rights under the Documents in its capacity as Indenture Trustee,
solely pursuant to the written direction of the Insurer; provided, however, that
the obligations of the Indenture Trustee to take or refrain from taking, or to
exercise or refrain from exercising, any such action or rights shall not apply
to routine administrative tasks required to be performed by the Indenture
Trustee pursuant to the Documents and shall be limited to those actions and
rights that can be exercised or taken (or not exercised or taken, as the case
may be) in full compliance with the provisions of the Documents and with
applicable law. No Noteholder, unless an Insurer Default has occurred and is
continuing, shall at any time be able to direct the Indenture Trustee to
exercise any of such rights.

                                       30

<PAGE>

                                    ARTICLE V

                              DEFAULTS AND REMEDIES

Section 5.1. Defaults.

The occurrence of any of the following events shall constitute an "Event of
Default" hereunder:

          (a) Any representation or warranty made by any of the Company Parties
hereunder or under the Basic Documents, or in any certificate furnished
hereunder or under the Basic Documents, shall prove to be untrue or misleading
in any material respect; provided, however, that if such Company Party
effectively cures any such defect in any representation or warranty under any
Basic Document or certificate or report furnished under any Basic Document,
within the time period specified in the related document as the cure period
therefor, such defect shall not in and of itself constitute an Event of Default;

          (b) Alliance or the Issuer shall fail to pay or deposit when due any
amount required to be paid or deposited by it hereunder or under any other Basic
Document, or (ii) a legislative body has enacted any law that declares or a
court of competent jurisdiction shall find or rule that this Insurance Agreement
or the Indenture is not valid and binding on the Company Parties hereto or
thereto;

          (c) The occurrence and continuance of a Servicer Default under the
Agreement or an Event of Default under the Indenture;

          (d) Any failure on the part of any Company Party duly to observe or
perform in any material respect any other of the covenants or agreements on the
part of such Company Party contained in this Insurance Agreement or in any other
Basic Document which continues unremedied beyond any cure period provided
therein, or, in the case of this Insurance Agreement, for a period of 30 days
after the earlier of the date on which written notice of such failure, requiring
the same to be remedied, shall have been given to Alliance by the Insurer (with
a copy to the Indenture Trustee) or by the Indenture Trustee (with a copy to the
Insurer), or a Responsible Officer of such Company Party shall have actual
knowledge thereof;

          (e) The entry of a decree or order by a court or agency or supervisory
authority having jurisdiction in the premises for appointment of a conservator,
receiver or liquidator or similar official for any Company Party which is a
party to any Basic Document in any bankruptcy, insolvency, readjustment of debt,
marshaling of assets and liabilities or similar proceedings or for the winding
up or liquidation of their respective affairs, and the continuance of any such
decree or order unstayed and in effect for a period of 60 consecutive days;

          (f) The consent by any Company Party which is a party to any Basic
Document to the appointment of a conservator or receiver or liquidator or
similar official in any bankruptcy, insolvency, readjustment of debt, marshaling
of assets and liabilities, or similar proceedings of or relating to such Company
Party or of relating to substantially all of their respective property; or any
such Company Party shall admit in writing its inability to pay its debts
generally as they become due, file a petition to take advantage of any
applicable bankruptcy, insolvency or reorganization statute, make an assignment
for the benefit of its creditors or voluntarily suspend payment of its
obligations;

provided, however, that to the extent that any event described in clause (a),
(b) or (d) above in respect of any Company Party shall be based solely on breach
of a representation and warranty or covenant of such Company Party made in any
Basic Document (other than this Insurance Agreement) which breach shall also be
the basis for an Event of Default under the Indenture or a Servicer Default,
then such event shall

                                       31

<PAGE>

not constitute an Event of Default hereunder unless it shall also constitute
such Event of Default under the Indenture or a Servicer Default.

Section 5.2. Remedies; No Remedy Exclusive.

          (a) Upon the occurrence of an Event of Default hereunder, the Insurer
may take whatever action at law or in equity as may appear necessary or
desirable in its judgment to collect the amounts, if any, then due under this
Insurance Agreement, the Purchase Agreement, the Agreement, the Indenture or any
other Basic Document or to enforce performance and observance of any obligation,
agreement or covenant of the Company Parties under this Insurance Agreement, the
Purchase Agreement, the Agreement, the Indenture or any other Basic Document,
either in its own capacity or in its capacity as Controlling Party.

          (b) Unless otherwise expressly provided, no remedy herein conferred or
reserved is intended to be exclusive of any other available remedy, but each
remedy shall be cumulative and shall be in addition to other remedies given
under this Insurance Agreement, the Purchase Agreement, the Agreement, the
Indenture or any other Basic Document, or existing at law or in equity. No delay
or omission to exercise any right or power accruing under this Insurance
Agreement, the Purchase Agreement, the Agreement, the Indenture or any other
Basic Document upon the happening of any event set forth in Section 5.1 shall
impair any such right or power or shall be construed to be a waiver thereof, but
any such right and power may be exercised from time to time and as often as may
be deemed expedient. In order to entitle Insurer to exercise any remedy reserved
to the Insurer in this Article, it shall not be necessary to give any notice,
other than such notice as may be required by this Article.

          (c) Each party to this Insurance Agreement hereby agrees that, in
addition to any other rights or remedies existing in its favor, the Insurer
shall be entitled to specific performance and/or injunctive relief in order to
enforce any of its rights or any obligation owed to it under the Documents.

Section 5.3. Waivers.

          (a) No failure by the Insurer to exercise, and no delay by the Insurer
in exercising, any right hereunder shall operate as a waiver thereof. The
exercise by the Insurer of any right hereunder shall not preclude the exercise
of any other right, and the remedies provided herein to the Insurer are declared
in every case to be cumulative and not exclusive of any remedies provided by law
or equity.

          (b) The Insurer shall have the right, to be exercised in its complete
discretion, to waive any Event of Default hereunder, by a writing setting forth
the terms, conditions and extent of such waiver signed by the Insurer and
delivered to Alliance and the Indenture Trustee. Unless such writing expressly
provides to the contrary, any waiver so granted shall extend only to the
specific event or occurrence which gave rise to the Event of Default so waived
and not to any other similar event or occurrence which occurs subsequent to the
date of such waiver.

                                   ARTICLE VI

                                  MISCELLANEOUS

Section 6.1. Amendments, Etc.

This Insurance Agreement may be amended, modified, supplemented or terminated
only by written instrument or written instruments signed by the parties hereto.
No consent of any reinsurer or participant contracted with by the Insurer
pursuant to Section 4.4(b) hereof shall be required for any amendment,

                                       32

<PAGE>

modification, supplement or termination hereof. Alliance agrees to provide a
copy of any amendment to this Insurance Agreement promptly to the Indenture
Trustee and the Rating Agencies. No act or course of dealing shall be deemed to
constitute an amendment, modification, supplement or termination hereof. The
other Basic Documents may be amended only with the prior written consent of the
Insurer.

Section 6.2. Notices.

All demands, notices and other communications to be given hereunder shall be in
writing (except as otherwise specifically provided herein) and shall be (i)
mailed by prepaid registered or certified mail, return receipt requested, or
(ii) personally delivered by messenger or overnight courier (with confirmation
of receipt) and in either case telecopied to the recipient as follows:

     (a)  To the Insurer:
          Ambac Assurance Corporation
          One State Street Plaza
          New York, New York 10004
          Attention: Structured Finance Department - ABS
          Telecopy No.: 212-208-3547
          Confirmation: 212-668-0340

          (in each case in which notice or other communication to the Insurer
          refers to Servicer Default, an Event of Default (hereunder or under
          the Indenture), an Rapid Amortization Event, a claim on the Ambac
          Policy or any event with respect to which failure on the part of the
          Insurer to respond shall be deemed to constitute consent or
          acceptance, then a copy of such notice or other communication shall
          also be sent to the attention of the general counsel of each of the
          Insurer and the Indenture Trustee and shall be marked to indicate
          "URGENT MATERIAL ENCLOSED.")

     (b)  To Alliance:
          Alliance Laundry Systems LLC
          Shepard Street
          P.O. Box 990
          Ripon, WI 54971-0990
          Attention: Treasurer
          Telecopy No.: 920-748-1629
          Confirmation No.: 920-748-1634

          with copies to (i) the General Counsel at the same address, Telecopy
          No. 920-748-4334, Confirmation No. 920-748-4320 and (ii) Ropes & Gray,
          One International Place, Boston, MA 02110-2624, Attention: Allison
          Bomberg, Telecopy No. 617-951-7050, Confirmation No. 617-951-7000.

     (c)  To the Issuer:

          Alliance Laundry Equipment Receivables Trust 2002-A
          c/o Wilmington Trust Company, as owner trustee
          Rodney Square North
          1100 North Market Street CFS, Ninth Floor
          Wilmington, Delaware 19890

                                       33

<PAGE>

          Attention:
          Telecopy No.:
          Confirmation No.:

          With copies to the addressees set forth in clause (b) above

     (d)  To the Seller:
          Alliance Laundry Equipment Receivables LLC
          Shepard Street
          P.O. Box 990
          Ripon, WI 54971-0990
          Attention: Treasurer
          Telecopy No.: 920-748-1629
          Confirmation No.: 920-748-1634

          with copies to (i) the General Counsel at the same address, Telecopy
          No. 920-748-4334, Confirmation No. 920-748-4320, (ii) Ropes & Gray,
          One International Place, Boston, MA 02110-2624, Attention: Allison
          Bomberg, Telecopy No. 617-951-7050, Confirmation No. 617-951-7000 and
          (iii) to Alliance at the address set forth in clause (b) above.

     (e)  To the Indenture Trustee, at its Corporate Trust Office.

A party may specify an additional or different address or addresses by writing
mailed or delivered to the other parties as aforesaid. All such notices and
other communications shall be effective upon receipt.

Section 6.3. Severability.

In the event that any provision of this Insurance Agreement shall be held
invalid or unenforceable by any court of competent jurisdiction, the parties
hereto agree that such holding shall not invalidate or render unenforceable any
other provision hereof. The parties hereto further agree that the holding by any
court of competent jurisdiction that any remedy pursued by any party hereto is
unavailable or unenforceable shall not affect in any way the ability of such
party to pursue any other remedy available to it.

Section 6.4. Governing Law.

This Insurance Agreement shall be governed by and construed in accordance with
the laws of the State of New York without regard to conflicts of laws
provisions.

Section 6.5. Consent to Jurisdiction.

          (a) THE PARTIES HERETO HEREBY IRREVOCABLY SUBMIT TO THE JURISDICTION
OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND
ANY COURT IN THE STATE OF NEW YORK LOCATED IN THE CITY AND COUNTY OF NEW YORK,
AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION, SUIT OR PROCEEDING
BROUGHT AGAINST IT AND TO OR IN CONNECTION WITH ANY OF THE BASIC DOCUMENTS OR
THE TRANSACTION OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT RELATING
THERETO, AND THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREE
THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING SHALL BE HEARD OR
DETERMINED IN SUCH

                                       34

<PAGE>

NEW YORK STATE COURT OR, TO THE EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT.
THE PARTIES AGREE THAT A FINAL NONAPPEALABLE JUDGMENT IN ANY SUCH ACTION, SUIT
OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY
SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. TO THE EXTENT
PERMITTED BY APPLICABLE LAW, THE PARTIES HEREBY WAIVE AND AGREE NOT TO ASSERT BY
WAY OF MOTION, AS A DEFENSE OR OTHERWISE IN ANY SUCH SUIT, ACTION OR PROCEEDING,
ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF SUCH COURTS,
THAT THE SUIT, ACTION OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM, THAT
THE VENUE OF THE SUIT, ACTION OR PROCEEDING IS IMPROPER OR THAT THE RELATED
DOCUMENTS OR THE SUBJECT MATTER THEREOF MAY NOT BE LITIGATED IN OR BY SUCH
COURTS.

          (b) To the extent permitted by applicable law, the parties shall not
seek and hereby waive the right to any review of the judgment of any such court
by any court of any other nation or jurisdiction which may be called upon to
grant an enforcement of such judgment.

          (c) Service on any party hereto may be made by mailing or delivering
copies of the summons and complaint and other process which may be served in any
suit, action or proceeding to such party at its address listed in Section 6.2(b)
herein. Such address may be changed by the applicable party or parties by
written notice to each of the other parties hereto.

          (d) Nothing contained in this Insurance Agreement shall limit or
affect any party's right to serve process in any other manner permitted by law
or to start legal proceedings relating to any of the Basic Documents against any
other party or its properties in the courts of any jurisdiction.

Section 6.6. Consent of the Insurer.

In the event that the consent of the Insurer is required under any of the Basic
Documents, the determination whether to grant or withhold such consent shall be
made by the Insurer in its sole discretion without any implied duty towards any
other Person, except to the extent a different standard may apply as expressly
provided therein.

Section 6.7. Counterparts.

This Insurance Agreement may be executed in counterparts by the parties hereto,
and all such counterparts shall constitute one and the same instrument.

Section 6.8. Headings.

The headings of Articles and Sections and the Table of Contents contained in
this Insurance Agreement are provided for convenience only. They form no part of
this Insurance Agreement and shall not affect its construction or
interpretation.

Section 6.9. Trial by Jury Waived.

Each party hereby waives, to the fullest extent permitted by law, any right to a
trial by jury in respect of any litigation arising directly or indirectly out
of, under or in connection with any of the Basic Documents or any of the
transactions contemplated thereunder. Each party hereto (A) certifies that no
representative, agent or attorney of any party hereto has represented, expressly
or otherwise, that it would not, in the event of litigation, seek to enforce the
foregoing waiver and (B) acknowledges that it has been induced to enter into the
Basic Documents to which it is a party by, among other things, this waiver.

Section 6.10. Limited Liability.

                                       35

<PAGE>

No recourse under any Basic Document shall be had against, and no personal
liability shall attach to, any officer, employee, director, affiliate or
shareholder of any party hereto, as such, by the enforcement of any assessment
or by any legal or equitable proceeding, by virtue of any statute or otherwise
in respect of any of the Basic Documents, the Notes or the Ambac Policy, it
being expressly agreed and understood that each Basic Document is solely a
corporate obligation of each party hereto, and that any and all personal
liability, either at common law or in equity, or by statute or constitution, of
every such officer, employee, director, affiliate or shareholder for breaches of
any party hereto of any obligations under any Basic Document is hereby expressly
waived as a condition of and in consideration for the execution and delivery of
this Insurance Agreement.

Section 6.11. Entire Agreement; Facsimile Signatures.

This Insurance Agreement, the Fee Letter and the Ambac Policy set forth the
entire agreement between the parties with respect to the subject matter hereof
and thereof, and supersede and replace any agreement or understanding that may
have existed between the parties prior to the date hereof in respect of such
subject matter. Execution and delivery of this Insurance Agreement by facsimile
signature shall constitute execution and delivery of this Insurance Agreement
for all purposes hereof with the same force and effect as execution and delivery
of a manually signed copy hereof.

Section 6.12. Indenture Trustee.

The Indenture Trustee hereby acknowledges and agrees to perform all its
obligations and duties pursuant to the Basic Documents to which it is a party
thereto.

Section 6.13. Third-Party Beneficiary.

Each of the parties hereto agrees that the Insurer shall have all rights of an
intended third-party beneficiary in respect of each of the Basic Documents,
including but not limited to enforcing the respective obligations of the parties
thereunder.

Section 6.14. No Proceedings.

Each of the parties hereto (other than, after the Notes are paid in full, the
Insurer) agrees that it will not institute against the Issuer or Seller any
involuntary proceeding or otherwise institute any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceeding or other proceeding under any
federal or state bankruptcy or similar law until the date which is one year and
one day since the last day on which any Notes shall have been outstanding and
all amounts payable to the Insurer hereunder shall have been paid in full.

Section 6.15. Limited Recourse.

Each of the parties hereto agrees that any obligation of the Issuer hereunder or
under any of the other Basic Documents will be payable by the Issuer solely from
funds when, if and to the extent available for such purpose pursuant to the
Indenture and that, except in the event of a claim for reimbursement for payment
of principal under the Ambac Policy or in the event of acceleration of the
principal amount of the Notes, any amount in excess of the amount so available
shall not constitute a current claim against the Issuer therefor.

Section 6.16. No Recourse.

It is expressly understood and agreed by the parties hereto that (a) this
Insurance Agreement is executed and delivered by Wilmington Trust Company, not
individually or personally but solely as trustee of the Issuer, in the exercise
of the powers and authority conferred and vested in it, (b) each of the
representations, undertakings and agreements herein made on the part of the
Issuer is made and intended

                                       36

<PAGE>

not as personal representations, undertakings and agreements by Wilmington Trust
Company but is made and intended for the purpose of binding only the Issuer, (c)
nothing herein contained shall be construed as creating any liability on
Wilmington Trust Company, individually or personally, to perform any covenant
either expressed or implied contained herein, all such liability, if any, being
expressly waived by the parties hereto and by any Person claiming by, through or
under the parties hereto and (d) under no circumstances shall Wilmington Trust
Company be personally liable for the payment of any indebtedness or expenses of
the Issuer or be liable for the breach or failure of any obligation,
representation, warranty or covenant made or undertaken by the Issuer under this
Insurance Agreement or any other related documents.

Section 6.17. Regulatory Change.

In the event of any Regulatory Change (as defined in the Note Purchase
Agreement; provided, that for purposes of this Section 6.17, the term Regulatory
Change shall include the Insurer) which results in either (i) a determination
that the Issuer or any CP Conduit (as defined in the Note Purchase Agreement) is
not a Qualified Special Purpose Entity that is not required, under generally
accepted accounting principles, to consolidate its financial statements with any
other entity, or (ii) a cost arising under Section 2.3 of the Note Purchase
Agreement, the parties hereto agree to negotiate in good faith to amend the
Basic Documents in order to eliminate the consolidation requirement; provided,
however, that no party shall be obligated to take any action (or make any
amendments) if in the reasonable opinion of such party any such amendment to the
Basic Documents will be unlawful or otherwise disadvantageous or inconsistent
with its policies or regulatory restrictions or result in any liability,
unreimbursed cost or expense to such party.

                                       37

<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed this Agreement, all as of
the day and year first above mentioned.

                                          AMBAC ASSURANCE CORPORATION,
                                             as Insurer

                                          By:    /s/ Gretchen E. Brigden
                                              ----------------------------------
                                              Name:  Gretchen E. Brigden
                                              Title: First Vice President

                                          ALLIANCE LAUNDRY SYSTEMS LLC

                                          By:    /s/ Scott L. Spiller
                                              ----------------------------------
                                              Name:  Scott L. Spiller
                                              Title: VP, Law and Human Resources
                                                     & Secretary

                                          ALLIANCE LAUNDRY EQUIPMENT RECEIVABLES
                                             TRUST 2002-A, as Issuer

                                          By: WILMINGTON TRUST COMPANY,
                                              not in its individual capacity,
                                              but solely as owner trustee

                                          By:    /s/ Kathleen A. Pedelini
                                              ----------------------------------
                                              Name:  Kathleen A. Pedelini
                                              Title: Financial Services Officer

                                Signature Page 1
                        Insurance and Indemnity Agreement

<PAGE>

                                          ALLIANCE LAUNDRY EQUIPMENT RECEIVABLES
                                             2002 LLC, as Seller

                                          By:    /s/ Todd M. Rice
                                              ----------------------------------
                                              Name:  Todd M. Rice
                                              Title: Vice President

                                          THE BANK OF NEW YORK,
                                             not in its individual capacity, but
                                             solely as Indenture Trustee

                                          By:    /s/ Erwin Soriano
                                              ----------------------------------
                                              Name:  Erwin Soriano
                                              Title: Assistant Treasurer

                                Signature Page 2
                        Insurance and Indemnity Agreement

<PAGE>

                                    EXHIBIT A
                              FORM OF AMBAC POLICY

                                       A-1

<PAGE>

                                   EXHIBIT B-1
                  AGREED UPON PROCEDURES FOR INDEPENDENT PUBLIC
                      ACCOUNTANTS REVIEW OF EQUIPMENT LOANS

Periodic On-Going Reviews

1.   Independent Public Accountants reasonably acceptable to the Insurer
     (referred to herein as "Auditor") will compare the aggregate amount of all
     Collections with respect to the Loans received by the Servicer during three
     calendar months per calendar year, as selected by the Auditor (each such
     calendar month referred to herein as a "Review Period") against (a) the
     amounts reported in the monthly Servicer's Certificate, (b) the aggregate
     amount of Collections indicated on the Servicer's accounting system or a
     "tape" derived from the accounting system ("Accounting Systems") and (c)
     the Loan Credit and Collection Policy, noting any exceptions.

2.   The Auditor will select 3 reports at random provided on a monthly basis by
     the Servicer or the Indenture Trustee and will compare all amounts on the
     report to the general ledger and cash reports, noting any exceptions.
     Information to be calculated and or confirmed includes the Aggregate Loan
     Balance, Collections with respect to Loans, Servicer Advances, Liquidation
     Proceeds, Liquidation Expenses and all related cash receipt line items. The
     Auditor will confirm, by recalculating, the Equipment Loan Borrowing Base,
     the Equipment Loan Collateral Value, the Equipment Loan Reserve
     Requirement, and the Equipment Loan LC Amount. The Auditor will recalculate
     all contributing line items reported on the report and confirm balances in
     the Servicer's book and records as well as on cash reports from bank
     statements. The Auditor will confirm that the Servicer is completing the
     report according to the Documents. The Auditor will recalculate and confirm
     all cash applications related to the payment and calculation of interest
     due on the Equipment Loan Notes. The Auditor will recalculate all Excess
     Loan Concentration Amounts on the report, verifying balances using the
     Servicer's books and records, noting any exceptions. Delinquency Ratio -
     Equipment Loans and Default Ratio - Equipment Loans will be recalculated
     and balances confirmed with the general ledger.

3.   The Auditor will select a total of 50 (25 fixed rate and 25 floating rate)
     individual cash receipts posted to the Loan Lockbox Account during the
     Review Periods (each such cash receipt being a "Selected Receipt"). The
     Auditor will compare the amount of Loan payments included on a copy of the
     check and the remittance advice relating to such Selected Receipts against
     the amounts reflected on the Accounting Systems, noting any exceptions.

4.   For each of the Selected Receipts, the Auditor will compare the amount of
     the Loan payment posted to the Accounting Systems to the amount of the loan
     payment indicated in the relevant contract for such Loan (each a
     "Contract") and files maintained by the Servicer noting any exceptions.

5.   For any of the Selected Receipts which indicate a remittance of sales tax,
     the Auditor will trace such sales tax remittances prepared by the
     management of the Servicer (the "Management Schedule") detailing tax
     payments received by tax jurisdiction noting any exceptions. The Auditor
     will also trace the sales tax remittance to the supporting schedules
     included in the applicable sales tax return noting any exceptions. The
     Auditor will recalculate the summation amounts on three of the ten largest
     sales tax returns and additionally verify that the dates or the Servicer's
     checks remitting payment to the respective states is within the required
     filing period.

6.   The Auditor will recalculate the interest expense prepared by the Servicer
     for one Review Period by using (i) the outstanding Equipment Loan Note
     balance at the beginning of the Review Period

                                      B1-1

<PAGE>

     as set forth in the related Servicer's Certificate and (ii) the amount
     shown as the Equipment Loan Note rate relating to such Review Period. The
     amount of interest expense so recalculated will be compared against the
     information provided in the monthly Servicer's Certificate, noting any
     exceptions.

7.   The Auditor will confirm the amount of early pay-offs received during each
     of the Review Periods based on a comparison of the information contained in
     the relevant Servicer's Certificates to the information contained in the
     Accounting Systems and to the Loan Credit and Collection Policy, noting any
     exceptions.

8.   Management will provide a list of all early pay-off Contracts during each
     of the Review Periods. The Auditor will select a total of five Contracts
     listed as "early pay-offs" from the pay-off schedule. For each Contract so
     selected, the Auditor will compare the amount deposited into the Loan
     Lockbox Account or the Loan Collection Account in respect of such Contract
     with the amount of early pay-off specified in the pay-off schedule and to
     the Loan Credit and Collection Policy, noting any exceptions.

9.   Using the dates reflected on the copy of the check (or top portion of the
     check) and remittance advice, the Auditor will verify that the respective
     Selected Receipt posting or effective date related to the underlying Loan
     transaction in the Accounting Systems was in the same month as reflected on
     the copy of the check (or top portion of the check) and the remittance
     advice noting any exceptions.

10.  The Auditor will obtain from management a schedule of Contracts which have
     become Defaulted Equipment Loans during each Review Period and will compare
     the Note Principal Balance of each Defaulted Contract to the information on
     the Accounting Systems and on a total basis to the related Servicer's
     Certificate and to the Loan Credit and Collection Policy, noting any
     exceptions.

11.  The Auditor will select 10 Defaulted Equipment Loans from each Review
     Period and trace recoveries for each of those Equipment Loans recorded on
     the Accounting System to the related Servicer's Certificate and to the Loan
     Credit and Collection Policy, noting any exceptions.

12.  The Auditor will select three monthly bank reconciliations for the Loan
     Lockbox Account. The Auditor will verify the mathematical accuracy of the
     bank reconciliations. The Auditor will trace the balance per the bank to
     the bank statement, the book balance to the general ledger and the amounts
     listed as reconciling items in the bank reconciliation to the Servicer's
     Certificate, as applicable.

13.  The Auditor will select three monthly bank reconciliations for the Loan
     Collection Account. The Auditor will verify the mathematical accuracy of
     the bank reconciliations. The Auditor will trace the balance per the bank
     to the bank statement, the book balance to the general ledger and the
     amounts listed as reconciling items in the bank reconciliation to the
     Servicer's Certificate, as applicable.

14.  The Auditor will verify whether the Servicer has procedures in place to
     monitor and make or cause to be made UCC financing or continuation
     statements with respect to the Loans based on reasonable details provided
     by the Servicer.

15.  The Servicer will conduct a mailing verification of 50 Contracts requesting
     confirmation as of each fiscal year end of: (i) Loan schedule number (if
     appropriate); (ii) whether the Loan is still in existence; (iii) remaining
     payments; and (iv) payment amount. Auditor will compare responses

                                      B1-2

<PAGE>

     received to such information to the information in the Accounting Systems,
     noting any exceptions.

16.  The Auditor will compare the Aggregate Loan Balance and the balance for
     each Equipment Loan Note at the close of business on the last day of each
     Review Period as reported in the Servicer's Certificate to the information
     indicated in the Accounting Systems, noting any exceptions.

17.  For the Selected Receipts, the Auditor will verify whether the Accounting
     Systems correctly identify ownership interest in the related receivables
     for the Selected Receipts.

18.  For each Review Period, the Auditor will recalculate the Delinquency Ratio
     - Equipment Loans and Default Ratio - Equipment Loans set forth in the
     Servicer's records and the related Servicer's Certificate. The Auditor will
     compare such information with the numeric information used in such
     calculations in the Accounting Systems or the Servicer's general ledger, as
     applicable, noting any exceptions, and will verify the mathematical
     accuracy of the calculations.

19.  The Auditor will compare 10 Contracts included in the Servicer's
     Certificate by delinquency category against the information in the
     Accounting Systems for accuracy of the aging and to the Loan Credit and
     Collection Policy, noting any exceptions.

20.  For each Review Period, the Auditor will compare information obtained from
     the Accounting System and provided by Management to recalculate the Excess
     Loan Concentration Amount, to information indicated in the related
     Servicer's Certificates, noting any exceptions.

21.  The Auditor will confirm, for each of the 50 Contracts, that UCC financing
     statements have been filed in respect thereof within 20 days of delivery of
     the Equipment related to such Contract, noting any exceptions. Copies of
     documents and confirmations by the Indenture Trustee shall serve as
     evidence of filing.

Ambac in its sole discretion reserves the right to add criteria or change
requirements based on transaction performance and market conditions.

