EXHIBIT 10.3
 
 COMPOSITE VERSION THRU AMENDMENT NO. 5
 
 AMENDED AND RESTATED
SALE AND SERVICING AGREEMENT
  CSE QRS FUNDING I LLC,  as the Seller
 CSE MORTGAGE LLC,  as the Originator and as the Servicer
 EACH OF THE CONDUIT PURCHASERS AND THE INSTITUTIONAL
PURCHASERS FROM TIME TO TIME PARTY HERETO,  as the Purchasers
 EACH OF THE PURCHASER AGENTS FROM TIME TO TIME PARTY HERETO,  as the Purchaser Agents
 WACHOVIA CAPITAL MARKETS, LLC,  as the Administrative Agent and as the WBNA Agent
  WELLS FARGO BANK, NATIONAL ASSOCIATION,  as the Backup Servicer and as the Collateral Custodian




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AMENDED AND RESTATED SALE AND SERVICING AGREEMENT
 THIS AMENDED AND RESTATED SALE AND SERVICING AGREEMENT Agreement
 CSE QRS FUNDING I LLC Seller
 CSE MORTGAGE LLC CSE Mortgage Originator Servicer
 EACH OF THE CONDUIT PURCHASERS FROM TIME TO TIME PARTY HERETO Conduit Purchaser
 EACH OF THE INSTITUTIONAL PURCHASERS FROM TIME TO TIME PARTY HERETO Institutional
Purchaser Purchasers
 EACH OF THE PURCHASER AGENTS FROM TIME TO TIME PARTY HERETO Purchaser Agent
 WACHOVIA CAPITAL MARKETS, LLC, WCM ARTICLE XII Administrative Agent WBNA WBNA Agent
 WELLS FARGO BANK, NATIONAL ASSOCIATION Wells Fargo Backup Servicer Collateral
Custodian
 R E C I T A L S
 WHEREAS VFCC Original Sale and Servicing Agreement




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WHEREAS Section 13.1
 WHEREAS Fairway Park Avenue Fairway Agent Park Avenue Agent
 WHEREAS
 WHEREAS
 NOW, THEREFORE,
 ARTICLE I
 DEFINITION
 Section 1.1. Certain Defined Terms.
 Section 1.1
 1940 Act Section 10.1(i)
 Accrual Period




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Acquired Loan provided
 Addition Date
 Additional Agent
 Additional Agent Fee Letter
 Additional Agents Account
 Additional Assets
 Additional Purchaser Section 13.16
 Additional Purchaser Agreement
 Adjusted Eurodollar Rate per annum minus
 Administrative Agent Preamble
 Advance Section 2.1(b)
 Advance Rate




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Senior Secured Loans
 Related Property
    
    Advance RateClassification
    
    LTV £ 65%
    
    LTV £ 70%
    
    LTV£ 75%
    
    LTV £ 80%
    
    LTV £ 85%Office Properties,
Industrial
Properties, Retail
Properties,
Healthcare Properties
and Mixed Used
Properties
    
    
    
    
    
    
    
    
    
    
    70
    %
    
    
    65
    %
    
    
    55
    %Multifamily Properties
    
    
    
    
    
    
    
    
    
    
    70
    %
    
    
    65
    %
    
    
    60
    %Hospitality Properties
    
    
    70
    %
    
    
    65
    %
    
    
    60
    %
    
    
    55
    %
    
    
    0
    %Development
Properties,
Condominium
Conversions, Land
Development and Other
Property
    
    
    
    
    
    
    
    
    
    
    65
    %
    
    
    60
    %
    
    
    50
    %
 B-Note Loans
 Related Property
    
    Advance RateClassification
    
    LTV £ 75%
    
    LTV £ 80%
    
    LTV £ 85%Office Properties, Industrial
Properties, Retail Properties,
Healthcare Properties and Mixed
Used Properties
    
    
    
    
    
    
    
    
    
    
    45
    %Multifamily Properties
    
    
    
    
    
    
    
    
    
    
    55
    %Hospitality Properties
    
    
    50
    %
    
    
    45
    %
    
    
    0
    %




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Related Property
    
    Advance RateClassification
    
    LTV £ 75%
    
    LTV £ 80%
    
    LTV £ 85%Development Properties,
Condominium Conversions, Land
Development and Other Property
    
    
    
    
    
    
    
    
    
    
    40
    %
  Advances Outstanding
 Affected Party
 Affected Purchaser Section 13.1(c)
 Affiliate
 Agents Account
 Agented Loans




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pro rata
 Aggregate Outstanding Asset Balance minus
 Aggregate Unpaids Article XI Section
2.9 Section 2.10 Section 2.14 Section 2.15 Section 2.16 provided
 Allocation Adjustment Event
 Alternative Rate per annum provided
 Amortization Period




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Amsterdam Business Day
 Applicable Law
 Appraisal
 Appraisal Institute
 Asset Checklist
 Asset Files
 Asset List Schedule IV
 Assets provided
 Assigned Loan
 Assignment of Leases and Rents




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Assignment of Mortgage Exhibit
I
 Assumption Agreement Section 13.16(b)
 Available Treasuries Amount Section 2.22)
 Available Treasuries Period
 Availability minus provided
 Available Funds
 Average Pool Charged-Off Ratio
 Average Portfolio Charged-Off Ratio




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provided
 Average Portfolio Delinquency Ratio provided
 Backup Servicer Section 7.3 Section 7.5
 Backup Servicer Fee Letter
 Backup Servicer Fee Rate per annum
 Backup Servicer Termination Notice Section 7.5
 Backup Servicing Fee
 Banded Floating Rate Asset
 Bank Subsidiary
 Bankruptcy Code et seq




