Exhibit 10.6
 COMPOSITE VERSION
Reflects all Amendments through March 13, 2009
 
 CAPITALSOURCE INC.
 THIRD AMENDED AND RESTATED EQUITY INCENTIVE PLAN




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TABLE OF CONTENTS
 Page1. PURPOSE
    
    
    12. DEFINITIONS
    
    
    13. ADMINISTRATION OF THE PLAN
    
    
    53.1. Board
    
    
    53.2. Committee
    
    
    63.3. Terms of Awards
    
    
    63.4. Deferral Arrangement
    
    
    73.5. No Liability
    
    
    83.6. Share Issuance/Book-Entry
    
    
    83.7. No Repricing
    
    
    84. STOCK SUBJECT TO THE PLAN
    
    
    84.1. Number of Shares of Stock Available for Awards and Share Usage
    
    
    84.2. Adjustments in Authorized Shares
    
    
    95. DURATION AND AMENDMENTS
    
    
    95.1. [Reserved]
    
    
    95.2. Term
    
    
    95.3. Amendment and Termination of the Plan
    
    
    96. AWARD ELIGIBILITY AND LIMITATIONS
    
    
    106.1. Service Providers; Outside Directors; Other Persons
    
    
    106.2. Successive Awards
    
    
    106.3. Limitation on Shares of Stock Subject to Awards and Cash Awards
    
    
    106.4. Stand-Alone, Additional, Tandem, and Substitute Awards
    
    
    107. AWARD AGREEMENT
    
    
    118. TERMS AND CONDITIONS OF OPTIONS
    
    
    118.1. Option Price
    
    
    118.2. Vesting
    
    
    118.3. Term
    
    
    118.4. Termination of Service
    
    
    128.5. Limitations on Exercise of Option
    
    
    128.6. Method of Exercise
    
    
    128.7. Rights of Holders of Options
    
    
    128.8. Delivery of Stock Certificates
    
    
    128.9. Limitations on Incentive Stock Options
    
    
    138.10. Notice of Disqualifying Disposition
    
    
    139. TRANSFERABILITY OF OPTIONS
    
    
    139.1. Transferability of Options
    
    
    139.2. Transfers
    
    
    1310. STOCK APPRECIATION RIGHTS
    
    
    14
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Page10.1. Right to Payment
    
    
    1410.2. Other Terms
    
    
    1411. RESTRICTED STOCK AND STOCK UNITS
    
    
    1411.1. Grant of Restricted Stock or Stock Units
    
    
    1411.2. Restrictions
    
    
    1511.3. Restricted Stock Certificates
    
    
    1511.4. Rights of Holders of Restricted Stock
    
    
    1511.5. Rights of Holders of Stock Units
    
    
    1511.5.1. No Voting and Dividend Rights
    
    
    1511.5.2. Creditors Rights
    
    
    1611.6. Termination of Service
    
    
    1611.7. Purchase of Restricted Stock
    
    
    1611.8. Delivery of Stock
    
    
    1612. UNRESTRICTED STOCK AWARDS
    
    
    1713. FORM OF PAYMENT FOR OPTIONS AND RESTRICTED STOCK AND STOCK UNITS
    
    
    1713.1. General Rule
    
    
    1713.2. Surrender of Stock
    
    
    1713.3. Cashless Exercise
    
    
    1713.4. Other Forms of Payment
    
    
    1814. DIVIDEND EQUIVALENT RIGHTS
    
    
    1814.1. Dividend Equivalent Rights
    
    
    1814.2. Termination of Service
    
    
    1815. PERFORMANCE AND ANNUAL INCENTIVE AWARDS
    
    
    1915.1. Performance Conditions
    
    
    1915.2. Performance or Annual Incentive Awards Granted to Designated Covered
Employees
    
    
    1915.2.1. Performance Goals Generally
    
    
    1915.2.2. Business Criteria
    
    
    1915.2.3. Timing For Establishing Performance Goals
    
    
    2015.2.4. Performance or Annual Incentive Award Pool
    
    
    2015.2.5. Settlement of Performance or Annual Incentive Awards; Other
Terms
    
    
    2015.3. Written Determinations
    
    
    2015.4. Status of Section 15.2 Awards Under Code Section 162(m)
    
    
    2116. PARACHUTE LIMITATIONS
    
    
    2117. REQUIREMENTS OF LAW
    
    
    2217.1. General
    
    
    22
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Page17.2. Rule 16b-3
    
    
    2218. EFFECT OF CHANGES IN CAPITALIZATION
    
    
    2318.1. Changes in Stock
    
    
    2318.2. Changes in Capitalization; Merger; Liquidation
    
    
    2318.3. Adjustments
    
    
    2418.4. No Limitations on Company
    
    
    2419. GENERAL PROVISIONS
    
    
    2419.1. Disclaimer of Rights
    
    
    2419.2. Nonexclusivity of the Plan
    
    
    2519.3. Withholding Taxes
    
    
    2519.4. Captions
    
    
    2619.5. Other Provisions
    
    
    2619.6. Number And Gender
    
    
    2619.7. Severability
    
    
    2619.8. Governing Law
    
    
    2619.9. Code Section 409A
    
    
    26
 
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CAPITALSOURCE INC.
 THIRD AMENDED AND RESTATED EQUITY INCENTIVE PLAN
  1. PURPOSE
  2. DEFINITIONS
  Affiliate
 Annual Incentive Award Section 15
 Award
 Award Agreement
 Benefit Arrangement Section 16