                                      B1-3

<PAGE>

                                   EXHIBIT B-2
                  AGREED UPON PROCEDURES FOR INDEPENDENT PUBLIC
                        ACCOUNTANTS REVIEW OF RECEIVABLES

Annual Due Diligence Review

1.   Independent Public Accountants reasonably acceptable to the Insurer
     (referred to herein as "Auditor") will select a total of 25 individual
     credit files (as defined by a business name, the "Selected Accounts") from
     the information provided by the Servicer's accounting system or a "tape"
     derived from the accounting system ("Accounting Systems"). The Selected
     Accounts will consist of the top 10 exposures by dollar value outstanding
     and 15 other selected accounts by the Auditor. The Auditor will compare the
     following fields in the Accounting Systems to the original credit file
     ("Credit File") and to the Receivables Credit and Collection Policy, noting
     any exceptions:

     .    Loan File Number                           .    Current Balance
     .    Obligor Name                               .    Payment Status
     .    Obligor Social Security Number             .    Payment Terms
     .    Business Name                              .    Interest Rate
     .    Obligor Street Address, City and State

2.   The Auditor will select 3 reports at random provided on a monthly basis by
     the Servicer or the Indenture Trustee and will compare all amounts on the
     report to the general ledger and cash reports, noting any exceptions.
     Information to be calculated and or confirmed includes the Gross
     Receivables Balance, Net Receivables Balance, Dilution and the contributing
     line items. The Auditor will confirm, by recalculating, the Receivables
     Borrowing Base, the Receivables Required Credit Support, the Receivables
     Collateral Value and the Reserve Account related to the Receivables and the
     Receivables LC Amount. The Auditor will recalculate all contributing line
     items reported on the report and confirm balances in the Servicer's books
     and records as well as on cash reports from bank statements. The Auditor
     will confirm that the report is in compliance with the Documents. The
     Auditor will recalculate and confirm all cash applications related to the
     payment and calculation of interest due on the Receivables Notes.
     Delinquency, Default and Dilution ratios will be recalculated and balances
     confirmed with general ledger.

3.   The Auditor will select 12 reports at random provided on a daily basis by
     the Servicer or the Indenture Trustee and will compare all amounts on the
     report to the general ledger and cash reports, noting any exceptions.
     Information to be calculated and/or confirmed includes the Gross
     Receivables Balance, Net Receivables Balance, Dilution and the contributing
     line items, as applicable. The Auditor will confirm that the report is in
     compliance with the Documents. The Auditor will confirm the cash receipts
     recorded on the report and will recalculate balances and the application of
     cash to the general ledger or records of the Servicer and/or bank
     statements.

4.   The Auditor will compare the individual cash receipts posted to the
     Receivables Lockbox Account during one monthly period selected by the
     Auditor (a "Review Period") for the 25 Selected Accounts (each such cash
     receipt being a "Selected Receipt"). The Auditor will compare the amount of
     payments included on checks and the remittance advice relating to such
     Selected Receipts against the amounts reflected on the Accounting Systems,
     noting any exceptions.

                                      B2-1

<PAGE>

5.   The Auditor will compare the aggregate amount of all Collections with
     respect to Receivables received by the Servicer during the Review Period
     against the aggregate amount of Collections with respect to Receivables
     indicated on the Servicer's Accounting Systems, noting any exceptions.

6.   For any of the Selected Accounts which indicate a remittance of sales tax,
     the Auditor will trace such sales tax remittances prepared by the
     management of Alliance or the Servicer (the "Management Schedule")
     detailing tax payments received by tax jurisdiction noting any exceptions.
     The Auditor will also trace the sales tax remittance to the supporting
     schedules included in the applicable sales tax return noting any
     exceptions. The Auditor will recalculate the summation amounts on three of
     the ten largest sales tax returns and additionally verify that the dates on
     the Servicer's checks remitting payment to the respective states is within
     the required filing period.

7.   The Auditor will recalculate the interest rate for the Selected Accounts,
     as applicable. Additionally, the Auditor will recalculate the interest
     expense billed for such Selected Accounts for the current month using the
     terms outlined in the Credit File. The amount of interest expense so
     recalculated will be compared against the information provided on the
     Accounting Systems and to the Receivables Credit and Collection Policy ,
     noting any exceptions.

8.   Servicer will provide a list of all Dilutions received during the Review
     Period for each of the Selected Accounts. The Auditor will confirm the
     amount of such Dilutions received during the Review Period based on a
     comparison of the information contained in the relevant Credit File to the
     information contained in the Accounting Systems and to the policies stated
     in the Receivables Credit and Collection Policy, noting any exceptions.

9.   Management will provide a list of all Dilutions during the Review Period
     for each of the Selected Accounts. For each of the Selected Accounts, the
     Auditor will compare the amount deposited into the Receivables Lockbox
     Account or the Receivables Collection Account in respect of the relevant
     contracts for the Receivables (each a "Contract") in such Selected Accounts
     with the amount of such receipt less stated Dilutions specified in the
     Dilution schedule and to the Receivables Credit and Collection Policy,
     noting any exceptions.

10.  Using the dates reflected on the copy of the check (or top portion of the
     check) and remittance advice, the Auditor will verify that the respective
     Selected Accounts posting or effective date related to the underlying
     credit agreement in the Accounting Systems was in the same month as
     reflected on the copy of the check (or top portion of the check) and the
     remittance advice, noting any exceptions.

11.  Management will provide a list of foreign Credit Files, and Auditor will
     select a total of 10 foreign Credit Files. The Auditor will review the 10
     Contracts during the Review Period and will compare the Balance outstanding
     of each such foreign Contract to the information on the Accounting Systems
     and to the policies stated in the Receivables Credit and Collection Policy,
     noting any exceptions.

12.  Management will provide a list of foreign Credit Files, and Auditor will
     select a total of 10 foreign Credit Files. The Auditor will trace cash
     receipt for each of those Contracts recorded on the Accounting System to
     the records in the Credit Files and to the policies stated in the
     Receivables Credit and Collection Policy, noting any exceptions.

                                      B2-2

<PAGE>

13.  Management will provide a list of interest bearing Credit Files, and the
     Auditor will select a total of 10 interest bearing Credit Files. The
     Auditor will review the 10 interest bearing Credit Files during the Review
     Period and will compare the Balance outstanding of each such interest
     bearing Contract to the information on the Accounting Systems and to the
     policies stated in the Receivables Credit and Collection Policy, noting any
     exceptions.

14.  Management will provide a list of interest bearing Credit Files, and the
     Auditor will select a total of 10 interest bearing Credit Files. The
     Auditor will trace cash receipt for each of those Contracts recorded on the
     Accounting System to the records in the Credit Files and to the policies
     stated in the Receivables Credit and Collection Policy, noting any
     exceptions.

15.  Management will provide a list of government Receivables, and the Auditor
     will select a total of 10 government Receivables. The Auditor will review
     the 10 government Receivables during the Review Period and will compare the
     balance outstanding of each government Receivable to the information on the
     Accounting Systems and to the policies stated in the Receivables Credit and
     Collection Policy, noting any exceptions.

16.  Management will provide a list of government Receivables and the Auditor
     will select a total of 10 government Receivables. The Auditor will trace
     cash receipt for each of those Contracts recorded on the Accounting System
     to the records in the Credit Files and to the policies stated in the
     Receivables Credit and Collection Policy, noting any exceptions.

17.  Management will provide a list of all Receivables with repayment terms
     greater than 90 days, and the Auditor will select a total of 10 such Credit
     Files. The Auditor will review such the 10 Credit Files during the Review
     Period and will compare the balance outstanding of each Credit File to the
     information on the Accounting Systems and to the policies stated in the
     Receivables Credit and Collection Policy, noting any exceptions.

18.  Management will provide a list of all Receivables with repayment terms
     greater than 90 days, and the Auditor will select a total of 10 such Credit
     Files. The Auditor will trace cash receipt for each of those contracts
     recorded on the Accounting System to the records in the Credit Files and to
     the policies stated in the Receivables Credit and Collection Policy, noting
     any exceptions.

19.  Management will provide a list of all delinquent Receivables during the
     Review Period. The Auditor will select a total of 10 Credit Files listed as
     "delinquent" from the delinquency schedule. The Auditor will compare 10
     Credit Files categorized as delinquent in the Accounting Systems by
     delinquency category against the information in the Contract File for
     accuracy of the aging and to the policies stated in the Receivables Credit
     and Collection Policy, noting any exceptions.

20.  The Auditor will select three monthly bank reconciliations for each of the
     Domestic Receivables Lockbox and the Foreign Receivables Lockbox. The
     Auditor will verify the mathematical accuracy of each bank reconciliation.
     The Auditor will trace the balance per the bank to the bank statement, the
     book balance to the general ledger and the amounts listed as reconciling
     items in the bank reconciliation, as applicable. The Auditor will report on
     any unresolved reconciling items.

21.  The Auditor will select three monthly bank reconciliations for the
     Receivables Collection Account. The Auditor will verify the mathematical
     accuracy of the bank reconciliation. The Auditor will trace the balance per
     the bank to the bank statement, the book balance to the general ledger and
     the amounts listed as reconciling items in the bank reconciliation, as
     applicable. The Auditor will report on any unresolved reconciling items.

                                      B2-3

<PAGE>

22.  The Auditor will verify whether the Servicer has procedures in place to
     monitor and make or cause to be made UCC financing or continuation
     statements with respect to the Receivables based on reasonable details
     provided by the Servicer.

Ambac in its sole discretion reserves the right to add criteria or change
requirements based on transaction performance and market conditions.

                                      B2-4<PAGE>

                                                                  EXECUTION COPY

================================================================================

                                                                   EXHIBIT 10.72

                             NOTE PURCHASE AGREEMENT

                          Dated as of November 26, 2002

                                      among

              ALLIANCE LAUNDRY EQUIPMENT RECEIVABLES TRUST 2002-A,
                                     Issuer,

                              THE BANK OF NEW YORK,
                              as Indenture Trustee

                          ALLIANCE LAUNDRY SYSTEMS LLC,
                                as the Servicer,

                ALLIANCE LAUNDRY EQUIPMENT RECEIVABLES 2002 LLC,
                               as the Transferor,

                        THE NOTE PURCHASERS PARTY HERETO,

                            BEAR STEARNS & CO. INC.,
                           as Co-Administrative Agent,

                       CANADIAN IMPERIAL BANK OF COMMERCE,
                                      as a
                      Co-Administrative Agent and an Agent,

                                       and

                          THE OTHER AGENTS PARTY HERETO

                                   ----------

                                   Relating to
               Alliance Laundry Equipment Receivables Trust 2002-A
                              Equipment Loan Notes
                                Receivables Notes

                                   ----------

================================================================================

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

ARTICLE 1 - DEFINITIONS.......................................................2

     1.1       Definitions....................................................2
     1.2       Other Definitional Provisions.................................10

ARTICLE 2 - AMOUNT AND TERMS OF COMMITMENTS..................................11

     2.1       Purchases.....................................................11
     2.2       Interest, Fees, Expenses, Payments, Etc.......................13
     2.3       Requirements of Law...........................................15
     2.4       Taxes.........................................................17
     2.5       Indemnification...............................................21
     2.6       Expenses, etc.................................................24
     2.7       Deliveries by Note Purchasers.................................24

ARTICLE 3 - CONDITIONS PRECEDENT.............................................25

     3.1       Conditions to Initial Purchase................................25
     3.2       Condition to Additional Purchases.............................27

ARTICLE 4 - REPRESENTATIONS AND WARRANTIES...................................29

     4.1       Representations and Warranties of the Issuer..................29
     4.2       Representations and Warranties of the Transferor and the
                  Servicer ..................................................29
     4.3       Representations and Warranties of the Note Purchasers.........29

ARTICLE 5 - COVENANTS........................................................30

     5.1       Covenants.....................................................30

ARTICLE 6 - THE NOTE AGENTS..................................................31

     6.1       Authorization and Action of the Note Agents...................31
     6.2       Note Agent's Reliance, Etc....................................33
     6.3       Credit Decision...............................................34
     6.4       Indemnification of each Note Agent............................34
     6.5       Agents in their Individual Capacity...........................35
     6.6       Successor Co-Administrative Agent; Successor Agent............35
     6.7       Payments by an Agent..........................................36

ARTICLE 7 - SECURITIES LAWS; TRANSFERS.......................................36

     7.1       Transfers of Notes............................................36
     7.2       Tax Characterization..........................................42

                                       -i-

<PAGE>

                              TABLE OF CONTENTS

                                                                            Page
                                                                            ----

ARTICLE 8 - MISCELLANEOUS....................................................42

     8.1       Amendments and Waivers........................................42
     8.2       Notices.......................................................43
     8.3       No Waiver; Cumulative Remedies................................46
     8.4       Successors and Assigns........................................46
     8.5       Successors to Servicer........................................46
     8.6       Counterparts..................................................47
     8.7       Severability..................................................47
     8.8       Integration...................................................47
     8.9       Governing.....................................................47
     8.10      Jurisdiction; Consent to Service of Process...................47
     8.11      Termination...................................................48
     8.12      Limited Recourse; No Proceedings..............................48
     8.13      Survival of Representations and Warranties....................49
     8.14      Effect of Regulatory Change...................................49
     8.15      Waiver of July Trial..........................................49
     8.16      Excess Funds..................................................49

Schedule I   Completion of Information and Signatures for Transfer Supplement
Schedule II  List of Investing Offices, Addresses for Notices, Assigned
                Interests and Purchase and Liquidity Percentages
Schedule III Form of Transfer Effective Notice

Exhibit A    Form of Transfer Supplement
Exhibit B    Form Of Equipment Loan Advance Increase Notice

                                      -ii-

<PAGE>

          NOTE PURCHASE AGREEMENT, dated as of November 26, 2002, by and among
ALLIANCE LAUNDRY EQUIPMENT RECEIVABLES TRUST 2002-A, a Delaware statutory trust
(together with its successors and assigns, the "Issuer"), THE BANK OF NEW YORK,
a New York banking corporation, as trustee (the "Indenture Trustee"), ALLIANCE
LAUNDRY SYSTEMS LLC, a Delaware limited liability company ("ALS"), individually
and as the Servicer, ALLIANCE LAUNDRY EQUIPMENT RECEIVABLES 2002 LLC, a Delaware
limited liability company ("Alliance Equipment Receivables"), as the Transferor
(the "Transferor"), the NOTE PURCHASERS (as hereinafter defined) from time to
time party hereto, the AGENTS for the Purchaser Groups from time to time party
hereto (each such party, together with their respective successors in such
capacity, an "Agent"), and BEAR STEARNS & CO. INC. ("Bear Stearns"), as an
administrative agent for the Note Purchasers, CANADIAN IMPERIAL BANK OF COMMERCE
("CIBC"), as an administrative agent for the Note Purchasers, (together with
Bear Stearns and their successors in such capacity, the "Co-Administrative
Agents" and each a "Co-Administrative Agent").

                              W I T N E S S E T H:

          WHEREAS, the Issuer, the Servicer and the Transferor are parties to
that certain Pooling and Servicing Agreement, dated as of November 26, 2002 (as
the same may from time to time be amended or otherwise modified, the "Pooling
and Servicing Agreement") pursuant to which, among other things, the Transferor
has assigned, transferred and conveyed, and has agreed to assign, transfer and
convey, its right, title and interest in, to and under certain Equipment Loans
and Receivables (as defined therein) to the Issuer, and the Servicer has agreed
to service such Equipment Loans and Receivables;

          WHEREAS, the Issuer and The Bank of New York, as trustee (together
with its successors in such capacity, the "Indenture Trustee"), are parties to
that certain Indenture, dated as of November 26, 2002 (as the same may from time
to time be amended or otherwise modified, the "Indenture");

          WHEREAS, the Issuer proposes to issue its Equipment Loan Notes (the
"Equipment Loan Notes") pursuant to the Indenture;

          WHEREAS, the Issuer also proposes to issue its Receivables Notes (the
"Receivables Notes") pursuant to the Indenture;

          WHEREAS, the Equipment Loan Note Purchasers are willing to purchase
the Equipment Loan Notes in the amount of the Equipment Loan Initial Advance on
the Closing Date and from time to time thereafter to purchase Equipment Loan
Advance Increases on the terms and conditions provided for herein;

          WHEREAS, the Receivables Note Purchasers are willing to purchase the
Receivables Notes in the amount of the Receivables Initial Advance on the
Closing Date and from time to time thereafter to purchase Receivables Advance
Increases on the terms and conditions provided for herein;

                                       -1-

<PAGE>

          NOW THEREFORE, in consideration of the mutual covenants herein
contained, and other good and valuable consideration, the receipt and adequacy
of which are hereby expressly acknowledged, the parties hereto agree as follows:

                              ARTICLE 1 DEFINITIONS

          1.1 Definitions. All capitalized terms used herein as defined terms
and not defined herein shall have the meanings given to them in Part I of
Appendix A to the Pooling and Servicing Agreement, as in effect on the date of
this Agreement and as they may be amended or otherwise modified from time to
time with the consent of the Required Equipment Loan Note Owners, the Required
Equipment Loan Note Purchasers, the Required Receivables Note Owners, the
Required Receivables Note Purchasers and the Co-Administrative Agents.

          "Additional Amounts" shall mean on any date of determination, any
amounts then due and payable by the Issuer (determined without regard to
limitations on the sources of payment thereof) pursuant to this Agreement, other
than Equipment Loan Monthly Interest the Equipment Loan Note Principal Balance,
Receivables Monthly Interest and the Receivables Note Principal Balance.

          "Adjusted Commitment" shall mean on any date of determination, (i)
with respect to a CPC Committed Purchaser, such CPC Committed Purchaser's
Commitment minus the aggregate outstanding principal amount of its Support
Advances to its related CP Conduit or (ii) with respect to a Committed Purchaser
that is not a CPC Committed Purchaser, such Committed Purchaser's Commitment.

          "Advance Increase Notice" shall mean a notice delivered by the Issuer
to each Agent and the Indenture Trustee pursuant to Section 2.1(c) requesting an
Equipment Loan Advance Increase or a Receivables Advance Increase with the most
recently delivered Borrowing Base Certificate attached thereto.

          "Affected Party" shall mean, with respect to any CP Conduit, any
Support Party of such CP Conduit.

          "Agent" has the meaning specified in the preamble to this Agreement.

          "Agreement" shall mean this Note Purchase Agreement, as amended,
supplemented or otherwise modified from time to time.

          "Alliance Equipment Receivables" has the meaning specified in the
preamble to this Agreement.

          "ALS" has the meaning specified in the preamble to this Agreement.

          "Applicable Margin Fee Letter" has the meaning specified in the
Pooling and Servicing Agreement.

          "Assignee" and "Assignment" have the respective meanings specified in
subsection 7.1(e).

                                       -2-

<PAGE>

          "Bear Stearns" has the meaning specified in the preamble to this
Agreement.

          "CIBC" has the meaning specified in the preamble to this Agreement.

          "Closing Date" shall mean December 3, 2002.

          "Co-Administrative Agent" has the meaning specified in the preamble to
this Agreement.

          "Code" shall mean the Internal Revenue Code of 1986, as amended.

          "Commitment" shall mean, for any Committed Purchaser, the maximum
amount of such Note Purchaser's commitment to purchase a portion of
the Equipment Loan Note Principal Balance or Receivables Note Principal Balance,
as applicable, as set forth on the signature pages hereto or the Transfer
Supplement by which such Committed Purchaser became a party to this Agreement or
assumed the Commitment (or a portion thereof) of another Note Purchaser pursuant
to Transfer Supplement(s) executed by such Purchaser and its Assignee(s) and
delivered pursuant to Section 7.1. In the event that a Note Purchaser is a CPC
Committed Purchaser which maintains a portion of its Commitment hereunder in
relation to more than one CP Conduit, such Note Purchaser shall be deemed to
hold separate Commitments hereunder in each such capacity, and in the event that
a Note Purchaser is both an Equipment Loan Note Purchaser and a Receivables Note
Purchaser, such Note Purchaser shall be deemed to hold separate Commitments
hereunder in each such capacity.

          "Committed Purchaser" shall mean each Note Purchaser identified as a
Committed Purchaser on the signature pages hereto or in the Transfer Supplement
pursuant to which such Note Purchaser, and any Assignee of such Note Purchaser
to the extent such Assignee has assumed, pursuant to a Transfer Supplement, the
Commitment of such Note Purchaser.

          "Conduit Assignee" means any commercial paper conduit designated by a
CP Conduit from time to time to accept an assignment from such CP Conduit of all
or a portion of its Percentage Interest.

          "Consented Transferee Letter" shall mean the letter, dated as of the
date of this Agreement and referring to this Agreement (or any replacement
therefor from time to time in effect), from the Transferor, consented to by the
Control Party, and to and accepted by, each Co-Administrative Agent, as such
letter may be amended or otherwise modified from time to time by the Transferor
with the consent of each Co-Administrative Agent and the Insurer (if the Insurer
is then the Control Party).

          "CP Conduit" shall mean any Note Purchaser which is designated as a CP
Conduit on the signature pages hereto or in the Transfer Supplement pursuant to
which it became a party to this Agreement.

          "CPC Committed Purchaser" shall mean, with respect to a CP Conduit,
each Note Purchaser identified as a Committed Purchaser for such CP Conduit on
the signature pages hereto or in the Transfer Supplement pursuant to which such
CP Conduit became a party hereto,

                                       -3-

<PAGE>

and any Assignee of such Note Purchaser to the extent such Assignee has assumed,
pursuant to a Transfer Supplement, the Commitment of such Note Purchaser.

          "Downgraded Purchaser" has the meaning specified in subsection 7.1(j).

          "Equipment Loan Advance Increase" shall mean the amount of each
Advance made on the Equipment Loan Notes on each Equipment Loan Borrowing Date.

          "Equipment Loan Borrowing Date" shall mean each date on which an
Equipment Loan Advance Increase occurs.

          "Equipment Loan Facility Limit" shall mean, for any day, $300,000,000,
minus the Receivables Note Principal Balance on such day.

          "Equipment Loan Initial Advance" shall mean the amount of the Advance
made on the Equipment Loan Notes on the Closing Date.

          "Equipment Loan Monthly Interest" shall mean, for any Distribution
Date, the Equipment Loan Monthly Interest and Fees for the Interest Period ended
on the day preceding such Distribution Date.

          "Equipment Loan Monthly Interest and Fees" shall mean, for any
Interest Period, the sum of (i) interest on the Equipment Loan Note Principal
Balance for the Interest Period ended on such Distribution Date computed
pursuant to subsection 2.2(a) and subsection 2.2(e), plus (ii) the Equipment
Loan Unused Facility Fee with respect to such Interest Period.

          "Equipment Loan Note Owners" shall mean the Equipment Loan Note
Purchasers that are owners of record of the Equipment Loan Notes or, with
respect to any Equipment Loan Note held by an Agent hereunder as nominee on
behalf of Equipment Loan Note Purchasers in an Equipment Loan Purchaser Group,
the Equipment Loan Note Purchasers that are beneficial owners of such Equipment
Loan Note as reflected on the books of such Agent in accordance with this
Agreement and the Related Documents.

          "Equipment Loan Note Principal Balance" shall mean the outstanding
principal balance of all Advances made on the Equipment Loan Notes.

          "Equipment Loan Note Purchasers" shall mean, collectively, the CP
Conduits and the Committed Purchasers that are members of an Equipment Loan
Purchaser Group.

          "Equipment Loan Notes" has the meaning specified in the recitals to
this Agreement.

          "Equipment Loan Percentage Interest" shall mean, for an Equipment Loan
Note Purchaser on any day, the percentage equivalent of (a) the sum of (i) the
portion of the Equipment Loan Initial Principal Balance (if any) purchased by
such Equipment Loan Note Purchaser, plus (ii) the aggregate portion of Equipment
Loan Advance Increases (if any) purchased by such Equipment Loan Note Purchaser
prior to such day pursuant to this Agreement, plus (iii) any portion of the
Equipment Loan Note Principal Balance acquired by

                                       -4-

<PAGE>

such Equipment Loan Note Purchaser as an Assignee from another Equipment Loan
Note Purchaser pursuant to a Transfer Supplement executed and delivered pursuant
to Section 7.1, minus (iv) the aggregate amount of principal payments made with
respect to the Equipment Loan Notes to such Equipment Loan Note Purchaser prior
to such day, minus (v) any portion of the Equipment Loan Note Principal Balance
assigned by such Equipment Loan Note Purchaser to an Assignee pursuant to a
Transfer Supplement executed and delivered pursuant to Section 7.1, divided by
(b) the aggregate Equipment Loan Note Principal Balance on such day.

          "Equipment Loan Purchaser Group" shall mean each group of Equipment
Loan Note Purchasers consisting of at least one Committed Purchaser and an
Agent. Purchaser Groups may also contain a CP Conduit. The initial Equipment
Loan Note Purchaser Groups shall be (i) SPARC, as CP Conduit, and CIBC, as a
Committed Purchaser and Agent and (ii) Triple-A One Funding Corporation, as CP
Conduit, Bear Stearns, as a Committed Purchaser and MBIA Insurance Corporation,
as Agent.

          "Equipment Loan Unused Facility Fee" shall have the meaning, with
respect to each Equipment Loan Purchaser Group, specified in the Applicable
Margin Fee Letter.

          "Excess Funds" has the meaning specified in Section 8.15.

          "Excluded Taxes" has the meaning specified in subsection 2.4(a).

          "Governmental Authority" shall mean any nation or government, any
state or other political subdivision thereof, any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to government and any accounting board or authority (whether or not a part of
government) which is responsible for the establishment or interpretation of
national or international accounting principles.

          "Indemnitee" has the meaning specified in subsection 2.5(a).

          "Indenture" has the meaning specified in the recitals to this
Agreement.

          "Indenture Trustee" has the meaning specified in the recitals to this
Agreement.

          "Investing Office" shall mean initially, the office of any Note
Purchaser (if any) designated as such on the signature pages hereto or in the
Transfer Supplement by which it became a party to this Agreement, and
thereafter, such other office of such Note Purchaser or such Assignee as may be
designated in writing to the applicable Agent, the Co-Administrative Agents, the
Issuer, the Transferor, the Servicer and the Indenture Trustee by such Note
Purchaser or Assignee.

          "Investment Letter" shall mean the letter delivered by each Note
Purchaser that is substantially in the form attached as Exhibit F to the
Indenture.

          "Issuer" has the meaning specified in the recitals to this Agreement.

          "Liquidity Percentage" shall mean, for a CPC Committed Purchaser, such
CPC Committed Purchaser's Adjusted Commitment with respect to its related CP
Conduit as a

                                       -5-

<PAGE>

percentage of the aggregate Adjusted Commitments of all CPC Committed Purchasers
for such CP Conduit.

          "Maximum Purchase Amount" shall mean (i) for any CP Conduit, the
aggregate Commitments of the CPC Committed Purchasers in its Purchaser Group and
(ii) for any Committed Purchaser, its Commitment.

          "Moody's" shall mean Moody's Investors Service, Inc., or any successor
that is a nationally recognized statistical rating organization.

          "Note Agent" has the meaning specified in subsection 6.1(a).

          "Note Owner" shall mean an Equipment Loan Note Owner or a Receivables
Note Owner, as applicable.

          "Note Purchaser" shall mean an Equipment Loan Note Purchaser or a
Receivables Note Purchaser, as applicable.

          "Participant" has the meaning specified in subsection 7.1(d).

          "Participation" has the meaning specified in subsection 7.1(d).

          "Percentage Interest" shall mean the Equipment Loan Percentage
Interest or the Receivables Percentage Interest, as applicable. In the event
that a Note Purchaser is both an Equipment Loan Note Purchaser and a Receivables
Note Purchaser, such Note Purchaser shall be deemed to hold separate Percentage
Interests hereunder in each such capacity.

          "Permitted Transferee" shall mean (i) prior to the Conversion Date,
each initial Equipment Loan Note Purchaser or Receivables Note Purchaser, as
applicable, each initial Agent (in its individual capacity), each initial
Co-Administrative Agent (in its individual capacity), each Conduit Assignee
which has been consented to as a potential Transferee by the Insurer (if the
Insurer is then the Control Party) (which consent shall not be unreasonably
withheld), each Person listed in the Consented Transferee Letter as in effect on
the date of the related Transfer, at such time and each other Person who has
been consented to as a potential Transferee by the Transferor and the Insurer
(if the Insurer is then the Control Party) (which consents shall not be
unreasonably withheld) or (ii) after the Conversion Date or otherwise if the
Transferee is a Transferee of an Equipment Loan Note, a Receivables Note or the
rights thereunder and not of any Commitment, any Transferee.

          "Person" shall mean an individual, partnership, corporation, business
trust, statutory trust, joint stock company, trust, unincorporated association,
joint venture, Governmental Authority or other entity of whatever nature.

          "Pooling and Servicing Agreement" shall have the meaning specified in
the recitals to this Agreement.