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Base Rate per annum plus
 Benefit Plan Section 3(3) Section 3(5)
 B-Note Loan
 Borrowing Base minus
 Borrowing Base Certificate Exhibit A-3
 Borrowing Notice Exhibit A-1 A-2 Section
2.9(b)
 Breakage Costs
 Business Day
 Capital Stock




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CapitalSource Bank Transaction
 Change-in-Control
         clause (a)




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provided
 Charged-Off Asset
 Charged-Off Portfolio Asset




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Clearing Agency
 Closing Date
 Code
 Collateral clauses (i (iii) (iv)
 Collateral Custodian Section 8.3 Section 8.5
 Collateral Custodian Fee




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Collateral Custodian Fee Letter
 Collateral Custodian Termination Notice Section 8.5
 Collection Account Section 6.4(f)
 Collection Date
 Collection Period
 Collections
 Commercial Paper Notes
 Commitment
 Commitment Fee
 Concentrations Effective Date




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Condominium Conversions
 Conduit Purchaser
 Consolidated Funded Indebtedness
 Consolidated Subsidiary
 Consolidated Tangible Net Worth provided however provided further however
 Construction Properties
 Contractual Obligation
 CP Rate per annum per annum




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provided per annum
 Credit and Collection Policy Section 5.1(h) Section
5.4(f)
 Credit Party Credit Parties
 CSE Management Agreement
 CSE Prime Rate provided
 CSE LIBOR Rate




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CS Funding III Asset
 CS Funding III Cut-Off Date
 CS Funding III Transaction
 Cut-Off Date
 Deemed Collection Section 2.4(c)
 Delayed-Draw Term Loan
 Delinquent Asset
 Delinquent Portfolio Asset
 Derivatives




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Determination Date
 Development Properties provided
 DIP Loan
 Discretionary Sale Section 2.20
 Discretionary Sale Date
 Discretionary Sale Notice Section 2.20(a)
 Dollars $
 Eligible Asset Exhibit L provided provided




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provided
     provided clause (2)




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provided




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provided




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pro rata
     Eligible Obligor




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Eligible Repurchase Obligations clauses (c)(2) (c)(4)
 Eligible Risk Rating
 Eligible Treasury Security Section 2.11(e)
 Environmental Laws et seq et seq et seq et seq et seq et seq et seq et seq
 ERISA
 ERISA Affiliate




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clause (a) clause (b)
 Eurocurrency Liabilities
 Eurodollar Disruption Event
 Eurodollar Reserve Percentage
 Excepted Person Section 13.13(a)
 Exchange Act
 Excluded Amounts




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Existing Assets
 Face Amount
 Facility Amount provided provided
further
 Facility Termination Date
 Fairway Recitals
 Fairway Agent Recitals
 Fairway Agents Account
 FDIC
 Federal Funds Rate per annum
 Finance Charges




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Financial Sponsor
 First Available Treasuries Period provided however
 Fitch
 Fixed Rate Asset
 Fixed Rate Asset Percentage
 Floating Rate Asset plus
 Fourth Amendment Effective Date
 Funding Date Section 2.3
 GAAP
 Governmental Authority
 H.15




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Healthcare Properties
 Healthcare REIT
 Healthcare REIT Consolidated Subsidiary
 Healthcare REIT Entities
 Hedge Amount minus
 Hedge Collateral Section 5.3(b)
 Hedge Breakage Costs
 Hedge Counterparty Section 5.3(b) clauses (i) (ii)
 Hedge Guaranty
 Hedge Notional Amount Section 5.3(a)




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Hedge Percentage
    Hedge Transaction Section 5.3(a)
 Hedged Rate
 Hedging Agreement Section 5.3(a) Exhibit
D
 Highest Required Investment Category
 Hospitality Properties
 Increased Costs Section 2.15




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Indebtedness clauses (a) (h)
 Indemnified Amounts Section 11.1
 Indemnified Parties Section 11.1
 Independent Director Section 4.1(u)
 Industrial Properties
 Initial Advance
 Insolvency Event




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Insolvency Laws
 Insolvency Proceeding
 Institutional Purchaser Preamble
 Instrument
 Insurance Policy
 Insurance Proceeds
 Intercreditor Agreement
 Interest
 1
  where:IR
    
    =
    
    the Interest Rate applicable on such day;P
    
    =
    
    the principal amount of such Advance on such day; andD
    
    =
    
    360 or, to the extent the Interest Rate is based on the Base Rate, 365 or 366 days, as
applicable.
 provided
 Interest Collections




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Section
2.11(g)
 Interests in Real Property
 Interest Rate
   provided
 ISDA Definitions
 Issuer
 Investment
 Investment Loan




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Investment Loan Subsidiary
 Investment in Equity Instruments
 JPMorgan
 JP Morgan Agent Recitals
 JPMorgan Agents Account
 Land Development
 LIBOR Market Index Rate clause (a) clause (a) clause (b)




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Lien
 Liquid Real Estate Assets
 Liquidation Expenses
 Liquidity Agreement




---



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Liquidity Bank
 Liquidity Factor Reduction Event
 Loan
 Loan Register Section 5.4(n)
 Loan-to-Liquidation Value LLV
 Loan-to-Value Ratio LTV plus pari passu
 Lock-Box Schedule II
 Lock-Box Account Schedule II
 Lock-Box Agreement




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Lock-Box Bank
 Mandatory Treasury Security Prepayment Section 2.4(d)
 Mandatory Treasury Security Prepayment Amount Section 2.4(d)
 Margin Stock
 Material Adverse Effect
 Material Modification provided minus




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provided
 Materially Modified Asset
 Material Mortgage Loan provided
 Materials of Environmental Concern
 Maximum Availability
 minus
 plus plus
 minus plus plus
 Minimum Overcollateralization Amount
 Minimum Pool Yield




