Exhibit 10.8.5

AMENDMENT NO. 5 TO
LOAN CERTIFICATE AND SERVICING AGREEMENT

     THIS AMENDMENT NO. 5 TO LOAN CERTIFICATE AND SERVICING AGREEMENT, dated as
of April 8, 2004 (this “Amendment”), is entered into by and among

     (1) CAPITALSOURCE ACQUISITION FUNDING LLC, a Delaware limited liability
company, as the seller (together with its successors and assigns in such
capacity, the “Seller”);

     (2) CAPITALSOURCE FINANCE LLC, a Delaware limited liability company
(“CapitalSource Finance”), as the originator (together with its successors and
assigns in such capacity, the “Originator”), and as the servicer (together with
its successors and assigns in such capacity, the “Servicer”);

     (3) VARIABLE FUNDING CAPITAL CORPORATION, a Delaware corporation (together
with its successors and assigns, “VFCC”), as the purchaser (together with its
successors and assigns in such capacity, the “Purchaser”);

     (4) WACHOVIA CAPITAL MARKETS, LLC (f/k/a Wachovia Securities, Inc.), a
Delaware corporation (together with its successors and assigns, “WCM”), as the
agent for the Purchaser (together with its successors and assigns in such
capacity, the “Purchaser Agent”) and as the agent for the Purchaser Agent
(together with its successors and assigns in such capacity, the “Administrative
Agent”); and

     (5) WELLS FARGO BANK, NATIONAL ASSOCIATION, successor by merger to Wells
Fargo Bank Minnesota, National Association (“Wells Fargo”), not in its
individual capacity but as the backup servicer (together with its successors and
assigns in such capacity, the “Backup Servicer”), and not in its individual
capacity but as the collateral custodian (together with its successors and
assigns in such capacity, the “Collateral Custodian”).

     Capitalized terms used but not defined herein are used as defined in the
Agreement (defined below).

R E C I T A L S

     WHEREAS, the parties hereto entered into that certain Loan Certificate and
Servicing Agreement, dated as of February 28, 2003, as amended by Amendment No.
1 to Loan Certificate and Servicing Agreement dated as of April 3, 2003,
Amendment No. 2 to Loan Certificate and Servicing Agreement dated as of June 30,
2003, Amendment No. 3 to Loan Certificate and Servicing Agreement dated
August 27, 2003 and Amendment No. 4 to Loan Certificate and Servicing Agreement
dated February 26, 2004 (as further amended, supplemented, modified or restated
from time to time, the “Agreement”);

     WHEREAS, the Originator has acquired a pool of master purchase agreements
from the SLP Originator (defined below) and made a loan to the SPE Obligor
(defined below) pursuant to the terms of the SLP Acquisition Agreement (defined
below);

 

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     WHEREAS, the Originator will on the SLP Funding Dates (defined below)
transfer the Loans acquired from the SLP Financing Originator (defined below) to
the Seller pursuant to the terms of the Sale Agreement; and

     WHEREAS, the parties hereto desire to amend the Agreement as provided
herein;

     NOW THEREFORE, based on the foregoing Recitals, the mutual premises and
agreements contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
intending to be legally bound hereby agree as follows:

     Section 1. Amendments.

     (a) The following definitions in Section 1.1 of the Agreement are hereby
amended and restated in their entirety as follows:

    Acquisition Agreements: Collectively, the FINOVA Acquisition Agreement, the
Fleet Acquisition Agreement, the DVI Acquisition Agreements and the SLP
Acquisition Agreement, and each an “Acquisition Agreement.”       Advance Rate:
(a) Prior to June 30, 2004, an amount equal to 80%; (b) on or after June 30,
2004, (i) an amount equal to 80% if the Security System Loan Percentage (after
giving effect to any agreed upon proposed funding) is less than 50%; (ii) an
amount equal to 75% if the Security System Loan Percentage (after giving effect
to any agreed upon proposed funding) is greater than or equal to 50% but less
than or equal to 75%; and (iii) an amount equal to 70% if the Security System
Loan Percentage (after giving effect to any agreed upon proposed funding) is
greater than 75%.       CapitalSource Funding CP Facility: That certain Sale and
Servicing Agreement, to be dated on or about April 19, 2004, by and among
CapitalSource Funding III LLC, as the seller, CapitalSource Finance LLC, as the
originator and as the servicer, VFCC and each other Commercial Paper Conduit
from time to time party thereto, as the conduit purchasers, Wachovia Bank,
National Association, as swingline purchaser, WCM, as the administrative agent
and the VFCC agent, each other Purchaser Agent from time to time party thereto,
and Wells Fargo, as the backup servicer and as the collateral custodian, as
amended, modified, waived, supplemented or restated from time to time.      
Change-in-Control: Any of the following:       (a) The failure of John K.
Delaney, Jason M. Fish and Bryan Corsini and Affiliates thereof to own in the
aggregate (directly or indirectly), free and clear of all liens, at least
7 million shares of the outstanding shares of common stock of CapitalSource
Inc., as adjusted upwards or downwards from time to time for splits or reverse
splits, respectively;       (b) The failure of CapitalSource Inc. to own
(directly or through wholly owned subsidiaries), free and clear of all liens,
99.9% of the outstanding voting membership interests of the Originator;

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    (c) the creation or imposition of any Lien on any limited liability company
membership interest in the Seller; or       (d) the failure by Originator to own
all of the limited liability company membership interests in the Seller.      
Eligible Obligor: On any date of determination, any Obligor that (i) is a
business organization (and not a natural person) duly organized and validly
existing under the laws of, and has its chief executive offices in, the United
States or any political subdivision thereof, and has a billing address within
the United States, (ii) is a legal operating entity or holding company (except
with respect to the SPE Loan to the SPE Obligor), (iii) has not entered into the
Loan primarily for such Obligor’s personal, family or household purposes,
(iv) is not a Governmental Authority, (v) is not an Affiliate (other than with
respect to the SPE Obligor) of any party hereto, (vi) is not in the gaming,
nuclear waste, biotechnology, natural resources or real estate development
industry, (vii) is not the subject of an Insolvency Proceeding, (viii) as of the
applicable Cut-Off Date, has an Eligible Risk Rating, and (ix) is not an Obligor
of a Charged-Off Loan or Delinquent Loan.       Facility Amount: $100,000,000,
as such amount may vary from time to time upon the written agreement of the
parties hereto; provided, that, such amount may not at any time exceed the
aggregate Commitments then in effect; provided, further, that, on or after the
Termination Date, the Facility Amount shall mean the Advances Outstanding.      
Facility Termination Date: April 7, 2006, or such later date as the
Administrative Agent and the Purchaser Agent, in its sole discretion, shall
notify the Seller of in writing.       Financing Originator: Collectively, the
FINOVA Financing Originator, the Fleet Financing Originator, the DVI Financing
Originator and the SLP Financing Originator, and each a “Financing Originator.”
      Funding Date: (i) The Business Day following the Closing Date, (ii) the
Business Day following the Fleet Closing Date, (iii) the Business Day following
the applicable DVI Closing Dates, (iv) the Business Day following the SLP
Closing Date, and (v) as to any incremental Advance, any Business Day that is
one (1) Business Day immediately following the receipt by the Administrative
Agent and the Purchaser Agent of a Borrowing Notice (along with a Borrowing Base
Certificate) in accordance with Section 2.2.       Loan: Any loan or MPA
originated by the Originator or purchased by the Originator from a Financing
Originator pursuant to and in accordance with an Acquisition Agreement that is
identified on a Loan List or contributed to the Seller and is eligible to be
purchased by the Seller and included as part of the Asset Pool on the Closing
Date or, with respect to a Loan purchased from the Fleet Financing Originator,
the Fleet Closing Date, or, with respect to a Loan purchased from the DVI
Financing Originator, the DVI Closing Date, or with respect to a Loan purchased
from the SLP Financing Originator,