                                       -6-

<PAGE>

          "Primary Purchaser" shall mean with respect to each Purchaser Group,
each CP Conduit, and to the extent that a Purchaser Group does not contain a CP
Conduit, each Note Purchaser in such Purchaser Group.

          "Purchaser Group" shall mean each Equipment Loan Purchaser Group and
each Receivables Purchaser Group, as applicable.

          "Purchaser Percentage" shall mean, with respect to a Primary
Purchaser, its Maximum Purchase Amount as a percentage of the Equipment Loan
Facility Limit or Receivables Loan Facility Limit, as applicable.

          "Qualified Special Purpose Entity" has the meaning set forth in the
Statement of Financial Accounting Standards No. 140, and any successor
promulgation.

          "Receivables Advance Increase" shall mean the amount of each Advance
made to the Receivables Notes on each Receivables Borrowing Date.

          "Receivables Borrowing Date" shall mean each date on which a
Receivables Advance Increase occurs.

          "Receivables Facility Limit" shall mean, for any day, $60,000,000,
minus the excess, if any, of (x) the Equipment Loan Note Principal Balance on
such day over (y) $240,000,000.

          "Receivables Initial Advance" shall mean shall mean the amount of the
Advance made on the Receivables Notes on the Closing Date.

          "Receivables Monthly Interest" shall mean, for any Distribution Date,
the Receivables Monthly Interest and Fees for the Interest Period ended on the
day preceding such Distribution Date.

          "Receivables Monthly Interest and Fees" shall mean, for any Interest
Period, the sum of (i) interest on the Receivables Note Principal Balance for
the Interest Period ended on such Distribution Date computed pursuant to
subsection 2.2(a) and subsection 2.2(e), plus (ii) the Receivables Unused
Facility Fee with respect to such Interest Period.

          "Receivables Note Owners" shall mean the Receivables Note Purchasers
that are owners of record of the Receivables Notes or, with respect to any
Receivables Note held by an Agent hereunder as nominee on behalf of Receivables
Note Purchasers in a Receivables Purchaser Group, the Receivables Note
Purchasers that are beneficial owners of such Receivables Note as reflected on
the books of such Agent in accordance with this Agreement and the Related
Documents.

          "Receivables Note Principal Balance" shall mean the outstanding
principal balance of all Advances on such Receivables Notes.

          "Receivables Note Purchasers" shall mean, collectively, the CP
Conduits and the Committed Purchasers that are members of a Receivables Purchase
Group.

                                       -7-

<PAGE>

          "Receivables Notes" has the meaning specified in the recitals to this
Agreement.

          "Receivables Percentage Interest" shall mean, for a Receivables Note
Purchaser on any day, the percentage equivalent of (a) the sum of (i) the
portion of the Receivables Initial Advance (if any) purchased by such
Receivables Note Purchaser, plus (ii) the aggregate portion of Receivables
Advance Increases (if any) purchased by such Receivables Note Purchaser prior to
such day pursuant to this Agreement, plus (iii) any portion of the Receivables
Note Principal Balance acquired by such Receivables Note Purchaser as an
Assignee from another Receivables Note Purchaser pursuant to a Transfer
Supplement executed and delivered pursuant to Section 7.1, minus (iv) the
aggregate amount of principal payments made with respect to the Receivables
Notes to such Receivables Note Purchaser prior to such day, minus (v) any
portion of the Receivables Note Principal Balance assigned by such Receivables
Note Purchaser to an Assignee pursuant to a Transfer Supplement executed and
delivered pursuant to Section 7.1, divided by (b) the aggregate Receivables Note
Principal Balance on such day.

          "Receivables Purchaser Group" shall mean each group of Receivables
Note Purchasers consisting of at least one Committed Purchaser and an Agent.
Purchaser Groups may also contain a CP Conduit. The initial Receivables Note
Purchaser Groups shall be (i) SPARC, as CP Conduit, and CIBC, as a Committed
Purchaser and Agent and (ii) Triple-A One Funding Corporation, as CP Conduit,
Bear Stearns, as a Committed Purchaser and MBIA Insurance Corporation, as Agent.

          "Receivables Unused Facility Fee" shall have the meaning, with respect
to each Receivables Purchaser Group, specified in the Applicable Margin Fee
Letter.

          "Regulatory Change" shall mean, as to each Note Purchaser, Participant
or Affected Party, any change, or any generally accepted change in the
interpretation or application, occurring after the date of the execution and
delivery of this Agreement or, if later, the date of the execution and delivery
of the Transfer Supplement by which it became party to this Agreement; in the
case of a Participant, any change occurring after the date on which its
Participation became effective; or in the case of an Affected Party, any change
occurring after the date it became such an Affected Party, in any (or the
adoption after such date of any new):

               (i) United States federal or state law or foreign law applicable
to such Note Purchaser, Participant or Affected Party; or

               (ii) regulation, interpretation, directive, guideline or request
(whether or not having the force of law) applicable to such Note Purchaser,
Participant or Affected Party of any court or other judicial authority or any
Governmental Authority charged with the interpretation or administration of any
law referred to in clause (i) or of any fiscal, monetary, banking or other
Governmental Authority or central bank having jurisdiction over such Note
Purchaser, Participant or Affected Party or charged with the administration,
interpretation or application of any such regulation, interpretation, directive,
guideline or request. For avoidance of doubt, any interpretation of Accounting
Research Bulletin No. 51 by the Financial Accounting Standards Board shall
constitute a Regulatory Change herein.

                                       -8-

<PAGE>

          "Related Documents" shall mean, collectively, this Agreement
(including all effective Fee Letters and Transfer Supplements), the Transfer and
Servicing Agreements, the Indenture, the Trust Agreement, the Administration
Agreement, the Notes, the Custodial Agreement, and all agreements and
instruments related thereto.

          "Replacement Purchaser" has the meaning specified in subsection
7.1(j).

          "Required Equipment Loan Note Owners" as to any Purchaser Group, shall
mean, at any time, Equipment Loan Note Owners having more than two-thirds of the
aggregate Percentage Interests of all Equipment Loan Note Owners in such
Purchaser Group.

          "Required Equipment Loan Note Purchasers" as to any Purchaser Group,
shall mean, at any time, Committed Purchasers having Commitments aggregating
more than two-thirds of all of the Commitments in such Purchaser Group.

          "Required Receivables Note Owners" as to any Purchaser Group, shall
mean, at any time, Receivables Note Owners having more than two-thirds of the
aggregate Percentage Interests of all Receivables Note Owners in such Purchaser
Group.

          "Required Receivables Note Purchasers" as to any Purchaser Group,
shall mean, at any time, Committed Purchasers having Commitments aggregating
more than two-thirds of all of the Commitments in such Purchaser Group.

          "Requirement of Law" shall mean, as to any Person, any law, treaty,
rule or regulation, or determination of an arbitrator or Governmental Authority,
in each case applicable to or binding upon such or to which such Person is
subject, whether federal, state or local (including usury laws, the Federal
Truth in Lending Act and Regulation Z and Regulation B of the Board of Governors
of the Federal Reserve System).

          "SPARC" shall mean Special Purpose Accounts Receivables Cooperative
Corporation, a cooperative corporation organized under the Consumer Cooperative
Corporation Law of the State of California.

          "Standard & Poor's" shall mean Standard & Poor's Ratings Services, a
division of The McGraw-Hill Companies, Inc., or any successor that is a
nationally recognized statistical rating organization.

          "Successor Servicer" shall have the meaning specified in Section 8.5.

          "Support Advances" shall mean, with respect to a CPC Committed
Purchaser and its related CP Conduit, any participation held by such CPC
Committed Purchaser in such CP Conduit's Percentage Interest in the Equipment
Loan Note Principal Balance or Receivables Note Principal Balance, as
applicable, which was purchased from such CP Conduit pursuant to a Support
Facility and any loans or other advances made by such CPC Committed Purchaser to
such CP Conduit pursuant to a Support Facility to fund such CP Conduit's making
or maintaining its purchases hereunder up to the amount of the related Advance
(but excluding any such loans or advances made to fund such CP Conduit's
obligations to pay interest, fees or other similar amounts relating to the
funding of its making or maintaining its purchases hereunder). In

                                       -9-

<PAGE>

the event that such CPC Committed Purchaser and its related CP Conduit are both
Equipment Loan Note Purchasers and Receivables Note Purchasers, such CPC
Purchaser shall be deemed to hold separate Support Advances hereunder in each
such capacity.

          "Support Facility" shall mean any liquidity or credit support
agreement with a CP Conduit which relates to this Agreement (including any
master repurchase agreement or an agreement to purchase an assignment of or
participation in Equipment Loan Notes or Receivables Notes), it being understood
that such liquidity or credit support may also relate to other transactions.

          "Support Party" shall mean any other bank, insurance company or other
financial institution extending or having a commitment to extend funds to or for
the account of or to provide credit support for the benefit of a CP Conduit
(including by agreement to purchase an assignment of or participation in
Equipment Loan Notes or Receivables Notes) under a Support Facility. Each CPC
Committed Purchaser for a CP Conduit which is a CP Conduit shall be deemed to be
a Support Party for such CP Conduit.

          "Taxes" has the meaning specified in subsection 2.4(a).

          "Total Equipment Loan Commitment" shall mean, on any date of
determination, the aggregate of all the Commitments of all Committed Purchasers
in all Equipment Loan Purchaser Groups.

          "Total Receivables Commitment" shall mean, on any date of
determination, the aggregate of all the Commitments of all Committed Purchasers
in all Receivables Purchaser Groups.

          "Transfer" has the meaning specified in subsection 7.1(c).

          "Transfer Supplement" has the meaning specified in subsection 7.1(e).

          "Transferee" has the meaning specified in subsection 7.1(c).

          "Transferor" has the meaning specified in the preamble to this
Agreement.

          "Trust" has the meaning specified in the recitals to this Agreement.

          "written" or "in writing" (and other variations thereof) shall mean
any form of written communication or a communication by means of telex,
telecopier device, telegraph or cable.

          1.2 Other Definitional Provisions.

          (a) Unless otherwise specified therein, all terms defined in this
Agreement shall have the defined meanings as set forth herein when used in any
certificate or other document made or delivered pursuant hereto.

                                      -10-

<PAGE>

          (b) The words "hereof", "herein", and "hereunder" and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement; and Section, subsection and
Exhibit references are to this Agreement, unless otherwise specified. The words
"including" and "include" shall be deemed to be followed by the words "without
limitation". References to any Person include that Person's successors in
interest.

                    ARTICLE 2 AMOUNT AND TERMS OF COMMITMENTS

          2.1 Purchases.

          (a) On and subject to the terms and conditions of this Agreement
(including Article 3 and clause (g) below), on the Closing Date each initial
Primary Purchaser may purchase its Purchaser Percentage of the Equipment Loan
Initial Advance or the Receivables Initial Advance, as applicable, for a
purchase price equal to the portion of the Equipment Loan Initial Advance or the
Receivables Initial Advance, as applicable, so purchased. The determination of
whether an initial Primary Purchaser will make such purchase may, less such
amounts as the Issuer and the initial Primary Purchasers shall agree, be made by
the related Agent for such Primary Purchaser.

          (b) On and subject to the terms and conditions of this Agreement
(including Article 3 and clause (g) below) and prior to the Conversion Date,
each Primary Purchaser may purchase its Purchaser Percentage of any Equipment
Loan Advance Increase or Receivables Advance Increase, as applicable, offered
for purchase hereunder for a purchase price equal to the Equipment Loan Advance
Increase or the Receivables Advance Increase, as applicable, so purchased. The
determination of whether an initial Primary Purchaser will make such purchase
may be made by the related Agent for such Primary Purchaser.

          (c) Each purchase of any Equipment Loan Advance Increase or
Receivables Advance Increase hereunder shall be in accordance with the
provisions hereof upon delivery of an Advance Increase Notice by the Issuer to
each Agent and the Indenture Trustee received no later than 5:00 p.m., New York
City time, at least two Business Days prior to the applicable Equipment Loan
Borrowing Date or Receivables Borrowing Date (or such shorter period as may be
agreed to by each Agent). Each Advance Increase Notice shall be irrevocable and
shall specify an Advance of at least $1,000,000, unless each Committed Purchaser
otherwise agrees, and in an integral multiple of $100,000. The Issuer may not
deliver more than one Advance Increase Notice with respect to an Equipment Loan
Advance Increase and more than one Advance Increase Notice with respect to a
Receivables Advance Increase in any calendar week, unless each Agent otherwise
agrees, which consent shall not be unreasonably withheld. The Indenture Trustee
shall forward a copy of such Advance Increase Notice to each applicable
Equipment Loan Note Purchaser or Receivables Note Purchaser, by not later than
10:00 a.m. on the next Business Day as set forth herein.

          (d) Each CP Conduit shall notify the Agent for its Purchaser Group by
10:00 a.m., New York City time, on the applicable Purchase Date whether it has
elected to make the purchase offered to it pursuant to subsection 2.1(a) or
2.1(b). In the event that a CP Conduit shall not have timely provided such
notice, such CP Conduit shall be deemed to have elected not

                                      -11-

<PAGE>

to make such purchase. Such Agent shall notify each CPC Committed Purchaser for
such CP Conduit on or prior to 11:00 a.m., New York City time, on the applicable
Purchase Date if such CP Conduit has not elected to purchase its entire
Purchaser Percentage of the Equipment Loan Initial Advance, the Equipment Loan
Advance Increase, the Receivables Initial Advance, or the Receivables Advance
Increase, as the case may be, which notice shall specify (i) the identity of
such CP Conduit, (ii) the portion of the Equipment Loan Initial Advance, the
Equipment Loan Advance Increase, the Receivables Initial Advance, or the
Receivables Advance Increase, as the case may be, which such CP Conduit has not
elected to purchase as provided above, and (iii) the respective Liquidity
Percentages of such CPC Committed Purchasers on such Purchase Date (as
determined by such Agent in good faith; for purposes of such determination, such
Agent shall be entitled to rely conclusively on the most recent information
provided by such CP Conduit or its agent or by the agent for its Support
Parties). Subject to receiving such notice and the satisfaction of the
applicable conditions set forth in Article 3 and clause (g) below, each of such
CP Conduit's CPC Committed Purchasers shall make a purchase of Equipment Loan
Notes or Receivables Notes, as applicable, on the applicable Purchase Date in an
amount equal to its Liquidity Percentage of the portion of the Equipment Loan
Initial Advance, the Equipment Loan Advance Increase, the Receivables Initial
Advance, or the Receivables Advance Increase, as the case may be, which such CP
Conduit has not elected to purchase, for a purchase price equal to its share of
the Equipment Loan Initial Advance, the Equipment Loan Advance Increase, the
Receivables Initial Advance, or the Receivables Advance Increase, as applicable,
so purchased.

          (e) All purchases made pursuant to this Note Purchase Agreement by
each Note Purchaser in a Purchaser Group shall be evidenced by one Equipment
Loan Note or Receivables Note, as applicable, for such Purchaser Group issued
pursuant to the Indenture in the name of the related Agent for such Purchaser
Group or, if requested by such Agent, in the name of the relevant Primary
Purchaser. Each Equipment Loan Note Purchaser's or Receivables Note Purchaser's,
as applicable, purchase price payable pursuant to subsection 2.1(a), 2.1(b) or
2.1(d) shall be made available to the Issuer at such account as it shall direct
or to the Agent for its Purchaser Group at the account of the Agent specified in
Section 8.2(b), subject to the fulfillment of the applicable conditions set
forth in Article 3, if to the Agent, at or prior to 2:00 p.m., New York City
time, and if to the Issuer, at or prior to 3:00 p.m., New York City time, on the
applicable Purchase Date, by deposit of immediately available funds. If such
funds are to be remitted to an Agent, such Agent shall promptly notify the
Issuer and the Transferor in the event that any Equipment Loan Note Purchaser or
Receivables Note Purchaser either fails to make such funds available to such
Agent before such time or notifies such Agent that it will not make such funds
available to such Agent before such time. Subject to (i) such Agent's receipt of
such funds and (ii) the fulfillment of the applicable conditions set forth in
Article 3, as determined by such Agent, such Agent will, not later than 3:00
p.m., New York City time on such Purchase Date, make such funds available, in
the same type of funds received, by wire transfer thereof to the account of the
Issuer in the United States specified in the applicable Advance Increase Notice
or, in the case of the purchase on the Closing Date, specified in writing by the
Issuer to such Agent not later than the one Business Day prior to the Closing
Date.

          (f) Notwithstanding the fulfillment of the applicable conditions set
forth in Article 3 with respect to a purchase, in the event that a CP Conduit
elected to make a purchase on a Purchase Date but failed to make its purchase
price available to the Agent for its Purchaser Group when required by subsection
2.1(e), such CP Conduit shall be deemed to have rescinded

                                      -12-

<PAGE>

its election to make such purchase, and none of the Issuer, the Transferor or
any other Person shall have any claim against such CP Conduit by reason of its
failure to timely make such purchase. In any such case, such Agent shall give
notice of such failure not later than 1:00 p.m., New York City time, on the
Purchase Date to each CPC Committed Purchaser for such CP Conduit and to the
Issuer and the Transferor, which notice shall specify (i) the identity of such
CP Conduit, (ii) the amount of the purchase which it had elected but failed to
make and (iii) the respective Liquidity Percentages of such CPC Committed
Purchasers on such Purchase Date (as determined by such Agent in good faith; for
purposes of such determination, such Agent shall be entitled to rely
conclusively on the most recent information provided by such CP Conduit or its
agent or by the agent for its Support Parties). Subject to receiving such
notice, each of such CP Conduit's CPC Committed Purchasers shall purchase a
portion of the Equipment Loan Note Principal Balance or Receivables Note
Principal Balance, as applicable, in an amount equal to its Liquidity Percentage
of the amount described in clause (ii) above at or before 2:00 p.m., New York
City time, on such Purchase Date and otherwise in accordance with subsection
2.1(d). Subject to such Agent's receipt of such funds, such Agent will not later
than 3:00 p.m., New York City time, on such Purchase Date make such funds
available, in the same type of funds received, by wire transfer thereof to the
account of the Issuer described in subsection 2.1(e), which payment shall be
deemed to be timely for purposes hereof and of the Indenture.

          (g) Notwithstanding anything herein to the contrary, in no event (i)
shall a Committed Purchaser be required on any date to make a purchase of the
Equipment Loan Initial Advance or purchase an Equipment Loan Advance Increase
which would result in its Percentage Interest of the Equipment Loan Note
Principal Balance, determined after giving effect to such purchase, exceeding
its Adjusted Commitment with respect thereto; or (ii) may any Equipment Loan
Advance Increase or the Equipment Loan Initial Advance be offered for purchase
hereunder, nor shall any Equipment Loan Note Purchaser be obligated to purchase
any Equipment Loan Advance Increase or the Equipment Loan Initial Advance, to
the extent that, after giving effect to such Equipment Loan Advance Increase or
purchase of the Equipment Loan Initial Advance, the Equipment Loan Note
Principal Balance would exceed the Equipment Loan Facility Limit.

          (h) Notwithstanding anything herein to the contrary, in no event (i)
shall a Committed Purchaser be required on any date to make a purchase of the
Receivables Initial Advance or purchase a Receivables Advance Increase which
would result in its Percentage Interest of the Receivables Note Principal
Balance, determined after giving effect to such purchase, exceeding its Adjusted
Commitment with respect thereto; or (ii) may any Receivables Advance Increase or
the Receivables Initial Advance be offered for purchase hereunder, nor shall any
Receivables Note Purchaser be obligated to purchase any Receivables Advance
Increase or the Receivables Initial Advance, to the extent that, after giving
effect to such Receivables Advance Increase or purchase of the Receivables
Initial Advance, the Receivables Note Principal Balance would exceed the
Receivables Facility Limit.

          2.2 Interest, Fees, Expenses, Payments, Etc.

          (a) The interest and fees (including the Equipment Loan Facility Fee
and the Receivables Facility Fee) on the Equipment Loan Notes and Receivables
Notes shall be paid as provided in the Indenture (including Sections 2.7 and
8.2).

                                      -13-

<PAGE>

          (b) The principal of, and interest and fees in respect of the
Equipment Loan Notes shall be paid as provided in Sections 2.7 and 8.2 of the
Indenture. Equipment Loan Monthly Interest and Fees for each Interest Period
(including the last Interest Period) shall be due and payable on the
Distribution Date immediately following such Interest Period. In the case of
Equipment Loan Notes held by an Agent as nominee on behalf of an Equipment Loan
Note Purchaser in its Purchaser Group, such Agent shall allocate to each
Equipment Loan Note Owner in its Purchaser Group each payment in respect of the
Equipment Loan Notes received by such Agent in its capacity as Equipment Loan
Noteholder as provided herein. Payments in reduction of the portion of the
Equipment Loan Note Principal Balance evidenced by an Equipment Loan Note shall
be allocated and applied to the Equipment Loan Note Owners of such Equipment
Loan Note pro rata based on their respective Percentage Interests of the
Equipment Loan Note Principal Balance, or in any such case in such other
proportions as each affected Equipment Loan Note Purchaser may agree upon in
writing from time to time with such Agent and the Issuer. Payments of interest
in respect of the portion of the Equipment Loan Note Principal Balance evidenced
by an Equipment Loan Note shall be allocated and applied to Equipment Loan Note
Owners of such Equipment Loan Note pro rata based upon the respective amounts of
interest due and payable to them, determined as provided above in this Section
2.2.

          (c) The principal of, and interest and fees in respect of the
Receivables Notes shall be paid as provided in Sections 2.7 and 8.2 of the
Indenture. In the case of Receivables Notes held by an Agent as nominee on
behalf of a Receivables Note Purchaser in its Purchaser Group, such Agent shall
allocate to the each Receivables Note Owner in its Purchaser Group each payment
in respect of the Receivables Notes received by such Agent in its capacity as
Receivables Noteholder as provided herein. Payments in reduction of the portion
of the Receivables Note Principal Balance evidenced by a Receivables Note shall
be allocated and applied to the Receivables Note Owners of such Receivables Note
pro rata based on their respective Percentage Interests of the Receivables Note
Principal Balance, or in any such case in such other proportions as each
affected Receivables Note Purchaser may agree upon in writing from time to time
with such Agent and the Issuer. Payments of interest in respect of the portion
of the Receivables Note Principal Balance evidenced by a Receivables Note shall
be allocated and applied to Receivables Note Owners of such Receivables Note pro
rata based upon the respective amounts of interest due and payable to them,
determined as provided above in this Section 2.2. Payments of the Receivables
Unused Facility Fee shall be allocated and paid to Receivables Note Owners pro
rata based upon their respective interest in the Receivables Note Principal
Balance for the applicable Interest Period.

          (d) Any fees and any interest thereon or other amounts due and payable
hereunder (without regard to any limitations set forth herein on the sources
from which such amount may be paid) which are not paid on the due date thereof
(including interest payable pursuant to this clause (d)) shall accrue interest
(after as well as before judgment) at 2% per annum above the Base Rate plus the
Applicable Margin in effect on the date the payment was due from and including
the due date thereof to but excluding the date such amount is actually paid.

          (e) Unless otherwise specified in the Applicable Margin Fee Letter,
interest calculated by reference to the Adjusted Eurodollar Rate shall be
calculated on the basis of a 360-day year for the actual days elapsed. Periodic
fees or other periodic amounts payable

                                      -14-

<PAGE>

hereunder shall be calculated, unless otherwise specified in the Fee Letter, on
the basis of a 360-day year and for the actual days elapsed.

          (f) All payments to be made hereunder or under the Indenture, whether
on account of principal, interest, fees or otherwise, shall be made without
setoff or counterclaim and shall be made prior to 11:30 a.m., New York City
time, on the due date thereof to the applicable Agent, at its account specified
in subsection 8.2(b), in Dollars and in immediately available funds. Payments
received by such Agent after 11:30 a.m., New York City time, shall be deemed to
have been made on the next Business Day, unless otherwise agreed to by such
Agent. Notwithstanding anything herein to the contrary, if any payment due
hereunder becomes due and payable on a day other than a Business Day, the
payment date thereof shall be extended to the next succeeding Business Day and
interest shall accrue thereon at the applicable rate during such extension. To
the extent that (i) the Issuer, the Indenture Trustee, the Transferor or the
Servicer makes a payment to a Co-Administrative Agent or an Agent or Note
Purchaser or (ii) a Co-Administrative Agent or an Agent or Note Purchaser
receives or is deemed to have received any payment or proceeds for application
to an obligation, which payment or proceeds or any part thereof are subsequently
invalidated, declared to be fraudulent or preferential, set aside or required to
be repaid to a trustee, receiver or any other party under any bankruptcy or
insolvency law, state or federal law, common law, or for equitable cause, then,
to the extent such payment or proceeds are set aside, the obligation or part
thereof intended to be satisfied shall be revived and continue in full force and
effect, as if such payment or proceeds had not been received or deemed received
by such Co-Administrative Agent, such Agent or such Note Purchaser, as the case
may be.

          2.3 Requirements of Law.

          (a) In the event that any Note Purchaser, Participant or Affected
Party, as applicable, shall have reasonably determined that any Regulatory
Change shall impose, modify, hold or deem applicable any reserve, special
deposit, compulsory loan or similar requirement (including any such requirement
imposed by the Board of Governors of the Federal Reserve System and any such
establishment or interpretation of accounting principles) against assets of or
held by, deposits or other liabilities in or for the account of, advances, loans
or other extensions of credit by, or any other acquisition of funds by, such
Note Purchaser or Affected Party, as applicable, or shall impose on any Note
Purchaser, Affected Party or the London interbank market any other condition
affecting this Agreement, the Indenture or any Transfer and Servicing Agreement,
the ownership, maintenance or financing of the Notes, the Trust Estate or
payments of amounts due hereunder or its obligations to advance funds hereunder
or under a Support Facility and the result of any of the foregoing is to
increase the cost to such Note Purchaser or Affected Party, by an amount which
such Note Purchaser or Affected Party in good faith deems to be material, of
maintaining its Commitment or its interest in the Equipment Loan Notes or
Receivables Notes, as applicable, or to reduce any amount receivable in respect
thereof, then, in any such case, after submission by such Note Purchaser or
Affected Party to the Agent for the related Purchaser Group of a written request
therefor and the submission by such Agent to the Issuer, the Transferor and the
Servicer of such written request therefor, together with the certificate
described in subsection 2.3(d) below, the Servicer shall pay to such Agent for
the account of such Note Purchaser or Affected Party any additional amounts
necessary to compensate such Note Purchaser or Affected Party for such increased
cost or reduced amount

                                      -15-

<PAGE>

receivable, to the extent not already reflected in the applicable interest rate
(other than with respect to the applicable margin), together with interest on
any such unpaid amount from the Distribution Date following receipt by the
Issuer of such request for compensation under this subsection 2.3(a), if such
request is received by the Issuer at least five Business Days prior to the
Determination Date related to such Distribution Date, and otherwise from the
following Distribution Date, until payment in full thereof (after as well as
before judgment) at the Federal Funds Rate in effect from time to time.

          (b) In the event that any Note Purchaser or Affected Party, as
applicable, shall have reasonably determined that any Regulatory Change
regarding capital adequacy or any change in the application of generally
accepted accounting principles has the effect of reducing the rate of return on
such Note Purchaser's or Affected Party's capital or on the capital of any
Person controlling such Note Purchaser or Affected Party as a consequence of its
obligations hereunder or with respect hereto or its maintenance of its
Commitment or its interest in the Equipment Loan Notes or Receivables Notes, as
applicable, to a level below that which such Note Purchaser, Affected Party or
such Person could have achieved but for such Regulatory Change (taking into
consideration such Note Purchaser's, Affected Party's or Person's policies with
respect to capital adequacy) or such accounting change by an amount in good
faith deemed by such Note Purchaser, Affected Party or Person to be material,
then, from time to time, after submission by such Note Purchaser or Affected
Party to the Agent for the related Purchaser Group of a written request therefor
and the submission by such Agent to the Issuer, the Transferor and the Servicer
of such written request therefor, together with the certificate described in
subsection 2.3(d) below, the Issuer and the Servicer shall, on a joint and
several basis, pay to such Agent for the account of such Note Purchaser or
Affected Party such additional amount or amounts as will compensate such Note
Purchaser, Affected Party or Person, as applicable, for such reduction, together
with interest on any such unpaid amount from the Distribution Date following
receipt by the Issuer of such request for compensation under this subsection
2.3(b), if such request is received by the Issuer at least five Business Days
prior to the Determination Date related to such Distribution Date, and otherwise
from the following Distribution Date, until payment in full thereof (after as
well as before judgment) at the Federal Funds Rate in effect from time to time.
Nothing in this subsection 2.3(b) shall be deemed to require the Issuer or the
Servicer to pay any amount to a Note Purchaser or Affected Party to the extent
such Note Purchaser or Affected Party has been compensated therefor under
another provision of this Agreement or to the extent such amount is already
reflected in the applicable interest rate (other than with respect to the
applicable margin).