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Mixed Use Properties
 Monthly Report Section 6.10(b)
 Moodys
 Mortgage
 Mortgaged Property
 Multiemployer Plan
 Multifamily Properties
 Net Proceeds of Capital Stock/Conversion of Debt provided however
 NOI minus




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Noteless Loan
 Obligor for example
 Office Properties
 Officers Certificate
 Opinion of Counsel
 Optional Sale Section 2.19(a)
 Optional Sale Date Section 2.19(a)
 Original Sale and Servicing Agreement Recitals
 Originator Section 2.21 provided
 Other Costs Section 13.9(c)
 Other Property
 Outstanding Asset Balance plus




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provided Section 2.20(g)
 Overcollateralization Percentage minus
 Park Avenue Recitals
 Park Avenue Agent Recitals
 Participation Loan provided
 Payment Date
 Payment Duties Section 8.2(b)
 Permitted Investments




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provided
   clause (2)
     Permitted Liens




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Permitted Securitization Transaction
 Permitted Transfer
 Person
 Pool Charged-Off Ratio
 Pool Concentration Criteria
    Property Classification
    
    
    Concentration LimitOffice Properties
    
    
    30
    %Healthcare Properties
    
    
    30
    %Industrial Properties
    
    
    30
    %Retail Properties
    
    
    30
    %Multifamily Properties
    
    
    30
    %Hospitality Properties
    
    
    30
    %Mixed-Use Properties
    
    
    25
    %Resort Finance Properties
    
    
    15
    %Other Property
    
    
    10
    %




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Concentration LimitFourthAmendmentLoan Type or Property
    
    Effective Date
    
    8/1/2008 to
    
    11/1/2008 to
    
    2/1/2009Type
    
    to 7/31/2008
    
    10/31/2008
    
    1/31/2009
    
    and AfterSenior Secured ABL
Loans
    
    
    25
    %
    
    
    20
    %
    
    
    15
    %
    
    
    5
    %Land Development
    
    
    20
    %
    
    
    15
    %
    
    
    10
    %
    
    
    5
    %Development
Properties
    
    
    15
    %
    
    
    10
    %
    
    
    10
    %
    
    
    10
    %Condominium
Conversions
    
    
    10
    %
    
    
    7.5
    %
    
    
    5
    %
    
    
    0
    %




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Pool Rate
 Pool Weighted Average Life clause (i); clause (ii) clause (iii)
 Pool Yield minus
 Portfolio Aggregate Outstanding Asset Balance




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Portfolio Asset provided
 Portfolio Charged-Off Ratio provided
 Portfolio Delinquency Ratio provided
 Portfolio Outstanding Asset Balance plus
 Prepaid Asset
 Prepayment Amount Section 6.4(b)
 Prepayments Section 6.4(b)
 Prime Rate




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Principal Collections Section 2.11(g)
 Principal Collections Account Section 6.4(f)
 Proceeds
 Program Fee
 Program Fee Rate
 Pro Rata Share subsection (i)(a) subsection (i)(a)
 Purchaser Purchasers
 Purchaser Affiliate
 Purchaser Agent




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Purchaser Fee Letter
 Qualified Institution Section 6.4(f)
 Qualified Transferee
     subclauses (I) (II) subclauses (i) (ii) (iii)
  Quarterly Determination Date




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Rating Agency
 Records
 Recoveries
 Register Section 13.16(d)
 Regulation U
 REIT
 Related Property provided
 Related Security




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Replaced Asset Section 2.18(a)
 Replacement Notice Section 13.1(c)
 Replacement Purchaser Section 13.1(c)
 Reporting Date
 Required Advance Reduction Amount minus
 Required Asset Documents provided
 Required Reports Section 6.10(c) Section




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6.10(d) Section 6.11 Section 6.12
 Residential Mortgage Policies and Procedures Schedule V
 Resort Finance Properties
 Responsible Officer
 Restricted Junior Payment
 Retail Properties
 Retained Interest clause (A)
 Retransfer Date Section 4.6
 Revolving Loan provided




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Revolving Period
 S&P
 Sale Agreement
 Scaldis
 Scaldis Agent
 Scaldis Agent Account
 Scheduled Payments
 Second Available Treasuries Period provided however provided further
 Secured Party
 Securities Account Control Agreement
 Seller Preamble
 Senior Secured ABL Loan




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pari passu
 Senior Secured Loan pari passu
 Servicer Section 6.16(a)
 Servicer Advance Section
6.5
 Servicer Default Section 6.15
 Servicer Termination Notice Section 6.15
 Servicers Certificate Section 6.10(c)
 Servicing Fee Section 2.14(b)
 Servicing Fee Rate per annum per annum
 Servicing Guarantor




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Servicing Guaranty Section 2.21
 Solvent
 Subsidiary provided however
 Substitute Asset Section 2.18
 Successor Servicer Section 6.16(a)
 Tape Section 7.2(b)(ii)
 Taxes
 Termination Date Section 2.4 Section 10.2(a) Section
10.2(b)




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Termination Event Section 10.1
 Term Loan
 Three Pillars
 Three Pillars Agent
 Three Pillars Agents Account
 Transaction Section 3.2
 Transaction Documents
 Transfer Duties Section 8.2(b)
 Transferee Letter Section 13.16(a)
 Transition Expenses
 Treasury Reserve Amount Wall Street Journal
 Treasury Securities Account Section 6.4(h)




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UCC
 Underlying Instruments
 United States
 Unmatured Termination Event
 US Bank Collection Account
 Variable Funding Note VFN Section 2.1(a)
 VFCC Recitals
 Voting Stock
 Wachovia
 Warranty Asset provided clauses (1)(c) (1)(d) 1(m)(i) 1(t) clause 1(t) 1(w) 1(x) (1)(y) clauses (2)(e) 2(f) clauses 2(e) 2(f) clauses (vi) (vii) clauses (1)(a) (b)(i) (d) (e) (f) (j) (k) (r) (cc) (ee) (ff)
 Warranty Event




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WBNA Preamble
 WBNA Agent Preamble
 WBNA Agents Account
 WCM Preamble
 Weighted Average Advance Rate
 Workout Asset
 Section 1.2. Other Terms.
  Section 1.3. Computation of Time Periods.
  Section 1.4. Interpretation.