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    the SLP Closing Date, or with respect to a Loan originated by the
Originator, the Subsequent Closing Date.       Loan Checklist: The list of loan
documents attached as Schedule 5 to the Acquisition Agreement or attached as
Schedule XVI to this Agreement that identifies the items contained in the
related Loan File, as amended from time to time therein.       Loan Files: With
respect to any Loan and Related Security, copies of each of the Required Loan
Documents and duly executed originals (to the extent required by the Credit and
Collection Policy) and copies of any other Records relating to such Loan and
Related Security, and, if the Loan was acquired by the Originator from a
Financing Originator, all contained in the actual files delivered to Seller by
the Financing Originator.       Loan-to-Value Ratio: With respect to any Loan
other than a Security System Loan, as of any date of determination, the
percentage equivalent of a fraction (a) the numerator of which is equal to
(i) the purchase price paid by the Originator to the Financing Originator under
the Acquisition Agreement, or (ii) the Outstanding Loan Balance of such Loan as
of such date of determination and (b) the denominator of which is equal to the
total discounted collateral value of the collateral securing such Loan that is
subject to a first priority lien in favor of the Originator. With respect to any
Security System Loan, as of any date of determination, the percentage equivalent
of a fraction (a) the numerator of which is equal to the related Security System
Loan Advance Multiple and (b) the denominator of which is equal to the related
Security System Loan Average Contract Term.       Minimum Pool Yield: A Pool
Yield equal to 4.0%.       Outstanding Loan Balance: With respect to any Loan,
the sum of (i) the purchase price for such Loan paid by the Originator to the
Financing Originator under the Acquisition Agreement or, if such Loan was
originated by the Originator, the original principal amount thereof funded by
the Originator, plus (ii) in the case of Revolving Loans, the principal amount
of any additional funds advanced to the related Obligor pursuant to
Sections 2.1(b) and 2.2 on and after the Closing Date, minus (iii) the amount of
any Principal Collections received from the related Obligor and applied to
reduce the outstanding principal amount due on such Loan; provided, however,
that the Outstanding Loan Balance of any Loan shall be increased and reinstated
in the amount of any Principal Collections so received and applied if at any
time the distribution of such Principal Collections is rescinded or must
otherwise be returned for any reason.       Pool Concentration Criteria: On any
day, each of the concentration limitations as set forth below (which
concentration limitations (unless otherwise indicated) shall be measured on the
basis of a percentage of the sum of (i) the Aggregate Outstanding Loan Balance,
minus (ii) the Outstanding Loan Balance of all Delinquent Loans, plus (iii) the
amount on deposit in the Principal Collections Account received in reduction of
the Outstanding Loan Balance of any Eligible Loan, plus (iv) to the extent
included as part of

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    the Assets, the outstanding principal amount of the CapitalSource Commercial
Loan Trust 2002-1 Class C Notes and Class D Notes:

          (1) the sum of the Outstanding Loan Balances of all Loans (other than
the SPE Loan) to a single Obligor (including Affiliates thereof) shall not
exceed 7%;

          (2) the sum of the Outstanding Loan Balances of all Loans (other than
the SPE Loan) to the five largest Obligors (including Affiliates thereof) shall
not exceed 20%;

          (3) the average Outstanding Loan Balance to a single Obligor shall not
exceed 2%;

          (4) the sum of the Outstanding Loan Balance of all Senior Secured
Loans (such status as a Senior Secured Loan to be calculated, other than with
respect to any Security System Loan, by utilizing the numerator in clause
(a)(ii) of the first sentence of the definition of Loan-to-Value Ratio, and to
be calculated, with respect to any Security System Loan, in accordance with the
second sentence of the definition of Loan-to-Value Ratio) shall not be less than
100%;

          (5) after June 30, 2004, the sum of the Outstanding Loan Balance of
all Security System Loans shall not exceed $62,500,000 (which concentration
criteria for this Clause (5) is to be measured on the basis of the aggregate
Outstanding Loan Balance); and

          (6) the sum of the Outstanding Loan Balances of all Loans with a “Risk
Rating 5” or a “Risk Rating 6” shall not exceed 0%.

    Senior Secured Loan: Any Type of Loan secured by a first priority lien on
the Obligor’s Related Property securing the loan and which Loan (other than any
Loan purchased from the SLP Originator on the SLP Closing Date) has a
Loan-to-Value Ratio of less than (a) 90% if such Loan is not a Security System
Loan, and (b) 72.5% if such Loan is a Security System Loan.

     (b) Section 1.1 of the Agreement is hereby amended to include the following
new definitions:

    Alarm Service Agreement: An agreement between a Dealer and its customer
pursuant to which the Dealer is obligated to service and monitor the customer’s
alarm system in consideration for monthly payments by the customer.      
Dealer: An alarm system dealer that sells Alarm Service Agreements to the SLP
Financing Originator or the Originator pursuant to an MPA.       Excluded
Assets: The four master purchase agreements (along with the related purchase
statements and other related documents) under which the following are the
dealers: (a) Alliant Protection Services, Inc., Royal Alarm Systems, Inc. and
Pacific Security

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    Solutions, Inc., (b) Alliance Security Network, Inc., (c) Protection Alarm
Systems, Inc. and (d) KEL Corporation, Medicall of Georgia, Vital Link, Inc. and
Datamed Systems, Inc.       MPA: Any master purchase agreement between the SLP
Financing Originator or the Originator and a Dealer, as supplemented and/or
modified by one or more purchase statements, pursuant to which such Dealer has
sold Alarm Service Agreements to the SLP Financing Originator or the Originator.
With respect to any MPA:

     (a) References in this Agreement to “payments” due under a Loan shall mean
all payments owed by the related Dealer under such MPA and (without
duplication), to the extent not payable to the Dealer pursuant to such MPA, all
payments owed by a customer under any Alarm Service Agreement sold pursuant to
such MPA.

     (b) References in this Agreement to “principal” due on a Loan or
“principal” of a Loan shall mean the aggregate amount of all purchase prices
paid to the Dealer under such MPA for Alarm Service Agreements as reduced by any
payments previously received by the “Purchaser” under such MPA and allocable to
principal in accordance with such MPA.

     (c) References in this Agreement to “interest” on a Loan shall mean the
portion of payments due under such MPA allocable to interest in accordance with
such MPA.

     (d) References to “loan documents” or “loan documentation” shall include
the related master purchase agreement, initial purchase statements, purchase
statement, security agreement and other documents executed and delivered in
connection with such MPA.

     (e) References in this Agreement to “maturity” or “maturity date” shall
mean the date on which the Dealer is required under the MPA to repurchase all
related Alarm Service Agreements.

     (f) References in this Agreement to “note” or “promissory note” means the
related master purchase agreement and all related purchase statements.

     (g) References in this Agreement to “loan” shall include MPAs.