          (c) Each Note Purchaser and Affected Party agrees that it shall use
its reasonable efforts to reduce or eliminate any claim for compensation
pursuant to subsections 2.3(a) and 2.3(b), including but not limited to
designating a different Investing Office for their Equipment Loan Notes or
Receivables Notes, as applicable (or any interest therein), if such efforts will
avoid the need for, or reduce the amount of, any increased amounts referred to
in subsection 2.3(a) or 2.3(b) and will not, in the reasonable opinion of such
Note Purchaser or Affected Party, as applicable, be unlawful or otherwise
disadvantageous to such Note Purchaser or Affected Party or inconsistent with
its policies or regulatory restrictions or result in any unreimbursed cost or
expense to such Note Purchaser or Affected Party or in an increase in the
aggregate amount payable under subsections 2.3(a) and 2.3(b).

                                      -16-

<PAGE>

          (d) Each Note Purchaser or Affected Party claiming increased amounts
described in subsection 2.3(a) or 2.3(b) will furnish to the Agent for the
related Purchaser Group (together with its request for compensation) a
certificate prepared in good faith setting forth the basis (which may include
the use of estimates derived using commercially reasonable methods) and the
calculation of the amount (in reasonable detail) of each request by such Note
Purchaser or Affected Party for any such increased amounts referred to in
subsection 2.3(a) or 2.3(b). Any such certificate shall be conclusive absent
manifest error, and such Agent shall deliver a copy thereof to the Issuer, the
Transferor and the Servicer. Failure on the part of any Note Purchaser or
Affected Party to demand compensation for any amount pursuant to subsection
2.3(a) or 2.3(b) with respect to any period shall not constitute a waiver of
such Note Purchaser's or Affected Party's right to demand compensation with
respect to such period; provided, however, that notwithstanding the foregoing
provisions of this Section 2.3, a Note Purchaser or Affected Party, as
applicable, shall not be compensated for any such amount relating to any period
ending more than six months prior to the date that the related Agent for such
Note Purchaser or Affected Party notifies the Issuer, the Transferor and the
Servicer in writing thereof or for any amounts resulting from a change by any
Note Purchaser or Affected Party of its Investing Office (other than changes
required by law or changes made pursuant to subsection 2.3(c) or subsection
2.4(d)). Amounts owing under this Section 2.3 by the Issuer shall be due and
payable in accordance with Section 8.2 of the Indenture.

          2.4 Taxes.

          (a) All payments made to a Note Purchaser, an Affected Party, the
Agents or a Co-Administrative Agent under this Agreement and the Indenture
(including all amounts payable with respect to the Equipment Loan Notes or
Receivables Notes, as applicable) shall, to the extent allowed by law, be made
free and clear of, and without deduction or withholding for or on account of,
any present or future income, stamp, excise, franchise or other taxes, levies,
imposts, duties, charges, fees, deductions or withholdings, now or hereafter
imposed, levied, collected, withheld or assessed by any Governmental Authority
(collectively, "Taxes"), excluding (i) income taxes (including branch profit
taxes, minimum taxes and taxes computed under alternative methods, at least one
of which is based on or measured by net income), franchise taxes (imposed in
lieu of income taxes), or any other taxes based on or measured by the net income
of such Note Purchaser, Affected Party, Participant, Agent or Co-Administrative
Agent (as the case may be) or the gross receipts or income of such Note
Purchaser, Affected Party, Participant, Agent or Co-Administrative Agent, as the
case may be; (ii) any Taxes that would not have been imposed but for the failure
of such Note Purchaser, Affected Party, Participant, Agent or Co-Administrative
Agent, as applicable, to provide and keep current (to the extent legally able)
any certification or other documentation required to qualify for an exemption
from, or reduced rate of, any such Taxes or required by this Agreement to be
furnished by such Note Purchaser, Affected Party, Participant, Agent or
Co-Administrative Agent, as applicable; and (iii) any Taxes imposed as a result
of a change by any Note Purchaser, Affected Party or Participant of its
Investing Office (other than changes pursuant to this Agreement, including
subsection 2.4(c), or required by law) (all such excluded taxes being
hereinafter called "Excluded Taxes"). If, as a result of any change in law,
treaty or regulation or in the interpretation or administration thereof by any
governmental or regulatory agency or body charged with the administration or
interpretation thereof, or the adoption of any law, treaty or regulation, any
Taxes, other than Excluded Taxes, are required to be withheld from any amounts

                                      -17-

<PAGE>

payable to a Note Purchaser, Affected Party, Agent or Co-Administrative Agent
hereunder or under the Indenture, then after submission by any Note Purchaser or
Affected Party to the Agent for the related Purchaser Group and by any Agent or
Co-Administrative Agent to the Issuer, the Transferor and the Servicer of a
written request therefor, together with the certificate described in subsection
2.4(b) below, the amounts so payable to such Note Purchaser, Affected Party,
Agent or Co-Administrative Agent, as applicable, shall be increased by the
Issuer, and the Servicer shall pay to the applicable Agent for the account of
such Note Purchaser or Affected Party or for its own account or to a
Co-Administrative Agent, as applicable, the amount of such increase to the
extent necessary to yield to such Note Purchaser, Affected Party, Agent or
Co-Administrative Agent, as applicable (after payment of all such Taxes)
interest or any such other amounts payable hereunder or thereunder at the rates
or in the amounts specified in this Agreement and the Indenture; provided,
however, that the amounts so payable to such Note Purchaser, Affected Party,
Agent or Co-Administrative Agent shall not be increased pursuant to this
subsection 2.4(a) if such requirement to withhold results from the failure of
such Person to comply with subsection 2.4(c); and provided further, however,
that the Servicer shall not be required to pay any such additional amounts (or
any related interest or penalties) to the extent arising from the result of and
attributable to the failure of a Note Purchaser, Affected Party, Agent or
Co-Administrative Agent to file in a timely manner any tax returns required to
be filed by such Note Purchaser, Affected Party, Agent or Co-Administrative
Agent, as applicable, necessary to ensure that the net amount actually received
by such Person will equal the full amount such Person would have received had no
such deduction or withholding been required. Whenever any Taxes are payable on
or with respect to amounts distributed to a Note Purchaser, Affected Party,
Agent or Co-Administrative Agent, as promptly as possible thereafter the
Servicer shall send to the Agent, on behalf of such Note Purchaser or Affected
Party, or to such Agent or Co-Administrative Agent, as applicable, a certified
copy of an original official receipt showing payment thereof. If either the
Issuer or Servicer fails to pay any Taxes when due to the appropriate taxing
authority or fails to remit to the Agent, on behalf of itself or such Note
Purchaser or Affected Party, or to such Agent or Co-Administrative Agent, as
applicable, the required receipts or other required documentary evidence, the
Servicer shall pay to such Agent on behalf of such Note Purchaser or Affected
Party or to such Agent or Co-Administrative Agent for its own account, as
applicable, any incremental taxes, interest or penalties that may become payable
by such Note Purchaser, Affected Party, Agent or Co-Administrative Agent, as
applicable, as a result of any such failure.

          (b) A Note Purchaser or Affected Party claiming increased amounts
under subsection 2.4(a) for Taxes paid or payable by such Note Purchaser or
Affected Party will furnish to the applicable Agent a certificate prepared in
good faith setting forth the basis (which may include the use of estimates
derived using commercially reasonable methods) and amount of each request by
such Note Purchaser or Affected Party for such Taxes, and such Agent shall
deliver a copy thereof to the Issuer, the Transferor and the Servicer. An Agent
or a Co-Administrative Agent claiming increased amounts under subsection 2.4(a)
for its own account for Taxes paid or payable by such Agent or such
Co-Administrative Agent, as applicable, will furnish to the Issuer, the
Transferor and the Servicer a certificate prepared in good faith setting forth
the basis (which may include the use of estimates derived using commercially
reasonable methods) and amount of each request by such Agent or such
Co-Administrative Agent for such Taxes. Any such certificate of a Note
Purchaser, Affected Party, Agent or Co-Administrative Agent shall be conclusive
absent manifest error. Failure on the part of any Note Purchaser,

                                      -18-

<PAGE>

Affected Party, Agent or Co-Administrative Agent to demand additional amounts
pursuant to subsection 2.4(a) with respect to any period shall not constitute a
waiver of the right of such Note Purchaser, Affected Party, Agent or
Co-Administrative Agent, as the case may be, to demand compensation with respect
to such period. All such amounts shall be due and payable to such Agent on
behalf of such Note Purchaser or Affected Party or to such Agent or
Co-Administrative Agent for its own account, as the case may be, on the
Distribution Date following receipt by the Issuer of such certificate, if such
certificate is received by the Issuer at least five Business Days prior to the
Determination Date related to such Distribution Date and otherwise shall be due
and payable on the following Distribution Date (or, if earlier, on the Final
Scheduled Distribution Date).

          (c) Each Equipment Loan Note Purchaser, each Receivables Note
Purchaser and each Participant holding an interest in either the Equipment Loan
Notes or Receivables Notes agrees that prior to the date on which the first
interest or fee payment hereunder is due thereto, it will deliver to the Issuer,
the Transferor, the Servicer, the Indenture Trustee, the applicable Agent and
the Co-Administrative Agent (i) if such Equipment Loan Note Purchaser,
Receivables Note Purchaser or Participant is not incorporated under the laws of
the United States or any state thereof or the District of Columbia, two duly
completed copies of the U.S. Internal Revenue Service Form W-8ECI or Form W-8BEN
(claiming treaty benefits) or in either case successor applicable forms required
to evidence that the Equipment Loan Note Purchaser, Receivables Note Purchaser
or Participant is entitled to receive payments under this Agreement and with
respect to the Equipment Loan Notes or Receivables Notes, as applicable, without
deduction or withholding of any United States federal income taxes, (ii) if such
Equipment Loan Purchaser, Receivable Note Purchaser or Participant is
incorporated under the laws of the United States of America or any state
thereof, or the District of Columbia, a duly completed U.S. Internal Revenue
Service Form W-9 or successor applicable or required forms, and (iii) such other
forms and information as may be required to confirm the availability of any
applicable exemption from United States federal, state or local withholding
taxes. Each Equipment Loan Note Purchaser, Receivables Note Purchaser or
Participant holding an interest in Equipment Loan Notes or Receivables Notes
also agrees to deliver to the Issuer, the Transferor, the Servicer, the
Indenture Trustee, the applicable Agent and each Co-Administrative Agent two
further copies of such Form W-8ECI, Form W-8BEN or Form W-9, or such successor
applicable forms or other manner of certification, as the case may be, on or
before the date that any such form expires or becomes obsolete or after the
occurrence of any event requiring a change in the most recent form previously
delivered by it hereunder, and such extensions or renewals thereof as may
reasonably be requested by the Servicer, the Issuer, the Transferor, an Agent or
a Co-Administrative Agent, unless in any such case, solely as a result of a
change in treaty, law or regulation occurring prior to the date on which any
such delivery would otherwise be required, the Equipment Loan Note Purchaser or
the Receivables Note Purchaser, as applicable, is no longer eligible to deliver
the then-applicable form set forth above and so advises the Servicer, the
Issuer, the Transferor and the applicable Agent and each Co-Administrative
Agent. Each Equipment Loan Note Purchaser and each Receivables Note Purchaser
certifies, represents and warrants as of the Closing Date, each Assignee and
each Participant (in either case other than a Support Party) shall certify,
represent and warrant as a condition of acquiring its Assignment or
Participation as of the effective date of the Transfer Supplement to which it is
a party or of such Participation, as the case may be, and each Support Party
shall certify, represent and warrant as of the effective date of its becoming a
Support Party, that (x) it is entitled to receive payments

                                      -19-

<PAGE>

under this Agreement and with respect to the Equipment Loan Notes or Receivables
Notes, as applicable, without deduction or withholding of any United States
federal income taxes and (y) it is entitled to an exemption from United States
backup withholding.

          (d) Each Note Purchaser and Affected Party agrees that it shall use
reasonable efforts to reduce or eliminate any amount due under Section 2.3 or
this Section 2.4, including but not limited to designating a different Investing
Office for its Equipment Loan Notes or Receivables Notes, as applicable, (or any
interest therein) if such designation will eliminate or materially reduce any
amount due under Section 2.3 or this Section 2.4 and will not, in the reasonable
opinion of such Note Purchaser or Affected Party be unlawful or otherwise
disadvantageous to such Note Purchaser or Affected Party or inconsistent with
its policies or result in any unreimbursed cost or expense to such Note
Purchaser or Affected Party or in an increase in the aggregate amount payable
under subsections 2.3(a) and 2.3(b). If such amount is not eliminated by any
such designation or no such designation is done and the Note Purchaser does not
waive payment of such amount, such Note Purchaser and the Agent for its
Purchaser Group hereby severally agree to use reasonable efforts to procure a
replacement purchaser not so affected and which is reasonably acceptable to the
Transferor, such Agent and each Co-Administrative Agent (a "Replacement
Purchaser") to replace such affected Note Purchaser. The Transferor shall also
have the right to procure a Replacement Purchaser, provided that such proposed
Replacement Purchaser is reasonably acceptable to the Agent for the affected
Purchaser Group and the Co-Administrative Agent. No replacement of a Note
Purchaser shall be effected pursuant to this subsection 2.4(d) if, after giving
effect thereto, any amounts shall be owing to the replaced Note Purchaser
hereunder. Each affected Note Purchaser hereby agrees to take all actions
necessary to permit a Replacement Purchaser to succeed to its rights and
obligations hereunder.

          Notwithstanding the foregoing, (i) if the Note Purchaser being
replaced pursuant to this subsection is a CPC Committed Purchaser, the
Replacement Purchaser shall be acceptable to the related CP Conduit and (ii) if
the Note Purchaser being replaced pursuant to this subsection is a CP Conduit,
the Replacement Purchaser shall be acceptable to all related CPC Committed
Purchasers; and it shall be a condition of such replacement that such
Replacement Purchaser enter into substitute Support Facilities for those to
which the Note Purchaser being replaced is a party on terms mutually acceptable
to the parties thereto. In the event that a proposed Replacement Purchaser which
has been approved by the Transferor, the applicable Agent and each
Co-Administrative Agent as provided in this subsection is not acceptable to the
applicable CP Conduit or the applicable Committed Purchasers, as applicable, or
has not within a reasonable period entered into applicable Support Facilities,
and another replacement Note Purchaser has not been promptly procured as
provided in this subsection with the consent of all affected parties, then the
Note Purchaser which failed to consent to such replacement or to enter into such
Support Facilities may be replaced by a Replacement Purchaser and shall use
reasonable efforts to procure a Replacement Purchaser, in each case as provided
in this subsection. Amounts owing under this Section 2.4 by the Issuer shall be
due and payable in accordance with Section 8.2 of the Indenture.

          If such amount is not eliminated due to the failure to find an
acceptable Replacement Purchaser (or such Replacement Purchaser not being
acceptable to the related CP Conduit), and the affected Note Purchaser does not
waive payment of such amount, the

                                      -20-

<PAGE>

Transferor shall have the right to procure a replacement purchaser for such Note
Purchaser and any additional Note Purchaser in such Note Purchaser's Purchaser
Group (the "Exiting Note Purchaser Group") and a replacement agent for the
respective Agent in the Exiting Note Purchaser Group (collectively, the
"Replacement Purchaser Group"), provided that if the Exiting Note Purchaser
Group contains a member that is a Co-Administrative Agent, such proposed
Replacement Purchaser Group is reasonably acceptable to the remaining
Co-Administrative Agent. No replacement of an Exiting Note Purchaser Group shall
be effected pursuant to this subsection 2.4(d) if, after giving effect thereto,
any amounts shall be owing to any replaced member of such Exiting Note Purchaser
Group hereunder. Each member of the Exiting Note Purchaser Group hereby agrees
to take all actions necessary to permit the members of the Replacement Note
Purchaser Group to succeed to its rights and obligations hereunder.

          2.5 Indemnification.

          (a) The Issuer and ALS agree to jointly and severally indemnify and
hold harmless each Co-Administrative Agent, each Agent, each Note Purchaser and
each Affected Party and any director, officer, employee or agent thereof (each
such Person being an "Indemnitee") from and against any and all claims, damages,
losses, liabilities, costs or expenses (including reasonable fees and
out-of-pocket expenses of counsel) whatsoever (including claims under federal or
state securities laws), which the Indemnitee incurs (or which may be claimed
against the Indemnitee) by reason of or in connection with (i) the failure of
the offer and sale by or on behalf of the Issuer, the Transferor or any of their
affiliates of the Notes in accordance with this Agreement and the other Basic
Documents to comply with applicable law, (ii) the failure by the Issuer, the
Transferor, ALS or the Servicer (if the Servicer is ALS or an Affiliate thereof)
to comply with any covenant set forth in this Agreement or any other Basic
Document (provided that ALS shall not be liable for any indemnity arising under
this clause (ii) as a result of the Issuer's failure to increase or replenish
the Letter of Credit after the Closing Date pursuant to Section 3.27 of the
Indenture), (iii) reliance on any written false representation or warranty made
(including reaffirmation) by the Issuer, the Transferor, ALS or the Servicer (if
the Servicer is ALS or an Affiliate thereof) set forth in this Agreement or any
other Basic Document, (iv) the failure to vest in the Indenture Trustee a first
priority perfected security interest in the Trust Estate, (v) any failure of
ALS, as Servicer or otherwise, to perform its duties or obligations in
accordance with the provisions of this Agreement or any of the other Basic
Documents, (vi) third party claims arising from the commingling of Collections
by the Issuer, the Servicer or the Transferor at any time with its other funds
or the funds of another Person, (vii) claims by third parties (including parties
to the Basic Documents only at a time when a Rapid Amortization Event exists and
at all times excluding claims arising among the Agents, Co-Administrative Agents
and Note Purchasers) arising out of the servicing of the Loans or Receivables,
the use or ownership of the Equipment, or the repossession (other than Losses
related to a decline in value of the Equipment repossessed) or operation by the
Servicer or any Affiliate thereof of any item of Equipment or collateral
therefore, but only so long as and with respect for actions taken while ALS is
the Servicer, (viii) any statement, omission or act in connection with the
offering, issuance, sale or delivery of any of the Notes and (ix) claims by
third parties relating to products liability, lender liability or any other
claims by third parties (including parties to the Basic Documents only at a time
when a Rapid Amortization Event exists and at all times excluding claims arising
among the Agents, Co-Administrative Agents and Note Purchasers) arising from the
transactions contemplated by this Agreement or any other Basic Document, except
(A) to the

                                      -21-

<PAGE>

extent that any such claim, damage, loss, liability, cost or expense shall be
caused by the bad faith, willful misconduct or gross negligence of an Indemnitee
within the same Equipment Loan Purchaser Group or Receivables Purchaser Group,
as applicable, as the Indemnitee making the claim in performing its obligations
under this Agreement, (B) for recourse as a result of nonpayment by Obligors for
credit reasons on the Accounts or the related Equipment Loans, (C) for recourse
as a result of nonpayment by Obligors for credit reasons on the Accounts or the
related Receivables or (D) to the extent the same constitute consequential,
special or punitive damages. Subject to the limitations set forth above, but
without limiting the generality of the foregoing, the Issuer agrees to indemnify
and hold harmless each Indemnitee from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind whatsoever which may at any time
(including at any time following the payment of the obligations under this
Agreement, including payment of the Equipment Loan Note Principal Balance and
payment of the Receivables Note Principal Balance) be imposed on, incurred by or
asserted against such Indemnitee in any way relating to or arising out of this
Agreement, or any documents contemplated by or referred to herein or the
transactions contemplated hereby or any action taken or omitted by any
Indemnitee under or in connection with any of the foregoing; provided that the
Issuer shall not be liable under this sentence for the payment of any portion of
such liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of an Indemnitee within the same
Equipment Loan Purchaser Group or Receivables Purchaser Group, as applicable, as
the Indemnitee making the claim resulting from its own gross negligence or
willful misconduct. Promptly after receipt by an Indemnitee of notice of the
commencement of any action, such Indemnitee, as the case may be, will, if a
claim in respect thereof is to be made under this subsection 2.5(a), notify the
Issuer and the Transferor in writing of the commencement thereof; provided,
however, the omission to so notify the Issuer or the Transferor will not relieve
the Issuer or the Transferor from any liability which it may have to such
Indemnitee under this subsection 2.5(a) except to the extent the Issuer or the
Transferor was actually prejudiced by the failure to give such notices promptly.
Amounts owing under this Section 2.5(a) by the Issuer shall be due and payable
in accordance with Section 8.2 of the Indenture.

          (b) If any action or proceeding (including any governmental
investigation) shall be brought or asserted against any Indemnitee in respect of
which the indemnity provided above may be sought from ALS or the Issuer (the
"Indemnifying Party") each such Indemnitee shall promptly notify the
Indemnifying Party in writing, and the Indemnifying Party may, within a
reasonable time, irrevocably assume the defense thereof, including the
employment of counsel reasonably satisfactory to the Indemnitee and the payment
of all expenses and reasonable legal fees; provided that failure to notify the
Indemnifying Party shall not relieve it from any liability it may have to such
Indemnitee except to the extent that it shall be actually prejudiced thereby;
provided, further, that, the Indemnifying Party shall not be entitled to assume
the defense of any such action or proceeding (i) unless the Indemnifying Party
shall have acknowledged in writing to the Indemnitee that such action or
proceeding is covered by the indemnification set forth in Section 2.5(a), (ii)
if the proceeding is a governmental proceeding involving the possible imposition
of any criminal liability or penalty, (iii) if the relief sought in such action
or proceeding is the seeing of injunctive relief against the Indemnifying Party
affecting property, assets or activity not related to this transaction, or (iv)
in the reasonable opinion of the Indemnitee, such defense or compromise involves
a conflict of interest between such Indemnitee and an Indemnifying Party. The
Indemnitee shall have the right to employ separate counsel in

                                      -22-

<PAGE>

any such action and to participate in the defense thereof at the expense of the
Indemnitee; provided, however that the fees and expenses of separate counsel to
the Indemnitee in any such proceeding shall be at the expense of the
Indemnifying Party if (i) the Indemnifying Party has agreed to pay such fees and
expenses, (ii) the Indemnifying Party shall have failed to assume the defense of
such action or proceeding or employ counsel reasonably satisfactory to the
Indemnitee in any such action or proceeding within a reasonable time after the
commencement of such action or (iii) the named parties to any such action or
proceeding (including any impleaded parties) include both the Indemnitee and the
Indemnifying Party, and the Indemnitee shall have been advised in writing by
counsel that there may be one or more legal defenses available to it which are
different from or additional to those available to the Indemnifying Party which
gives rise to a conflict of interest (in which case, if the Indemnitee notifies
the Indemnifying Party in writing that it elects to employ separate counsel at
the expense of the Indemnifying Party, the Indemnifying Party shall not have the
right to assume the defense of such action or proceeding on behalf of such
Indemnitee, it being understood, however, that the Indemnifying Party shall not,
in connection with any one such action or proceeding or separate but
substantially similar or related actions or proceedings in the same jurisdiction
arising out of the same general allegations or circumstances, be liable for the
reasonable fees and expenses of more than one separate firm of attorneys at any
time for the Indemnified Parties, which firm shall be designated in writing by
the Indemnitee and shall be reasonably acceptable to the Indemnitee). The
Indemnifying Party shall not be liable for any settlement of any such action or
proceeding effected without its written consent to the extent that any such
settlement shall be prejudicial to the Indemnifying Party (to which the
Indemnified Party did not consent), but, if settled with its written consent, or
if there is a final non-appealable judgment for the plaintiff in any such action
or proceeding with respect to which the Indemnifying Party shall have received
notice in accordance with this paragraph, the Indemnifying Party agrees to
indemnify and hold the Indemnitees harmless from and against any loss or
liability by reason of such settlement or judgment.

          (c) Any Successor Servicer, by accepting its appointment pursuant to
the Pooling and Servicing Agreement, (i) shall agree to be bound by the terms,
covenants and conditions contained herein applicable to the Servicer and to be
subject to the duties and obligations of the Servicer hereunder, (ii) as of the
date of its acceptance, shall be deemed to have made with respect to itself only
the representations and warranties made by the Servicer in Section 4.2 (with
appropriate factual changes) and (iii) shall agree to indemnify and hold
harmless any Indemnitee from and against any and all claims, damages, losses,
liabilities, costs or expenses (including the fees and expenses of counsel)
whatsoever which such Indemnitee may incur (or which may be claimed against such
Indemnitee) by reason of the bad faith, negligence or willful misconduct of such
Servicer in exercising its powers and carrying out its obligations under this
Agreement, the Pooling and Servicing Agreement or any Related Document.

          (d) In the event that for any reason, any Note Purchaser receives any
repayment of (i) its share of the Equipment Loan Note Principal Balance (A)
other than on a Distribution Date or (B) on a Distribution Date if less than 2
Business Days' prior notice of such Distribution Date repayment is received
(which notice must specify the amount of such repayment), or (ii) its share of
the Receivables Note Principal Balance upon fewer than 1 Business Day's prior
written notice no later than 3:00 p.m., New York City time (which notice must
specify the amount of such repayment), then in any such case the Issuer agrees
to

                                      -23-

<PAGE>

indemnify and hold harmless each affected Note Purchaser against, and to
promptly pay on demand directly to such Note Purchaser the amount equal to any
loss, cost or expense incurred or suffered by such Note Purchaser as a result of
such change, repayment or other action, including any hedge breakage costs and
any loss, cost or reasonable out-of-pocket expense incurred or suffered by such
Note Purchaser (other than loss of profit) by reason of any prepayment expense
incurred or suffered by reason of the liquidation on redeployment of deposits or
other funds prepaid, repaid or otherwise acquired by such Note Purchaser, in
amounts which correspond to its share of the Equipment Loan Note Principal
Balance or Receivables Note Purchase Balance, as applicable. A statement setting
forth in reasonable detail the calculations of any additional amounts payable
pursuant to this Section 2.5 submitted by a Note Purchaser, an Agent, or a
Co-Administrative Agent, as the case may be, to the Issuer, the Transferor and
the Servicer shall be conclusive absent manifest error.

          2.6 Expenses, etc.

          (a) The Transferor, ALS and the Issuer (with respect to the Issuer, in
accordance with Section 8.2 of the Indenture) agree jointly and severally to pay
on demand (i) to each Co-Administrative Agent, each Agent, the initial Equipment
Loan Note Purchasers, and the initial Receivables Note Purchasers all reasonable
costs and expenses in connection with the preparation, execution, and delivery
of this Agreement and the other documents to be delivered hereunder or in
connection herewith, including the reasonable fees and out-of-pocket expenses of
counsel with respect thereto and the amounts due to Rating Agencies in
connection with their rating of the Notes and their review of the Note
Purchasers' acquisition and funding of the Notes (including all costs incurred
with respect to the confirmation of a CP Conduit's rating on its commercial
paper in connection therewith), (ii) to each Co-Administrative Agent, Agent,
Equipment Loan Note Purchaser and Receivables Note Purchaser, all reasonable
costs and expenses (including reasonable fees and expenses of counsel) in
connection with the preparation, negotiation, execution, delivery, distribution,
review, amendment (including any requested waivers and consents) of this
Agreement or the Related Documents, and (iii) to each Co-Administrative Agent,
Agent, Equipment Loan Note Purchaser and Receivables Note Purchaser, on demand,
all reasonable costs and expenses (including reasonable fees and expenses of
counsel), if any, in connection with the enforcement of this Agreement or any of
the Related Documents, and the other documents delivered thereunder or in
connection therewith. Amounts required to be paid by the Transferor pursuant to
this subsection 2.6(a) shall not be payable from the Trust Estate.