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ARTICLE II
 PURCHASE OF THE VARIABLE FUNDING NOTES
 Section 2.1. The Variable Funding Notes.
 Variable Funding Note VFN Exhibit B-1 B-2 Section 9.1 provided
 Advance provided Section 2.1




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Section 2.9(a)(1) Section 2.10(a)(2)
 [ Reserved ]
 clause (c) clause (c) clause (c) clause (c) clause
(c)
 provided
  Section 2.1(f)




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Section 2.2. [Reserved].
 Section 2.3. Procedures for Advances by Purchasers.
 provided Article III Section 2.11(e)
 Section 2.3(d) Article III




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Section 2.3
  Section 2.11(e) Article III Article III Section 8.11
 Section 2.4. Reduction of the Facility Amount; Mandatory and Optional Repayments.
 provided Section 2.4(a) Section 2.4(a)
 provided




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first pro rata second third Section 2.4(b)
 Deemed Collection pro rata plus Section 2.4(c)
 Mandatory Treasury Security Prepayment minus Mandatory Treasury Security Prepayment Amount




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provided pro rata Section 2.4(d)
 Section 2.5. Determination of Interest.
   Section 2.6. [Reserved].
 Section 2.7. [Reserved].
 Section 2.8. Notations on Variable Funding Notes.
  Section 2.9. Settlement Procedures During the Revolving Period.




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pro rata
   pro rata
 pro rata
 pro rata
 pro rata
 clause (5) pro rata
 pro rata
 pro rata clause (10)




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Section 3.2(b)
  clause (ii) Exhibit A-2
  clauses (i) (iv)
 Section 2.10. Settlement Procedures During the Amortization Period.
  pro rata




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pro rata
 pro rata
 pro rata
 clause (5) pro rata
 pro rata clause
(1)
 pro rata clause (9)
  Section 2.11. Collections and Allocations.
 Collections Section 2.11(f)




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Section 6.10(b)
 Initial Deposits
 Excluded Amounts
 Investment of Funds Section 2.9 Section 2.10
 Treasury Reserve Amount Section 2.11(g)
 Collections on Eligible Treasury Securities




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Section 6.10(b) Section 2.11(g)
 Disbursements from the Treasury Securities Account Section 2.4(b) pro
rata Section 2.11(g)
 Section 2.12. Payments, Computations, Etc.
 per annum provided
 Section 2.9(a)(10) Section 2.10(a)(9)
 Section 2.3




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Section 2.13. Optional Repurchase.
 provided Section 2.10
 Section 2.14. Fees.
 Section
2.9(a)(5) Section 2.10(a)(5)
 Servicing Fee Section 2.9(a)(3) Section 2.10(a)(3)
 Section 2.9(a)(4) Section 2.10(a)(4)
 Section 2.9(a)(4) Section 2.10(a)(4)
  Section 2.15. Increased Costs; Capital Adequacy; Illegality.




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Section
2.15
 clauses
(a) (b) Section 2.15




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Section 2.15 Section 2.15
 clause (a)
 Section 2.16. Taxes.
 Additional Amount




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Section 2.16(d)
 Section 2.16
 Section 2.16
 Section 2.17. Assignment of the Sale Agreement.
 Article VIII
 Section 2.18. Substitution of Assets.
 Section 2.18




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Substitute Asset provided
 Replaced Asset
   Section 4.6
 Section 4.6
 Section 4.1 Section 4.2
     Section 2.18




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Section 2.19. Optional Sales.
 Optional Sale
 provided provided
 provided clause (b) clause
(viii) Section
2.19
  Section
4.1
 plus




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plus provided clauses (iii) (iv) (v) Section 2.19(a)
   clause (b)
    clause (a)(v) clause (a)(iv)




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Section 2.20. Discretionary Sales.
 Discretionary Sale
 Discretionary Sale Notice
  Section 4.1




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provided clauses (i) (iii) clause (d)
 provided
 Section 2.11(g)
  Section 2.21. Assets Originated by Affiliates of CapitalSource Inc. Other than the
Originator.
  Section 2.22. Recalculation of Available Treasuries Amount.
 provided




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Section 2.4(d) Section 2.22 Section 2.4(d)
 ARTICLE III
 CONDITIONS TO ADVANCES
 Section 3.1. Conditions to Closing and Initial Advance.
  Schedule I
  Exhibits F-1 F-2
 Exhibits G-1 G-2




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Exhibits E-1 E-2
  Section 3.2. Conditions Precedent to All Advances.
 Transaction
 Exhibit A-1 Exhibit A-3 Exhibit A Schedule I Section 2.4(b) Section 2.9(b) Exhibit A-2 Exhibit A-3
  Section 4.1 Section
4.2 Section 4.3




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Exhibit L provided
    Section 2.3
 Schedule I
  Section 8.11




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Section
2.3(d) Section 8.11
 Section 8.11 Section 2.11(e)
   ARTICLE IV
 REPRESENTATIONS AND WARRANTIES
 Section 4.1. Representations and Warranties of the Seller.
  Organization and Good Standing
 Due Qualification
 Power and Authority; Due Authorization; Execution and Delivery




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Binding Obligation
 No Violation
 No Proceedings
 All Consents Required
 Bulk Sales
 Solvency Exhibit E-1
 Selection Procedures