    RMR: With respect to any Security System Loan, an amount equal to the total
recurring amount billed to customers each month under the Alarm Service
Agreements securing such Security System Loan.       Safe Home: Collectively,
the Dealers Safe Home Security, Inc., a Connecticut corporation, National
Protective Services, Inc., a New York corporation, Security Systems, Inc., a
Connecticut corporation, and Safe Home Monitoring, Inc., a Connecticut
corporation.

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    Security System Loan: A Loan with respect to which the related Obligor is in
the business classified under 2002 NAICS Code 56162 (Security Systems Services)
and which is secured by Alarm Service Agreements. The purpose of such a Loan is
to provide financing to a Dealer.       Security System Loan Advance Multiple:
With respect to any Security System Loan, the amount funded under such Security
System Loan divided by the related RMR.       Security System Loan Average
Contract Term: With respect to any Security System Loan, the weighted average of
the non-cancellable terms measured in months of the Alarm Service Agreements
securing such Security System Loan.       Security System Loan Percentage: The
percentage equivalent of a fraction the numerator of which is equal to the sum
of the Outstanding Loan Balance of all Security System Loans and the denominator
of which is equal to (i) the sum of the Outstanding Loan Balance of all Loans,
plus (ii) the outstanding principal amount of the CapitalSource Commercial Loan
Trust 2002-1 Class C Notes and Class D Notes.       SLP Acquisition Agreement:
That certain asset purchase agreement, dated as of April 8, 2004, by and between
the Originator, CSE Finance, Inc., SLP Capital of Canada Co. and the SLP
Financing Originator, a copy of which is attached hereto as Schedule XV.      
SLP Closing Date: April 8, 2004.       SLP Financing Originator: Security
Leasing Partners, LP, a Delaware limited partnership.       SLP Loan Checklists:
The list of loan documents that identifies the items contained in the Loan Files
with respect to the Loans purchased from the SLP Financing Originator, a copy of
which is attached hereto as Schedule XVI, as amended from time to time.      
SLP Loan List: The SLP Loan List provided by the Seller to the Administrative
Agent and the Collateral Custodian, in the form of Schedule XVII hereto, as such
list may be amended, supplemented or modified from time to time in accordance
with this Agreement.       SPE Loan: The Loan in the original principal amount
of $16,331,608.40 made by Originator to the SPE Obligor and secured by the
Excluded Assets.       SPE Obligor: Alarm Funding II, L.L.C, a Delaware limited
liability company, that (a) is organized as a special purpose entity and is not
an operating entity, (b) owns only the Excluded Assets and (c) has no
Indebtedness other than the SPE Loan and the SPE Subordinated Debt.       SPE
Subordinated Debt: The indebtedness of the SPE Obligor to Citizens Bank of
Massachusetts, NA, pursuant to that certain Third Amended and Restated Credit
Agreement, dated as of August 28, 2001, as subordinated to the SPE Loan pursuant
to

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    that certain Subordination Agreement, dated as of April 8, 2004, among
Originator, CapitalSource Servicing LLC and Citizens Bank of Massachusetts, NA.
      Subsequent Closing Date: The date on which any Loan originated by the
Originator is purchased by the Purchaser pursuant to this Agreement.       US
Bank Collection Account: Account number 4346848296 maintained by the Originator
at US Bank National Association.

     (c) The first paragraph of the definition of “Eligible Loan” in Section 1.1
of the Agreement is hereby amended and restated in its entirety as follows:

    “Eligible Loan: On any date of determination, each Loan (A) for which the
Administrative Agent, Collateral Custodian and Backup Servicer have received the
following no later than 2:00 p.m. Charlotte, North Carolina time on the Closing
Date (or, with respect to any Loan purchased from the Fleet Financing
Originator, the Fleet Closing Date, or, with respect to any Loan purchased from
the DVI Financing Originator, the DVI Closing Date, or, with respect to any Loan
purchased from the SLP Originator, the SLP Closing Date, or, with respect to any
Loan originated by the Originator, the Subsequent Closing Date): (i) a copy of
the duly executed original promissory note (or, with respect to an MPA, the
master purchase agreement and purchase statements) and Loan Checklist, the Fleet
Loan Checklist, the DVI Loan Checklist or the SLP Loan Checklist in a form and
substance satisfactory to the Administrative Agent, (ii) a Borrowing Notice and
Loan List delivered by the Seller to the Collateral Custodian and the
Administrative Agent as part of the Borrowing Notice or Monthly Report delivered
by the Servicer, and (iii) a Borrowing Base Certificate; provided, however, that
if such Loan is part of a capital contribution or Required Equity Contribution
to the Seller the Collateral Custodian shall have received the Required Loan
Documents within three (3) Business Days of receipt of the Certificate of
Assignment, and (B) that satisfies each of the following eligibility
requirements:”

     (d) Clause (b) of the definition of “Eligible Loan” in Section 1.1 of the
Agreement is hereby amended and restated in its entirety as follows:

     “(b) the Loan is a Senior Secured Loan (calculated, other than with respect
to a Security System Loan, by utilizing the numerator in clause (a)(i) of the
definition of Loan-to-Value Ratio);”

     (e) Clause (e) of the definition of “Eligible Loan” in Section 1.1 of the
Agreement is hereby amended by deleting the date “January 1, 2002” in clause
(iii) thereof and substituting the date “March 31, 2003” therefor.

     (f) Paragraph (l) of the definition of “Eligible Loan” in Section 1.1 of
the Agreement is hereby amended and restated in its entirety as follows:

     “(l) the Loan (i) satisfies all applicable requirements of, and was
originated, or acquired, underwritten and closed in all material respects
accordance with the Credit and Collection Policy (including, without limitation,
the execution by the Obligor of all

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documentation required by the Credit and Collection Policy); (ii) does not
contain a confidentiality provision that restricts or purports to restrict in
any material respect the ability of the Administrative Agent or any Secured
Party to exercise their rights under this Agreement, including, without
limitation, their rights to review the Loan, the Required Loan Documents and
Loan File; (iii) was purchased or originated in the ordinary course of the
Originator’s business; (iv) arises pursuant to loan documentation with respect
to which the Originator and, unless such Loan was originated by the Originator,
the Financing Originator have performed in all material respects all obligations
required to be performed by them thereunder; (v) is not subject to a guaranty by
the Originator, the Financing Originator or any Affiliate thereof; and (vi) is
not a consumer loan;”

       (g) Clause (n) of the definition of “Eligible Loan” in Section 1.1 of the
Agreement is hereby amended and restated in its entirety as follows:

     “(n) if such Loan is a Loan purchased from the SLP Financing Originator, on
or before the applicable Cut-Off Date, the Obligor (other than (i) A-1 Security,
Ltd.; (ii) Peak Alarm Company, Inc. of Idaho; and (iii) Sentry Sales and Leasing
Co., Sentry Alarm Midwest, LLC, Sentry Alarms Southwest, LLC and Automatic
Alarms, Inc.) of such Loan shall have been directed to make all payments to one
or more lock-boxes controlled by Originator, and funds in each such lock-box are
removed and deposited on a daily basis into the US Bank Collection Account, and
if such Loan is a Loan financed under this Agreement after the SLP Closing Date,
on or before the applicable Cut-Off Date, the Obligor of such Loan shall have
been directed to make all payments to the Lock-Box or directly to the Lock-Box
Account;”

       (h) Clause (t) of the definition of “Eligible Loan” in Section 1.1 of the
Agreement is hereby amended and restated in its entirety as follows:

     “(t) the Loan provides (i) for periodic payments of interest and/or
principal in cash, which are due and payable on a monthly or quarterly basis
unless otherwise consented to in writing by the Administrative Agent, and
(ii) that the Servicer may accelerate all payments on the Loan (or, with respect
to any MPA, require the Dealer to repurchase all related Alarm Service
Agreements) if the Obligor is in default under the Loan and any applicable grace
period has expired;”

       (i) Clause (u) of the definition of “Eligible Loan” in Section 1.1 of the
Agreement is hereby amended and restated in its entirety as follows:

     “(u) unless such Loan is a Security System Loan, the Loan provides for cash
payments that fully amortize the Outstanding Loan Balance of such Loan on or by
its maturity and does not provide for such Outstanding Loan Balance to be
discounted pursuant to a prepayment in full;”

       (j) Clause (cc) of the definition of “Eligible Loan” in Section 1.1 of
the Agreement is hereby amended and restated as follows:

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     “(cc) with respect to the Originator’s obligation to fund and the actual
funding of the Loan by the Originator, except for one (1) Loan to Byrider
Finance, Inc. and one (1) loan to Safe Home, the Originator has not assigned or
granted participations to, in whole or in part, any Person;”

     (k) Clause (xx) of the definition of “Eligible Loan” in Section 1.1 of the
Agreement is hereby amended by deleting the “and” at the end thereof.

     (l) Clause (yy) of definition of “Eligible Loan” in Section 1.1 of the
Agreement is hereby amended by deleting the “.” at the end thereof and
substituting in its place “;”.

     (m) The definition of “Eligible Loan” in Section 1.1 of the Agreement is
hereby amended by adding the following new clause (zz), clause (aaa), clause
(bbb), clause (ccc):

     “(zz) if such Loan is an MPA, the related loan documents require the Dealer
to repurchase all Alarm Service Agreements then subject to such MPA on the
earlier of (i) a date certain or (ii) when so demanded by the Purchaser (as
defined in such MPA) after a Default (as defined in such MPA), as provided in
such MPA, which repurchase is required to be at a repurchase price sufficient to
pay all principal and interest outstanding on such MPA. “Default” under such MPA
requiring the Dealer to repurchase an Alarm Service Agreement includes, without
limitation, a failure by the related customer to make a monthly payment due
under such Alarm Service Agreement for more than sixty (60) days after due, or
such a failure to pay when due shall occur two or more times in any one hundred
eighty (180) day period. “Default” under such MPA requiring the Dealer to
repurchase all Alarm Service Agreements includes, without limitation, a default
by the Dealer in any of its obligations, covenants, agreements, representation
or warranties contained in any Alarm Service Agreement or in such MPA;

     (aaa) if such Loan becomes part of the Asset Pool after April 8, 2004, such
Loan is a Security System Loan;

     (bbb) such Loan is not a Loan to the following Dealers: (i) Interface
Security Systems, L.L.C., (ii) Armstrong Security Alarm Monitoring, Ltd., and
(iii) Vytaltek Security Services, Inc. and Provident Alarm Services, Ltd.; and

     (ccc) if such Loan is a Security System Loan (other than any Loan purchased
from the SLP Originator on the SLP Closing Date), such Loan has an original term
to maturity and full amortization of not more than 84 months.”

     (n) The definition of “Obligor” in Section 1.1 of the Agreement is hereby
amended by adding the following at the end of the first sentence: “and, with
respect to any MPA, the related Dealer.”

     (o) The definition of “Required Loan Documents” in Section 1.1 of the
Agreement is hereby amended by adding the following sentence at the end of such
definition: “Notwithstanding the foregoing, “Required Loan Documents” with
respect to any MPA may include copies (as opposed to originals) of the documents
required by this definition.”

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     (p) Section 2.1(a) of the Agreement is hereby amended and restated in its
entirety as follows:

     “(a) On the terms and conditions hereinafter set forth, on the Closing
Date, the Seller shall deliver to the Purchaser Agent, at its address set forth
on the signature pages of this Agreement, a duly executed variable funding
certificate (the “Variable Funding Certificate” or “VFC”), in substantially the
form of Exhibit B, dated as of the date of this Agreement, in an aggregate face
amount equal to the Facility Amount, and otherwise duly completed. The Variable
Funding Certificate shall evidence an undivided ownership interest in the Assets
purchased by the Purchaser in an amount equal, at any time, to the percentage
equivalent of a fraction (i) the numerator of which is the Advances outstanding
under the VFC on such day, and (ii) the denominator of which is the total
aggregate Advances Outstanding on such day. Interest shall accrue, and the VFC
shall be payable, as described herein. The VFC purchased by VFCC shall be in the
name of “Wachovia Capital Markets, LLC, as the Purchaser Agent” and shall be in
the face amount equal to $100,000,000.”

     (q) Section 3.2(c) of the Agreement is hereby amended and restated in its
entirety as follows:

     “(c) The Seller shall have delivered to the Collateral Custodian (with a
copy to the Backup Servicer and the Administrative Agent) no later than 2:00
p.m. Charlotte, North Carolina time one (1) Business Day prior to any Funding
Date, a copy of all duly executed original promissory notes (or, with respect to
an MPA, the master purchase agreement and purchase statements) of the Loans not
in the possession of an Underlying Custodian and, if any Loans are closed in
escrow, a certificate (in the form of Exhibit J) from the closing attorneys of
such Loans certifying the possession of the Required Loan Documents; provided,
however, notwithstanding the foregoing, the Required Loan Documents (including
any financing statements included in the Required Loan Documents) shall be in
the possession of the Collateral Custodian within two (2) Business Days of the
initial Funding Date (except in the case of any MPA purchased from the SLP
Originator on the SLP Closing Date, in which case the Required Loan Documents
(including any financing statements included in the Required Loan Documents)
shall be in the possession of the Collateral Custodian within ten (10) days of
the SLP Closing Date;”

     (r) Section 4.2(b) of the Agreement is hereby amended by adding the phrase
“and each Funding Date” after “Closing Date” in the first line thereof.

     (s) Section 4.2 of the Agreement is hereby amended by adding the following
new clause (d):

     “(d) Lock-Boxes. All Obligors (other than (i) A-1 Security, Ltd.; (ii) Peak
Alarm Company, Inc. of Idaho; and (iii) Sentry Sales and Leasing Co., Sentry
Alarm Midwest, LLC, Sentry Alarms Southwest, LLC and Automatic Alarms, Inc.) on
the Loans purchased from the SLP Financing Originator have been instructed to
cause all Collections on such Loans to be deposited directly into one or more
lock-boxes

11

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controlled by Originator, and funds in each such lock-box are removed and
deposited on a daily basis into the US Bank Collection Account.”

     (t) Section 5.1(h) of the Agreement is hereby amended and restated in its
entirety as follows:

     “(h) Credit and Collection Policy. The Seller will (a) comply in all
material respects with the Credit and Collection Policy in regard to the Assets,
and (b) furnish to the Administrative Agent and the Purchaser Agent, prior to
its effective date, prompt notice of any material changes in the Credit and
Collection Policy. The Seller will not agree to or otherwise permit to occur any
material change in the Credit and Collection Policy, which change would impair
the collectibility of any of the Assets or otherwise adversely affect the
interests or remedies of the Administrative Agent, the Purchaser Agent or the
Secured Parties under this Agreement or any other Transaction Document, without
the prior consent of the Administrative Agent and the Purchaser Agent (which
consent shall not be unreasonably withheld).”