          (b) The Servicer agrees to pay on demand any and all stamp, transfer
and other similar taxes (other than Taxes covered by Section 2.4) and
governmental fees payable in connection with the execution, delivery, filing and
recording of any of the Related Documents and each related Support Facility, and
agrees to save each Equipment Loan Note Purchaser, Receivables Note Purchaser,
Agent and Co-Administrative Agent harmless from and against any liabilities with
respect to or resulting from any delay in paying or any omission to pay such
taxes and fees. Amounts required to be paid by the Transferor pursuant to this
subsection 2.6(b) shall not be payable from the Trust Estate.

          2.7 Deliveries by Note Purchasers. For the purposes of Sections 2.3,
2.4, 2.5, and 2.6 above, all deliveries required to be made by a Note Purchaser
to the Issuer, the

                                      -24-

<PAGE>

Transferor or the Servicer shall be made to each Co-Administrative Agent and to
the Agent for such Note Purchaser's Purchaser Group, and one of such Agents who
in turn shall make such deliveries to the Issuer, the Transferor and/or the
Servicer, as applicable. Such delivery by such Note Purchaser shall not be
deemed made until such Agent for such Purchaser Group makes delivery thereof to
the Issuer, the Transferor and/or the Servicer, as applicable, as provided in
Section 8.2 below.

                         ARTICLE 3 CONDITIONS PRECEDENT

          3.1 Conditions to Initial Purchase. The following shall be conditions
precedent to the initial purchase of the Equipment Loan Notes or Receivables
Notes, as applicable, by the Equipment Loan Note Purchasers or Receivables Note
Purchasers, as applicable:

          (a) the representations and warranties of the Issuer, the Servicer and
the Transferor set forth or referred to in Article 4 and all representations and
warranties of the Sellers set forth in the Purchase Agreement shall be true and
correct in all material respects on the Closing Date as though made on and as of
the Closing Date (except for representations and warranties which relate to a
specific date, which shall be true and correct as of such date), and no Rapid
Amortization Event or Event of Default, and no event that, after the giving of
notice or the lapse of time (or both), would constitute a Rapid Amortization
Event or Event of Default, shall have occurred and be continuing on the Closing
Date;

          (b) the Applicable Margin Fee Letter shall have been executed and
delivered by the Issuer to each Agent;

          (c) the Equipment Loan Notes and the Receivables Notes shall have been
duly issued in accordance with the Indenture;

          (d) the Transferor, the Servicer or the Issuer, as applicable, shall
have paid all fees payable on the Closing Date to each Co-Administrative Agent,
as applicable (for its own account or for the accounts of the initial Note
Purchasers), described in the Fee Letter and the Applicable Margin Fee Letter
and all reasonable and appropriately invoiced costs and expenses of the
Co-Administrative Agents and the initial Agents and the Note Purchasers payable
by the Transferor or the Issuer, as applicable, to the extent provided herein,
in connection with the transactions contemplated hereby; and

          (e) each Co-Administrative Agent on behalf of the Note Purchasers
shall have received on the Closing Date the following items, each of which shall
be in form and substance satisfactory to each Agent and each Co-Administrative
Agent:

               (i) an Officer's Certificate of the Servicer confirming the
satisfaction of the conditions set forth in clause (a) (as to representations
and warranties of the Servicer only) above;

               (ii) an Officer's Certificate of the Transferor confirming the
satisfaction of the conditions set forth in clauses (a) (as to representations
and warranties of the Transferor only) and (d) above;

                                      -25-

<PAGE>

               (iii) an Officer's Certificate of the Issuer confirming the
satisfaction of the conditions set forth in clauses (a) (as to representations
and warranties of the Issuer only) and (c) above;

               (iv) a copy of (A) the certificate of formation and limited
liability company agreement or trust agreement, as applicable, of, and an
incumbency certificate with respect to its officers executing any of the Related
Documents on the Closing Date on behalf of, each of the Issuer, the Transferor
and the Servicer, certified by its authorized officer, (B) the Trust Agreement
and an incumbency certificate with respect to officers of the Owner Trustee
executing any of the Related Documents on the Closing Date on behalf of the
Issuer and (C) resolutions of the Board of Managers (or an authorized committee
thereof) of each of the Transferor and the Servicer with respect to the Related
Documents to which it is party, certified by its authorized officer;

               (v) a certificate issued no earlier than 30 days prior to the
Closing Date by an appropriate Governmental Authority evidencing the legal
existence and good standing of each of the Servicer as a Delaware limited
liability company and of Transferor as a Delaware limited liability company;

               (vi) the favorable written opinions of counsel for the Issuer,
the Owner Trustee, the Indenture Trustee, the Transferor and the Servicer,
addressed to each Co-Administrative Agent, each Agent and each Note Purchaser,
dated the Closing Date, covering general corporate matters, no conflicts with
any applicable law or other agreements, the due execution and delivery of, and
the enforceability of, each of the Basic Documents to which the Issuer, the
Owner Trustee, the Indenture Trustee, the Transferor and the Servicer is party,
true sale/non-consolidation, perfection and priority of security interest
matters, tax characterization of the Issuer and the Notes and such other matters
as each Co-Administrative Agent or its counsel may reasonably request;

               (vii) the favorable written opinions of counsel for the Insurer,
addressed to each Administrative Agent, each Agent and each Note Purchaser,
dated the Closing Date, covering general corporate matters, the due execution
and delivery of, and the enforceability of, each of the Basic Documents to which
the Insurer is party

               (viii) evidence of the due execution and delivery by the Owner
Trustee, on behalf of the Trust, and the Indenture Trustee of the Related
Documents to which each is party;

               (ix) an executed copy of each of the Transfer and Servicing
Agreements, the Indenture, the Trust Agreement, the Administration Agreement,
the Control Agreement and each of the other Basic Documents;

               (x) a certificate of the Indenture Trustee as to the
establishment of certain accounts as provided in the Pooling and Servicing
Agreement;

               (xi) the duly executed Equipment Loan Note(s) registered in the
name of each Agent as nominee on behalf of the Equipment Loan Note Owners in its
Purchaser Group or, if requested by such Agent, in the name of the relevant
Primary Purchaser;

                                      -26-

<PAGE>

               (xii) the duly executed Receivables Note(s) registered in the
name of each Agent as nominee on behalf of the Receivables Note Owners in its
Purchaser Group or, if requested by such Agent, in the name of the relevant
Primary Purchaser;

               (xiii) evidence satisfactory to each Co-Administrative Agent that
financing statements duly executed by ALS, each Seller, Alliance Equipment
Receivables and the Issuer or other, similar instruments or documents, as may be
necessary or, in the opinion of any Co-Administrative Agent, Agent or Note
Purchaser, desirable under the Uniform Commercial Code of all appropriate
jurisdictions or any comparable law to perfect the transfers (including grants
of security interests) under the Related Documents have been delivered and, if
appropriate, have been duly filed or recorded and that all filing fees, taxes or
other amounts required to be paid in connection therewith have been paid;

               (xiv) certified copies of requests for information or copies (or
a similar search report certified by a party acceptable to each
Co-Administrative Agent), dated a date reasonably near to the Closing Date,
listing all effective financing statements which name ALS or any Seller (under
its present name and any previous name) as debtor and which are filed in the
jurisdictions in which the statements referred to in clause (xiii) above were or
are to be filed, together with copies of such financing statements (none of
which, other than financing statements naming the party under the Related
Documents to which transfers (including grants of security interests) thereunder
purport to have been made shall cover any of the property purported to be
conveyed thereunder);

               (xv) evidence satisfactory to each Co-Administrative Agent that
the Notes are rated Aaa by Moody's with shadow ratings of Baa2 and AAA by
Standard & Poor's with shadow ratings of BBB;

               (xvi) evidence satisfactory to each initial CP Conduit that its
purchase of Equipment Loan Notes and Equipment Loan Advance Increases hereunder
(if any) will not result in a reduction or withdrawal of the rating of its
Commercial Paper by the Rating Agencies;

               (xvii) evidence satisfactory to each initial CP Conduit that its
purchase of Receivables Notes and Receivables Advance Increases hereunder (if
any) will not result in a reduction or withdrawal of the rating of its
Commercial Paper by the Rating Agencies;

               (xviii) an executed copy of a membership agreement between SPARC
and the Issuer;

               (xix) an executed copy of each agreement, in a form acceptable to
each Co-Administrative Agent, necessary for the termination of all agreements
and security interests relating to the warehouse facility in the form attached
hereto as Exhibit C; and

               (xx) such additional documents, instruments, certificates or
letters as any Co-Administrative Agent, Agent or Note Purchaser may reasonably
request.

          3.2 Condition to Additional Purchases. The following shall be
conditions precedent to the obligation of any Note Purchaser to purchase its
share of the Equipment Loan Initial Advance, any Equipment Loan Advance
Increase, Receivables Initial Advance or any

                                      -27-

<PAGE>

Receivables Advance Increase, as applicable, on any Purchase Date (including the
Closing Date);

          (a) except in the case of the initial purchase on the Closing Date,
each Agent shall have timely received a properly completed Advance Increase
Notice;

          (b) (i) all interest, fees, expenses and all other amounts then due
and payable to any Co-Administrative Agent, Note Purchaser or Agent hereunder
shall have been paid, and (ii) no Rapid Amortization Event or Event of Default,
and no event that, after the giving of notice or the lapse of time (or both),
would constitute a Rapid Amortization Event or Event of Default, shall have
occurred and be continuing that has not been waived in writing by the Control
Party;

          (c) (i) in the case of the Closing Date, all conditions to the
issuance of the Notes set forth in the Indenture or any other Related Document
shall have been satisfied, (ii) in the case of any Equipment Loan Borrowing
Date, all conditions to the occurrence of the Equipment Loan Advance Increase to
occur on such Equipment Loan Borrowing Date set forth in the Indenture or any
other Related Document shall have been satisfied and (iii) in the case of any
Receivables Borrowing Date, all conditions to the occurrence of the Receivables
Advance Increase to occur on such Receivables Borrowing Date set forth in the
Indenture or any other Related Document shall have been satisfied;

          (d) after giving effect to the issuance of the Equipment Loan Notes,
the issuance of the Receivables Notes, the Equipment Loan Advance Increase or
the Receivables Advance Increase, as applicable, all representations and
warranties of the Transferor, the Issuer, the Seller and the Servicer contained
herein or made or reaffirmed on the related Purchase Date in the Related
Documents, or otherwise made in writing pursuant to any of the provisions hereof
or thereof, shall be true and correct in all material respects with the same
force and effect as though such representations and warranties had been made on
and as of such date (other than representations and warranties which
specifically relate to an earlier date, which shall be true and correct in all
material respects as of such earlier date);

          (e) after giving effect to the issuance of the Equipment Loan Notes or
the Equipment Loan Advance Increase to occur on such Purchase Date, the
Equipment Loan Note Principal Balance shall be equal to or less than the lesser
of (i) the Equipment Loan Facility Limit and (ii) the Equipment Loan Borrowing
Base as set forth in the related Advance Increase Notice;

          (f) after giving effect to the issuance of the Receivables Notes or
the Receivables Advance Increase to occur on such Purchase Date, the Receivables
Note Principal Balance shall be equal to or less than the lesser of (i) the
Receivables Facility Limit and (ii) the Receivables Borrowing Base as set forth
in the related Advance Increase Notice;

          (g) (i) after giving effect to the issuance of the Equipment Loan
Notes on the Closing Date, the Weighted Average Life of the Eligible Loans in
the Trust shall not be greater than 3.5 years and (ii) after giving effect to
any Equipment Loan Advance Increase to occur on any Purchase Date, (x) the
Weighted Average Life of the Eligible Loans in the Trust shall not

                                      -28-

<PAGE>

have been greater than 3.5 years for the period of 6 consecutive calendar months
ending on such Purchase Date and (y) if the Weighted Average Life of the
Eligible Loans in the Trust shall be greater than 3.5 years on such Purchase
Date, the Weighted Average Life of the Eligible Loans in the Trust after giving
effect to such Equipment Loan Advance Increase shall be less than the Weighted
Average Life of the Eligible Loans in the Trust before giving effect to such
Equipment Loan Advance Increase;

          (h) after giving effect to the issuance of the Equipment Loan Notes or
the Equipment Loan Advance Increase to occur on such Purchase Date, the weighted
average effective interest rate of Equipment Loans with fixed interest rates in
the Trust shall not be less than 9.50% per annum;

          (i) after giving effect to the issuance of the Equipment Loan Notes or
the Equipment Loan Advance Increase to occur on such Purchase Date, the
aggregate Loan Balance (net of security deposits) of all Equipment Loans with
fixed interest rates in the Trust shall not be greater than (x) $100,000,000 (if
such date is on or prior to the 25th Distribution Date) or (y) $110,000,000 at
any time thereafter; and

          (j) in the case of each Equipment Loan Borrowing Date and Receivables
Borrowing Date, the Issuer shall have delivered to each Agent an Officer's
Certificate dated such Equipment Loan Borrowing Date or Receivables Borrowing
Date, as applicable, certifying that the applicable conditions described in
subsections 3.2(a) through 3.2(g) have been satisfied;

          (k) the Conversion Date shall not have occurred.

                    ARTICLE 4 REPRESENTATIONS AND WARRANTIES

          4.1 Representations and Warranties of the Issuer. The Issuer
represents and warrants to the Note Purchasers, the Agents and the
Co-Administrative Agents that the representations and warranties of the Issuer
set forth in the Transfer and Servicing Agreements, the Indenture and the other
Related Documents to which it is a party are true and correct as of the date
hereof (except for representations or warranties which relate to a specific
date, which shall be true and correct as of such date).

          4.2 Representations and Warranties of the Transferor and the Servicer.
Each of the Transferor and the Servicer severally (each with respect to itself
only) represents and warrants to the Note Purchasers, the Agents and the
Co-Administrative Agents that its representations and warranties (as Transferor
or Servicer, as applicable) set forth in the Pooling and Servicing Agreement and
the other Related Documents to which it is a party are true and correct as of
the date hereof (except for representations or warranties which relate to a
specific date, which shall be true and correct as of such date).

          4.3 Representations and Warranties of the Note Purchasers. Each of the
Note Purchasers severally (each with respect to itself only) represents and
warrants to, and agrees with, the Issuer, the Servicer and the Transferor that:

                                      -29-

<PAGE>

          (a) Such Note Purchaser is duly authorized to enter into and perform
this Agreement and its respective Investment Letter and has duly executed and
delivered this Agreement and such Investment Letter;

          (b) This Agreement constitutes the valid and binding obligation of
such Note Purchaser, enforceable in accordance with its terms, subject to
bankruptcy, insolvency, reorganization, receivership and other laws relating to,
or affecting generally, the enforcement of creditors' rights and remedies as the
same may be applied in the event of the bankruptcy, insolvency, reorganization,
receivership or liquidation or a similar event of such Note Purchaser or a
moratorium applicable to such Note Purchaser and to general principles of equity
(regardless of whether such enforceability is considered in a proceeding at law
or in equity); and

          (c) No registration with, consent or approval of or other action by
any federal, state, or other Governmental Authority or regulatory body having
jurisdiction over such Note Purchaser is required in connection with the
execution, delivery or performance by such Note Purchaser of this Agreement.

                               ARTICLE 5 COVENANTS

          5.1 Covenants. Each of the Issuer, the Transferor, the Seller and the
Servicer severally covenants and agrees, in each case as to itself individually
or in such respective capacities, each with respect to itself only, until
termination of this Agreement as provided herein, unless the Required Equipment
Loan Note Owners, the Required Equipment Loan Note Purchasers, the Required
Receivables Note Owners and the Required Receivables Note Purchasers shall
otherwise consent in writing, that:

          (a) Unless waived in writing by the Control Party, each of the Issuer,
the Transferor, the Seller and the Servicer, as applicable, shall perform in all
material respects each of the respective agreements and warranties applicable to
it under the Related Documents to which it is a party and comply in all material
respects with each of the respective terms and provisions applicable to it under
the Related Documents to which it is party, which agreements and warranties are
hereby incorporated by reference into this Agreement as if set forth herein in
full;

          (b) The Transferor, the Issuer and the Servicer, as applicable, shall
promptly furnish to each Agent and Co-Administrative Agent (i) a copy of each
certificate, report, statement, notice or other communication furnished by or on
behalf of the Transferor, the Issuer or the Servicer, as applicable, to the
holders of Notes concurrently therewith, and (ii) such other information,
documents, records or reports respecting the Equipment Loans and Receivables,
the Issuer, the Transferor or the Servicer which is in the possession or under
the control of the Issuer, the Transferor or the Servicer, as the case may be,
as any Co-Administrative Agent may from time to time reasonably request;

          (c) Without limitation of the provisions of subsection 5.1(b) above,
the Servicer (with respect to clauses (i), (ii) and (iii) of this subsection
5.1(c)) and the Issuer (with respect to clause (iv) of this subsection 5.1(c))
shall furnish to each Agent (i) with respect to each Distribution Date, a copy
of the completed Monthly Report furnished to each initial Noteholder,

                                      -30-

<PAGE>

the Insurer and the Rating Agencies pursuant to Section 5.08 of the Pooling and
Servicing Agreement, (ii) a copy of each annual certified public accountants'
reports received by the Indenture Trustee, the Owner Trustee, the Servicer and
the Insurer pursuant to Section 5.02(a) of the Pooling and Servicing Agreement,
(iii) a copy of each Officer's Certificate of the Servicer furnished to the
Indenture Trustee, the Owner Trustee and the Insurer pursuant to Section 5.01(a)
of the Pooling and Servicing Agreement and (iv) a copy of each Opinion of
Counsel delivered pursuant to subsection 3.6 or Section 12.1 of the Indenture);

          (d) Each of the Issuer, the Transferor and the Seller, as applicable,
shall furnish to each Agent promptly after known to such party, information with
respect to any action, suit or proceeding involving such party or any of its
Affiliates by or before any court or any Governmental Authority which, if
adversely determined, would be reasonably likely to result in a material and
adverse effect on the transactions contemplated by, or such party's ability to
perform its obligations under, this Agreement or the Related Documents;

          (e) From the date hereof until the termination date of this Agreement,
unless waived by the Control Party, each of the Issuer, the Transferor and the
Servicer, as applicable, will comply with the provisions set forth in Section
5.03 of the Pooling and Servicing Agreement;

          (f) The Transferor and Servicer shall furnish to each Agent, promptly
after the occurrence of any Rapid Amortization Event or Event of Default, a
certificate of an appropriate officer of the Transferor setting forth the
information provided in the certificate delivered pursuant to subsection 4.1(k)
of the Indenture;

          (g) The Transferor, the Issuer and the Servicer, as applicable, shall
comply with the provisions set forth in Section 9.2 of the Indenture; and

          (h) Each statement of the Servicer delivered in accordance with
Section 12.1 of the Indenture shall be correct in all material respects and
shall have been prepared, in all material respects, in accordance with the
applicable provisions of the Related Documents.

                            ARTICLE 6 THE NOTE AGENTS

          6.1 Authorization and Action of the Note Agents. (a) Each Note
Purchaser hereby appoints and authorizes each Co-Administrative Agent to take
such action as agent on its behalf and to exercise such powers under this
Agreement, the Indenture, any Transfer and Servicing Agreement and any other
Related Documents as are delegated to any Administrative Agent by the terms
hereof and thereof, together with such powers as are reasonably incidental
thereto. Each Note Purchaser in each Purchaser Group hereby appoints and
authorizes the Agent for such Purchaser Group as the agent of such Note
Purchaser under this Agreement to take such action as agent on its behalf and to
exercise such powers under this Agreement, the Indenture, the Pooling and
Servicing Agreement and any other Related Documents as are delegated to such
Agent by the terms hereof and thereof, together with such powers as are
reasonably incidental thereto. Notwithstanding any provision to the contrary
elsewhere in this Agreement, neither any Administrative Agent nor any Agent
(each Co-Administrative Agent and Agent being referred to in this Article as a
"Note Agent") shall have any duties or responsibilities, except those expressly

                                      -31-

<PAGE>

set forth herein, or any fiduciary relationship with any Note Purchaser, and no
implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Agreement or otherwise exist against any
Note Agent. In furtherance, and without limiting the generality of the
foregoing, each CP Conduit and each Committed Purchaser hereby appoints the
Co-Administrative Agent and the applicable Agent as its agent to execute and
deliver all further instruments and documents, and agrees to take all further
action that the Co-Administrative Agent or Agent, as applicable, may deem
necessary or appropriate or that a CP Conduit or a Committed Purchaser may
reasonably request in order to perfect, protect or more fully evidence the
interests transferred or to be transferred from time to time by the Transferor
or the Issuer hereunder, or to enable any of them to exercise or enforce any of
their respective rights hereunder. With respect to actions which are incidental
to the actions specifically delegated to any Agent hereunder, such Agent shall
not be required to take any such incidental action hereunder, but shall be
required to act or to refrain from acting (and shall be fully protected in
acting or refraining from acting) upon the direction of the Co-Administrative
Agent or upon the direction of the Note Purchaser in its Purchaser Group;
provided, however, no Note Agent shall be required to take any action hereunder
if the taking of such action, in the reasonable determination of such Note
Agent, shall be in violation of any applicable law, rule or regulation or
contrary to any provision of this Agreement or shall expose such Note Agent to
liability hereunder or otherwise. Each Note Agent shall exercise such rights and
powers vested in it by this Agreement, the Indenture, the Pooling and Servicing
Agreement and any other Related Documents, 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.

          (b) No Note Agent shall be deemed to have knowledge or notice of the
occurrence of any breach of this Agreement or the occurrence of any Rapid
Amortization Event or Event of Default unless such Note Agent has received
notice from the Issuer, the Transferor, the Servicer, the Indenture Trustee or
any Note Purchaser, referring to this Agreement and describing such event. In
the event that any Co-Administrative Agent receives such a notice, it shall
promptly give notice thereof to each Co-Administrative Agent and Agent, and in
the event any Agent receives such a notice, it shall promptly give notice
thereof to the Note Purchasers in its Purchaser Group. Each Co-Administrative
Agent and Agent shall take such action with respect to such event as shall be
reasonably directed by (i) the Required Equipment Loan Owners, (ii) the Required
Receivables Owners, (iii) the Required Equipment Loan Purchasers and (iv) the
Required Receivables Purchasers; provided, that unless and until such Note Agent
shall have received such directions, such Co-Administrative Agent or Agent may
(but shall not be obligated to) take such action, or refrain from taking such
action, with respect to such event as it shall deem advisable in the best
interests of the Note Purchasers or of the Note Purchasers in its Purchaser
Group, as applicable.

          (c) The Co-Administrative Agents shall not, without the prior written
consent of each Agent and each Note Purchaser, agree or consent to any
amendment, modification or waiver of any provision of this Agreement, the
Transfer and Servicing Agreements or the Indenture which would in any way (i)
reduce, impair or change the timing of payments required to be made by the
Transferor, the Issuer or the Servicer or the application of the proceeds of
such payments, (ii) increase the Servicing Fee, (iii) release any material
portion of the property subject to the liens provided by the Pooling and
Servicing Agreement and the Indenture (other than as expressly contemplated
herein or therein) or (iv) permit the appointment of any Person (other

                                      -32-

<PAGE>

than the Back-up Servicer) as Successor Servicer. No Agent shall agree to any
amendment of this Agreement which increases the dollar amount of the commitment
of its related Committed Purchaser without the prior consent of such Committed
Purchaser. In addition, each Agent agrees that it shall not agree to any
amendment of this Agreement not specifically described in the two preceding
sentences without the consent of the Committed Purchasers and the related CP
Conduit (if any) in its Purchaser Group. In the event the Agent requests a
Person's consent pursuant to the foregoing provisions and the Agent does not
receive a response to such request (either positive or negative) from such
Person within 10 Business Days of such Person's receipt of such request, then
such Person (and its percentage interest hereunder) shall be disregarded in
determining whether the Agent shall have obtained sufficient consent hereunder.

          (d) Each Note Agent may execute any of its duties under any of the
Related Documents by or through agents or attorneys-in-fact and shall be
entitled to advice of counsel concerning all matters pertaining to such duties.
No Note Agent shall be responsible for the negligence or misconduct of any
agents or attorneys-in-fact selected by it with reasonable care.

          6.2 Note Agent's Reliance, Etc. Neither any Note Agent nor any of its
directors, officers, agents or employees shall be liable to any CP Conduit or
Committed Purchaser for any action taken or omitted to be taken by it or them as
a Note Agent under or in connection with this Agreement, the Indenture, the
Transfer and Servicing Agreements or any other Related Document, except for its
or their own gross negligence or willful misconduct. Without limiting the
foregoing, each Note Agent: (i) may consult with legal counsel (including
counsel for the Transferor, the Issuer or the Servicer), independent public
accountants and other experts selected by it and shall not be liable for any
action taken or omitted to be taken in good faith by it in accordance with the
advice of such counsel, accountants or experts; (ii) makes no warranty or
representation to any CP Conduit or any Committed Purchaser and shall not be
responsible to any CP Conduit or any Committed Purchaser for any statements,
warranties or representations made in or in connection with this Agreement;
(iii) shall not have any duty to ascertain or to inquire as to the performance
or observance of any of the terms, covenants or conditions of this Agreement,
the Indenture, any Transfer and Servicing Agreement or any other Related
Document on the part of the Transferor, the Issuer or the Servicer or to inspect
the property (including the books and records) of the Transferor, the Issuer or
the Servicer; (iv) shall not be responsible to any CP Conduit or any Committed
Purchaser for the due execution, legality, validity, enforceability,
genuineness, sufficiency or value of this Agreement, the Indenture, any Transfer
and Servicing Agreement or any other Related Document or any other instrument or
document furnished pursuant hereto or thereto; and (v) shall incur no liability
to any CP Conduit or Committed Purchaser under or in respect of this Agreement,
the Indenture, any Transfer and Servicing Agreement or any other Related
Document by acting upon any notice (including notice by telephone), consent,
certificate or other instrument or writing (which may be by telex) believed by
it to be genuine and signed or sent by the proper party or parties. Each Note
Agent shall be fully justified in failing or refusing to take any action under
any of the Related Documents unless it shall first receive such advice or
concurrence of the Required Equipment Loan Note Owners, the Required Equipment
Loan Note Purchasers, the Required Receivables Note Owners and the Required
Receivables Note Purchasers as it deems appropriate or it shall first be
indemnified to its satisfaction by (A) in the case of the Co-Administrative
Agents, the Committed Purchasers or (B) in the case of an Agent, the Committed
Purchasers in its Purchaser Group, against any and all liability and expense
which may be incurred by it by

                                      -33-

<PAGE>

reason of taking or continuing to take any such action. Each Co-Administrative
Agent shall in all cases be fully protected in acting, or in refraining from
acting, under any of the Related Documents in accordance with a request of (i)
the Required Equipment Loan Note Owners, (ii) the Required Equipment Loan Note
Purchasers, (iii) the Required Receivables Note Owners and (iv) the Required
Receivables Note Purchasers (or their Agents), and such request and any action
taken or failure to act pursuant thereto shall be binding upon all present and
future Equipment Loan Note Purchasers and Receivables Note Purchasers. Each
Agent shall in all cases be fully protected in acting, or in refraining from
acting, under any of the Related Documents in accordance with a request of (i)
the Required Equipment Loan Owners, (ii) the Required Receivables Owners, (iiii)
the Required Equipment Loan Purchasers and (iv) the Required Receivables
Purchasers, and such request and any action taken or failure to act pursuant
thereto shall be binding upon all present and future Equipment Loan Note
Purchasers or Receivables Note Purchasers in such Purchaser Group.

          6.3 Credit Decision. Each CP Conduit and each Committed Purchaser
acknowledges that it has, independently and without reliance upon either
Co-Administrative Agent, any of the Co-Administrative Agents' Affiliates, any
Agent, any other Committed Purchaser or any other CP Conduit and based upon such
documents and information as it has deemed appropriate, made its own evaluation
and decision to enter into this Agreement, the Indenture, any Transfer and
Servicing Agreement and any other Related Documents to which it is a party and,
if it so determines, to accept the transfer to its related Agent on its behalf
of its interest in the Equipment Loan Note or Receivables Note, as applicable,
hereunder. Each CP Conduit and each Committed Purchaser also acknowledges that
it will, independently and without reliance upon any Co-Administrative Agent,
any of the Co-Administrative Agents' Affiliates, any Agent, any other Committed
Purchaser or any other CP Conduit and based on such documents and information as
it shall deem appropriate at the time, continue to make its own decisions in
taking or not taking action under this Agreement, the Indenture, any Transfer
and Servicing Agreement and any other Related Documents to which it is a party.
Except, in the case of a Note Agent, for notices, reports and other documents
received by such Note Agent under Section 5.1, no Note Agent shall have any duty
or responsibility to provide any Note Purchaser with any credit or other
information concerning the business, operations, property, condition (financial
or otherwise), prospects or creditworthiness of the Transferor, the Servicer,
the Issuer, the Accounts, the Equipment Loans, the Receivables or the Indenture
Trustee which may come into the possession of such Note Agent or any of its
officers, directors, employees, agents, attorneys-in-fact or Affiliates.