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Taxes
 Exchange Act Compliance; Regulations T, U and X
 Security Interest




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Reports Accurate
 Location of Offices Section 13.2 Section 5.2(g)
 Lock-Boxes Schedule II Section 5.2(k)
 Tradenames
 Sale Agreement




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Value Given
 Accounting
 Special Purpose Entity
       provided




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Independent Director provided




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Confirmation from the Originator
 Investment Company Act
 ERISA Pension Plans
  Compliance with Law
 Credit and Collection Policy
 Collections




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Set-Off, etc Section 6.4(a)
 Full Payment
 Accuracy of Representations and Warranties
 Representations and Warranties in Sale Agreement Section 4.1(ff) mutatis mutandis
 Reaffirmation of Representations and Warranties by the Seller Section 4.1
 Participation, Acquired and Assigned Loans
 Environmental




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USA PATRIOT Act
 Section 4.1(m)
 Section 4.2. Representations and Warranties of the Seller Relating to the Agreement and
the Collateral.




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Section 4.1(m)
 Eligibility of Collateral Section
2.3 Section 4.2(a)
 No Fraud
 Section 4.3. Representations and Warranties of the Servicer.
  Organization and Good Standing
 Due Qualification




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Power and Authority; Due Authorization; Execution and Delivery
 Binding Obligation
 No Violation
 No Proceedings
 All Consents Required
 Reports Accurate
 Credit and Collection Policy




---



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Collections
 Bulk Sales
 Solvency Exhibit E-2
 Taxes
 Exchange Act Compliance; Regulations T, U and X
 Security Interest
 ERISA Pension Plans




---



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Investment Company Act
 USA PATRIOT Act
 Section 4.4. Representations and Warranties of the Backup Servicer.
  Organization and Corporate Power
 Due Authorization
 No Conflict




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No Violation
 All Consents Required
 Validity, Etc
 Section 4.5. Representations and Warranties of the Collateral Custodian.
  Organization and Corporate Power
 Due Authorization
 No Conflict
 No Violation
 All Consents Required




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Validity, Etc
 Section 4.6. Breach of Certain Representations and Warranties.
 Section
2.9 Section 2.10 Section 2.18 Retransfer Date Section 4.6
 ARTICLE V
 GENERAL COVENANTS
 Section 5.1.Affirmative Covenants of the Seller.




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Compliance with Laws
 Preservation of Company Existence
 Performance and Compliance with Collateral
 Keeping of Records and Books of Account
 Originators Collateral
 Delivery of Collections Section 5.4(k)
 Separate Limited Liability Company Existence Section 4.1(u)




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Credit and Collection Policy provided
 Termination Events
 Taxes
 Use of Proceeds
 Obligor Notification Forms
 Adverse Claims
 Sellers Collateral




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Notices
 Income Tax Liability
 Auditors Management Letters
 Representations Section 4.1
 ERISA
 Proceedings provided




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Section 5.1(o)
 Notice of Material Events
 Other
 Section 5.2. Negative Covenants of the Seller.
  Other Business Section 5.3(a)
 Collateral Not to be Evidenced by Instruments
 Security Interests provided Section 5.2(c)
 Mergers, Acquisitions, Sales, etc
 Deposits to Special Accounts




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Restricted Payments
 Change of Name or Location of Loan Files Section 13.2
 Accounting of Purchases
 ERISA Matters
 Operating Agreement; Sale Agreement
 Changes in Payment Instructions to Obligors Schedule II




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Extension or Amendment of Collateral Section 6.4(a) provided Section 6.4(a)
 Credit and Collection Policy provided
 Other Indebtedness pari passu
 Section 5.3. Covenants of the Seller Relating to the Hedging of Assets.
 provided




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Section 2.9(a)(1) Section
2.10(a)(1)
 Hedge Collateral Section 5.3(a)
 Section 5.4. Affirmative Covenants of the Servicer.
  Compliance with Law
 Preservation of Company Existence
 Obligations and Compliance with Collateral




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Preservation of Security Interest
 Credit and Collection Policy provided
 Termination Events
 Taxes
 Other




---



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Proceedings provided Section 5.4(j)
 Deposit of Collections
 Servicing of Participation, Acquired and Assigned Loans
 Change-in-Control
 Loan Register
 Loan Register Section 5.04(n) provided




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Section 5.5. Negative Covenants of the Servicer.
  Deposits to Special Accounts
 Mergers, Acquisition, Sales, etc
 Section 5.5
    Change of Name or Location of Loan Files Section 13.2




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Change in Payment Instructions to Obligors Schedule
II
 Extension or Amendment of Assets Section 6.4(a)  provided Section 6.4(a)
 Section 5.6. Affirmative Covenants of the Backup Servicer.
  Compliance with Law
 Preservation of Existence
 Section 5.7. Negative Covenants of the Backup Servicer.
  No Changes in Backup Servicer Fee
 Section 5.8. Affirmative Covenants of the Collateral Custodian.
  Compliance with Law
 Preservation of Existence




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Location of Required Asset Documents
 Section 5.9. Negative Covenants of the Collateral Custodian.
  Required Asset Documents
 No Changes in Collateral Custodian Fee
 ARTICLE VI
 ADMINISTRATION AND SERVICING OF CONTRACTS
 Section 6.1. Designation of the Servicer.
 Initial Servicer Section 6.1
 Successor Servicer Section 6.15
 Subcontracts provided




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Servicing Programs
 Section 6.2. Duties of the Servicer.
 Appointment Section 6.1
 Duties




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Section 2.9 Section 2.10
   Section 6.3. Authorization of the Servicer.