     (u) Section 5.1(o)(5) of the Agreement is hereby amended and restated in
its entirety as follows:

     “(5) Proceedings. As soon as possible and in any event within three
Business Days after any executive officer of the Seller receives notice or
obtains knowledge thereof, of any settlement of, material judgment (including a
material judgment with respect to the liability phase of a bifurcated trial) in
or commencement of any material labor controversy, material litigation, material
action, material suit or material proceeding before any court or governmental
department, commission, board, bureau, agency or instrumentality, domestic or
foreign, affecting the Assets, the Transaction Documents, the Secured Parties’
interest in the Assets, or the Seller, the Servicer or the Originator or any of
their Affiliates; provided, however, notwithstanding the foregoing, any
settlement, judgment, labor controversy, litigation, action, suit or proceeding
affecting the Assets, the Transaction Documents, the Secured Parties’ interest
in the Assets, or the Seller, the Servicer or the Originator or any of their
Affiliates in excess of $2,500,000 or more shall be deemed to be material for
purposes of this Section 5.1(o); and”

     (v) The Agreement is hereby amended by adding the following as a new
Section 5.1(r):

     “(r) On or prior to the SLP Closing Date, the Seller and the Servicer shall
instruct US Bank National Association to cause all subsequent Collections on the
Loans purchased from the SLP Financing Originator to be removed and deposited on
a daily basis into a Lock-Box Account in the Administrative Agent’s control. On
or prior to the related Funding Date with respect to any Loan financed under
this Agreement after the SLP Closing Date, the Seller and the Servicer shall
instruct each of the Obligors on such Loans to cause all subsequent Collections
on such Loans to be deposited directly to a Lock-Box Account in the
Administrative Agent’s control. Without the Administrative Agent’s prior written
consent, neither the Servicer nor the Seller shall change the

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directions and instructions with respect to Collections on the Loans described
in Section 4.2(d) or this Section 5.1(r).”

     (w) Section 5.2(m) of the Agreement is hereby amended and restated in its
entirety as follows:

     “(m) Credit and Collection Policy. The Seller will not materially amend,
modify, restate or replace, in whole or in part, the Credit and Collection
Policy, which amendment, modification, restatement or replacement would impair
the collectibility of any of the Assets or otherwise adversely affect the
interests or remedies of the Administrative Agent, the Purchaser Agent or the
Secured Parties under this Agreement or any other Transaction Document, without
the prior written consent of the Administrative Agent and the Purchaser Agent
(which consent will not be unreasonably withheld).”

     (x) Section 6.7 of the Agreement is hereby amended and restated in its
entirety as follows:

     “Section 6.7 Maintenance of Insurance Policies.

     The Servicer will use its reasonable best efforts to ensure that each
Obligor maintains an Insurance Policy with respect to any Related Property
(other than accounts receivable) in an amount at least equal to the Servicer’s
good faith and commercially reasonable estimate of the value of the real
property, inventory, and/or equipment constituting such Related Property and
shall ensure that each such Insurance Policy names the Servicer as loss payee
and as an insured thereunder and all of the Seller’s right, title and interest
therein is fully assigned to the Administrative Agent, as agent for the Secured
Parties. Additionally, the Servicer will require that each Obligor maintain
property damage liability insurance during the term of each Asset in amounts and
against risks customarily insured against by the Obligor on property owned by
it. If an Obligor fails to maintain property damage insurance, the Servicer may
in its discretion purchase and maintain such insurance on behalf of, and at the
expense of, the Obligor. In connection with its activities as Servicer, the
Servicer agrees to present, on behalf of the Administrative Agent, claims to the
insurer under each Insurance Policy and any such liability policy, and to
settle, adjust and compromise such claims, in each case, consistent with the
terms of each Asset. The Servicer’s Insurance Policies with respect to the
Related Property will insure against liability for physical damage relating to
such Related Property in accordance with the requirements of the Credit and
Collection Policy. The Servicer hereby disclaims any and all right, title and
interest in and to any Insurance Policy and Insurance Proceeds with respect to
any Related Property, including any Insurance Policy with respect to which it is
named as loss payee and as an insured, and agrees that it has no equitable,
beneficial or other interest in the Insurance Polices and Insurance Proceeds
other than being named as loss payee and as an insured. The Servicer
acknowledges that with respect to the Insurance Policies and Insurance Proceeds
thereof that it is acting solely in the capacity as agent for the Administrative
Agent, as agent for the Secured Parties.”

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     (y) Sections 6.15 (h) through (k) of the Agreement are hereby amended and
restated in their entirety as follows:

     “(h) the rendering against the Servicer of one or more final judgments,
decrees or orders for the payment of money in excess of United States
$7,500,000, individually or in the aggregate, and the continuance of such
judgment, decree or order unsatisfied and in effect for any period of more than
sixty (60) consecutive days without a stay of execution;

     (i) the failure of the Servicer to make any payment due with respect to any
recourse debt or other obligations, which debt or other obligations are in
excess of United States $7,500,000, individually or in the aggregate, or the
occurrence of any event or condition that would permit acceleration of such
recourse debt or other obligations whether or not waived;

     (j) CapitalSource Inc. fails to maintain GAAP stockholders’ equity equal to
at least $700,000,000 plus 80% of any equity offerings subsequent to the SLP
Closing Date;

     (k) [Reserved];”

     (z) Section 10.01(l) of the Agreement is hereby amended and restated in its
entirety as follows:

     “(l) [Reserved]”

     (aa) Sections 10.01(t) and (u) of the Agreement are hereby amended and
restated in their entirety as follows:

     “(t) the failure of the Seller, the Servicer or the Originator to make any
payment due with respect to recourse debt or other obligations, in the case of
the Servicer or the Originator, in excess of $7,500,000, or the occurrence of
any event or condition that would permit acceleration of such recourse debt or
other obligations whether or not such event or condition has been waived; or

     (u) (1) the rendering of one or more final judgments, decrees or orders by
a court or arbitrator of competent jurisdiction for the payment of money in
excess of United States $7,500,000, individually or in the aggregate, against
the Originator, or United States $2,000,000 against the Seller, individually or
in the aggregate, and the Originator shall not have either (i) discharged or
provided for the discharge of any such judgment, decree or order in accordance
with its terms or (ii) perfected a timely appeal of such judgment, decree or
order and caused the execution of same to be stayed during the pendency of the
appeal or (2) the Originator or the Seller shall have made payments of amounts
in excess of United States $5,000,000 by the Originator, or United States
$2,000,000 by the Seller, in the settlement of any litigation, claim or dispute
(excluding payments made from insurance proceeds); or”

     (bb) Section 10.01(w) of the Agreement is hereby amended and restated in
its entirety as follows:

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     “(w) [Reserved]”

     (cc) Sections 10.01(y) of the Agreement is hereby amended and restated in
its entirety as follows:

     “(y) as of any Quarterly Determination Date, the Originator’s ratio of
Consolidated Funded Indebtedness to Consolidated Tangible Net Worth is more than
5 to 1; or”

     (dd) Exhibit B to the Agreement is hereby amended and replaced in its
entirety by Exhibit B attached to this Amendment.

     (ee) Exhibit C to the Agreement is hereby amended and replaced in its
entirety by Exhibit C attached to this Amendment.