          6.4 Indemnification of each Note Agent. (i) The Committed Purchasers
agree to indemnify each Co-Administrative Agent in its capacity as such (without
limiting the obligation (if any) of the Issuer, the Transferor and the Servicer
to reimburse each Co-Administrative Agent for any such amounts), ratably
according to their respective Commitments (or, if the Commitments have
terminated, Percentage Interests), and (ii) the Committed Purchasers in each
Purchaser Group agree to indemnify the Agent for such Purchaser Group in its
capacity as such (without limiting the obligation (if any) of the Issuer, the
Transferor and the Servicer to reimburse such Agent for any such amounts),
ratably according to their respective Commitments (or, if the Commitments have
terminated, Percentage Interests), in each case from and against any
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind or nature whatsoever which may be
imposed on,

                                      -34-

<PAGE>

incurred by, or asserted against such Note Agent (in its capacity as such) in
any way relating to or arising out of this Agreement, the Indenture, the
Transfer and Servicing Agreements and the other Related Documents or such action
taken or omitted by such Note Agent hereunder or thereunder, provided that such
Committed Purchaser shall not be liable for any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements resulting from such Note Agent's gross negligence or
willful misconduct. Without limitation of the foregoing, the Committed
Purchasers agree to reimburse such Note Agent, ratably according to their
Commitments (or, if the Commitments have terminated, Percentage Interests),
promptly upon demand for any out-of-pocket expenses (including counsel fees)
incurred by such Note Agent in connection with the administration, modification,
amendment or enforcement (whether through negotiations, legal proceedings or
otherwise) of, or legal advice in respect of rights or responsibilities under,
this Agreement, the Indenture, any Transfer and Servicing Agreement and any
other Related Documents, to the extent that such expenses are incurred in the
interests of or otherwise in respect of the CP Conduits or the Committed
Purchasers hereunder and/or thereunder and to the extent that such Note Agent is
not reimbursed for such expenses by the Transferor, the Issuer or the Servicer.
The agreements in this Section 6.4 shall survive the payment of the obligations
under this Agreement, including the Equipment Loan Note Principal Balance and
the Receivables Note Principal Balance.

          6.5 Agents in their Individual Capacity. Each Note Agent and its
Affiliates may make loans to, accept deposits from and generally engage in any
kind of business with the Issuer, the Transferor or the Servicer as though such
Note Agent were not an agent hereunder. In addition, the Note Purchasers
acknowledge that one or more Persons which are Note Agents may act (i) as
administrator, sponsor or agent for one or more CP Conduits and in such capacity
act and may continue to act on behalf of each such CP Conduit in connection with
its business, and (ii) as the agent for certain financial institutions under the
liquidity and credit enhancement agreements relating to this Agreement to which
any one or more CP Conduits is party and in various other capacities relating to
the business of any such CP Conduit under various agreements. Any such Person,
in its capacity as Note Agent, shall not, by virtue of its acting in any such
other capacities, be deemed to have duties or responsibilities hereunder or be
held to a standard of care in connection with the performance of its duties as a
Note Agent other than as expressly provided in this Agreement. Any Person which
is a Note Agent may act as a Note Agent without regard to and without additional
duties or liabilities arising from its role as such administrator or agent or
arising from its acting in any such other capacity.

          6.6 Successor Co-Administrative Agent; Successor Agent. Each
Co-Administrative Agent may resign at any time, effective upon the appointment
and acceptance of a successor Administrative Agent as provided below, by giving
written notice thereof to each Agent, each CP Conduit, each Committed Purchaser,
the Indenture Trustee, the Issuer, the Transferor and the Servicer. If an
Administrative Agent shall resign as Co-Administrative Agent under this
Agreement, then the Required Equipment Loan Note Purchasers, the Required
Equipment Loan Note Owners, the Required Receivables Note Purchasers and the
Required Receivables Note Owners, in each case for all Purchaser Groups, shall
appoint from among the Committed Purchasers a successor administrative agent. If
no such successor Co-Administrative Agent shall have been so appointed, and
shall have accepted such appointment, within thirty (30) days after such
retiring Co-Administrative Agent's giving of notice of resignation, then such
retiring Co-Administrative Agent may, on behalf of the Note Purchasers, appoint
a successor Co-

                                      -35-

<PAGE>

Administrative Agent with the prior consent of the Agents (which such consent
will not be unreasonably withheld) which such successor Co-Administrative Agent
shall be either (i) a commercial bank or other financial institution organized
under the laws of the United States or of any state thereof and having a
combined capital and surplus of at least $50,000,000 or (ii) an Affiliate of
such a Person of the type described in clause (i). Any Agent may resign at any
time, effective upon the appointment and acceptance of a successor Agent as
provided below, by giving written notice thereof to the Note Purchasers in its
Purchaser Group, each Co-Administrative Agent and each other Agent, the
Indenture Trustee, the Issuer, the Transferor and the Servicer. If an Agent
shall resign as Agent under this Agreement, then the Required Equipment Loan
Note Purchasers and the Required Equipment Loan Note Owners or the Required
Receivables Note Purchasers and the Required Receivables Note Owners, in each
case for the applicable Purchaser Group, shall appoint from among the Committed
Purchasers in such Purchaser Group a successor agent for such Purchaser Group.
If no such successor Agent shall have been so appointed, and shall have accepted
such appointment, within thirty (30) days after the retiring Agent's giving of
notice of resignation, then the retiring Agent may, on behalf of the CP Conduits
and the Committed Purchasers in such Purchaser Group, appoint a successor Agent
for such group which shall be either (i) a commercial bank or other financial
institution organized under the laws of the United States or of any state
thereof and having a combined capital and surplus of at least $50,000,000 or
(ii) an Affiliate of such a Person of the type described in clause (i). An Agent
that is in the same Purchaser Group as Bear Stearns shall (subject to such
conditions as such Agent and Bear Stearns may mutually agree) resign upon the
written request of the Committed Purchasers in its Purchaser Group and will
thereupon assign to such Committed Purchasers all of its rights under its Note
and the other Transaction Documents. Such Agent shall promptly notify the
Indenture Trustee of such assignment and any corresponding changes in wiring
instructions. Upon the acceptance of any appointment as a Note Agent hereunder
by a successor Note Agent, such successor Note Agent shall thereupon succeed to
and become vested with all the rights, powers, privileges and duties of the
applicable retiring Note Agent accruing after the date of its appointment, and
the retiring Note Agent shall be discharged from its duties and obligations
under this Agreement. After any retiring Note Agent's resignation hereunder as
Note Agent, the provisions of this Article VI shall continue to inure to its
benefit as to any actions taken or omitted to be taken by it while it was such
Note Agent under this Agreement.

          6.7 Payments by an Agent. Unless specifically allocated to a CP
Conduit or a Committed Purchaser pursuant to the terms of this Agreement, all
amounts received by an Agent on behalf of the related CP Conduit(s) or Committed
Purchasers) shall be paid by such Agent to such CP Conduit(s) or Committed
Purchaser(s), as applicable (at the account specified in writing to such Agent)
on the Business Day received by such Agent, unless such amounts are received
after 12:00 noon (New York time) on such Business Day, in which case such Agent
shall use its reasonable efforts to pay such amounts, on such Business Day, but,
in any event, shall pay such amounts not later than 11:00 a.m. (New York time)
the following Business Day.

                      ARTICLE 7 SECURITIES LAWS; TRANSFERS

          7.1 Transfers of Notes.

                                      -36-

<PAGE>

          (a) Each Note Purchaser shall execute and deliver to the Issuer and
the Transferor on the Closing Date an Investment Letter substantially in the
form attached as Exhibit F to the Indenture Each Note Owner agrees that the
interest in the Equipment Loan Notes or Receivables Notes, as applicable,
purchased by it will be acquired for investment only and not with a view to any
public distribution thereof, and that such Equipment Loan Note Owner or
Receivables Note Owner, as applicable, will not offer to sell or otherwise
dispose of any Equipment Loan Note or Receivables Note, as applicable, acquired
by it (or any interest therein) in violation of any of the requirements of the
Securities Act or any applicable state or other securities laws. Each Equipment
Loan Note Owner and Receivables Note Owner acknowledges that it has no right to
require the Issuer or the Transferor to register, under the Securities Act, as
amended, or any other securities law, the Equipment Loan Notes or the
Receivables Notes (or any interest therein) acquired by it pursuant to this
Agreement or any Transfer Supplement. Each Equipment Loan Note Owner and
Receivables Note Owner hereby confirms and agrees that in connection with any
transfer or syndication by it of an interest in the Equipment Loan Notes or
Receivables Notes, as applicable, such Equipment Loan Note Owner or Receivables
Note Owner has not engaged and will not engage in a general solicitation or
general advertising including advertisements, articles, notices or other
communications published in any newspaper, magazine or similar media or
broadcast over radio or television, or any seminar or meeting whose attendees
have been invited by any general solicitation or general advertising.

          (b) Each initial purchaser of an Equipment Loan Note or Receivables
Note or any interest therein and any Assignee thereof or Participant therein
shall certify to the Issuer, the Transferor, the Servicer, the Indenture
Trustee, each Co-Administrative Agent and the Agent for its Purchaser Group that
it is either (i) a citizen or resident of the United States, (ii) a corporation
or other entity organized in or under the laws of the United States or any
political subdivision thereof or (iii) a person not described in (i) or (ii) who
is entitled to receive payments under this Agreement and with respect to the
Equipment Loan Notes or Receivables Notes, as applicable, without deduction or
withholding of any United States federal income taxes and whose ownership of any
interest in an Equipment Loan Note or a Receivables Note, as applicable, will
not result in any withholding obligation with respect to any payments with
respect to the Equipment Loan Notes or the Receivables Notes, as applicable, by
any Person and who will furnish to the Issuer, the Transferor, the Servicer, the
Indenture Trustee, each Co-Administrative Agent, the Agent for its Purchaser
Group, and to the Equipment Loan Note Owner or Receivables Note Owner making the
Transfer the forms described in subsection 2.4(c).

          (c) Any sale, transfer or other disposition (but not Participation,
Assignment, pledge or hypothecation) (any such non-excluded disposition being
referred to herein as a "Transfer") of an Equipment Loan Note, Receivables Note
or any interest therein may be made only in accordance with this Section 7.1(c)
and the Indenture. Any partial Transfer of an interest in an Equipment Loan
Note, a Receivables Note, a Commitment or any Purchaser Percentage by a
Committed Purchaser shall be in respect of, at least $5,000,000 in the
aggregate, which may be composed of (A) Equipment Loan Note Principal Balance or
Receivables Note Principal Balance, as applicable, or (B) to the extent in
excess of the Equipment Loan Note Principal Balance or Receivables Note
Principal Balance, as applicable, subject to such Transfer, Commitment
hereunder. Any Transfer of an interest in an Equipment Loan Note or Receivables
Note otherwise permitted by this Section 7.1 will be permitted only if it
consists of a pro rata

                                      -37-

<PAGE>

percentage interest in all payments made with respect to the Note Purchaser's
interest in such Note. Unless the Transfer occurs between members of the same
Purchaser Group, no Equipment Loan Note or Receivables Note or any interest
therein may be Transferred to any Person (each, a "Transferee") unless prior to
the Transfer the Transferee shall have executed and delivered to the Agent, the
Issuer, the Transferor and the Servicer an Investment Letter.

               Each of the Issuer, the Transferor and the Servicer authorizes
each Note Purchaser to disclose to any Transferee and Support Party and to any
prospective Transferee or Support Party which is a Permitted Transferee any and
all confidential information in the Note Purchaser's possession concerning this
Agreement or the Related Documents or concerning the Accounts, the Equipment
Loans or the Receivables, as applicable, or such party which has been delivered
to any Agent or such Note Purchaser pursuant to this Agreement or the Related
Documents (including information obtained pursuant to rights of inspection
granted hereunder) or which has been delivered to such Note Purchaser by or on
behalf of the Issuer, the Transferor and the Servicer in connection with such
Note Purchaser's credit evaluation of the Accounts, the Equipment Loans or the
Receivables, as applicable, the Issuer, the Transferor or the Servicer prior to
becoming a party to, or purchasing an interest in this Agreement, the Equipment
Loan Notes or the Receivables Notes.

          (d) Each Equipment Loan Note Purchaser or Receivables Note Purchaser
may, in accordance with applicable law, at any time grant participations in all
or part of its Commitment or its interest in the Equipment Loan Notes or
Receivables Notes, as applicable, including the payments due to it under this
Agreement and the Related Documents (each, a "Participation"), to any Permitted
Transferee (each such Permitted Transferee, a "Participant"); provided, however,
that no Participation shall be granted to any Person (i) until such Person,
unless such Person is a member of the same Purchaser Group, shall have executed
and delivered to the Agent, the Issuer, the Transferor and the Servicer an
Investment Letter, (ii) unless and until the Agent for such Equipment Loan Note
Purchaser's Purchaser Group or Receivables Note Purchaser's Purchaser Group
shall have consented thereto, and (iii) that such Participation consists of a
pro rata percentage interest in all payments made with respect to such Equipment
Loan Note Purchaser's or Receivables Note Purchaser's beneficial interest (if
any) in the Equipment Loan Notes or Receivable Notes, as applicable. In
connection with any such Participation, each Agent for a Purchaser Group shall
maintain a register of each Participant of members of its Purchaser Group and
the amount of each related Participation. Each Equipment Loan Note Purchaser and
Receivables Note Purchaser hereby acknowledges and agrees that (A) any such
Participation will not alter or affect such Equipment Loan Note Purchaser's or
Receivables Note Purchaser's direct obligations hereunder, and (B) neither the
Indenture Trustee, the Transferor, the Issuer nor the Servicer shall have any
obligation to have any communication or relationship with any Participant. Each
Equipment Loan Note Purchaser, Receivables Note Purchaser and each Participant
shall comply with the provisions of subsection 2.4(c). No Participant shall be
entitled to Transfer all or any portion of its Participation, without the prior
written consent of the Agent for its Purchaser Group and having complied with
the requirements set forth in this subsection 7.1(d). Each Participant shall be
entitled to receive additional amounts and indemnification pursuant to Sections
2.3, 2.4 and 2.5 as if such Participant were an Equipment Loan Note Purchaser or
Receivables Note Purchaser, as applicable, and such Sections applied to its
Participation; provided, in the case of Section 2.4, that such Participant has
complied with the provisions of subsection 2.4(c) as if it were an

                                      -38-

<PAGE>

Equipment Loan Note Purchaser or Receivables Note Purchaser, as applicable. Each
Equipment Loan Note Purchaser and Receivables Note Purchaser shall give the
Agent for its Purchaser Group notice of the consummation of any sale by it of a
Participation. It shall be a further condition to the grant of any Participation
that the Participant shall have certified, represented and warranted that (i) it
is entitled to (A) receive payments with respect to its participation without
deduction or withholding of any United States federal income taxes and (B) an
exemption from United States backup withholding, and (ii) to the extent such
Participant has not otherwise directly provided such forms to the Servicer and
the Indenture Trustee, (A) prior to the date on which the first interest payment
is due to such Participant, such Participant will provide to the Servicer, the
Transferor and Indenture Trustee, the forms described in subsection 2.4(c) as
though the Participant were an Equipment Loan Note Purchaser or Receivables Note
Purchaser, as applicable, and (B) such Participant similarly will provide
subsequent forms as described in subsection 2.4(c) with respect to such
Participant as though it were an Equipment Loan Note Purchaser or Receivables
Note Purchaser, as applicable.

          (e) Each Equipment Loan Note Purchaser and Receivables Note Purchaser
may, with the consent of the Agent for its Purchaser Group and in accordance
with applicable law and the Indenture, sell or assign (each, an "Assignment"),
to any Permitted Transferee (each, an "Assignee") all or any part of its
Commitment (if any) or its interest in the Equipment Loan Notes or the
Receivables Notes, as applicable, and its rights and obligations under this
Agreement and the Related Documents pursuant to an agreement substantially in
the form attached hereto as Exhibit A hereto (a "Transfer Supplement"), executed
by such Assignee and the Equipment Loan Note Purchaser or the Receivables Note
Purchaser, as applicable, and delivered to the Agent for its Purchaser Group for
its acceptance and consent or, in the case of an assignment, participation or
pledge by a CP Conduit to a CPC Committed Purchaser within its Purchaser Group,
pursuant to its Support Facility documentation; provided, however, that (i) no
Assignment, other than to a member of the same Purchaser Group, shall be
effective unless prior to the Assignment the Assignee shall have executed and
delivered to the Agent, the Issuer, the Transferor and the Servicer an
Investment Letter, (ii) no assignment or sale by a CPC Committed Purchaser shall
be effective without the consent of the CP Conduit in its Purchaser Group and
(iii) in no event shall the consent of an Agent be required in the case of an
assignment, participation or pledge by a CP Conduit of its interest in the
Equipment Loan Notes or Receivables Notes, as applicable, and its rights and
obligations under this Agreement and the Related Documents to any one or more of
the CPC Committed Purchasers in its Purchaser Group. From and after the
effective date determined pursuant to such Transfer Supplement, (x) the Assignee
thereunder shall be a party hereto and, to the extent provided in such Transfer
Supplement, have the rights and obligations of an Equipment Loan Note Purchaser
or Receivables Note Purchaser, as applicable, hereunder and under the Basic
Documents as set forth therein and (y) the transferor Equipment Loan Note
Purchaser or Receivables Note Purchaser, as applicable, shall, to the extent
provided in such Transfer Supplement, be released from its Commitment and other
obligations under this Agreement; provided, however, that after giving effect to
each such Assignment, the obligations released by any such Equipment Loan Note
Purchaser or Receivables Note Purchaser, as applicable, shall have been assumed
by an Assignee or Assignees. Such Transfer Supplement shall be deemed to amend
this Agreement to the extent, and only to the extent, necessary to reflect the
addition of such Assignee and the resulting adjustment of Percentage Interests,
Purchaser Percentages or Liquidity Percentages arising from the Assignment. Upon
its receipt and acceptance of a duly executed Transfer

                                      -39-

<PAGE>

Supplement, the Agent for the applicable Purchaser Group (or, in the case of an
Assignment by which a new Purchaser Group is added to this Agreement, each
Co-Administrative Agent) shall on the effective date determined pursuant thereto
give notice of such acceptance to the Issuer, the Transferor, the Servicer and
the Indenture Trustee.

          Upon instruction to register a transfer of a Note Purchaser's interest
in the Equipment Loan Notes or Receivables Notes (or portion thereof) and
surrender for registration of transfer of such Note Purchaser's Equipment Loan
Notes or Receivables Notes, as applicable) (if applicable) and delivery to the
Transferor, the Issuer, the Servicer and the Indenture Trustee of an Investment
Letter, executed by the registered owner (and the beneficial owner if it is a
Person other than the registered owner), and receipt by the Indenture Trustee of
a copy of the duly executed related Transfer Supplement and such other documents
as may be required under this Agreement, such interest in the Equipment Loan
Notes (or portion thereof) or the Receivables Notes (or portion thereof), as
applicable, shall be transferred in the records of the Indenture Trustee and the
applicable Agent and, if requested by the Assignee, new Equipment Loan Notes or
Receivables Notes, as applicable, shall be issued to the Assignee and, if
applicable, the transferor Note Purchaser in amounts reflecting such Transfer as
provided in the Indenture. To the extent of any conflict between the provisions
of this Section 7.1 and any provisions of Section 2.12 of the Indenture
applicable to Transfers of Equipment Loan Notes or Receivables Notes (or
interests therein), the provisions of this Section 7.1 shall control. Successive
registrations of Transfers as aforesaid may be made from time to time as
desired, and each such registration of a transfer to a new registered owner
shall be noted on the Note Register.

          (f) Each Note Purchaser may pledge its interest in the Equipment Loan
Notes or Receivables Notes, as applicable, to any Federal Reserve Bank as
collateral in accordance with applicable law.

          (g) Any Note Purchaser shall have the option to change its Investing
Office, provided that such Note Purchaser shall continue to be in compliance
with the provisions of subsections 2.4(b) and 2.4(c).

          (h) Each Affected Party shall be entitled to receive additional
payments and indemnification pursuant to Sections 2.3, 2.4 and 2.5 as though it
were a Note Purchaser and such Section applied to its interest in or commitment
to acquire an interest in the Equipment Loan Notes or Receivables Notes, as
applicable; provided that such Affected Party shall not be entitled to
additional payments pursuant to (i) Section 2.3 by reason of Regulatory Changes
which occurred prior to the date it became an Affected Party or (ii) Section 2.4
attributable to its failure to satisfy the requirements of subsection 2.4(c) as
if it were a Note Purchaser, and provided further, that unless such Affected
Party is a Permitted Transferee or has been consented to by the Transferor, such
Affected Party shall be entitled to receive additional amounts pursuant to
Sections 2.3 or 2.4 only to the extent that its related CP Conduit would have
been entitled to receive such amounts in the absence of the commitment and
Support Advances from such Affected Party.

          (i) Each Affected Party claiming increased amounts described in
Sections 2.3or 2.4 shall furnish, through its related CP Conduit, to the Issuer,
the Transferor, the Servicer, the Indenture Trustee and the Agent for the
applicable Purchaser Group a certificate setting forth

                                      -40-

<PAGE>

the basis and amount of each request by such Affected Party for any such amounts
referred to in Sections 2.3 or 2.4, such certificate to be conclusive with
respect to the factual information set forth therein absent manifest error.

          (j) In the event that a Committed Purchaser is a Downgraded Purchaser,
the related CP Conduit shall have the right to replace such Committed Purchaser
with a replacement Committed Purchaser consented to by the Transferor (which
consent shall not be unreasonably withheld), which "Replacement Purchaser" shall
succeed to the rights of such Committed Purchaser under this Agreement in
respect of its Commitment as a Committed Purchaser, and such Committed Purchaser
shall assign such Commitment and its interest in the Equipment Loan Notes or
Receivables Notes, as applicable, to such replacement Committed Purchaser in
accordance with the provisions of this Section 7.1; provided, that (A) such
Committed Purchaser shall not be replaced hereunder with a new investor until
such Committed Purchaser has been paid in full its Percentage Interest of the
Equipment Loan Note Principal Balance or Receivables Note Principal Balance, as
applicable, and all accrued and unpaid interest thereon by such new investor and
all other amounts (including all amounts owing under Sections 2.3 and 2.4) owed
to it and to all Participants with respect to such Committed Purchaser pursuant
to this Agreement, and (ii) if the Committed Purchaser to be replaced is a Note
Agent, a replacement agent shall have been appointed in accordance with Section
6.6, and the Note Agent to be replaced shall have been paid all amounts owing to
it as agent pursuant to this Agreement. For purposes of this subsection, a
Committed Purchaser shall be a "Downgraded Purchaser" if and so long as the
credit rating assigned to its short-term obligations by Moody's or Standard &
Poor's on the date on which it became a party to this Agreement shall have been
reduced or withdrawn, or as may be otherwise agreed among the Issuer, such
Committed Purchaser and the CP Conduit in its Purchaser Group.

          Notwithstanding the foregoing or the provisions of subsection 7.1(j),
if the Note Purchaser being replaced pursuant to this subsection is a Committed
Purchaser, the Replacement Purchaser shall be acceptable to the CP Conduit in
its Purchaser Group in its sole discretion, and it shall be a condition of such
replacement that such Replacement Purchaser enter into substitute Support
Facilities for those to which the Note Purchaser being replaced is a party on
terms mutually acceptable to the parties thereto. In addition, if the Note
Purchaser to be replaced is an Agent or a Co-Administrative Agent, or a CP
Conduit which is administered or sponsored by an Agent or a Co-Administrative
Agent, it shall be a condition of such replacement that a replacement Agent or
Co-Administrative Agent shall have been appointed in accordance with Section
6.6, and the Agent or Co-Administrative Agent to be replaced shall have been
paid all amounts owing to it as Agent or Co-Administrative Agent, as applicable
pursuant to this Agreement.

          (k) Without limiting the foregoing, each CP Conduit may, from time to
time, with prior or concurrent notice to the Servicer, in one transaction or a
series of transactions, assign all or a portion of its Percentage Interest in
the Equipment Loan Note Principal Balance or Receivables Note Principal Balance,
as applicable, and its rights and obligations under this Agreement and any other
Basic Document to which it is a party to a Conduit Assignee. Upon and to the
extent of such assignment by the CP Conduit to a Conduit Assignee, (i) such
Conduit Assignee shall be the owner of the assigned portion of such Percentage
Interest, (ii) the related administrator for such Conduit Assignee will act as
the Agent for such Conduit Assignee, with

                                      -41-

<PAGE>

all corresponding rights and powers, express or implied, granted to the Agent
hereunder or under the other Basic Documents, (iii) such Conduit Assignee and
its liquidity support provider(s) and credit support provider(s) and other
related parties shall have the benefit of all the rights and protections
provided to the CP Conduit and its Support Parties herein and in the other Basic
Documents (including any limitation on recourse against such Conduit Assignee or
related parties, any agreement not to file or join in the filing of a petition
to commence an insolvency proceeding against such Conduit Assignee, and the
right to assign to another Conduit Assignee as provided in this paragraph), (iv)
such Conduit Assignee shall assume all (or the assigned or assumed portion) of
the CP Conduit's obligations, if any, hereunder or any other Basic Document, and
the CP Conduit shall be released from such obligations, in each case to the
extent of such assignment, and the obligations of the CP Conduit and such
Conduit Assignee shall be several and not joint, (v) all distributions in
respect of such Percentage Interest shall be made to the applicable agent or
Agent, on behalf of the CP Conduit and such Conduit Assignee on a pro rata basis
according to their respective interests, (vi) the defined terms and other terms
and provisions of this Agreement and the other Basic Documents shall be
interpreted in accordance with the foregoing, and (vii) if requested by the
applicable Agent or Administrative Agent with respect to the Conduit Assignee,
the parties will execute and deliver such further agreements and documents and
take such other actions as such Agent or Administrator may reasonably request to
evidence and give effect to the foregoing. No assignment by the CP Conduit to a
Conduit Assignee of all or any portion of such Percentage Interest shall in any
way diminish the related CPC Committed Purchaser's obligations under Section
2.1(d) to purchase any Equipment Loan Initial Advance, Equipment Loan Advance
Increase, Receivables Initial Advance or Receivables Advance Increase not funded
by the CP Conduit or such Conduit Assignee or to acquire from the CP Conduit or
such Conduit Assignee all or any portion of its Percentage Interest.

          7.2 Tax Characterization. It is the intention of the parties hereto
that, for purposes of federal, state and local and franchise tax and any other
tax measured in whole or in part by income, the Equipment Loan Notes and
Receivables Notes be treated as indebtedness, and the parties hereto agree to so
treat, and to take no action inconsistent with such treatment of the Equipment
Loan Notes and Receivables Notes (to the extent permitted by law).