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##### 



provided
 Section 6.4. Collection of Payments.
 Collection Efforts, Modification of Collateral
 Prepaid Asset Section
2.18 over Prepayment Amount




---



##### 



plus
 Acceleration
 Taxes and other Amounts
 Payments to Lock-Box Account Section 5.1(p)
 Establishment of the Collection Account Collection Account Principal Collections Account Section 2.9(b) provided Qualified Institution
 Adjustments




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##### 



Establishment of the Treasury Securities Account Treasury Securities Account Section 2.3(d) Section 2.3(d) Section 2.3(d) Section 2.11(g)
 Section 6.5. Servicer Advances.
  Section 6.6. Realization Upon Charged-Off Assets.




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##### 



Section 6.7. Maintenance of Insurance Policies.
  Section 6.8. Servicing Compensation.
 Section 2.9(a)(3) Section 2.10(a)(3)
 Section 6.9. Payment of Certain Expenses by Servicer.




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##### 



Section 6.6 provided pro rata
 Section 6.10. Reports.
 Borrowing Notice Section 2.4(b) Section 2.9(b)
 Monthly Report Exhibit C Monthly Report
 Servicers Certificate Servicers Certificate Exhibit J
 Financial Statements
 Tax Returns
 Financial Statements of Obligors
 Other Reports




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##### 



Section 6.11. Annual Statement as to Compliance.
  Section 6.12. Annual Independent Public Accountants Servicing Reports.
 Article VI
 Section 6.13. Limitation on Liability of the Servicer and Others.
 provided
 Section 6.14. The Servicer Not to Resign.




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##### 



clause
(i) Section 6.2
 Section 6.15. Servicer Defaults.
 Servicer Default
      Section
6.1




---



##### 



plus plus
 [ Reserved ]
    Servicer Termination Notice
 Section 6.16. Appointment of Successor Servicer.
 Section 6.15




---



##### 



Successor Servicer
 Section 6.16(a) provided provided Article IV Section 2.15 Section 2.16(b) Section
2.16(e)




---



##### 



Section 6.16 Section 6.16(a)
 ARTICLE VII
 THE BACKUP SERVICER
 Section 7.1. Designation of the Backup Servicer.
 Initial Backup Servicer Section 7.1




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##### 



Successor Backup Servicer Section 7.5
 Section 7.2. Duties of the Backup Servicer.
 Appointment Section 7.1
 Duties Section 7.5
 provided
 Tape
  clause (iii)




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##### 



clause (iii)
 Reliance on Tape Section 7.2(b)
 Section 7.3. Merger or Consolidation.
  Section 7.4. Backup Servicing Compensation.
 Section 2.9(a)(4) Section 2.10(a)(4) Section 7.5 Section 6.16




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Section 7.5. Backup Servicer Removal.
 Backup Servicer Termination Notice
 Section 7.6. Limitation on Liability.
   Section 7.7. The Backup Servicer Not to Resign.




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##### 



clause (i)
 ARTICLE VIII
 THE COLLATERAL CUSTODIAN
 Section 8.1. Designation of Collateral Custodian.
 Initial Collateral Custodian Section 8.1
 Successor Collateral Custodian Section 8.5
 Section 8.2. Duties of Collateral Custodian.
 Appointment
 Duties Section 8.5
 Section 3.2 Review Criteria




---



##### 



provided provided further
 Schedule III
 Section 2.9 Section 2.10 Payment
Duties




---



##### 



Section 2.11(g) Transfer Duties
  Section 8.3. Merger or Consolidation.
  Section 8.4. Collateral Custodian Compensation.
 Collateral Custodian Fee Section 2.9(a)(4) Section 2.10(a)(4) Section 8.5
 Section 8.5. Collateral Custodian Removal.
 Collateral Custodian Termination
Notice provided




---



##### 



Section 8.6. Limitation on Liability.
        Section 8.7. The Collateral Custodian Not to Resign.




---



##### 



clause (i)
 Section 8.8. Release of Documents.
 Release for Servicing Exhibit H Exhibit H
 Limitation on Release
 Release for Payment Exhibit H
 Section 8.9. Return of Required Asset Documents.




---



##### 



Section 2.18 Section 9.2 Section 4.6 Exhibit H
 Section 8.10. Access to Certain Documentation and Information Regarding the Collateral; Audits.
 Section 8.10
 Section 8.11. Purchase of Eligible Treasury Securities.
 Section 2.3 Section 2.11 Article III provided




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##### 



ARTICLE IX
 SECURITY INTEREST
 Section 9.1. Grant of Security Interest.
 Section 9.1
 Section 9.2. Release of Lien on Collateral.
 Section 2.18 Section 13.6 Section 2.19 Section 2.20




---



##### 



provided Section 6.6
 Section 9.3. Further Assurances.
 Section 13.12 Section 9.1
 Section 9.4. Remedies.
 Section 9.1
 Section 9.5. Waiver of Certain Laws.
  Section 9.6. Power of Attorney.




---



##### 



ARTICLE X
 TERMINATION EVENTS
 Section 10.1. Termination Events.
 Termination Events
    provided Section 2.10
     1940 Act




---



##### 



Section 6323




---



##### 



provided
 Section 2.4(d)
 Section 10.2. Remedies.
 Section 10.1(h)
 Section 10.1(h)




---



##### 



Section 10.1 Section 2.10
 ARTICLE XI
 INDEMNIFICATION
 Section 11.1. Indemnities by the Seller.
 Indemnified Parties Indemnified Amounts




---



##### 



Section 11.1




---



##### 








---



##### 



Section 11.1
 Section 11.1
 Section 11.1
 Section 11.2. Indemnities by the Servicer.