     (ff) Schedules XV, XVI, and XVII to this Amendment are hereby added to the
Agreement as new Schedules XV, XVI, and XVII to the Agreement.

     (gg) Section 13.21 of the Agreement is hereby amended and restated as
follows:

     Section 13.21 Tax Treatment of Advances.

     It is the intention of the Seller and the Purchaser that, for U.S. federal,
state and local income and franchise tax purposes only, the Advances made
hereunder will be treated as indebtedness secured by the Assets. The Seller, by
entering into this Agreement, and the Purchaser, by making the Advances,
described herein, agree to treat the Advances, for U.S. federal, state and local
income and franchise tax purposes as indebtedness. The provisions of this
Agreement and all related Transaction Documents shall be construed to further
these intentions of the parties.

     Section 2. Representations. The Seller, the Originator and the Servicer
(collectively, the “CapitalSource Parties”) each (as to itself only) hereby
represents and warrants as of the date of this Amendment as follows: (i) it is
duly incorporated or organized, validly existing and in good standing under the
laws of its jurisdiction of organization; (ii) the execution, delivery and
performance by it of this Amendment are within its powers, have been duly
authorized, and do not contravene (A) its articles of organization, operating
agreement, or other organizational documents, or (B) any Applicable Law;
(iii) no consent, license, permit, approval, vote, authorization, registration,
filing or declaration with any Governmental Authority or any other Person, is
required in connection with the execution, delivery, performance, validity or
enforceability of this Amendment by or against it; (iv) this Amendment has been
duly authorized, executed and delivered by it; (v) this Amendment constitutes
its legal, valid and binding obligation enforceable against it in accordance
with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors’ rights generally or by general principles of equity;
(vi) the execution and delivery of this Amendment does not diminish or reduce
its obligations under the Agreement and the other Transaction Documents in any
manner except as specifically set forth herein, (vii) such CapitalSource Party
has no claims, counterclaims, offsets, or defenses to the Aggregate Unpaids
under the Agreement and the other Transaction Documents and the

15

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performance of its obligations thereunder, or if such CapitalSource Party has
any such claims, counterclaims, offsets, or defenses to the Aggregate Unpaids
under the Agreement and the other Transaction Documents, the same are hereby
waived, relinquished and released in consideration of the Administrative Agent’s
and the Secured Parties’ execution and delivery of this Amendment, (viii) it is
not in default under the Agreement; (ix) the representations and warranties of
the CapitalSource Parties set forth in Sections 4.1, 4.2 and 4.3 of the
Agreement are true and correct as of the date hereof (except those that
expressly relate to an earlier date) and all of the provisions of the Agreement
and the other Transaction Documents, except as amended hereby, are in full force
and effect, and (x) subsequent to the execution and delivery of this Amendment
and after giving effect hereto, no unwaived event has occurred and is continuing
which constitutes an Unmatured Termination Event or a Termination Event.

     Section 3. Additional Representations and Warranties. The Originator and
the Seller hereby represent and warrant, as of the SLP Closing Date, that
(i) the SLP Loan List and the information contained in the Borrowing Notice
delivered pursuant to Section 2.2 is an accurate and complete listing in all
material respects of all Assets purchased from the SLP Financing Originator in
the Asset Pool as of the Cut-Off Date and the information contained therein with
respect to the identity of such Assets and the amounts owing thereunder is true
and correct in all material respects as of the related Cut-Off Date, (ii) each
such Loan that is part of the Borrowing Base is an Eligible Loan as of such
date, (iii) each such Asset is free and clear of any Lien of any Person (other
than Permitted Liens) and in compliance with all Applicable Laws, (iv) with
respect to each such Asset, all consents, licenses, approvals, votes,
authorizations, registrations or declarations of any Governmental Authority or
any Person (including, without limitation, any indenture trustee or noteholder)
required to be obtained, effected or given by or to the Financing Originator,
the Originator and the Seller in connection with the transfer of an ownership
interest in such Assets from the SLP Financing Originator to the Originator,
from the Originator to the Seller and from the Seller to the Administrative
Agent, as agent for the Secured Parties, have been duly obtained, effected or
given and are in full force and effect, (v) the representations and warranties
set forth in Section 4.2(a) are true and correct with respect to each such
Asset, and (vi) the SLP Acquisition Agreement (x) was duly authorized and
executed by the parties thereto, (y) constitutes the legal, valid and binding
obligation of the parties thereto, enforceable in accordance with its terms, and
(z) does not conflict with the terms of any Contractual Obligation applicable to
the SLP Financing Originator.

     Section 4. Liens. Each CapitalSource Party affirms the Liens and security
interests created and granted by it in the Agreement and the other Transaction
Documents and agrees that this Amendment shall in no manner adversely affect or
impair such Liens and security interests.

     Section 5. Agreement in Full Force and Effect as Amended.

     Except as specifically amended hereby, the Agreement shall remain in full
force and effect. All references to the Agreement shall be deemed to mean the
Agreement as modified hereby. This Amendment shall not constitute a novation of
the Agreement, but shall constitute an amendment thereof. The parties hereto
agree to be bound by the terms and conditions of the Agreement as amended by
this Amendment, as though such terms and conditions were set forth herein.

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     Section 6. Conditions Precedent.

     This Amendment shall not be effective until (i) having been duly executed
by, and delivered to, the parties hereto, (ii) delivery to the Administrative
Agent (in a form acceptable to the Administrative Agent) of (A) a perfection and
true sale opinion as to the transfer from the SLP Financing Originator to the
Originator, (B) a bring-down of the existing perfection, true sale and
nonconsolidation opinions as to the transfer from the Originator to the Seller
and from the Seller to the Purchaser (perfection only), and (C) a due
authorization, execution and enforceability opinion with respect to the SLP
Acquisition Agreement and this Amendment; (iii) execution and delivery of
Amendment No. 3 to Sale and Contribution Agreement; (iv) execution and delivery
of the Amended and Restated VFCC Fee Letter; (v) payment to the Administrative
Agent of a structuring fee in connection with this Amendment as required by the
Amended and Restated VFCC Fee Letter; (vi) payment of the reasonable legal fees
and expenses of Mayer, Brown, Rowe & Maw LLP as counsel to the Administrative
Agent in connection with this Amendment, prior amendments and the prior closing
and any third party expenses; and (vii) such other documents, agreements,
certification, or legal opinions as the Administrative Agent, may reasonably
require.

     Section 7. Miscellaneous.

     (a) This Amendment may be executed in any number of counterparts, and by
the different parties hereto on the same or separate counterparts, each of which
shall be deemed to be an original instrument but all of which together shall
constitute one and the same agreement.

     (b) The descriptive headings of the various sections of this Amendment are
inserted for convenience of reference only and shall not be deemed to affect the
meaning or construction of any of the provisions hereof.

     (c) This Amendment may not be amended or otherwise modified except as
provided in the Agreement.

     (d) The failure or unenforceability of any provision hereof shall not
affect the other provisions of this Amendment.

     (e) Whenever the context and construction so require, all words used in the
singular number herein shall be deemed to have been used in the plural, and vice
versa, and the masculine gender shall include the feminine and neuter and the
neuter shall include the masculine and feminine.

     (f) This Amendment represents the final agreement between the parties and
may not be contradicted by evidence of prior, contemporaneous or subsequent oral
agreements between the parties. There are no unwritten oral agreements between
the parties.