                             ARTICLE 8 MISCELLANEOUS

          8.1 Amendments and Waivers. This Agreement may not be amended,
supplemented or modified nor may any provision hereof be waived except in
accordance with the provisions of this Section 8.1. With the written consent of
the Required Equipment Loan Note Owners, the Required Equipment Loan Note
Purchasers, the Required Receivables Note Owners, the Required Receivables Note
Purchasers and each Co-Administrative Agent, each Agent, the Issuer, the
Transferor, ALS and the Servicer may, from time to time, enter into written
amendments, supplements, waivers or modifications hereto for the purpose of
adding any provisions to this Agreement or changing in any manner the rights of
any party hereto or waiving, on such terms and conditions as may be specified in
such instrument, any of the requirements of this Agreement; provided, however,
that no such amendment, supplement, waiver or modification shall (i) reduce the
amount or extend the maturity of any Equipment Loan Note or Receivables Note or
reduce the rate or extend the time of payment of interest thereon, or reduce or
alter the timing of any other amount payable to any Note Purchaser hereunder or
under the Indenture, in each case without the consent of the Note Purchaser
affected thereby, (ii)

                                      -42-

<PAGE>

amend, modify or waive any provision of this Section 8.1, or, if such amendment
would have a material adverse effect on the Equipment Loan Note Purchasers, or
would alter the definition of "Equipment Loan Note Principal Balance" or
"Equipment Loan Borrowing Base", or reduce the percentage specified in the
definition of "Required Equipment Loan Note Owners" or "Required Equipment Loan
Note Purchasers", in each case without the written consent of all Equipment Loan
Note Purchasers, (iii) amend, modify or waive any provision of this Section 8.1,
or, if such amendment would have a material adverse effect on the Receivables
Note Purchasers, or would alter the definition of "Receivables Note Principal
Balance" or "Receivables Borrowing Base", or reduce the percentage specified in
the definition of "Required Receivables Note Owners" or "Required Receivables
Note Purchasers", in each case without the written consent of all Receivables
Note Purchasers, (iv) amend, modify or waive any provision of Section 6.1
without the written consent of each Agent affected by such amendment,
modification or waiver, (v) amend, modify or waive any of the provisions of
Article 2, Section 6.6 or Section 7.1 without the written consent of each
Committed Purchaser and each Primary Purchaser in each Purchaser Group or (vi)
amend, modify or waive any of Sections 2.1, 2.2 or Articles III, IV, V or VIII
(other than subsections 8.12(a), 8.12(b) and 8.16) or any term as used therein
or any provision establishing express rights or obligations of the Control Party
without the written consent of the Control Party. Any waiver of any provision of
this Agreement shall be limited to the provisions specifically set forth therein
for the period of time set forth therein and shall not be construed to be a
waiver of any other provision of this Agreement; provided, further, that the
Rating Agency Condition with respect to such amendment shall have been
satisfied; provided, further, that the signature of the Transferor, the Issuer
and ALS shall not be required for the effectiveness of any amendment which
modifies the representations, warranties, covenants or responsibilities of the
Servicer at any time when the Servicer is not ALS or any Affiliate of ALS or a
successor Servicer is designated pursuant to Section 8.5.

          The Servicer shall provide notice of any amendment, modification or
waiver of the provisions of this Agreement to each of Standard & Poor's and
Moody's.

          An Agent may cast any vote or give any consent or direction under the
Indenture or other Related Documents on behalf of the Noteholders in its
Purchaser Group if it has been directed to do so by Equipment Loan Note Owners
or Receivables Note Owners, as applicable, in such Purchaser Group having
Percentage Interests aggregating greater than two-thirds of the aggregate
Percentage Interests of all Equipment Loan Note Owners or Receivables Note
Owners, as applicable, in such Purchaser Group.

          8.2 Notices.

          (a) All notices, requests and demands to or upon the respective
parties hereto and all consents required to be given hereunder to be effective
shall be in writing (including by telecopy), and, unless otherwise expressly
provided herein, shall be deemed to have been duly given or made when delivered
by hand, or, in the case of mail or telecopy notice, when received, addressed as
follows or, with respect to an Agent or Note Purchaser, as set forth on the
signature pages hereto or in its respective Transfer Supplement, or to such
other address as may be hereafter notified by the respective parties hereto:

                                      -43-

<PAGE>

   Issuer:                    Alliance Laundry Equipment Receivables
                              Trust 2002-A
                              c/o Wilmington Trust Company
                              Rodney Square North
                              1100 North Market
                              Wilmington, DE  19890-0001

   with a copy to:            Alliance Laundry Equipment Receivables 2002 LLC
                              Shepard Street
                              P. O. Box 990
                              Ripon, WI  54971-0990
                              Attention: Treasurer
                              Telecopy: 920-748-1629
                              Confirmation: 920-748-1634

   Servicer:                  Alliance Laundry Systems, LLC
                              Shepard Street
                              P. O. Box 990
                              Ripon, WI  54971-0990
                              Attention:  Treasurer
                              Telecopy:  920-748-1629
                              Confirmation:  920-748-1634

   with a copy to:            Alliance Laundry Systems LLC
                              Shepard Street
                              P. O. Box 990
                              Ripon, WI  54971-0990
                              Attention:  General Counsel
                              Telecopy:  920-748-4334
                              Confirmation:  920-748-4320

   Transferor:                Alliance Laundry Equipment Receivables 2002 LLC
                              c/o The Corporation Trust Company
                              1209 Orange Street
                              Wilmington, Delaware 19801

   with a copy to:            Alliance Laundry Equipment Receivables LLC
                              Shepard Street
                              P. O. Box 990
                              Ripon, WI  54971-0990
                              Attention:  General Counsel
                              Telecopy:  920-748-4334
                              Confirmation:  920-748-4320

                                      -44-

<PAGE>

   with a copy to:            Ropes and Gray
                              One International Place
                              Boston, Massachusetts 02110
                              Attention:  Alison Bomberg
                              Telecopy:  617-951-7050
                              Confirmation: 617-951-7000

   Indenture Trustee:         The Bank of New York
                              5 Penn Plaza, Floor 16
                              New York, New York 10001

   Co-Administrative Agent:   Bear Stearns & Co. Inc., as a
                                 Co-Administrative Agent
                              383 Madison Avenue
                              New York, NY 10179
                              Attention: Asset-Backed Securities Group,
                                 Elton Wells
                              Telecopy No.: 212-272-7294
                              Confirmation: 800-999-2000

   Co-Administrative Agent:   Canadian Imperial Bank of Commerce,
                                 as a Co-Administrative Agent:
                              CIBC World Markets
                              Corp.425 Lexington Avenue
                              New York, NY 10017
                              Attention: Asset Securitization Group -
                                            Jeff Bazoian
                              Telecopy No.: 212-856-3643
                              Confirmation: 212-856-4000

A copy of each notice provided herein shall be sent to the Controlling Party, if
at such time the Controlling Party is Ambac Assurance Corporation. Such notice
shall be deemed to have been duly given or made when delivered by hand, or, in
the case of mail or telecopy notice, when received, addressed as follows:

   Control Party:             Ambac Assurance Corporation,
                              One State Street Plaza
                              New York, New York 10004
                              Attention: Structured Finance Department - ABS
                              Telecopy No.: (212) 208-3547
                              Confirmation: (212) 668-0340

          (b) All payments to be made to any Co-Administrative Agent, Agent or
Note Purchaser hereunder shall be made in United States dollars and in
immediately available funds not later than 11:30 a.m., New York City time, on
the date payment is due, and, unless otherwise specifically provided herein,
shall be made to the Agent, for the account of one or more of the Note
Purchasers or for its own account, as the case may be. Unless otherwise directed
by CIBC, all payments to it, as a Co-Administrative Agent or an Agent shall be
made by federal wire to it,

                                      -45-

<PAGE>

at its account (account number 00-313-226; and account name Special Purpose
Accounts Receivable Corp.) maintained at Deutsche Bank (ABA # 021-001-033), with
telephone notice (including federal wire number) to Lisa Bakis of CIBC
(212-856-3535) or such other account as CIBC may designate in writing to the
Issuer and the Transferor. Unless otherwise directed by Bear Stearns, or MBIA
Insurance Corporation ("MBIA"), as applicable, all payments to Bear Stearns as a
Co-Administrative Agent or MBIA as an Agent shall be made by federal wire in
accordance with the Payment Instructions set forth on the Triple-A One Funding
Corporation signature pages. Unless otherwise directed by an Agent or Note
Purchaser, all payments to it shall be made by federal wire to the account
specified on the signature pages hereto or in the Transfer Supplement by which
it became a party hereto (provided, in the case of an account specified in a
Transfer Supplement, that the Co-Administrative Agents, the Transferor, the
Issuer, the Servicer or the Indenture Trustee, as the case may be, shall have
received notice thereof).

          8.3 No Waiver; Cumulative Remedies. No failure to exercise and no
delay in exercising, on the part of any party hereto, any right, remedy, power
or privilege under any of the Related Documents shall operate as a waiver
thereof; nor shall any single or partial exercise of any right, remedy, power or
privilege under any of the Related Documents preclude any other or further
exercise thereof or the exercise of any other right, remedy, power or privilege.
The rights, remedies, powers and privileges provided in the Related Documents
are cumulative and not exclusive of any rights, remedies, powers and privileges
provided by law.

          8.4 Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of the Issuer, the Transferor, ALS, the Servicer, the
Co-Administrative Agents, the Agents, the Note Purchasers, any Transferee and
their respective successors and permitted assigns, and, to the extent provided
herein, to each Indemnitee, Participant and Support Party and their respective
successors and assigns; provided that, except as provided in Section 8.5 or in
Section 9.03 of the Pooling and Servicing Agreement, the Issuer, the Transferor
and the Servicer may not assign or transfer any of their respective rights or
obligations under this Agreement without the prior written consent of the
Control Party; provided, further, that (i) in connection with any such
assignment the assignee shall expressly agree in writing to assume all the
obligations of the Issuer, the Transferor or the Servicer, as applicable,
hereunder and (ii) no such assignment made without the prior written consent of
the Control Party shall relieve the Issuer, the Transferor, ALS or the Servicer,
as applicable, of any of its obligations hereunder and provided further that no
assignment permitted hereunder shall relieve the Issuer, the Transferor, ALS or
the Servicer, as applicable, from any obligations arising hereunder prior to
such assignment (including obligations with respect to breaches of
representations and warranties made herein).

          8.5 Successors to Servicer. In the event that a transfer of servicing
occurs under Section 9.03 of the Pooling and Servicing Agreement, (i) from and
after the effective date of such transfer, the successor servicer (the
"Successor Servicer") shall be the successor in all respects to the Servicer and
shall be responsible for the performance of all functions to be performed by the
Servicer from and after such date, except as provided in the Pooling and
Servicing Agreement, and shall be subject to all the responsibilities, duties
and liabilities relating thereto placed on the Servicer by the terms and
provisions hereof, and all references in this Agreement to the Servicer shall be
deemed to refer to the Successor Servicer, and (ii) as of the

                                       46

<PAGE>

date of such transfer, the Successor Servicer shall be deemed to have made with
respect to itself the representations and warranties made in Section 4.2 (with
appropriate factual changes); provided, however, that the references to the
Servicer contained in Section 5.1 shall be deemed to refer to the Servicer with
respect to responsibilities, duties and liabilities arising out of an act or
acts, or omission, or an event or events giving rise to such responsibilities,
duties and liabilities and occurring during such time that the Servicer was
Servicer under this Agreement and shall be deemed to refer to the Successor
Servicer with respect to responsibilities, duties and liabilities arising out of
an act or acts, or omission, or an event or events giving rise to such
responsibilities, duties and liabilities and occurring during such time that the
Successor Servicer acts as Servicer under this Agreement; provided, however, to
the extent that an obligation to indemnify Indemnitees under Section 2.5 arises
as a result of any act or failure to act of any Successor Servicer in the
performance of servicing obligations under the Pooling and Servicing Agreement,
such indemnification obligation shall be of the Successor Servicer and not its
predecessor.

          8.6 Counterparts. This Agreement may be executed by one or more of the
parties to this Agreement on any number of separate counterparts, and all of
said counterparts taken together shall be deemed to constitute one and the same
instrument.

          8.7 Severability. Any provisions of this Agreement which are
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provisions in any other jurisdiction.

          8.8 Integration. This Agreement, the Applicable Margin Fee Letter, and
the Indenture represent the agreement of the Issuer, the Transferor, the
Servicer, the Co-Administrative Agents, the Agents and the Note Purchasers with
respect to the subject matter hereof, and there are no promises, undertakings,
representations or warranties by any party hereto relative to subject matter
hereof not expressly set forth or referred to herein or therein or in the
Related Documents.

          8.9 Governing. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH
AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

          8.10 Jurisdiction; Consent to Service of Process. Each of the parties
hereto hereby irrevocably and unconditionally (i) submits, for itself and its
property, to the nonexclusive jurisdiction of any New York State court in New
York County or federal court of the United States of America for the Southern
District of New York, and any appellate court from any thereof, in any action or
proceeding arising out of or relating to this Agreement, or for recognition or
enforcement of any judgment arising out of or relating to this Agreement; (ii)
agrees that all claims in respect of any such action or proceeding may be heard
and determined in such New York State or, to the extent permitted by law,
federal court; (iii) agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by law; (iv) consents that
any such action or proceeding may be brought in such courts and waives any
objection it may

                                      -47-

<PAGE>

now or hereafter have to the laying of venue of any such action or proceeding in
any such court and any objection it may now or hereafter have that such action
or proceeding was brought in an inconvenient court, and agrees not to plead or
claim the same; (v) consents to service of process in the manner provided for
notices in Section 8.2 (provided that, nothing in this Agreement shall affect
the right of any such party to serve process in any other manner permitted by
law); and (vi) waives, to the maximum extent not prohibited by law, any right it
may have to claim or recover in any such action or proceeding any special,
exemplary, punitive or consequential damages.

          8.11 Termination. This Agreement shall remain in full force and effect
until the earlier to occur of (a) the date on which all Commitments have
terminated and the Equipment Loan Note Principal Balance and all accrued
interest thereon, the Receivables Note Principal Balance and all accrued
interest thereon, and all Additional Amounts have been paid in full or (b) the
Final Scheduled Distribution Date; provided, that the provisions of Sections
2.3, 2.4, 2.5, 6.7, 7.2, 8.10, 8.12 and 8.15 shall survive termination of this
Agreement and any amounts payable to the Co-Administrative Agents, the Agents,
the Note Purchasers or any Affected Party thereunder shall remain payable
thereto.

          8.12 Limited Recourse; No Proceedings.

          (a) It is expressly understood and agreed by the parties hereto that
(i) this Agreement is executed and delivered by Wilmington Trust Company, not
individually or personally but solely as the Owner Trustee of the Issuer under
the Trust Agreement, in the exercise of the powers and authority conferred and
vested in it, (ii) each of the representations, undertakings and agreements
herein made on the part of the Issuer is made and intended not as personal
representations, undertakings and agreements by Wilmington Trust Company but is
made and intended for the purpose of binding only the Issuer, (iii) nothing
herein contained shall be construed as creating any liability on Wilmington
Trust Company, individually or personally, to perform any covenant either
expressed or implied contained herein, all such liability, if any, being
expressly waived by the parties hereto and by any Person claiming by, through or
under such parties and (iv) under no circumstances shall Wilmington Trust
Company be personally liable for the payment of any indebtedness or expenses of
the Issuer or be liable for the breach or failure of any obligation,
representation, warranty or covenant made or undertaken by the Issuer under this
Agreement or the other Basic Documents.

          (b) Each of the Issuer, the Transferor, the Servicer, each
Co-Administrative Agent, each Agent and each Note Purchaser hereby agrees that
it shall not institute or join against any CP Conduit any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceeding, or other
proceeding under any federal or state bankruptcy or similar law, for one year
and a day after the latest maturing commercial paper note, medium term note or
other debt security issued by such CP Conduit is paid.

          (c) Each Agent and each Note Purchaser hereby agrees that it shall not
institute or join against the Issuer any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceeding, or other proceeding under any
federal or state bankruptcy or similar law, for one year and a day after the
satisfaction of all Outstanding Obligations.

                                      -48-

<PAGE>

          8.13 Survival of Representations and Warranties. All representations
and warranties made hereunder and in any document, certificate or statement
delivered pursuant hereto or in connection herewith shall survive the execution
and delivery of this Agreement, the purchase of the Equipment Loan Notes
hereunder, the purchase of the Receivables Notes hereunder and the termination
of this Agreement.

          8.14 Effect of Regulatory Change. In the event of any Regulatory
Change which results in either (i) a determination that the Issuer or any CP
Conduit is not a Qualified Special Purpose Entity that is not required, under
generally accepted accounting principals, to consolidate its financial
statements with any other entity, or (ii) a cost under Section 2.3, the parties
agree to negotiate in good faith to amend the Basic Agreements in order to
eliminate the consolidation requirement or effect of such Regulatory Change;
provided, however that no party shall be obligated to take any action (or make
any amendments) if in the reasonable opinion of such party any such amendment to
the Basic Documents will be unlawful or otherwise disadvantageous or
inconsistent with its policies or regulatory restrictions or result in any
liability, unreimbursed cost or expense to such party.

          8.15 Waiver of July Trial. EACH OF THE ISSUER, THE TRANSFEROR, THE
SERVICER, THE CO-ADMINISTRATIVE AGENTS, THE AGENTS AND THE NOTE PURCHASERS
HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY AND ALL RIGHTS IT MAY
HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON, OR ARISING OUT
OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT, THE EQUIPMENT LOAN NOTES, THE
RECEIVABLES NOTES OR ANY OTHER DOCUMENTS AND INSTRUMENTS EXECUTED IN CONNECTION
HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL
OR WRITTEN), OR ACTIONS OF THE ISSUER, THE TRANSFEROR, THE SERVICER, THE
CO-ADMINISTRATIVE AGENTS, THE AGENTS AND THE NOTE PURCHASERS. THIS PROVISION IS
A MATERIAL INDUCEMENT FOR THE PARTIES ENTERING INTO THIS AGREEMENT AND FOR NOTE
PURCHASERS PURCHASING AN INTEREST IN THE EQUIPMENT LOAN NOTES OR RECEIVABLES
NOTES DESCRIBED HEREIN AND EACH CO-ADMINISTRATIVE AGENT AND EACH AGENT AGREEING
TO ACT AS SUCH HEREUNDER.

          8.16 Excess Funds. A CP Conduit shall be required to make payment of
the amounts required to be paid pursuant hereto by such CP Conduit only if the
applicable CP Conduit has Excess Funds (as defined below). If the applicable CP
Conduit does not have Excess Funds, the excess of the amount due hereunder over
the amount paid shall not constitute a "claim" (as defined in Section 101(5) of
the Bankruptcy Code) against such CP Conduit until such time as such CP Conduit
has Excess Funds. If a CP Conduit does not have sufficient Excess Funds to make
any payment due hereunder, then such CP Conduit may pay a lesser amount and make
additional payments that in the aggregate equal the amount of the deficiency as
soon as possible thereafter. The term "Excess Funds" means, at any time,
proceeds of commercial paper notes issued, and advances under a Support Facility
made, to fund a payment to be made by a CP Conduit hereunder and which are
available to make such payment in accordance with the program documents
governing such CP Conduit's commercial paper program; provided that in no event
will Excess Funds be greater than the excess of (a) the aggregate projected
value of the applicable CP Conduit's assets and other property (including

                                      -49-

<PAGE>

cash and cash equivalents), over (b) the sum of (i) the sum of all scheduled
payments of principal, interest and other amounts payable on publicly or
privately placed indebtedness of such CP Conduit for borrowed money, plus (ii)
the sum of all other liabilities, indebtedness and other obligations of such CP
Conduit for borrowed money or owed to any credit or liquidity provider, together
with all unpaid interest then accrued thereon, plus (iii) all taxes payable by
such CP Conduit to the Internal Revenue Service, plus (iv) all other
indebtedness, liabilities and obligations of such CP Conduit then due and
payable, but the amount of any liability, indebtedness or obligation of such CP
Conduit shall not exceed the projected value of the assets to which recourse for
such liability, indebtedness or obligation is limited.

                  [Remainder of page intentionally left blank.]

                                      -50-

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Note Purchase
Agreement to be duly executed by their respective officers as of the day and
year first above written.

                                      ALLIANCE LAUNDRY EQUIPMENT
                                         RECEIVABLES TRUST 2002-A

                                      By: Wilmington Trust Company, not in its
                                          individual capacity but solely
                                          as Owner Trustee

                                      By:    /s/ W. Chris Sponenberg
                                          --------------------------------------
                                          Name:  W. Chris Sponenberg
                                                --------------------------------
                                          Title: Vice President
                                                 -------------------------------

                                      ALLIANCE LAUNDRY SYSTEMS, LLC, as Servicer

                                      By:   /s/ Scott L. Spiller
                                          --------------------------------------
                                          Name:  Scott L. Spiller
                                                --------------------------------
                                          Title: VP, Law and Human Resources
                                                 -------------------------------
                                                 & Secretary
                                                 -------------------------------

                                      THE BANK OF NEW YORK, as Indenture Trustee

                                      By:   /s/ Erwin Soriano
                                          --------------------------------------
                                          Name:  Erwin Soriano
                                                --------------------------------
                                          Title: Assistant Treasurer
                                                 -------------------------------

                                      ALLIANCE LAUNDRY EQUIPMENT
                                         RECEIVABLES 2002 LLC, as Transferor

                                      By:   /s/ Todd M. Rice
                                          --------------------------------------
                                          Name:  Todd M. Rice
                                                --------------------------------
                                          Title: Vice President
                                                 -------------------------------

                                       S-1               Note Purchase Agreement

<PAGE>

                                      BEAR STEARNS & CO. INC.,
                                         as a Co-Administrative Agent

                                      By:   /s/ Jonathan Lieberman
                                          --------------------------------------
                                          Name:  Jonathan Lieberman
                                                --------------------------------
                                          Title: Senior Managing Director
                                                 -------------------------------

                                      CANADIAN IMPERIAL BANK OF COMMERCE,
                                         as a Co-Administrative Agent

                                      By:   /s/ Stephen Adams
                                          --------------------------------------
                                          Name:  Stephen Adams
                                                --------------------------------
                                          Title: Authorized Signatory
                                                 -------------------------------

                                      By:   /s/ David Bondy
                                          --------------------------------------
                                          Name:  David Bondy
                                                --------------------------------
                                          Title: Authorized Signatory
                                                 -------------------------------

                                       S-2               Note Purchase Agreement

<PAGE>

                                      BEAR STEARNS EQUIPMENT LOAN
                                         PURCHASER GROUP

                                      MBIA INSURANCE CORPORATION,
                                         as Agent

                                      By:   /s/ Bertha Lui-Mckee
                                          --------------------------------------
                                          Name:  Bertha Lui-Mckee
                                                --------------------------------
                                          Title: Director
                                                 -------------------------------

                                      Address for Notices:

                                      MBIA Insurance Corporation
                                      113 King Street
                                      Armonk, New York 10504
                                      Attention: Conduit Group
                                      Telephone: (914) 765-3738
                                      Fax: (914) 765-3979

                                      Payment Instructions:

                                       S-3               Note Purchase Agreement

<PAGE>

Type of Equipment Loan                TRIPLE-A ONE FUNDING CORPORATION
Note Purchaser: CP Conduit
Maximum Purchase
Amount: $180,000,000                  By:   /s/ Patricia M. Brosnan
                                          --------------------------------------
                                          Name:  Patricia M. Brosnan
                                                --------------------------------
                                          Title: Vice President
                                                 ------------------------------

                                      Address for Notices and Investing Office:

                                      Triple-A One Funding Corporation
                                      c/o MBIA Insurance Corporation
                                      113 King Street
                                      Armonk, New York 10504
                                      Attention: Conduit Group
                                      Telephone: (914) 765-3738
                                      Fax: (914) 765-3979

                                      Payment Instructions:

                                      Deutsche Bank Trust Company Americas
                                      ABA No. 021-001-033
                                      Corporate Trust Account No. 0141-9647
                                      For Credit CTAG
                                      Ref: AAA Account No. 31568
                                      Attention: Commercial Paper Group

                                       S-4               Note Purchase Agreement

<PAGE>

Type of Equipment Loan                BEAR STEARNS & CO. INC.
Note Purchaser:
Committed
                                      By:    /s/ Jonathan Lieberman
                                          --------------------------------------
Commitment: $180,000,000                  Name:  Jonathan Lieberman
                                                --------------------------------
                                          Title: Senior Managing Director
                                                 -------------------------------

                                      Address for Notices:

                                      Bear Stearns & Co. Inc.
                                      383 Madison Avenue
                                      New York, NY 10179
                                      Attention:
                                      Telecopy No.:
                                      Confirmation:  800-999-2000

                                      Payment Instructions:

                                       S-5               Note Purchase Agreement

<PAGE>

                                      SPARC EQUIPMENT LOAN PURCHASER GROUP

                                      CANADIAN IMPERIAL BANK OF COMMERCE,
                                         as Agent

                                      By:  /s/ Stephen Adams
                                          --------------------------------------
                                          Name:  Stephen Adams
                                                --------------------------------
                                          Title: Authorized Signatory
                                                 -------------------------------

                                      By:  /s/ David Bondy
                                          --------------------------------------
                                          Name:  David Bondy
                                                --------------------------------
                                          Title: Authorized Signatory
                                                 -------------------------------

                                      Address for Notices:

                                      CIBC World Markets
                                      Corp.425 Lexington Avenue
                                      New York, NY 10017
                                      Attention: Asset Securitization
                                      Group - Jeff Bazoian
                                      Telecopy No.: 212-856-3643
                                      Confirmation: 212-856-4000

                                      Payment Instructions:

                                       S-6               Note Purchase Agreement

<PAGE>

Type of Equipment Loan                SPECIAL PURPOSE ACCOUNTS
Note Purchaser:  CP Conduit              RECEIVABLES CORPORATIVE
Maximum Purchase                         CORPORATION

Amount: $120,000,000                  By:    /s/ Henry Sandlass
                                          --------------------------------------
                                          Name:  Henry Sandlass
                                                --------------------------------
                                          Title: Vice President and Treasurer
                                                 -------------------------------

                                      Address for Notices:

                                      Special Purpose Accounts Receivable
                                      Cooperative Cooperation
                                      425 Lexington Avenue
                                      7th Floor
                                      New York, New York 10017
                                      Attention: President
                                      Telecopy No.: (212) 856-3643

                                      Payment Instructions:

                                       S-7               Note Purchase Agreement

<PAGE>

Type of Equipment Loan                CANADIAN IMPERIAL BANK OF
Note Purchaser:                          COMMERCE
Committed

                                      By:    /s/ Stephen Adams
                                          --------------------------------------
Commitment: $120,000,000                  Name:  Stephen Adams
                                                --------------------------------
                                          Title: Authorized Signatory
                                                 -------------------------------

                                      By:    /s/ David Bondy
                                          --------------------------------------
                                          Name:  David Bondy
                                                --------------------------------
                                          Title: Authorized Signatory
                                                 -------------------------------

                                      Address for Notices:

                                      CIBC World Markets
                                      Corp.425 Lexington Avenue
                                      New York, NY 10017
                                      Attention: Asset Securitization
                                         Group - Jeff Bazoian
                                      Telecopy No.: 212-856-3643
                                      Confirmation: 212-856-4000

                                      Payment Instructions:

                                       S-8               Note Purchase Agreement

<PAGE>

                                      BEAR STEARNS RECEIVABLES PURCHASER GROUP

                                      MBIA INSURANCE CORPORATION,
                                      as Agent

                                      By:     /s/ Bertha Lui-Mckee
                                          --------------------------------------
                                          Name:   Bertha Lui-Mckee
                                                --------------------------------
                                          Title:  Director
                                                 -------------------------------

                                      Address for Notices:

                                      MBIA Insurance Corporation
                                      113 King Street
                                      Armonk, New York 10504
                                      Attention: Conduit Group
                                      Telephone: (914) 765-3738
                                      Fax: (914) 765-3979

                                      Payment Instructions:

                                       S-9               Note Purchase Agreement

<PAGE>

Type of Receivables                   TRIPLE-A ONE FUNDING CORPORATION
Note Purchaser: CP Conduit
Maximum Purchase
Amount: $36,000,000                   By:     /s/ Patricia M. Brosnan
                                          --------------------------------------
                                          Name:   Patricia M. Brosnan
                                                --------------------------------
                                          Title:  Vice President
                                                 -------------------------------

                                      Triple-A One Funding Corporation
                                      c/o MBIA Insurance Corporation
                                      113 King Street
                                      Armonk, New York 10504
                                      Attention: Conduit Group
                                      Telephone: (914) 765-3738
                                      Fax: (914) 765-3979

                                      Payment Instructions:

                                      Deutsche Bank Trust Company Americas
                                      ABA No. 021-001-033
                                      Corporate Trust Account No. 0141-9647
                                      For Credit CTAG
                                      Ref: AAA Account No. 31568
                                      Attention: Commercial Paper Group

                                      S-10               Note Purchase Agreement

<PAGE>

Type of Receivables                   BEAR STEARNS & CO. INC.
Note Purchaser:
Committed
                                      By:    /s/ Jonathan Lieberman
                                          --------------------------------------
Commitment: $36,000,000                   Title: Senior Managing Director
                                                 -------------------------------
                                          Name:  Jonathan Lieberman
                                                --------------------------------

                                      Address for Notices:

                                      Bear Stearns & Co. Inc.
                                      383 Madison Avenue
                                      New York, NY 10179
                                      Attention:
                                      Telecopy No.:
                                      Confirmation:  800-999-2000

                                      Payment Instructions:

                                      S-11               Note Purchase Agreement

<PAGE>

                                      SPARC RECEIVABLES PURCHASER GROUP

                                      CANADIAN IMPERIAL BANK OF
                                         COMMERCE, as Agent

                                      By:    /s/ Stephen Adams
                                          --------------------------------------
                                          Name:  Stephen Adams
                                                --------------------------------
                                          Title: Authorized Signatory
                                                 -------------------------------

                                      By:    /s/ David Bondy
                                          --------------------------------------
                                          Name:  David Bondy
                                                --------------------------------
                                          Title: Authorized Signatory
                                                 -------------------------------

                                      Address for Notices:

                                      CIBC World Markets
                                      Corp.425 Lexington Avenue
                                      New York, NY 10017
                                      Attention: Asset Securitization
                                         Group - Jeff Bazoian
                                      Telecopy No.: 212-856-3643
                                      Confirmation: 212-856-4000

                                      Payment Instructions:

                                      S-12               Note Purchase Agreement

<PAGE>

Type of Receivables                   SPECIAL PURPOSE ACCOUNTS RECEIVABLES
Note Purchaser:  CP Conduit             CORPORATIVE CORPORATION
Maximum Purchase

Amount: $24,000,000                   By:    /s/ Henry Sandlass
                                          --------------------------------------
                                          Name:  Henry Sandlass
                                                --------------------------------
                                          Title: Vice President and Treasurer
                                                 -------------------------------

                                      Address for Notices:

                                      Special Purpose Accounts Receivable
                                      Cooperative Cooperation
                                      425 Lexington Avenue
                                      7th Floor
                                      New York, New York 10017
                                      Attention: President
                                      Telecopy No.: (212) 856-3643

                                      Payment Instructions:

                                      S-13               Note Purchase Agreement

<PAGE>

Type of Receivables                   CANADIAN IMPERIAL BANK OF
Note Purchaser:                         COMMERCE
Committed

                                      By:     /s/ David Bondy
                                          --------------------------------------
Commitment: $24,000,000                   Name:   David Bondy
                                                --------------------------------
                                          Title:  Authorized Signatory
                                                 -------------------------------

                                      By:     /s/ Stephen Adams
                                          --------------------------------------
                                          Name:   Stephen Adams
                                                --------------------------------
                                          Title:  Authorized Signatory
                                                 -------------------------------

                                      Address for Notices:

                                      CIBC World Markets
                                      Corp.425 Lexington Avenue
                                      New York, NY 10017
                                      Attention: Asset Securitization
                                         Group - Jeff Bazoian
                                      Telecopy No.: 212-856-3643
                                      Confirmation: 212-856-4000

                                      Payment Instructions:

                                       S-14              Note Purchase Agreement

<PAGE>

                                                                       EXHIBIT A

                           FORM OF TRANSFER SUPPLEMENT

          TRANSFER SUPPLEMENT, dated as of the date set forth in Item 1 of
Schedule I hereto, among the Transferor [Equipment Loan/Receivables] Note
Purchaser set forth in Item 2 of Schedule I hereto (the "Transferor [Equipment
Loan/Receivables] Note Purchaser"), the Purchasing [Equipment Loan/Receivables]
Note Purchaser set forth in Item 3 of Schedule I hereto (the "Purchasing
[Equipment Loan/Receivables] Note Purchaser"), and the Agent set forth in Item 4
of Schedule I hereto (in such capacity, the "Agent") for the Purchaser Group set
forth in Item 5 of Schedule I hereto.