---



##### 



Section 11.2
  Section 11.2
 Section 11.2
 Section 11.3. After-Tax Basis.
 Section 11.1 Section 11.2
 ARTICLE XII
 THE ADMINISTRATIVE AGENT
AND PURCHASER AGENTS
 Section 12.1. The Administrative Agent.




---



##### 



provided
  Administrative Agents Reliance, Etc
 Credit Decision with Respect to the Administrative Agent




---



##### 



Indemnification of the Administrative Agent provided
 Successor Administrative Agent Article XII




---



##### 



Payments by the Administrative Agent
 Section 12.2. The Purchaser Agents.
 Authorization and Action
 Delegation of Duties
 Exculpatory Provisions




---



##### 



Article
III
 Reliance provided
 Non-Reliance on the Purchaser Agent and Other Purchasers
 Purchaser Agents in their Respective Capacities




---



##### 



Successor Purchaser Agent Articles XI XII
 Section 12.3. Additional Agent.
 Authorization and Action
 Delegation of Duties
 Exculpatory Provisions




---



##### 



Article IV
 Reliance by Additional Agent provided
 Non-Reliance on Additional Agent
 Additional Agent in its Individual Capacity




---



##### 



Successor Additional Agent Articles XI XII
 ARTICLE XIII
 MISCELLANEOUS
 Section 13.1. Amendments and Waivers.
 Section 13.1 provided
 provided
 Affected Purchaser Replacement Notice




---



##### 



Replacement Purchaser provided Section 13.1(c)
 Section 13.2. Notices, Etc.
 provided Article II Section 6.10 Section 6.11 Section 6.12
 Section 13.3. Ratable Payments.




---



##### 



Section 11.1 provided
 Section 13.4. No Waiver; Remedies.
  Section 13.5. Binding Effect; Benefit of Agreement.
 Section 2.9(a)(1) Section 2.10(a)(1)
 Section 13.6. Term of this Agreement.
 Articles IV V Articles VI VII VIII provided Articles III IV Article
XI Section 13.9 Section 13.10 Section 13.11
 Section 13.7. Governing Law; Consent to Jurisdiction; Waiver of Objection to Venue.




---



##### 



Section 13.8. Waiver of Jury Trial.
  Section 13.9. Costs, Expenses and Taxes.




---



##### 



Other Costs
 Section 13.10. No Proceedings.
   provided Section 13.10
 Section 13.11. Recourse Against Certain Parties.
 it being expressly agreed and understood




---



##### 



Section 13.11
    Section 13.12. Protection of Right, Title and Interest in the Collateral; Further
Action Evidencing Advances .




---



##### 



Section 13.12(a)
  Article
XI
 Section 3.1
  Section 3.1




---



##### 



Section 13.13. Confidentiality
 Excepted Persons Section 13.13(a) clause (a)




---



##### 



provided
 Section 13.14. Execution in Counterparts; Severability; Integration.
  Section 13.15. Waiver of Setoff.
   Section 13.16. Assignments.




---



##### 



Additional Purchaser provided Exhibit K Transferee Letter
 provided however Exhibit M Assumption Agreement
 Section
13.16(a) Participant Sections 2.14 2.16 Article XI
 Register prima facie




---



##### 



Section 13.17. Heading and Exhibits.
  Section 13.18. Loans Subject to Retained Interest Provisions.
 provided clauses (i) (iii) clause (ii) clause (iv) pro rata
 pro rata
 Section 13.19. Tax Treatment of Advances.
  Section 13.20. Original Sale and Servicing Agreement.




---



##### 



[Remainder of Page Intentionally Left Blank.]




---



##### 



THE SELLER:
    
    CSE QRS FUNDING I LLCBy:
    
    /S/ JEFFREY A. LIPSONName:
    
    Jeffrey A. LipsonTitle:
    
    Vice President and Treasurer
 CSE QRS Funding I LLC4445 Willard Avenue, 12th FloorChevy Chase, Maryland 20815Attention:
    
    TreasurerFacsimile No.:
    
    (301) 841-2375Confirmation No.:
    
    (301) 841-2731
 THE ORIGINATOR AND SERVICER:
    
    CSE MORTGAGE LLCBy:
    
    /S/ JEFFREY A. LIPSONName:
    
    Jeffrey A. LipsonTitle:
    
    Vice President and Treasurer
 CSE Mortgage LLC4445 Willard Avenue, 12th FloorChevy Chase, Maryland 20815Attention:
    
    TreasurerFacsimile No.:
    
    (301) 841-2375Confirmation No.:
    
    (301) 841-2731
 [Signatures Continued on the Following Page]




---



##### 



WBNA:
    
    WACHOVIA BANK, NATIONAL
ASSOCIATIONCommitment: $326,000,000By:
    
    /S/ RAJ SHAHName:
    
    Raj ShahTitle:
    
    Managing Director
 Wachovia Bank, National AssociationOne Wachovia Center, NC0602Charlotte, North Carolina 28288Attention:
    
    Paul BurkhartFacsimile No.:
    
    (704) 715-0067Confirmation No.:
    
    (704) 383-3766
 THE ADMINISTRATIVE AGENT
AND THE WBNA AGENT
    
    WACHOVIA CAPITAL MARKETS, LLCBy:
    
    /S/ MARY KATHERINE DUBAYName:
    
    Mary Katherine DubayTitle:
    
    Managing Director
 Wachovia Capital Markets, LLCOne Wachovia Center, Mail Code: NC0602Charlotte, North Carolina 28288Attention:
    
    Paul BurkhartFacsimile No.:
    
    (704) 715-0067Confirmation No.:
    
    (704) 383-3766
 [Signatures Continued on the Following Page]




---



##### 



JPMORGAN AND
THE JPMORGAN AGENT
    
    JPMORGAN CHASE BANK, NATIONAL
ASSOCIATIONCommitment: $163,000,000By:
    