     (g) THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK. EACH OF THE PARTIES HERETO AGREES TO THE
NON-EXCLUSIVE JURISDICTION OF ANY FEDERAL COURT LOCATED WITHIN THE STATE OF NEW
YORK. EACH OF THE PARTIES HERETO AND EACH SECURED PARTY HEREBY WAIVES ANY
OBJECTION

17

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BASED ON FORUM NON CONVENIENS, AND ANY OBJECTION TO VENUE OF ANY ACTION
INSTITUTED HEREUNDER IN ANY OF THE AFOREMENTIONED COURTS AND CONSENTS TO THE
GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH
COURT.

     (h) TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES HERETO
WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER
SOUNDING IN CONTRACT, TORT, OR OTHERWISE BETWEEN THE PARTIES HERETO ARISING OUT
OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP BETWEEN ANY OF
THEM IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.
INSTEAD, ANY SUCH DISPUTE RESOLVED IN COURT WILL BE RESOLVED IN A BENCH TRIAL
WITHOUT A JURY.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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

              THE SELLER:   CAPITALSOURCE ACQUISITION FUNDING
LLC
 
                By:   /s/ Pierrette Bradshaw        

--------------------------------------------------------------------------------

      Name:   Pierrette Bradshaw        

--------------------------------------------------------------------------------

      Title:   Assistant Secretary        

--------------------------------------------------------------------------------

 
 
                CapitalSource Acquisition Funding LLC
4445 Willard Avenue, 12th Floor
Chevy Chase, Maryland 20815     Attention:   Controller     Facsimile No.:  
(301) 841–2375     Confirmation No.:   (301) 841–2731
 
            THE ORIGINATOR   CAPITALSOURCE FINANCE LLC
AND THE SERVICER:
           
 
                By:   /s/ Pierrette Bradshaw        

--------------------------------------------------------------------------------

      Name:   Pierrette Bradshaw        

--------------------------------------------------------------------------------

      Title:   General Counsel        

--------------------------------------------------------------------------------

 
 
                CapitalSource Finance LLC
4445 Willard Avenue, 12th Floor
Chevy Chase, Maryland 20815     Attention:   Controller     Facsimile No.:  
(301) 841–2375     Confirmation No.:   (301) 841–2731

[Signatures Continued on the Following Page]

  S-1       Amendment No. 5 to Loan Certificate and Servicing Agreement

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              VFCC:   VARIABLE FUNDING CAPITAL CORPORATION
 
           
Commitment:
             
$100,000,000   By:   Wachovia Capital Markets, LLC, as
attorney-in-fact       By:   /s/ Douglas R. Wilson, Sr.        

--------------------------------------------------------------------------------

      Name:   Douglas R. Wilson, Sr.        

--------------------------------------------------------------------------------

      Title:   Vice President        

--------------------------------------------------------------------------------

        Variable Funding Capital Corporation
c/o Wachovia Capital Markets, LLC
One Wachovia Center, TW10
Charlotte, North Carolina 28288
Attention: Conduit Administration
Facsimile No.: (704) 383-9579
Confirmation No.: (704) 374-2520
 
            With respect to notices required pursuant to Section 13.2 of the
Agreement, a copy of notices sent to VFCC shall be sent to:
 
                Lord Securities Corp.
2 Wall Street, 19th Floor
New York, New York 10005     Attention:   Vice President     Facsimile No.:  
(212) 346–9012     Confirmation No.:   (212) 346–9008
 
            THE ADMINISTRATIVE AGENT AND
THE PURCHASER AGENT:   WACHOVIA CAPITAL MARKETS, LLC
 
                By:   /s/ Paul A. Burkhart        

--------------------------------------------------------------------------------

      Name:   Paul A. Burkhart        

--------------------------------------------------------------------------------

      Title:   Vice President        

--------------------------------------------------------------------------------

        Wachovia Capital Markets, LLC
One Wachovia Center, Mail Code: NC0610
Charlotte, North Carolina 28288     Attention:   Raj Shah     Facsimile No.:  
(704) 383–4012     Confirmation No.:   (704) 383–9343

[Signatures Continued on the Following Page]

  S-2       Amendment No. 5 to Loan Certificate and Servicing Agreement

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              THE BACKUP SERVICER:   WELLS FARGO BANK, NATIONAL
ASSOCIATION, not in its individual
capacity but solely as Backup Servicer
 
                By:   /s/ Jeanine C. Casey        

--------------------------------------------------------------------------------

      Name:   Jeanine C. Casey        

--------------------------------------------------------------------------------

      Title:   Corporate Trust Officer        

--------------------------------------------------------------------------------

 
 
                Wells Fargo Bank, National Association
Sixth Street and Marquette Avenue
MAC N9311–161
Minneapolis, Minnesota 55479     Attention:   Corporate Trust Services

          Asset–Backed Administration     Facsimile No.:   (612) 667–3539    
Confirmation No.:   (612) 667–8058
 
            THE COLLATERAL CUSTODIAN:   WELLS FARGO BANK, NATIONAL
ASSOCIATION, not in its individual
capacity but solely as Collateral Custodian
 
                By:   /s/ Jeanine C. Casey        

--------------------------------------------------------------------------------

      Name:   Jeanine C. Casey        

--------------------------------------------------------------------------------

      Title:   Corporate Trust Officer        

--------------------------------------------------------------------------------

 
 
                Wells Fargo Bank, National Association
Sixth Street and Marquette Avenue
MAC N9311–161
Minneapolis, Minnesota 55479     Attention:   Corporate Trust Services

          Asset-Backed Administration     Facsimile No.:   (612) 667–3539    
Confirmation No.:   (612) 667–8058

  S-3       Amendment No. 5 to Loan Certificate and Servicing Agreement

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EXHIBIT B
To Amendment No. 5 to
Loan Certificate and
Servicing Agreement

FORM OF VARIABLE FUNDING CERTIFICATE

     
$100,000,000
     , 2004

     THIS VARIABLE FUNDING CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 (THE “SECURITIES ACT”). NEITHER THIS VARIABLE FUNDING
CERTIFICATE NOR ANY PORTION HEREOF MAY BE OFFERED OR SOLD EXCEPT IN COMPLIANCE
WITH THE REGISTRATION PROVISIONS OF THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM SUCH REGISTRATION PROVISIONS.

     THIS VARIABLE FUNDING CERTIFICATE IS NOT PERMITTED TO BE TRANSFERRED,
ASSIGNED, EXCHANGED OR OTHERWISE PLEDGED OR CONVEYED EXCEPT IN COMPLIANCE WITH
THE TERMS OF THE LOAN CERTIFICATE AND SERVICING AGREEMENT REFERRED TO HEREIN.

     FOR VALUE RECEIVED, CAPITALSOURCE ACQUISITION FUNDING LLC, a Delaware
limited liability company (the “Seller”), promises to pay to Wachovia Capital
Markets, LLC (“WCM”), as the purchaser agent (the “Purchaser Agent”), or its or
Variable Funding Capital Corporation’s (“VFCC”) assigns, the principal sum of
ONE HUNDRED MILLION DOLLARS ($100,000,000), or, if less, the unpaid principal
amount of the aggregate advances (“Advances”) made by VFCC to the Seller
pursuant to the Loan Certificate and Servicing Agreement (as defined below), as
set forth on the attached Schedule, on the dates specified in the Loan
Certificate and Servicing Agreement, and to pay interest on the unpaid principal
amount of each Advance on each day that such unpaid principal amount is
outstanding, at the Interest Rate related to such Advance as provided in the
Loan Certificate and Servicing Agreement, on each Payment Date and each other
date specified in the Loan Certificate and Servicing Agreement.