                              W I T N E S S E T H:

          WHEREAS, this Transfer Supplement is being executed and delivered in
accordance with subsection 7.1(e) of the Note Purchase Agreement, dated as of
November 26, 2002, among Alliance Laundry Equipment Receivables Trust 2002-A,
Alliance Laundry Systems LLC ("ALS"), Alliance Laundry Equipment Receivables
2002 LLC, the Indenture Trustee, the Note Purchasers and the Agents parties
thereto, Bear Stearns & Co. Inc., as a Co-Administrative Agent and Canadian
Imperial Bank of Commerce, as a Co-Administrative Agent (as from time to time
amended, supplemented or otherwise modified in accordance with the terms
thereof, the "Note Purchase Agreement"; unless otherwise defined herein, terms
defined in the Note Purchase Agreement are used herein as therein defined);

          WHEREAS, the Purchasing Equipment [Equipment Loan/Receivables]
Purchaser (if it is not already an [Equipment Loan/Receivables] Note Purchaser
party to the Note Purchase Agreement) wishes to become an [Equipment
Loan/Receivables] Note Purchaser party to the Note Purchase Agreement and the
Purchasing [Equipment Loan/Receivables] Note Purchaser wishes to acquire and
assume from the Transferor [Equipment Loan/Receivables] Note Purchaser, certain
of the rights, obligations and commitments under the Note Purchase Agreement;
and

          WHEREAS, the Transferor [Equipment Loan/Receivables] Note Purchaser
wishes to sell and assign to the Purchasing [Equipment Loan/Receivables] Note
Purchaser, certain of its rights, obligations and commitments under the Note
Purchase Agreement.

          NOW, THEREFORE, the parties hereto hereby agree as follows:

          (a) Upon receipt by the Agent of five counterparts of this Transfer
Supplement, to each of which is attached a fully completed Schedule I and
Schedule II, each of which has been executed by the Transferor [Equipment
Loan/Receivables] Note Purchaser, the Purchasing [Equipment Loan/Receivables]
Note Purchaser and the Agent, the Agent will transmit to the Servicer, the
Issuer, the Transferor, the Indenture Trustee, the Transferor [Equipment
Loan/Receivables] Note Purchaser and the Purchasing [Equipment Loan/Receivables]
Note Purchaser a Transfer Effective Notice, substantially in the form of
Schedule III to this Transfer Supplement (a "Transfer Effective Notice"). Such
Transfer Effective Notice shall be executed by the Agent and shall set forth,
inter alia, the date on which

                                   Exhibit A-1

<PAGE>

the transfer effected by this Transfer Supplement shall become effective (the
"Transfer Effective Date"). From and after the Transfer Effective Date the
Purchasing [Equipment Loan/Receivables] Note Purchaser shall be an [Equipment
Loan/Receivables] Note Purchaser party to the Note Purchase Agreement for all
purposes thereof as a CP Conduit or a Committed Purchaser, as specified on
Schedule II to this Transfer Supplement.

          (b) At or before 12:00 Noon, local time of the Transferor [Equipment
Loan/Receivables] Note Purchaser, on the Transfer Effective Date, the Purchasing
[Equipment Loan/Receivables] Note Purchaser shall pay to the Transferor
[Equipment Loan/Receivables] Note Purchaser, in immediately available funds, an
amount equal to the purchase price, as agreed between the Transferor [Equipment
Loan/Receivables] Note Purchaser and such Purchasing [Equipment
Loan/Receivables] Note Purchaser (the "Purchase Price"), of the portion set
forth on Schedule II hereto being purchased by such Purchasing [Equipment
Loan/Receivables] Note Purchaser of the outstanding [Equipment Loan/Receivables]
Note Principal Balance under the [Equipment Loan/Receivables] Note owned by the
Transferor [Equipment Loan/Receivables] Note Purchaser (such Purchasing
[Equipment Loan/Receivables] Note Purchaser's "Purchaser Percentage") and other
amounts owing to the Transferor [Equipment Loan/Receivables] Note Purchaser
under the Note Purchase Agreement or otherwise in respect of the [Equipment
Loan/Receivables] Notes. Effective upon receipt by the Transferor [Equipment
Loan/Receivables] Note Purchaser of the Purchase Price from the Purchasing
[Equipment Loan/Receivables] Note Purchaser, the Transferor [Equipment
Loan/Receivables] Note Purchaser hereby irrevocably sells, assigns and transfers
to the Purchasing [Equipment Loan/Receivables] Note Purchaser, without recourse,
representation or warranty, and the Purchasing [Equipment Loan/Receivables] Note
Purchaser hereby irrevocably purchases, takes and assumes from the Transferor
[Equipment Loan/Receivables] Note Purchaser, the Purchasing [Equipment
Loan/Receivables] Note Purchaser's Purchaser Percentage of (i) the presently
outstanding [Equipment Loan/Receivables] Note Principal Balance under the
[Equipment Loan/Receivables] Notes owned by the Transferor [Equipment
Loan/Receivables] Note Purchaser and other amounts owing to the Transferor
[Equipment Loan/Receivables] Note Purchaser in respect of the [Equipment
Loan/Receivables] Notes, together with all instruments, documents and collateral
security pertaining thereto, and (ii) the Purchasing [Equipment
Loan/Receivables] Note Purchaser's Purchaser Percentage of (A) if the Transferor
[Equipment Loan/Receivables] Note Purchaser is a CP Conduit, the Purchaser
Percentage of the Transferor [Equipment Loan/Receivables] Note Purchaser and the
other rights and duties of the Transferor [Equipment Loan/Receivables] Note
Purchaser under the Note Purchase Agreement, or (B) if the Transferor [Equipment
Loan/Receivables] Note Purchaser is a Committed Purchaser, the Liquidity
Percentage and the Commitment of the Transferor [Equipment Loan/Receivables]
Note Purchaser and other rights, duties and obligations of the Transferor
[Equipment Loan/Receivables] Note Purchaser under the Note Purchase Agreement.
This Transfer is intended by the parties hereto to effect a purchase by the
Purchasing [Equipment Loan/Receivables] Note Purchaser and sale by the
Transferor [Equipment Loan/Receivables] Note Purchaser of interests in the
[Equipment Loan/Receivables] Notes, and it is not to be construed as a loan or a
commitment to make a loan by the Purchasing [Equipment Loan/Receivables] Note
Purchaser to the Transferor [Equipment Loan/Receivables] Note Purchaser. The
Transferor [Equipment Loan/Receivables] Note Purchaser hereby confirms that the
amount of the [Equipment Loan/Receivables] Note Principal Balance is $
                                                                      ----------
and its Percentage Interest thereof is      %, which equals $                as
                                       -----                 ---------------
of             ,
   ------------

                                   Exhibit A-2

<PAGE>

200 . Upon and after the Transfer Effective Date (until further modified in
   -
accordance with the Note Purchase Agreement), the Purchaser Percentage or
Liquidity Percentage, as applicable of the Transferor [Equipment
Loan/Receivables] Note Purchaser and the Purchasing [Equipment Loan/Receivables]
Note Purchaser and the Commitment and the Liquidity Percentage, if applicable,
if any, of the Transferor [Equipment Loan/Receivables] Note Purchaser and the
Purchasing [Equipment Loan/Receivables] Note Purchaser shall be as set forth in
Schedule II to this Transfer Supplement.

          (c) The Transferor [Equipment Loan/Receivables] Note Purchaser has
made arrangements with the Purchasing [Equipment Loan/Receivables] Note
Purchaser with respect to (i) the portion, if any, to be paid, and the date or
dates for payment, by the Transferor [Equipment Loan/Receivables] Note Purchaser
to the Purchasing [Equipment Loan/Receivables] Note Purchaser of any fees
heretofore received by the Transferor [Equipment Loan/Receivables] Note
Purchaser pursuant to the Note Purchase Agreement prior to the Transfer
Effective Date and (ii) the portion, if any, to be paid, and the date or dates
for payment, by the Purchasing [Equipment Loan/Receivables] Note Purchaser to
the Transferor [Equipment Loan/Receivables] Note Purchaser of fees or interest
received by the Purchasing [Equipment Loan/Receivables] Note Purchaser pursuant
to the Note Purchase Agreement or otherwise in respect of the [Equipment
Loan/Receivables] Notes from and after the Transfer Effective Date.

          (d) (i) All principal payments that would otherwise be payable from
and after the Transfer Effective Date to or for the account of the Transferor
[Equipment Loan/Receivables] Note Purchaser in respect of the [Equipment
Loan/Receivables] Notes shall, instead, be payable to or for the account of the
Transferor [Equipment Loan/Receivables] Note Purchaser and the Purchasing
[Equipment Loan/Receivables] Note Purchaser, as the case may be, in accordance
with their respective interests as reflected in this Transfer Supplement.

               (ii) All interest, fees and other amounts that would otherwise
accrue for the account of the Transferor [Equipment Loan/Receivables] Note
Purchaser from and after the Transfer Effective Date pursuant to the Note
Purchase Agreement or in respect of the [Equipment Loan/Receivables] Notes
shall, instead, accrue for the account of, and be payable to or for the account
of, the Transferor [Equipment Loan/Receivables] Note Purchaser and the
Purchasing [Equipment Loan/Receivables] Note Purchaser, as the case may be, in
accordance with their respective interests as reflected in this Transfer
Supplement. In the event that any amount of interest, fees or other amounts
accruing prior to the Transfer Effective Date was included in the Purchase Price
paid by the Purchasing [Equipment Loan/Receivables] Note Purchaser, the
Transferor [Equipment Loan/Receivables] Note Purchaser and the Purchasing
[Equipment Loan/Receivables] Note Purchaser will make appropriate arrangements
for payment by the Transferor [Equipment Loan/Receivables] Note Purchaser to the
Purchasing [Equipment Loan/Receivables] Note Purchaser of such amount upon
receipt thereof from the Agent.

          (e) Concurrently with the execution and delivery hereof, the
Purchasing [Equipment Loan/Receivables] Note Purchaser will deliver to the
Agent, the Transferor and the Issuer an executed Investment Letter in the form
of Exhibit [__] to the [_________] and the forms, if any, required by subsection
2.4(c) of the Note Purchase Agreement.

                                   Exhibit A-3

<PAGE>

          (f) Each of the parties to this Transfer Supplement agrees and
acknowledges that (i) at any time and from time to time upon the written request
of any other party, it will execute and deliver such further documents and do
such further acts and things as such other party may reasonably request in order
to effect the purposes of this Transfer Supplement, and (ii) the Agent shall
apply each payment made to it under the Note Purchase Agreement, whether in its
individual capacity or as Agent, in accordance with the provisions of the Note
Purchase Agreement, as appropriate.

          (g) By executing and delivering this Transfer Supplement, the
Transferor [Equipment Loan/Receivables] Note Purchaser and the Purchasing
[Equipment Loan/Receivables] Note Purchaser confirm to and agree with each
other, the Agent and the [Equipment Loan/Receivables] Note Purchasers as
follows: (i) other than the representation and warranty that it is the legal and
beneficial owner of the interest being assigned hereby free and clear of any
adverse claim, the Transferor [Equipment Loan/Receivables] Note Purchaser makes
no representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with the Note
Purchase Agreement or the Related Documents or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Note Purchase
Agreement or any other instrument or document furnished pursuant thereto; (ii)
the Transferor [Equipment Loan/Receivables] Note Purchaser makes no
representation or warranty and assumes no responsibility with respect to the
Issuer, the financial condition of the [Equipment Loan/Receivables], the
Accounts, the Issuer, ALS, the Transferor or the Indenture Trustee, or the
performance or observance by the Issuer, ALS, the Transferor or the Indenture
Trustee of any of their respective obligations under the Note Purchase Agreement
or any Related Document or any other instrument or document furnished pursuant
hereto; (iii) each Purchasing [Equipment Loan/Receivables] Note Purchaser
confirms that it has received a copy of such documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into
this Transfer Supplement; (iv) each Purchasing [Equipment Loan/Receivables] Note
Purchaser will, independently and without reliance upon any Co-Administrative
Agent, any Agent (as defined in the Note Purchase Agreement) the Transferor
[Equipment Loan/Receivables] Note Purchaser or any other [Equipment
Loan/Receivables] Note Purchaser and based on such documents and information as
it shall deem appropriate at the time, continue to make its own credit decisions
in taking or not taking action under the Note Purchase Agreement or the Related
Documents; (v) the Purchasing Note Purchaser appoints and authorizes the Agent
and each Co-Administrative Agent to take such action as agent on its behalf and
to exercise such powers under the Note Purchase Agreement and the Related
Documents as are delegated to the Agent or such Co-Administrative Agent, as the
case may be, by the terms thereof, together with such powers as are reasonably
incidental thereto, all in accordance with Section 6.1 of the Note Purchase
Agreement; and (vi) each Purchasing [Equipment Loan/Receivables] Note Purchaser
agrees (for the benefit of the Transferor Note Purchaser, the Co-Administrative
Agents, the Agents (as defined in the Note Purchase Agreement), the [Equipment
Loan/Receivables] Note Purchasers, the Indenture Trustee, the Servicer, the
Transferor and the Issuer) that it will perform in accordance with their terms
all of the obligations which by the terms of the Note Purchase Agreement are
required to be performed by it as an [Equipment Loan/Receivables] Note
Purchaser.

          (h) Schedule II hereto sets forth the revised Purchaser Percentage or
the revised Liquidity Percentage, if applicable, and Commitment of the
Transferor Note Purchaser,

                                   Exhibit A-4

<PAGE>

as applicable, the Purchaser Percentage or the Liquidity Percentage, if
applicable, and the initial Investing Office of the Purchasing Note Purchaser,
as well as administrative information with respect to the Purchasing Note
Purchaser.

          (i) THIS TRANSFER SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

          IN WITNESS WHEREOF, the parties hereto have caused this Transfer
Supplement to be executed by their respective duly authorized officers on
Schedule I hereto as of the date set forth in Item 1 of Schedule I hereto.

                                   Exhibit A-5

<PAGE>

                                                                   SCHEDULE I TO
                                                             TRANSFER SUPPLEMENT

                          COMPLETION OF INFORMATION AND
                       SIGNATURES FOR TRANSFER SUPPLEMENT

     Re:  Note Purchase Agreement, dated as of November 26, 2002, among Alliance
          Laundry Equipment Receivables Trust 2002-A, Alliance Laundry Systems,
          LLC, Alliance Laundry Equipment Receivables 2002 LLC, the Equipment
          Loan Note Purchasers and the Agents parties thereto, Bear Stearns &
          Co. Inc., as a Co-Administrative Agent and Canadian Imperial Bank of
          Commerce, as a Co-Administrative Agent

Item 1: Date of Transfer Supplement:

Item 2: Transferor [Equipment Loan/Receivables] Note Purchaser:

Item 3: Purchasing [Equipment Loan/Receivables] Note Purchaser:

Item 4: Name of Agent:

Item 5: Name of Purchaser Group:

Item 6: Signatures of Parties to Agreement:

                                      ------------------------------------------
                                      as Transferor [Equipment Loan/Receivables]
                                      Note Purchaser

                                      By:
                                         ---------------------------------------
                                         Name:
                                         Title:

                                      ------------------------------------------

                                   Exhibit A-6

<PAGE>

                                      as Purchasing [Equipment Loan/Receivables]
                                      Note Purchaser

                                      By:
                                         ---------------------------------------
                                         Name:
                                         Title:

                                      By:
                                         ---------------------------------------
                                         Name:
                                         Title:

CONSENTED TO AND ACCEPTED BY:

MBIA INSURANCE CORPORATION,
as Agent

By:
   ----------------------------------
Name:
Title:

BEAR STEARNS & CO. INC.,
as a Co-Administrative Agent

By:
   ----------------------------------
Name:
Title:

CANADIAN IMPERIAL BANK OF COMMERCE.,
as a Co-Administrative Agent

By:
   ----------------------------------
Name:
Title:

By:
   ----------------------------------
Name:
Title:

                                   Exhibit A-7

<PAGE>

                                                                  SCHEDULE II TO
                                                             TRANSFER SUPPLEMENT

                      LIST OF INVESTING OFFICES, ADDRESSES
                       FOR NOTICES, ASSIGNED INTERESTS AND
                       PURCHASE AND LIQUIDITY PERCENTAGES

[Transferor [Equipment Loan/Receivables] Note Purchaser]

A.   Type of Purchaser: [CP Conduit/Committed]

B.   Purchaser Percentage:

     Transferor Note Purchaser Purchaser Percentage Prior to Sale:             %
                                                                          -----

     Purchaser Percentage Sold:                                                %
                                                                          -----

     Purchaser Percentage Retained:                                            %
                                                                          -----

C.   Commitment (if applicable)

     Transferor[Equipment Loan/Receivables] Note Purchaser Commitment
        Prior to Sale:                                                   $
                                                                          -----
     Commitment Sold:                                                    $
                                                                          -----

     Commitment Retained:                                                $
                                                                          -----

     Related CP Conduit (applicable to Committed Purchaser):
                                                             ---------

D.   Related Committed Purchasers (applicable to CP Conduit)

     Committed Purchasers, Commitments and Liquidity Percentages
        prior to Sale:

                                            $                                  %
     --------------------                    ----------                   -----
                                            $                                  %
     --------------------                    ----------                   -----
                                            $                                  %
     --------------------                    ----------                   -----

E.   [Equipment Loan/Receivables] Note Principal Balance:

     Transferor [Equipment Loan/Receivables] Note Purchaser
        [Equipment Loan/Receivables]Note Principal Balance Prior
        to Sale:                                                         $
                                                                          -----

     [Equipment Loan/Receivables] Note Principal Balance Sold:           $
                                                                          -----
     [Equipment Loan/Receivables] Note Principal Balance Retained:       $
                                                                          -----

                                   Exhibit A-8

<PAGE>

[Purchasing [Equipment Loan/Receivables] Note Purchaser]

A.   Type of Purchaser: [CP Conduit/Committed]

B.   Purchaser Percentage:

     Transferee [Equipment Loan/Receivables] Note Purchaser Purchaser
        Percentage After Sale:                                                 %
                                                                          -----
C.   Commitment (if applicable)

     Transferee [Equipment Loan/Receivables] Note Purchaser Commitment
        After Sale:                                                      $
                                                                          -----
     Related CP Conduit (applicable to Committed Purchaser):
                                                             ---------

D.   Related Committed Purchasers (applicable to CP Conduit)

     Committed Purchasers, Commitments and Liquidity Percentages
        after Sale:

                                            $                                  %
     --------------------                    ----------                   -----
                                            $                                  %
     --------------------                    ----------                   -----
                                            $                                  %
     --------------------                    ----------                   -----

E.   [Equipment Loan/Receivables] Note Principal Balance:

     Transferee [Equipment Loan/Receivables] Note Purchaser

     [Equipment Loan/Receivables] Note Principal Balance After Sale:     $
                                                                          -----

Address for Notices:

Investing Office:

                                   Exhibit A-9

<PAGE>

                                                                 SCHEDULE III TO
                                                             TRANSFER SUPPLEMENT

                                     Form of
                            Transfer Effective Notice

To:  [Name and address of Issuer, Transferor,
     Servicer, Indenture Trustee, Administrative
     Agent, Transferor [Equipment Loan/Receivables] Note Purchaser and
     Purchasing [Equipment Loan/Receivables] Note Purchaser]

          The undersigned, as Agent under the Note Purchase Agreement, dated as
of November 26, 2002, among Alliance Laundry Equipment Receivables Trust 2002-A,
Alliance Laundry Systems, LLC, Alliance Laundry Equipment Receivables 2002 LLC,
the Note Purchasers and the Agents parties thereto, Bear Stearns & Co. Inc., as
a Co-Administrative Agent, and Canadian Imperial Bank of Commerce, as a
Co-Administrative Agent acknowledges receipt of five executed counterparts of a
completed Transfer Supplement. [Note: attach copies of Schedules I and II from
such Agreement.] Terms defined in such Transfer Supplement are used herein as
therein defined.

          Pursuant to such Transfer Supplement, you are advised that the
Transfer Effective Date will be                ,      .
                                ---------------  -----

                                      Very truly yours,

                                                        , as Agent
                                      ------------------

                                      By:
                                         ---------------------------------------
                                         Name:
                                         Title:

                                  Exhibit A-10

<PAGE>

                                                                       EXHIBIT B

                                     FORM OF
                             ADVANCE INCREASE NOTICE

                                     [Date]

The Bank of New York,
  as Indenture Trustee

----------------------

----------------------

Alliance Laundry Systems, LLC,
  as Servicer

----------------------

----------------------

Alliance Laundry Equipment Receivables 2002 LLC,
  as Transferor

----------------------

----------------------

Bear Stearns & Co. Inc.,
  as a Co-Administrative Agent

----------------------

----------------------

Canadian Imperial Bank of Commerce,
  as a Co-Administrative Agent

----------------------

----------------------

     RE:  Alliance Laundry Equipment Receivables Trust 2002-A
          Equipment Loan Notes
          Receivables Notes

Ladies and Gentlemen:

     Pursuant to (a) the Indenture, dated as of November 26, 2002, by and
between Alliance Laundry Equipment Receivables Trust 2002-A (the "Issuer") and
The Bank of New York, as Indenture Trustee, and (b) the Note Purchase Agreement
dated as of November 26, 2002 (the "Note Purchase Agreement"), among the Issuer,
the Indenture Trustee, Alliance, as Servicer, Alliance Laundry Equipment
Receivables 2002 LLC, as Transferor, the Note Purchasers and the Agents parties
thereto, Bear Stearns & Co. Inc., as a Co-Administrative Agent and Canadian
Imperial Bank of Commerce, as a Co-Administrative Agent, the Issuer hereby
irrevocably

                                   Exhibit B-1

<PAGE>

requests a [Equipment Loan Advance Increase/Receivables Advance Increase] as
follows. Terms used herein are used as defined in or for purposes of the Note
Purchase Agreement.

     1.   The requested amount of such [Equipment Loan/Receivables] Advance
          Increase is $          .
                       ----------

     2.   The date of such [Equipment Loan/Receivables] is to occur is
                    (the "[Equipment Loan/Receivables] Borrowing Date").
          ----------

     3.   All conditions precedent to such [Equipment Loan/Receivables] Advance
          Increase described in clauses (a) through (j) of Section 3.2 of the
          Note Purchase Agreement have been satisfied.

     4.   The purchases of the [Equipment Loan/Receivables] Advance Increase to
          be purchased on the [Equipment Loan/Receivables] Borrowing Date will
          not cause a Rapid Amortization Event or an event that, after the
          giving of notice of the lapse of time (or both), would cause a Rapid
          Amortization Event.

     5.   The proceeds of such [Equipment Loan/Receivables] Advance Increase
          shall be remitted on the [Equipment Loan/Receivables] Borrowing Date
          in immediately available funds to [specify payment instructions].

     6.   After giving effect to the [Equipment Loan/Receivables] Advance
          Increase, the [Equipment Loan/Receivables] Note Principal Balance
          shall be equal to or less than the [Equipment Loan/Receivables]
          Facility Limit.

     7.   [After giving effect to the Equipment Loan Advance Increase, the
          Equipment Loan Note Principal Balance shall be equal to or less than
          the Equipment Loan Borrowing Base as set forth in the Borrowing Base
          Certificate attached hereto.] [After giving effect to the Receivables
          Advance Increase, the Receivables Note Principal Balance shall be
          shall be equal to or less than the Receivables Borrowing Base as set
          forth in the Borrowing Base Certificate attached hereto.]

     8.   Payments shall be made by federal wire to it, at its account (account
          number [__________]; and account name [____________]) maintained at
          [__________] (ABA # [___________]), with telephone notice (including
          federal wire number) to [________] of [_______] (___-___-____).

                  [Remainder of page intentionally left blank.]

                                   Exhibit B-2

<PAGE>

                                    Very truly yours,

                                    ALLIANCE LAUNDRY EQUIPMENT RECEIVABLES
                                    TRUST 2002-A, as Issuer

                                    By:  Alliance Laundry Equipment Receivables
                                    2002 LLC, not in its individual capacity but
                                    solely as Administrator of the Issuer

                                    By:
                                       -----------------------------------------
                                       Name:
                                       Title:

                                    ALLIANCE LAUNDRY EQUIPMENT RECEIVABLES
                                    2002 LLC, as Transferor

                                    By:
                                       -----------------------------------------
                                       Name:
                                       Title:

                                   Exhibit B-3

<PAGE>

                   [Borrowing Base Certificate to be attached]

                                   Exhibit B-4

<PAGE>

                                    EXHIBIT C

                    FORM OF WAREHOUSE TERMINATION AGREEMENTS

                                   Exhibit C-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00047-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00047-of-00352.parquet"}]]