    /S/ RICHARD J. POWOROZNEKName:
    
    Richard J. PoworoznekTitle:
    
    Executive Director
 JPMorgan Chase Bank, National AssociationJPMorgan Loan Services1111 Fannin Street10th FloorHouston, TX 77002Attn: Kabinet Kaba/Saleema Hyatt
 [Signatures Continued on the Following Page]




---



##### 



FAIRWAY:
    
    FAIRWAY FINANCE COMPANY, LLCCommitment: $101,875,000By:
    
    /S/ PHILIP A. MARTONEName:
    
    Philip A. MartoneTitle:
    
    Vice President
 Fairway Finance Company, LLCc/o Lord Securities Corporation48 Wall Street, 27th FloorNew York, New York 10005Attention:
    
    Vice PresidentFacsimile No.:
    
    (212) 346-9012Confirmation No.:
    
    (212) 346-9008With a copy to:c/o BMO Capital Markets Corp.115 South LaSalle Street13th Floor WestChicago, Illinois 60603
 THE FAIRWAY AGENT:
    
    BMO CAPITAL MARKETS CORP.By:
    
    /S/ JOHN PAPPANOName:
    
    John PappanoTitle:
    
    Managing Director
 BMO Capital Markets Corp.115 South LaSalle Street13th Floor WestChicago, Illinois 60603
 [Signatures Continued on the Following Page]




---



##### 



THREE PILLARS:
    
    THREE PILLARS FUNDING LLCCommitment: $163,000,000By:
    
    /S/ DORIS J. HEARNName:
    
    Doris J. HearnTitle:
    
    Vice President
 c/o AMACAR Group, L.L.C.6525 Morrison Boulevard, Suite 318Charlotte, North Carolina 28211Attention: Douglas K. JohnsonFacsimile No.:
    
    (704) 365-1362Confirmation No.:
    
    (704) 365-0569
 THE THREE PILLARS AGENT:
    
    SUNTRUST ROBINSON HUMPHREY, INC.By:
    
    /S/ JOSEPH R. FRANKEName:
    
    Joseph R. FrankeTitle:
    
    Director
 SunTrust Robinson Humphrey, Inc.23rd Floor  MC 3950303 Peachtree StreetAtlanta, Georgia 30308Attention:
    
    Asset Securitization DivisionFacsimile No.:
    
    (404) 813-5000Confirmation No.:
    
    (404) 230-5254
 [Signatures Continued on the Following Page]




---



##### 



SCALDIS:
    
    SCALDIS CAPITAL LIMITEDCommitment: $61,125,000By:
    
    /S/ ANNE-MARIE BURNSName:
    
    Anne-Marie BurnsTitle:
    
    Director
 Whiteley ChambersDon Street, St. HelierJersey, JE4 9WGChannel IslandsAttention:
    
    SPV ServicesFacsimile No.:
    
    +44 1534 504 444Confirmation No.:
    
    +44 1534 504 000With a copy to:Fortis Intertrust NetherlandsP.O. Box 990  A03.06.581000 AZ AmsterdamThe NetherlandsEmail:
    
    scaldis@fortisintertrust.comAttention:
    
    Scaldis Capital  Thomas ButerFacsimile No.:
    
    +31 20 521 4832Confirmation No.:
    
    +31 20 521 4733And:Fortis Bank Global Markets520 Madison AvenueNew York, NY 10022Email:
    
    securitization.us@us.fortis.comAttention:
    
    U.S. SecuritizationFacsimile No.:
    
    (646) 282-4655Confirmation No.:
    
    (212) 340-5812
 [Signatures Continued on the Following Page]




---



##### 



THE SCALDIS AGENT:
    
    FORTIS BANK S.A./N.V.By:
    
    /S/ CATHERINE DIORName:
    
    Catherine DiorTitle:
    
    Head of DCMBy:
    
    /S/ DIDIER LANNOYName:
    
    Didier LannoyTitle:
    
    Chief of Staff
 Fortis Intertrust NetherlandsP.O. Box 990  A03.06.581000 AZ AmsterdamThe NetherlandsEmail:
    
    scaldis@fortisintertrust.comAttention:
    
    Scaldis Capital  Thomas ButerFacsimile No.:
    
    +31 20 521 4832Confirmation No.:
    
    +31 20 521 4733With a copy to:Fortis Bank Global Markets520 Madison AvenueNew York, NY 10022Email:
    
    securitization.us@us.fortis.comAttention:
    
    U.S. SecuritizationFacsimile No.:
    
    (646) 282-4655Confirmation No.:
    
    (212) 340-5812
 [Signatures Continued on the Following Page]




---



##### 



THE BACKUP SERVICER: AND THE COLLATERAL CUSTODIAN:
    
    WELLS FARGO BANK, NATIONALASSOCIATION, not in its individual capacity but
solely as Backup ServicerBy:
    
    /S/ JEANINE C. CASEYName:
    
    Jeanine C. CaseyTitle:
    
    Vice President
 Wells Fargo Bank, National AssociationSixth Street and Marquette AvenueMAC N9311-161Minneapolis, Minnesota 55479Attention:
    
    Corporate Trust ServicesCollateral-Backed AdministrationFacsimile No.:
    
    (612) 667-3539Confirmation No.:
    
    (612) 667-8058
 [Signatures Continued on the Following Page]




---



##### 



WACHOVIA BANK, NATIONAL ASSOCIATION
 By: 
Name:
    
    /S/ KIM V. FARR

Kim V. FarrTitle:
    
    Director
 Wachovia Bank, National AssociationOne Wachovia Center, DC-8Charlotte, North Carolina 28202-0600Attention:
    
    Bruce M. YoungFacsimile No.:
    
    (704) 383-0575Confirmation No.:
    
    (704) 383-8778