     This Variable Funding Certificate (the “Certificate”) is issued pursuant to
the Loan Certificate and Servicing Agreement, dated as of February 28, 2003, by
and among the Seller, as the seller, CapitalSource Finance LLC, as the
originator and as the servicer, VFCC, as the purchaser, WCM, as the
administrative agent, the purchaser agent, and Wells Fargo Bank, National
Association (successor by merger to Wells Fargo Bank Minnesota, National
Association), as the backup servicer and as the collateral custodian.
Capitalized terms used but not defined in this Certificate are used with the
meanings ascribed to them in the Loan Certificate and Servicing Agreement, as
amended by Amendment No. 1 to Loan Certificate and Servicing Agreement, dated as
of April 3, 2003, Amendment No. 2 to Loan Certificate and Servicing Agreement,
dated as of June 30, 2003, Amendment No. 3 to Loan Certificate and Servicing
Agreement, dated as of August 27, 2003, Amendment No. 4 to Loan Certificate and
Servicing Agreement dated as of February 26, 2004 and Amendment No. 5 to Loan
Certificate and

B-1

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Servicing Agreement, dated as of April 8, 2004 (collectively, the “Loan
Certificate and Servicing Agreement”).

     Notwithstanding any other provisions contained in this Certificate, if at
any time the rate of interest payable by the Seller under this Certificate, when
combined with any and all other charges provided for in this Certificate, in the
Loan Certificate and Servicing Agreement or in any other document (to the extent
such other charges would constitute interest for the purpose of any applicable
law limiting interest that may be charged on this Certificate), exceeds the
highest rate of interest permissible under applicable law (the “Maximum Lawful
Rate”), then so long as the Maximum Lawful Rate would be exceeded the rate of
interest under this Certificate shall be equal to the Maximum Lawful Rate. If at
any time thereafter the rate of interest payable under this Certificate is less
than the Maximum Lawful Rate, the Seller shall continue to pay interest under
this Certificate at the Maximum Lawful Rate until such time as the total
interest paid by the Seller is equal to the total interest that would have been
paid had applicable law not limited the interest rate payable under this
Certificate. In no event shall the total interest received by VFCC under this
Certificate exceed the amount which VFCC could lawfully have received had the
interest due under this Certificate been calculated since the date of this
Certificate at the Maximum Lawful Rate.

     Payments of the principal of, and interest on, Advances represented by this
Certificate shall be made by or on behalf of the Seller to the holder hereof by
wire transfer of immediately available funds in the manner and at the address
specified for such purpose as provided in the Loan Certificate and Servicing
Agreement, or in such manner or at such other address as the holder of this
Certificate shall have specified in writing to the Seller for such purpose,
without the presentation or surrender of this Certificate or the making of any
notation on this Certificate.

     If any payment under this Certificate falls due on a day that is not a
Business Day, then such due date shall be extended to the next succeeding
Business Day and interest shall be payable on any principal so extended at the
applicable Interest Rate.

     If all or a portion of (i) the principal amount hereof or (ii) any interest
payable thereon or (iii) any other amounts payable hereunder shall not be paid
when due (whether at maturity, by acceleration or otherwise), such overdue
amount shall bear interest at a rate per annum that is equal to the Base Rate
plus 2%, in each case from the date of such non-payment to (but excluding) the
date such amount is paid in full.

     Portions or all of the principal amount of the Certificate shall become due
and payable at the time or times set forth in the Loan Certificate and Servicing
Agreement. Any portion or all of the principal amount of this Certificate may be
prepaid, together with interest thereon (and, as set forth in the Loan
Certificate and Servicing Agreement, certain costs and expenses of VFCC) at the
time and in the manner set forth in, but subject to the provisions of, the Loan
Certificate and Servicing Agreement.

     Except as provided in the Loan Certificate and Servicing Agreement, the
Seller expressly waives presentment, demand, diligence, protest and all notices
of any kind whatsoever with respect to this Certificate.

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     All amounts evidenced by this Certificate, VFCC’s Advances and all payments
and prepayments of the principal hereof and the respective dates and maturity
dates thereof shall be endorsed by the Purchaser Agent, on the schedule attached
hereto and made a part hereof or on a continuation thereof, which shall be
attached hereto and made a part hereof; provided, however, that the failure of
the Purchaser Agent to make such a notation shall not in any way limit or
otherwise affect the obligations of the Seller under this Certificate as
provided in the Loan Certificate and Servicing Agreement.

     The holder hereof may sell, assign, transfer, negotiate, grant
participations in or otherwise dispose of all or any portion of any Advances
made by VFCC and represented by this Certificate and the indebtedness evidenced
by this Certificate.

     This Certificate is secured by the security interests granted pursuant to
Section 9.1 of the Loan Certificate and Servicing Agreement. The holder of this
Certificate is entitled to the benefits of the Loan Certificate and Servicing
Agreement and may enforce the agreements of the Seller contained in the Loan
Certificate and Servicing Agreement and exercise the remedies provided for by,
or otherwise available in respect of, the Loan Certificate and Servicing
Agreement, all in accordance with, and subject to the restrictions contained in,
the terms of the Loan Certificate and Servicing Agreement. If a Termination
Event shall occur, the unpaid balance of the principal of all Advances, together
with accrued interest thereon, shall be declared, and become, due and payable in
the manner and with the effect provided in the Loan Certificate and Servicing
Agreement.

     The Seller, the Originator, the Servicer, the Purchaser, the Collateral
Custodian and the Backup Servicer each intend, for federal, state and local
income and franchise tax purposes only, that the Certificate be evidence of
indebtedness of the Seller secured by the Assets. VFCC, as a Purchaser under the
Loan Certificate and Servicing Agreement, by the acceptance hereof, agrees to
treat the Certificate for federal, state and local income and franchise tax
purposes as indebtedness of the Seller.

     This Certificate is the “Variable Funding Certificate” referred to in
Section 2.1 of the Loan Certificate and Servicing Agreement and represents a
fractional undivided ownership interest in the Assets to the extent provided in
the Loan Certificate and Servicing Agreement. This Certificate shall be
construed in accordance with and governed by the laws of the State of New York.

[Remainder of Page Intentionally Left Blank]

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     IN WITNESS WHEREOF, the undersigned has executed this Certificate as on the
date first written above.

              CAPITALSOURCE ACQUISITION FUNDING LLC
 
       

  By:    

     

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  Name:    

     

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  Title:    

     

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Schedule attached to Variable Funding Certificate dated April 8, 2004 of
CapitalSource Acquisition Funding LLC, payable to the order of Wachovia Capital
Markets, LLC, as agent for Variable Funding Capital Corporation

                          Date of   Principal   Principal   Outstanding Advance
or   Amount of   Amount of   Principal Repayment

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  Advance

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  Repayment

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  Amount

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B-5

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EXHIBIT C
To Amendment No. 5 to
Loan Certificate and
Servicing Agreement

FORM OF MONTHLY REPORT

See Attached

 

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SCHEDULE XV

SLP ACQUISITION AGREEMENT

(SEE ATTACHED)

 

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SCHEDULE XVI

SLP LOAN CHECKLISTS

(SEE ATTACHED)

 

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SCHEDULE XVII

SLP LOAN LISTS

(SEE ATTACHED)