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Board
 Cause
 Code
 Committee Section 3.2
 Company
 Corporate Transaction
 Covered Employee
 Disability
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Dividend Equivalent Section 14
 Exchange Act
 Fair Market Value
 Family Member
 Grant Date Section 6
 Grantee
 Incentive Stock Option
 Non-qualified Stock Option
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Option
 Option Price
 Other Agreement Section 16
 Outside Director
 Performance Award Section 15
 Plan
 Purchase Price
 Reporting Person
 Restricted Stock Section 11
 SAR Exercise Price Section 10
 Securities Act
 Service
 Service Provider
 Stock
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Stock Appreciation Right SAR Section 10
 Stock Unit Section 11
 Subsidiary
 Substitute Award
 Termination Date Section 8.3
 Ten Percent Stockholder
 Unrestricted Stock Section 12
 3. ADMINISTRATION OF THE PLAN
 3.1. Board
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3.2. Committee
 Section 3.1
 3.3. Terms of Awards
       Section 3.7
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3.4. Deferral Arrangement
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3.5. No Liability
  3.6. Share Issuance/Book-Entry.
  3.7. No Repricing.
 Section 18
 4. STOCK SUBJECT TO THE PLAN
 4.1. Number of Shares of Stock Available for Awards and Share Usage
 Section 18 1 2 1 2
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4.2. Adjustments in Authorized Shares.
 Section 4.1
 5. DURATION AND AMENDMENTS
 5.1. [Reserved]
 5.2. Term
 Section 5.3
 5.3. Amendment and Termination of the Plan
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6. AWARD ELIGIBILITY AND LIMITATIONS
 6.1. Service Providers; Outside Directors; Other Persons
 Section 6
 6.2. Successive Awards
  6.3. Limitation on Shares of Stock Subject to Awards and Cash Awards
 Section 6
 Section 6
  Section 6.3 Section
18
 6.4. Stand-Alone, Additional, Tandem, and Substitute Awards
 Section 3.7, Sections 8.1 10.1 Section 3.7
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7. AWARD AGREEMENT
  8. TERMS AND CONDITIONS OF OPTIONS
 8.1. Option Price
 provided however
 8.2. Vesting
 Sections 8.3 18
 8.3. Term
 provided however
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8.4. Termination of Service
  8.5. Limitations on Exercise of Option
  8.6. Method of Exercise
 Section 19.3
 8.7. Rights of Holders of Options
 Section 18
 8.8. Delivery of Stock Certificates
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8.9. Limitations on Incentive Stock Options
  8.10. Notice of Disqualifying Disposition.
  9. TRANSFERABILITY OF OPTIONS
 9.1. Transferability of Options
 Section 9.2 Section 9.2
 9.2. Transfers
 Section 9.2 Section 9.2 Section 9.2 Section 8.4 Section 8.4
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10. STOCK APPRECIATION RIGHTS
  10.1. Right to Payment
  10.2. Other Terms
  11. RESTRICTED STOCK AND STOCK UNITS
 11.1. Grant of Restricted Stock or Stock Units
 Section 6
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11.2. Restrictions
 Section 15.1 15.2
 11.3. Restricted Stock Certificates
 provided however
 11.4. Rights of Holders of Restricted Stock
  11.5. Rights of Holders of Stock Units
 11.5.1. No Voting and Dividend Rights
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11.5.2. Creditors Rights
  11.6. Termination of Service
  11.7. Purchase of Restricted Stock
 Section 13
 11.8. Delivery of Stock
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12. UNRESTRICTED STOCK AWARDS
 .
 13. FORM OF PAYMENT FOR OPTIONS AND RESTRICTED STOCK AND STOCK UNITS
 13.1. General Rule
  13.2. Surrender of Stock
  13.3. Cashless Exercise
 Section 19.3
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13.4. Other Forms of Payment
  14. DIVIDEND EQUIVALENT RIGHTS
 14.1. Dividend Equivalent Rights
  14.2. Termination of Service
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15. PERFORMANCE AND ANNUAL INCENTIVE AWARDS
 15.1. Performance Conditions
 Sections 15.2
 15.2. Performance or Annual Incentive Awards Granted to Designated Covered Employees
 Section 15.2
 15.2.1. Performance Goals Generally
 Section 15.2
 15.2.2. Business Criteria
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15.2.3. Timing For Establishing Performance Goals
  15.2.4. Performance or Annual Incentive Award Pool
  15.2.5. Settlement of Performance or Annual Incentive Awards; Other Terms
  15.3. Written Determinations
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15.4. Status of Section 15.2 Awards Under Code Section 162(m)
 Section 15.2 Section 15.2
 16. PARACHUTE LIMITATIONS
 and
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17. REQUIREMENTS OF LAW
 17.1. General
  17.2. Rule 16b-3
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18. EFFECT OF CHANGES IN CAPITALIZATION
 18.1. Changes in Stock
  18.2. Changes in Capitalization; Merger; Liquidation
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Section 18. 1(a)
 18.3. Adjustments
 Section 18 Section 18
 18.4. No Limitations on Company
  19. GENERAL PROVISIONS
 19.1. Disclaimer of Rights
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19.2. Nonexclusivity of the Plan
  19.3. Withholding Taxes
 Section 19.3
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19.4. Captions
  19.5. Other Provisions
  19.6. Number And Gender
  19.7. Severability
  19.8. Governing Law
  19.9. Code Section 409A
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